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Unless otherwise","page_number":22,"box":{"x":102,"y":82,"width":767,"height":9}},{"id":"e1575b4c-5183-493a-8d16-e5d7e3985636","block_type":"box","text":"provided, all references below to the assets of the Fund are in terms of current market value.","page_number":22,"box":{"x":70,"y":98,"width":664,"height":11}},{"id":"9f3f16ea-9f2f-4004-a9cb-56bd731c77d8","block_type":"box","text":"Under its fundamental investment restrictions, the Fund may not:","page_number":22,"box":{"x":102,"y":120,"width":463,"height":11}},{"id":"af833394-cb59-4e8e-b737-a0922d9338cb","block_type":"box","text":"(1) Make any investment inconsistent with the Fund’s classification as a diversified company under the","page_number":22,"box":{"x":102,"y":143,"width":733,"height":11}},{"id":"021d6221-ec9c-415b-8347-b26453a258a7","block_type":"box","text":"Investment Company Act.","page_number":22,"box":{"x":70,"y":158,"width":178,"height":11}},{"id":"2bfd7469-815d-4685-9964-a5bbfd0f4651","block_type":"box","text":"(2) Invest more than 25% of its assets, taken at market value, in the securities of issuers in any particular","page_number":22,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"fc9665a6-7516-4f3d-a3ef-ebef16f66b05","block_type":"box","text":"industry (excluding the U.S. Government and its agencies and instrumentalities).","page_number":22,"box":{"x":70,"y":196,"width":573,"height":11}},{"id":"b9d4e830-5cc7-4808-93b0-173adc9ab75b","block_type":"box","text":"(3) Make investments for the purpose of exercising control or management.","page_number":22,"box":{"x":102,"y":218,"width":537,"height":12}},{"id":"c4602ed4-ba7c-4297-9ad3-a4ba76b06a62","block_type":"box","text":"(4) Purchase or sell real estate, except that, to the extent permitted by applicable law, the Fund may invest in","page_number":22,"box":{"x":102,"y":241,"width":778,"height":11}},{"id":"4a9d59a8-3c22-47f9-9530-77ed68993a2f","block_type":"box","text":"securities directly or indirectly secured by real estate or interests therein or issued by companies that invest in real","page_number":22,"box":{"x":69,"y":257,"width":820,"height":10}},{"id":"bf0511ca-64fc-4760-af8e-c78cfdcf27d9","block_type":"box","text":"estate or interests therein.","page_number":22,"box":{"x":69,"y":272,"width":190,"height":8}},{"id":"4efe04c7-c39c-4665-8dca-3d74cd4e04a6","block_type":"box","text":"(5) Make loans to other persons, except (i) that the acquisition of bonds, debentures or other corporate debt","page_number":22,"box":{"x":102,"y":294,"width":774,"height":11}},{"id":"e3c853b7-0888-4b00-b7b3-8218863d863b","block_type":"box","text":"securities and investment in government obligations, commercial paper, pass-through instruments, certificates of","page_number":22,"box":{"x":69,"y":309,"width":810,"height":11}},{"id":"26ea2498-bbd3-4f78-a753-580669a843e7","block_type":"box","text":"deposit, bankers’ acceptances, repurchase agreements or any similar instruments shall not be deemed to be the","page_number":22,"box":{"x":69,"y":325,"width":809,"height":11}},{"id":"37df04f5-6bf0-4cb9-9c1c-e497a8dc9776","block_type":"box","text":"making of a loan; (ii) that the Fund may lend its portfolio securities, provided that the lending of portfolio securities","page_number":22,"box":{"x":69,"y":339,"width":820,"height":12}},{"id":"b3d68676-3cc8-43fa-be8c-328fdbfa3f1d","block_type":"box","text":"may be made only in accordance with applicable law and the guidelines set forth in the Fund’s prospectus and this","page_number":22,"box":{"x":69,"y":355,"width":819,"height":11}},{"id":"a972eff0-e377-4ff3-85d0-0c035308d51c","block_type":"box","text":"SAI, as they may be amended from time to time; and (iii) as may otherwise be permitted by an exemptive order","page_number":22,"box":{"x":69,"y":370,"width":793,"height":11}},{"id":"b92e2513-168f-4146-ad38-75275b184d1c","block_type":"box","text":"issued to the Fund by the Commission.","page_number":22,"box":{"x":70,"y":385,"width":276,"height":11}},{"id":"4ca571e9-582d-48ac-8c5d-e39b668f7e1a","block_type":"box","text":"(6) Issue senior securities to the extent such issuance would violate applicable law.","page_number":22,"box":{"x":102,"y":408,"width":594,"height":10}},{"id":"90481ffb-74eb-4d84-8db9-e5a7f8cc1586","block_type":"box","text":"(7) Borrow money, except that (i) the Fund may borrow in amounts up to 33","page_number":22,"box":{"x":102,"y":430,"width":535,"height":11}},{"id":"dba24ee4-0e39-45b7-b227-9cbb6d1cdaaa","block_type":"box","text":"1⁄","page_number":22,"box":{"x":639,"y":430,"width":6,"height":6}},{"id":"7dd76893-ff24-40c4-92b4-35f56a64ba54","block_type":"box","text":"1⁄3","page_number":22,"box":{"x":642,"y":430,"width":8,"height":9}},{"id":"b0597e22-c7d0-47f3-995f-ee0be2176c6e","block_type":"box","text":"⁄3","page_number":22,"box":{"x":648,"y":434,"width":6,"height":5}},{"id":"3e1294c2-d219-47db-aba3-e3c2e5af2d62","block_type":"box","text":"% of its total assets (including the","page_number":22,"box":{"x":655,"y":430,"width":242,"height":11}},{"id":"32ce5023-fba9-46ee-922c-1e9abe0dd1ec","block_type":"box","text":"amount borrowed), (ii) the Fund may, to the extent permitted by applicable law, borrow up to an additional 5% of its","page_number":22,"box":{"x":69,"y":445,"width":818,"height":11}},{"id":"c3a91b7c-57b8-4ce5-b265-fba3f30968eb","block_type":"box","text":"total assets for temporary purposes, (iii) the Fund may obtain such short-term credit as may be necessary for the","page_number":22,"box":{"x":68,"y":460,"width":810,"height":12}},{"id":"12aad419-4975-45c4-87b2-8dc23ed72cfe","block_type":"box","text":"clearance of purchases and sales of portfolio securities and (iv) the Fund may purchase securities on margin to the","page_number":22,"box":{"x":69,"y":475,"width":823,"height":12}},{"id":"3507f52f-7ebb-4ef8-b44d-50903de323cd","block_type":"box","text":"extent permitted by applicable law. The Fund may not pledge its assets other than to secure such borrowings or, to","page_number":22,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"771cf8f4-50c0-4da4-b9b1-d62653b0fe7d","block_type":"box","text":"the extent permitted by the Fund’s investment policies as set forth in its prospectus and this SAI, as they may be","page_number":22,"box":{"x":68,"y":506,"width":811,"height":11}},{"id":"bdaec8a1-9773-4913-be3f-db4e56946e1b","block_type":"box","text":"amended from time to time, in connection with hedging transactions, short sales, when-issued and forward","page_number":22,"box":{"x":69,"y":521,"width":765,"height":11}},{"id":"8c8599f8-b643-4cda-ac3e-930d86801b42","block_type":"box","text":"commitment transactions and similar investment strategies.","page_number":22,"box":{"x":69,"y":536,"width":428,"height":11}},{"id":"327a6085-d626-409e-af18-e77d767c2cf1","block_type":"box","text":"(8) Underwrite securities of other issuers except insofar as the Fund technically may be deemed an underwriter","page_number":22,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"b75824df-b1fd-4abe-957a-bddf6a40d7c0","block_type":"box","text":"under the Securities Act of 1933, as amended (the “Securities Act”) in selling portfolio securities.","page_number":22,"box":{"x":69,"y":574,"width":698,"height":11}},{"id":"69c062b4-e2d1-46e2-9d0d-9d832d419f7c","block_type":"box","text":"(9) Purchase or sell commodities or contracts on commodities, except to the extent that the Fund may do so in","page_number":22,"box":{"x":102,"y":597,"width":790,"height":11}},{"id":"ec24947a-f447-4397-96f8-76c6938d7964","block_type":"box","text":"accordance with applicable law and the Fund’s prospectus and this SAI, as they may be amended from time to time,","page_number":22,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"9eadd6cd-cb49-475d-88e7-303656989781","block_type":"box","text":"and without registering as a commodity pool operator under the Commodity Exchange Act.","page_number":22,"box":{"x":69,"y":627,"width":639,"height":11}},{"id":"723f0d88-9b5b-406f-927e-948155f48c4b","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":22,"box":{"x":102,"y":649,"width":768,"height":12}},{"id":"9e089c8b-f4d7-4ca3-a6a8-0a455e0943c4","block_type":"box","text":"approval, the Fund may not:","page_number":22,"box":{"x":69,"y":665,"width":197,"height":11}},{"id":"6f424f18-93ce-472e-92cf-57436c9028cb","block_type":"box","text":"(a) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":22,"box":{"x":102,"y":687,"width":747,"height":11}},{"id":"dd3e89a4-55e1-4446-a512-115a2ed29647","block_type":"box","text":"Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end","page_number":22,"box":{"x":69,"y":702,"width":759,"height":12}},{"id":"17d21f51-cc92-47a3-9b3a-06d516c65839","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds”","page_number":22,"box":{"x":70,"y":717,"width":829,"height":12}},{"id":"de200fac-8e83-45e6-a1e6-ab2d471a426a","block_type":"box","text":"provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased by","page_number":22,"box":{"x":70,"y":732,"width":808,"height":12}},{"id":"c40508b9-7ecb-45be-b3c1-2f7a78e8fe2c","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":22,"box":{"x":69,"y":748,"width":763,"height":11}},{"id":"18a61e39-00f2-4338-be46-41b9ef0044fe","block_type":"box","text":"(b) Make short sales of securities or maintain a short position, except to the extent permitted by the Fund’s","page_number":22,"box":{"x":102,"y":770,"width":770,"height":11}},{"id":"3e9f855d-c58d-4b26-91aa-af4a9fe8afde","block_type":"box","text":"Prospectus and SAI, as amended from time to time, and applicable law.","page_number":22,"box":{"x":69,"y":785,"width":510,"height":11}},{"id":"172c3ee0-8821-4ef7-b3ea-8b7a80a959f8","block_type":"box","text":"Except with respect to restriction (7), if a percentage restriction on the investment or use of assets set forth","page_number":22,"box":{"x":102,"y":808,"width":772,"height":11}},{"id":"0eaa32e4-a48e-4430-bd12-1bd24b9c1fe3","block_type":"box","text":"above is adhered to at the time a transaction is effected, later changes in percentages resulting from changing","page_number":22,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"fe0a103d-cc0a-4bb9-a22f-c9e58dc17e41","block_type":"box","text":"values will not be considered a violation.","page_number":22,"box":{"x":68,"y":839,"width":289,"height":8}},{"id":"e5afe1df-7682-4128-8cec-95a73ae8a100","block_type":"box","text":"For purposes of investment restriction (2) above, with respect to the Fund’s industry classifications, the Fund","page_number":22,"box":{"x":102,"y":861,"width":778,"height":11}},{"id":"680f45f0-fafc-4b5e-8b99-aa3ba97bd02c","block_type":"box","text":"currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized market","page_number":22,"box":{"x":69,"y":876,"width":817,"height":11}},{"id":"5ea6014f-d23a-4a23-865f-4406113c76bd","block_type":"box","text":"indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to give","page_number":22,"box":{"x":70,"y":891,"width":817,"height":12}},{"id":"3dd7feb4-b42e-4031-95b0-e2287166b15a","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":22,"box":{"x":69,"y":906,"width":597,"height":12}},{"id":"70c0a215-2124-4044-986f-33655e616f4c","block_type":"box","text":"I-6","page_number":22,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"4b614c8e-557d-40bd-b53e-b5f9089a5ab2","block_type":"box","text":"NM1026U-6032801-22/242","page_number":22,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f2580cb1-43df-4b6e-9ebd-2cbaf9de1fa4","block_type":"box","text":"III. Information on Directors and Officers","page_number":23,"box":{"x":69,"y":45,"width":294,"height":9}},{"id":"6a68e50e-f528-48d6-8062-ff40e8c98bfd","block_type":"box","text":"The Board consists of thirteen individuals (each, a “Director”), eleven of whom are not “interested persons” of","page_number":23,"box":{"x":101,"y":67,"width":791,"height":11}},{"id":"f7283636-3763-4119-9006-66e0f0c093e5","block_type":"box","text":"the Fund as defined in the Investment Company Act (the “Independent Directors”). The registered investment","page_number":23,"box":{"x":68,"y":82,"width":780,"height":12}},{"id":"d27d81c3-6246-430f-92d6-7be67fa2a003","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":23,"box":{"x":69,"y":98,"width":837,"height":11}},{"id":"ad2d0d80-c8d2-4e41-b0bc-0f8e55fedff3","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":23,"box":{"x":70,"y":113,"width":793,"height":11}},{"id":"43303fca-18fc-4ce6-96c3-36a8353c6e33","block_type":"box","text":"Complex”). The Fund is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":23,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"6dba27ab-f45d-4992-b8cd-efe6a49533fa","block_type":"box","text":"The Directors also oversee as board members the operations of the other open-end registered investment companies","page_number":23,"box":{"x":68,"y":143,"width":839,"height":11}},{"id":"69795105-a6df-4f59-91b5-0e6660cefa85","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":23,"box":{"x":70,"y":158,"width":335,"height":11}},{"id":"eaa90aba-bb57-4752-aa76-aab4c1a4c7c1","block_type":"box","text":"The Board has overall responsibility for the oversight of the Fund. The Chair of the Board is an Independent","page_number":23,"box":{"x":101,"y":181,"width":764,"height":11}},{"id":"64909d18-4a09-4546-89ee-a6ee16ebe0c1","block_type":"box","text":"Director, and the Chair of each Board committee (each, a “Committee”) is an Independent Director. The Board has","page_number":23,"box":{"x":70,"y":196,"width":815,"height":11}},{"id":"c47a46c6-f277-4f01-a95c-a88d9a5a388b","block_type":"box","text":"five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee,","page_number":23,"box":{"x":68,"y":211,"width":832,"height":11}},{"id":"33e12f47-c6ea-4eb8-b656-59be06d61bea","block_type":"box","text":"a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board is to","page_number":23,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"3a5bc2e7-abff-44d6-b999-05cd8f920a7a","block_type":"box","text":"preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":23,"box":{"x":70,"y":241,"width":793,"height":11}},{"id":"c5deaec7-e630-49e9-bf59-72bdb4c3221b","block_type":"box","text":"Directors generally between meetings. The Chair of each Committee performs a similar role with respect to the","page_number":23,"box":{"x":70,"y":256,"width":790,"height":12}},{"id":"d633662c-9142-4a9a-b5bd-fa9dafedfd66","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions as may be","page_number":23,"box":{"x":69,"y":271,"width":810,"height":12}},{"id":"04be536c-aa0d-4d35-86db-2ed97c820c08","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Directors meet regularly outside the","page_number":23,"box":{"x":69,"y":286,"width":811,"height":12}},{"id":"2dbfed29-9281-45c0-a336-2895869e18e8","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":23,"box":{"x":70,"y":302,"width":794,"height":11}},{"id":"b1a3ffdd-c793-4e44-a0c2-c2efa0a8696b","block_type":"box","text":"regular meetings five times a year, and may hold special meetings if required before its next regular meeting. Each","page_number":23,"box":{"x":69,"y":317,"width":816,"height":11}},{"id":"58eb2ffa-09c2-433a-bdb3-a11b48dc5458","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and reports","page_number":23,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"2cbf12bf-aa60-40d0-a28a-afe66bc97628","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":23,"box":{"x":70,"y":347,"width":811,"height":11}},{"id":"afd30e2f-1a9d-44f6-99e1-8dd7816f230d","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":23,"box":{"x":68,"y":362,"width":809,"height":11}},{"id":"d2e30038-56fb-434e-aaea-d8874a8b853e","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":23,"box":{"x":69,"y":377,"width":825,"height":12}},{"id":"f61444dd-09f6-4fab-ab52-a0cce84a7481","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":23,"box":{"x":69,"y":392,"width":441,"height":12}},{"id":"5cb07edd-8637-402b-9c94-569fdb3fed7e","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":23,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"d284f53a-a272-4235-9768-c0de937baac9","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":23,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"42db68af-3d7a-44af-a10f-333b533b59de","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Fund’s charter, and the Fund’s","page_number":23,"box":{"x":68,"y":445,"width":819,"height":11}},{"id":"d7156917-43c6-4550-8e22-6d93efbfa3be","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s performance, operations","page_number":23,"box":{"x":70,"y":460,"width":812,"height":12}},{"id":"0a6a16e0-503a-4b5c-8a95-7d0b8c35dfbf","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":23,"box":{"x":69,"y":475,"width":819,"height":12}},{"id":"a31f9473-5b7c-449a-8f22-2441e9a13126","block_type":"box","text":"the operations of the Fund.","page_number":23,"box":{"x":68,"y":491,"width":192,"height":11}},{"id":"6e93c43f-582a-4435-a1da-4d0356985c45","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":23,"box":{"x":102,"y":513,"width":785,"height":12}},{"id":"3d9c02a8-104d-41a6-aac1-4be43075d561","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":23,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"25b62a94-c087-4eb3-9d90-39ddaab1c1b6","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":23,"box":{"x":69,"y":543,"width":832,"height":12}},{"id":"07c56bc3-3810-4903-b061-9d20dc05dbde","block_type":"box","text":"there are a number of risk management functions performed by the Manager and the sub-advisers or other service","page_number":23,"box":{"x":68,"y":559,"width":820,"height":11}},{"id":"10ce317b-4d67-46c6-ad08-06ed7f27f07a","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":23,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"b9993745-5834-4d6f-b6ca-adb25da69f6e","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":23,"box":{"x":70,"y":589,"width":767,"height":11}},{"id":"646332f6-c2cd-4301-8415-eca613563b30","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":23,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"fc6f3914-1e8f-4740-9d91-53e3d00fa665","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":23,"box":{"x":70,"y":619,"width":803,"height":11}},{"id":"c9892a68-0881-47c0-bdc7-d397bb6d83e4","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":23,"box":{"x":69,"y":634,"width":840,"height":12}},{"id":"bc81a762-7dc7-4889-b092-f666aa90d4c9","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Directors,","page_number":23,"box":{"x":69,"y":649,"width":814,"height":12}},{"id":"12ac2860-a7d9-4662-b043-9a8fd471aa1f","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":23,"box":{"x":69,"y":664,"width":817,"height":12}},{"id":"09b761b8-e764-4f62-b1ee-d72aa3ad224f","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":23,"box":{"x":69,"y":680,"width":812,"height":11}},{"id":"a7588953-e256-4fe4-8d43-5f263f3c22ad","block_type":"box","text":"testing of the Fund’s compliance program and reports to the Board regarding compliance matters for the Fund and its","page_number":23,"box":{"x":68,"y":695,"width":840,"height":11}},{"id":"171c0b1e-6863-4e14-becd-f935660e7058","block_type":"box","text":"service providers. The Independent Directors have engaged independent legal counsel to assist them in performing","page_number":23,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"7a0864fb-8b53-4285-b306-a5c9601518f1","block_type":"box","text":"their oversight responsibilities.","page_number":23,"box":{"x":68,"y":725,"width":218,"height":11}},{"id":"44c310f3-a86d-4424-9a35-8a27ac895596","block_type":"box","text":"Audit Committee.","page_number":23,"box":{"x":101,"y":748,"width":122,"height":9}},{"id":"c34f73a6-32a4-4953-8a8c-16f179dbfc5d","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":23,"box":{"x":229,"y":748,"width":673,"height":11}},{"id":"e9bc1198-9879-4ca3-a576-4ac734b482b2","block_type":"box","text":"A. Cotty, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Directors. The principal","page_number":23,"box":{"x":68,"y":763,"width":817,"height":11}},{"id":"eea9f6c9-d9e1-473c-b938-6acd7d5a8a6b","block_type":"box","text":"responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval, the selection,","page_number":23,"box":{"x":69,"y":778,"width":826,"height":11}},{"id":"0c084001-691d-4db7-aa08-ce44f9740b84","block_type":"box","text":"retention, termination and compensation of the Fund’s independent registered public accounting firm (the","page_number":23,"box":{"x":69,"y":793,"width":753,"height":11}},{"id":"fceada48-dc15-4c2d-b427-f9ab62cff19b","block_type":"box","text":"“Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":23,"box":{"x":70,"y":808,"width":797,"height":11}},{"id":"ea991ffb-eb62-4c11-8174-1b8f1c0eb8b9","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":23,"box":{"x":70,"y":823,"width":825,"height":11}},{"id":"93b6b60f-dc49-486d-9ff9-0eaca2533c95","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":23,"box":{"x":70,"y":838,"width":807,"height":12}},{"id":"8f9f81c7-7ad9-4d7b-aa97-2543a9b62372","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":23,"box":{"x":68,"y":853,"width":781,"height":11}},{"id":"9a9bf530-1c33-41a7-97b9-5f0095462f82","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":23,"box":{"x":69,"y":869,"width":834,"height":11}},{"id":"3f41d88f-5fc4-4a45-ad47-2a84cb8ff058","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":23,"box":{"x":69,"y":884,"width":838,"height":11}},{"id":"f2ba0558-5e74-460c-95b0-4d183e268dd8","block_type":"box","text":"and certain service providers; (5) oversee the performance of the Fund’s Independent Registered Public Accounting","page_number":23,"box":{"x":69,"y":899,"width":825,"height":11}},{"id":"4cd4f971-75e8-4c29-a44e-a008b645b9e4","block_type":"box","text":"I-7","page_number":23,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"3e34566d-33b9-4859-b18c-bca20abcee36","block_type":"box","text":"NM1026U-6032801-23/242","page_number":23,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6a990fda-80bb-4088-9c9d-7205296acaed","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":24,"box":{"x":70,"y":45,"width":809,"height":11}},{"id":"268d39d3-3a7b-4194-b52b-162d59a05fef","block_type":"box","text":"performance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":24,"box":{"x":70,"y":60,"width":815,"height":11}},{"id":"a1fe652d-6b03-479b-ad74-5b7c5bbaf182","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial reporting and controls;","page_number":24,"box":{"x":69,"y":75,"width":774,"height":11}},{"id":"a8ff3444-510a-46cf-8558-47ef8d5ebcf7","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":24,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"7a0c21f9-4449-49f0-ba42-9344c9d31b95","block_type":"box","text":"regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be","page_number":24,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"b8af22a0-d34c-4a5e-a5fd-fcd40d70b231","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":24,"box":{"x":69,"y":120,"width":812,"height":12}},{"id":"cee50199-a150-4bf0-b2ee-847f834b7c73","block_type":"box","text":"During the fiscal year ended June 30, 2025, the Audit Committee met four times.","page_number":24,"box":{"x":70,"y":135,"width":578,"height":12}},{"id":"f1ef0228-5049-4b8a-b4c9-40c20545b9a1","block_type":"box","text":"Governance and Nominating Committee.","page_number":24,"box":{"x":102,"y":158,"width":286,"height":11}},{"id":"5188de11-52ea-4ae3-9086-e842e651ca66","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":24,"box":{"x":394,"y":158,"width":464,"height":11}},{"id":"f838b7fa-b7a2-411b-b235-3d2c768436b5","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton","page_number":24,"box":{"x":70,"y":173,"width":833,"height":11}},{"id":"00cdc1dc-3974-4b3d-9867-2f766874c388","block_type":"box","text":"and Henry R. Keizer, all of whom are Independent Directors. The principal responsibilities of the Governance","page_number":24,"box":{"x":69,"y":188,"width":771,"height":11}},{"id":"0189c57d-63d7-40fa-9a68-469b4372668d","block_type":"box","text":"Committee are to (1) identify individuals qualified to serve as Independent Directors of the Fund and recommend","page_number":24,"box":{"x":69,"y":203,"width":803,"height":12}},{"id":"e23fc1a8-88b6-47d5-a361-80aa60775025","block_type":"box","text":"Independent Director nominees for election by shareholders or appointment by the Board; (2) advise the Board with","page_number":24,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"b451af0b-6d79-4684-b8b8-4d438c7fc70e","block_type":"box","text":"respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee periodic","page_number":24,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"190fe3d6-9c68-468a-87d7-4d3583b53a24","block_type":"box","text":"self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review and make","page_number":24,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"cc8f70e6-72fd-41f8-83c0-e6cfe94df907","block_type":"box","text":"recommendations regarding Independent Director compensation; (5) monitor corporate governance matters and","page_number":24,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"770fe0c3-4450-4932-bbcb-7bbf9a20d118","block_type":"box","text":"develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to Board","page_number":24,"box":{"x":69,"y":279,"width":815,"height":11}},{"id":"f2d1f012-dd7d-4140-861e-5c0aaf1756a3","block_type":"box","text":"policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of ethics as","page_number":24,"box":{"x":70,"y":294,"width":835,"height":11}},{"id":"bcbaf921-2cb8-4f4f-8805-84821efebeca","block_type":"box","text":"they relate to Independent Directors; and (7) undertake such other duties and responsibilities as may from time to","page_number":24,"box":{"x":68,"y":309,"width":818,"height":11}},{"id":"e455facf-aa25-4c3a-ac17-b56fccdcf4ba","block_type":"box","text":"time be delegated by the Board to the Governance Committee. The Governance Committee may consider nominations","page_number":24,"box":{"x":68,"y":324,"width":841,"height":12}},{"id":"6e1b9dd0-f417-4201-acbb-167eabd6bd2e","block_type":"box","text":"for Directors made by the Fund’s shareholders as it deems appropriate. Under the Fund’s Amended and Restated","page_number":24,"box":{"x":68,"y":339,"width":810,"height":12}},{"id":"d75d5a2d-5bb8-4a5d-a08d-153b0d98cffc","block_type":"box","text":"Bylaws (“Bylaws”), shareholders must follow certain procedures to nominate a person for election as a Director at a","page_number":24,"box":{"x":70,"y":355,"width":826,"height":11}},{"id":"dac43c0d-8bd5-4259-a268-565ec7802a0f","block_type":"box","text":"shareholder meeting at which Directors are to be elected. Under these advance notice procedures, notice of the","page_number":24,"box":{"x":69,"y":370,"width":798,"height":11}},{"id":"24b71d74-ef37-440b-b2af-8ea98daa272a","block_type":"box","text":"proposed nominee to the Secretary of the Fund must be delivered to or mailed and received at the principal executive","page_number":24,"box":{"x":70,"y":385,"width":838,"height":11}},{"id":"150e8dcf-9007-4dfd-97bc-e8f8a38595bd","block_type":"box","text":"offices of the Fund not later than the close of business on the fifth day following the day on which notice of the date","page_number":24,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"37ad38fc-ef2a-4ab5-aa76-0303635eaa57","block_type":"box","text":"of the meeting was mailed or public disclosure of the date of the meeting was made, whichever first occurs. The","page_number":24,"box":{"x":69,"y":415,"width":800,"height":11}},{"id":"57751bdd-2025-4caa-9648-50d35465daa4","block_type":"box","text":"Fund’s Bylaws provide that notice of a proposed nomination must include certain information about the shareholder","page_number":24,"box":{"x":70,"y":430,"width":826,"height":11}},{"id":"9bca40a1-4e42-4f8f-bdd4-6db71880d141","block_type":"box","text":"and the nominee, as well as certain other information, including a written consent of the proposed nominee to serve","page_number":24,"box":{"x":69,"y":445,"width":832,"height":12}},{"id":"01f11f1b-6253-474b-b080-c38178048fc2","block_type":"box","text":"if elected. Reference is made to the Fund’s Bylaws for more details. The Board has adopted a written charter for the","page_number":24,"box":{"x":70,"y":460,"width":829,"height":12}},{"id":"cac5e4c6-c2dc-457a-84d0-e3e058857618","block_type":"box","text":"Governance Committee. During the fiscal year ended June 30, 2025, the Governance Committee met six times.","page_number":24,"box":{"x":69,"y":475,"width":795,"height":12}},{"id":"a7357c7c-3a44-488e-adce-70318578b619","block_type":"box","text":"Compliance Committee.","page_number":24,"box":{"x":102,"y":498,"width":168,"height":11}},{"id":"71f0dbb2-ff6d-484f-969c-4bc86c7ede14","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":24,"box":{"x":276,"y":498,"width":629,"height":11}},{"id":"f4a86dde-22f0-4e2c-a664-4becc5aad52a","block_type":"box","text":"Walton (Chair), Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of whom are","page_number":24,"box":{"x":68,"y":513,"width":789,"height":12}},{"id":"dd326d9c-1867-43a8-aed5-3c0b6df07ac0","block_type":"box","text":"Independent Directors. The Compliance Committee’s purpose is to assist the Board in fulfilling its responsibility to","page_number":24,"box":{"x":70,"y":528,"width":815,"height":12}},{"id":"def31d7c-3484-4400-ae5b-54e9a8951684","block_type":"box","text":"oversee regulatory and fiduciary compliance matters involving the Fund, the fund-related activities of BlackRock and","page_number":24,"box":{"x":69,"y":543,"width":824,"height":12}},{"id":"e384bfe0-5d8c-47dc-baa1-7e7c2e6e914f","block_type":"box","text":"any sub-adviser and the Fund’s third-party service providers. The Compliance Committee’s responsibilities include,","page_number":24,"box":{"x":69,"y":559,"width":817,"height":11}},{"id":"89c9d8b6-253b-482b-8cbd-b9fccb0d1f20","block_type":"box","text":"without limitation, to (1) oversee the compliance policies and procedures of the Fund and its service providers and","page_number":24,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"14d4ec08-a4d2-44c7-9abb-3fe57f88f941","block_type":"box","text":"recommend changes or additions to such policies and procedures; (2) review information on and, where appropriate,","page_number":24,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"72a4e6a8-3c6b-4ddc-8942-fc940d386bb2","block_type":"box","text":"recommend policies concerning the Fund’s compliance with applicable law; (3) review reports from, oversee the","page_number":24,"box":{"x":69,"y":604,"width":797,"height":11}},{"id":"0ba58596-6fa0-4f2b-aa61-9d0c1d0c41d8","block_type":"box","text":"annual performance review of, and make certain recommendations and determinations regarding the Fund’s Chief","page_number":24,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"be3ea8bc-44c3-4fa6-8967-fc3c0e197899","block_type":"box","text":"Compliance Officer (the “CCO”), including determining the amount and structure of the CCO’s compensation and","page_number":24,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"80b89908-e908-4627-9a97-7a0477be2c8d","block_type":"box","text":"recommending such amount and structure to the full Board for approval and ratification; and (4) undertake such","page_number":24,"box":{"x":69,"y":649,"width":799,"height":12}},{"id":"7f1ad04f-deec-4c7d-ba69-ca689013db3d","block_type":"box","text":"other duties and responsibilities as may from time to time be delegated by the Board to the Compliance Committee.","page_number":24,"box":{"x":69,"y":664,"width":828,"height":12}},{"id":"1821973a-d601-4537-83e7-99585577e3f1","block_type":"box","text":"The Board has adopted a written charter for the Compliance Committee. During the fiscal year ended June 30, 2025,","page_number":24,"box":{"x":68,"y":680,"width":836,"height":11}},{"id":"64ecfaa2-e5c8-4dc7-9de3-e429e57a1017","block_type":"box","text":"the Compliance Committee met four times.","page_number":24,"box":{"x":68,"y":695,"width":307,"height":11}},{"id":"0e4b03ee-6498-4d29-bb34-2f673a842ca9","block_type":"box","text":"Per formance Oversight Committee.","page_number":24,"box":{"x":102,"y":717,"width":248,"height":12}},{"id":"d0794549-535b-49ea-aed2-736851310a4d","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":24,"box":{"x":356,"y":717,"width":531,"height":12}},{"id":"d2493320-867c-485f-99cd-b60205fb0526","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton and Neil","page_number":24,"box":{"x":69,"y":733,"width":837,"height":11}},{"id":"f83e9a0f-250b-480c-96b5-37b9730216fc","block_type":"box","text":"A. Cotty, all of whom are Independent Directors. The Performance Oversight Committee’s purpose is to assist the","page_number":24,"box":{"x":68,"y":748,"width":810,"height":11}},{"id":"245108b7-cba6-40be-92ec-d30b0bf12d3e","block_type":"box","text":"Board in fulfilling its responsibility to oversee the Fund’s investment performance relative to its agreed-upon","page_number":24,"box":{"x":70,"y":763,"width":769,"height":11}},{"id":"8108e334-5b5c-4250-8eaa-fb812503723f","block_type":"box","text":"performance objectives and to assist the Independent Directors in their consideration of investment advisory","page_number":24,"box":{"x":70,"y":778,"width":777,"height":11}},{"id":"9d3df637-738e-439c-a6e3-31313adfcfd6","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":24,"box":{"x":69,"y":793,"width":782,"height":11}},{"id":"d80dab37-a74a-42d8-a60d-c71fe7dc1eaf","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":24,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"905317ab-8dd3-41e9-ad45-4623e437d07a","block_type":"box","text":"and practices; (2) review information on the Fund’s investment performance; (3) review information on appropriate","page_number":24,"box":{"x":69,"y":823,"width":816,"height":11}},{"id":"5a43ffb4-7139-4c1f-8927-430951bebb45","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":24,"box":{"x":69,"y":839,"width":803,"height":10}},{"id":"e88c5922-0f65-4535-ae29-fbb67993de79","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":24,"box":{"x":69,"y":853,"width":827,"height":12}},{"id":"b10d128a-76bc-462a-86f5-96ec41a58227","block_type":"box","text":"the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":24,"box":{"x":68,"y":869,"width":811,"height":11}},{"id":"f3b877f2-a1c2-4267-916b-16e39e285c96","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":24,"box":{"x":69,"y":884,"width":757,"height":11}},{"id":"8d03db9b-086c-453d-b801-d1d3c25fc282","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":24,"box":{"x":70,"y":899,"width":835,"height":11}},{"id":"65075d61-225c-4b51-9547-898fa8ee6ee1","block_type":"box","text":"I-8","page_number":24,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"e8626461-9a52-4e20-ad0f-17341a003bfa","block_type":"box","text":"NM1026U-6032801-24/242","page_number":24,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a545ae31-af67-4994-8073-3f8f556257bc","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other","page_number":25,"box":{"x":68,"y":45,"width":800,"height":11}},{"id":"137ebc7d-bf6d-4661-a946-48cb2131bb58","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight","page_number":25,"box":{"x":69,"y":60,"width":780,"height":11}},{"id":"03fee2a1-c49f-4a13-b8c8-ac629c441b63","block_type":"box","text":"Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the fiscal year","page_number":25,"box":{"x":69,"y":75,"width":838,"height":11}},{"id":"487f29b0-2e5e-4a25-b164-57ac020023f5","block_type":"box","text":"ended June 30, 2025, the Performance Oversight Committee met five times.","page_number":25,"box":{"x":69,"y":90,"width":548,"height":11}},{"id":"29afd243-33a8-4d6e-888a-87bbfb9a066c","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":25,"box":{"x":101,"y":113,"width":186,"height":11}},{"id":"719ee098-3a55-49a9-ad87-f5ef9d11dab8","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":25,"box":{"x":293,"y":113,"width":598,"height":11}},{"id":"45f9d64d-a3d5-4ba6-ae32-6bebb18f0fed","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Directors, and John M. Perlowski, who","page_number":25,"box":{"x":70,"y":128,"width":819,"height":11}},{"id":"940d49e3-1c49-422a-9b16-065fbdf4c4f6","block_type":"box","text":"serves as an interested Director. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":25,"box":{"x":69,"y":143,"width":796,"height":11}},{"id":"b071a6c5-3521-4429-ab62-78edfc60d15c","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":25,"box":{"x":69,"y":158,"width":788,"height":11}},{"id":"3dffd2f2-d9e1-4ea5-a0a3-d60e6f1c13bf","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":25,"box":{"x":69,"y":173,"width":813,"height":11}},{"id":"30e82b38-4b75-4da8-9dd4-55277c40f6e9","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written charter for the Ad Hoc Topics Committee. During","page_number":25,"box":{"x":68,"y":188,"width":816,"height":12}},{"id":"e5cc8a53-46a7-4189-aa70-c15ca995d858","block_type":"box","text":"the fiscal year ended June 30, 2025, the Ad Hoc Topics Committee did not meet.","page_number":25,"box":{"x":68,"y":203,"width":579,"height":12}},{"id":"45b40265-9880-4da1-8a9b-80e8f5c67314","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":25,"box":{"x":101,"y":226,"width":771,"height":11}},{"id":"18fd7637-51b5-45a7-b2d6-907c76b91d0f","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement","page_number":25,"box":{"x":69,"y":241,"width":830,"height":11}},{"id":"de30c9ac-9348-4871-84e7-25a60ecd28a8","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":25,"box":{"x":69,"y":256,"width":833,"height":11}},{"id":"af772229-e9d7-4f70-9335-abbcd2c1ddb9","block_type":"box","text":"appointed a Director, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":25,"box":{"x":69,"y":271,"width":827,"height":12}},{"id":"f7655ccf-5fb4-415c-9db2-7e20c8c2e174","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":25,"box":{"x":70,"y":286,"width":811,"height":12}},{"id":"f523e35f-b88f-47a8-88c3-c24d2c3ab856","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":25,"box":{"x":70,"y":302,"width":787,"height":11}},{"id":"77e54d31-c470-430e-b2cf-e28f3234c77b","block_type":"box","text":"collectively, the Independent Directors have balanced and diverse experience, skills, attributes and qualifications,","page_number":25,"box":{"x":69,"y":317,"width":807,"height":11}},{"id":"3acf8f29-38a6-40d6-a9ad-919a6c9903a5","block_type":"box","text":"which allow the Board to operate effectively in governing the Fund and protecting the interests of shareholders.","page_number":25,"box":{"x":68,"y":332,"width":792,"height":11}},{"id":"5ed9092e-75a4-42ff-93a9-f1745de4caf8","block_type":"box","text":"Among the attributes common to all Independent Directors are their ability to review critically, evaluate, question and","page_number":25,"box":{"x":68,"y":347,"width":832,"height":11}},{"id":"13a3a3c9-27bf-4f86-8b5c-ed06210575c3","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":25,"box":{"x":69,"y":362,"width":823,"height":11}},{"id":"3567c9b0-5150-4823-bc9e-b6b8f050624d","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":25,"box":{"x":69,"y":377,"width":771,"height":12}},{"id":"5af86213-0529-4ee8-9f9c-e9f424a79686","block_type":"box","text":"business judgment in the performance of their duties as Directors.","page_number":25,"box":{"x":69,"y":392,"width":475,"height":12}},{"id":"a4654944-a231-4805-ba20-59fc00f506f9","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":25,"box":{"x":102,"y":415,"width":794,"height":11}},{"id":"685f6983-327d-4a5e-80a9-c063ea006e38","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":25,"box":{"x":69,"y":430,"width":807,"height":11}},{"id":"a5f0315a-a878-4b71-b7f0-88a6730bcf2f","block_type":"box","text":"board member of the Fund and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":25,"box":{"x":69,"y":445,"width":835,"height":11}},{"id":"87c58ef7-dda1-4112-83e3-0049f8b98e5a","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":25,"box":{"x":70,"y":460,"width":759,"height":12}},{"id":"94e00d32-bd9d-4ede-b263-53b4adf0c112","block_type":"box","text":"participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":25,"box":{"x":70,"y":475,"width":685,"height":12}},{"id":"b15ddbe1-6cdf-43b8-826d-fcd67590afdf","block_type":"box","text":"ad hoc","page_number":25,"box":{"x":762,"y":476,"width":47,"height":8}},{"id":"a4e8bdd6-e16e-4a31-af76-ed5eb49e4fe5","block_type":"box","text":"committees","page_number":25,"box":{"x":814,"y":476,"width":82,"height":8}},{"id":"6bd14815-32d2-48bc-8b99-6c370bcfac77","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":25,"box":{"x":68,"y":491,"width":395,"height":11}},{"id":"3c11c1a3-c338-4323-92ab-9a4fc30e3e46","block_type":"box","text":"Directors Elect.","page_number":25,"box":{"x":102,"y":514,"width":107,"height":8}},{"id":"3856760e-d851-4763-9210-8fd7a45eae34","block_type":"box","text":"Jeffrey Jarczyk and Marc D. Stern have been appointed as Directors of the Fund effective","page_number":25,"box":{"x":215,"y":513,"width":635,"height":11}},{"id":"a7a50e98-29a3-41ba-8d9d-28c77b1e07f2","block_type":"box","text":"July 1, 2026 (each, a “Director Elect”) Each Director Elect is expected to qualify as an Independent Director at the","page_number":25,"box":{"x":69,"y":528,"width":813,"height":12}},{"id":"5d258e05-a71f-4153-a00d-911d6e7e56bd","block_type":"box","text":"time of his service. Each Director Elect has been retained as a consultant to the Independent Directors to assist the","page_number":25,"box":{"x":68,"y":543,"width":832,"height":11}},{"id":"7638c053-d472-4fa7-a91b-6cfab7063620","block_type":"box","text":"Independent Directors in the performance of their duties to the Fund and is expected to serve in that capacity until","page_number":25,"box":{"x":70,"y":559,"width":817,"height":11}},{"id":"b45a3ddf-402d-4221-888a-e71aef955124","block_type":"box","text":"July 1, 2026.","page_number":25,"box":{"x":69,"y":574,"width":92,"height":11}},{"id":"f222cdc9-8b7b-4e52-bb02-fcc6150bd04d","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Directors that","page_number":25,"box":{"x":101,"y":596,"width":754,"height":11}},{"id":"57e3f9c4-bfa9-4aff-8409-8dce081362cf","block_type":"box","text":"support the conclusion that each Director should serve on the Board.","page_number":25,"box":{"x":69,"y":612,"width":494,"height":11}},{"id":"16aa3b1c-842e-40a4-80e6-be0f7a3a258f","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":25,"box":{"x":69,"y":640,"width":408,"height":9}},{"id":"424706d1-a94b-41ca-9cd7-01f55e8e728c","block_type":"box","text":"Independent Directors","page_number":25,"box":{"x":70,"y":657,"width":156,"height":10}},{"id":"b159973b-6559-4698-9e37-bb0e0adf5cb8","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":25,"box":{"x":69,"y":671,"width":781,"height":12}},{"id":"214a38cc-1e36-433a-9357-ad1758003040","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":25,"box":{"x":265,"y":686,"width":604,"height":12}},{"id":"0e88558b-1083-4516-98cb-a93636d90b87","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":25,"box":{"x":265,"y":702,"width":623,"height":11}},{"id":"98b8c6e9-beb5-4f2d-b72e-d4ef58e9884a","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":25,"box":{"x":265,"y":717,"width":637,"height":11}},{"id":"f56f5045-94e8-4413-a98f-50dce86442a5","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":25,"box":{"x":265,"y":732,"width":631,"height":11}},{"id":"2c62e0a8-b279-4b0c-9ba0-e39a51a93b92","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":25,"box":{"x":264,"y":747,"width":626,"height":10}},{"id":"d795e378-7232-4c86-929f-fff876d700ab","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":25,"box":{"x":265,"y":762,"width":639,"height":11}},{"id":"75254fe6-39d1-4aa6-835f-ee40b4e3d9f1","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":25,"box":{"x":264,"y":777,"width":637,"height":11}},{"id":"acb89565-40b5-46b0-8209-3a636f884f43","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":25,"box":{"x":265,"y":793,"width":586,"height":11}},{"id":"94b8ebb2-e148-46d1-bc81-b9d94a9644ff","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":25,"box":{"x":265,"y":807,"width":640,"height":12}},{"id":"77e95077-5e7d-49e1-a8dd-17a0e8bebc83","block_type":"box","text":"and Nominating Committee and the Performance Oversight Committee.","page_number":25,"box":{"x":265,"y":823,"width":506,"height":11}},{"id":"5e3a8931-4db8-43f1-bff4-1b2ee816e19c","block_type":"box","text":"I-9","page_number":25,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"14905463-ab62-480e-8507-665692ac2ffd","block_type":"box","text":"NM1026U-6032801-25/242","page_number":25,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"18dc5004-8688-4cc0-8902-b57c325e16e3","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":26,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"d0af3bf2-0bde-47d1-a1d0-9a2900921dcd","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has","page_number":26,"box":{"x":69,"y":65,"width":806,"height":12}},{"id":"3ab0a632-e6b1-4f0d-b1f6-26cd0648a98d","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":26,"box":{"x":265,"y":81,"width":604,"height":11}},{"id":"257600fb-b2ac-41ee-bc09-69ee444b8315","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":26,"box":{"x":265,"y":96,"width":632,"height":11}},{"id":"013d86c8-a2a5-4755-9216-c60f71506489","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":26,"box":{"x":265,"y":111,"width":562,"height":9}},{"id":"c07d3229-cb84-40fe-9aa8-e9f8bb06ae3a","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":26,"box":{"x":265,"y":126,"width":616,"height":10}},{"id":"16d9ca04-ae50-4e2e-9d21-3347272dc01c","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":26,"box":{"x":264,"y":141,"width":591,"height":11}},{"id":"f10ad306-4138-4f8b-8067-94885608cc4a","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":26,"box":{"x":265,"y":156,"width":641,"height":11}},{"id":"8531b922-43a0-4879-aedb-2f20d697d8ad","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":26,"box":{"x":264,"y":171,"width":638,"height":12}},{"id":"6ecec13f-cc31-4efe-aa43-1920650da2d4","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":26,"box":{"x":265,"y":186,"width":584,"height":12}},{"id":"83ea3013-db16-4af1-a0b3-e7d2b418e517","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":26,"box":{"x":265,"y":201,"width":630,"height":12}},{"id":"de32dd4a-aefc-4c16-a84e-a86139c4398a","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":26,"box":{"x":265,"y":217,"width":634,"height":11}},{"id":"471e1f25-9a05-4c6e-bb75-5c16bdbec0da","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":26,"box":{"x":265,"y":232,"width":599,"height":11}},{"id":"c6ffd94c-7984-4742-a858-9a2c9b535ce4","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":26,"box":{"x":265,"y":247,"width":407,"height":11}},{"id":"40c134d0-0105-4d57-bcf3-ba073d58b571","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":26,"box":{"x":69,"y":269,"width":837,"height":12}},{"id":"de09ab01-2fd8-4d93-9aea-aade04009875","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":26,"box":{"x":265,"y":285,"width":638,"height":11}},{"id":"0d897f62-a09d-4278-9895-1f0027d03c6a","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":26,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"42b6705b-6d91-43f9-9acd-f5241bab7604","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":26,"box":{"x":265,"y":314,"width":601,"height":12}},{"id":"6b7025a8-0ae3-49d0-9f1a-a2fe6662c077","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":26,"box":{"x":265,"y":330,"width":595,"height":11}},{"id":"3d8d750e-abcc-49ff-aa30-b9e3ead009f5","block_type":"box","text":"perspective on the markets and the economy.","page_number":26,"box":{"x":265,"y":345,"width":323,"height":11}},{"id":"8a5ae8bf-04e9-4f21-a042-fab4b647bb4f","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":26,"box":{"x":70,"y":368,"width":798,"height":11}},{"id":"43362bf4-9125-4e0d-84e3-bc8891d254f0","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":26,"box":{"x":265,"y":383,"width":631,"height":11}},{"id":"7587f9bf-04b4-421d-994b-d85f574a0273","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":26,"box":{"x":265,"y":398,"width":633,"height":11}},{"id":"ea188c73-6b6d-4e1c-a505-2b48830b33ac","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":26,"box":{"x":265,"y":413,"width":628,"height":11}},{"id":"07a433e3-a423-4fb6-af62-bc89cbe28b11","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":26,"box":{"x":265,"y":428,"width":596,"height":12}},{"id":"94c45f15-ff23-42f4-8c66-fea181156f8f","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial expert, as such","page_number":26,"box":{"x":265,"y":443,"width":616,"height":12}},{"id":"481f6788-b857-467b-81d0-eecefae67297","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":26,"box":{"x":264,"y":458,"width":368,"height":11}},{"id":"5af9c05e-25a4-4821-a509-cd0922511bec","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":26,"box":{"x":70,"y":481,"width":806,"height":11}},{"id":"cfcc62ff-2166-4419-8435-c0993bf9a38c","block_type":"box","text":"global expertise gained through his 35 year career at KPMG, a global professional","page_number":26,"box":{"x":264,"y":496,"width":584,"height":12}},{"id":"94c1b64e-0b53-4c6b-abe3-2cc5471fd73f","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":26,"box":{"x":265,"y":512,"width":622,"height":11}},{"id":"7f86236b-a6e7-4d8e-9e60-98fb3402943d","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":26,"box":{"x":265,"y":526,"width":638,"height":12}},{"id":"5b8ca1cc-e6fd-42c0-870b-01606c254d6e","block_type":"box","text":"and expertise in financial reporting, accounting, auditing, risk management, and","page_number":26,"box":{"x":265,"y":542,"width":570,"height":11}},{"id":"fd8a26f3-24f1-4499-94dd-0017e69bddc9","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":26,"box":{"x":265,"y":557,"width":642,"height":11}},{"id":"71a45632-cefd-4db4-8a9d-49989f6905f9","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":26,"box":{"x":265,"y":572,"width":626,"height":11}},{"id":"81936b37-b903-4ec2-8856-20f44bf02583","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":26,"box":{"x":265,"y":587,"width":630,"height":11}},{"id":"f799c5f9-ab37-46c3-aa23-52c06acddf9a","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":26,"box":{"x":265,"y":602,"width":602,"height":11}},{"id":"208c388e-d3d3-44b3-86ab-db4316d976d0","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":26,"box":{"x":264,"y":617,"width":643,"height":12}},{"id":"9b703cee-9935-4e43-92f1-86c756836b10","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":26,"box":{"x":264,"y":632,"width":639,"height":12}},{"id":"542fdcc2-228d-4e9c-b622-1c2bbda2d4df","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":26,"box":{"x":264,"y":647,"width":641,"height":11}},{"id":"87717b3d-1bb1-4b05-98ab-e7b2304d233f","block_type":"box","text":"applicable Commission rules.","page_number":26,"box":{"x":265,"y":663,"width":208,"height":11}},{"id":"1ec55dfb-cd9c-4fa7-948a-117d44b61759","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":26,"box":{"x":69,"y":685,"width":769,"height":12}},{"id":"fc29d141-d3ff-459d-8250-793efacad9c5","block_type":"box","text":"investment companies, most recently as a member of the boards of certain BlackRock","page_number":26,"box":{"x":265,"y":700,"width":621,"height":12}},{"id":"1f2db1d0-ddf3-4fd2-91a6-74937fa4b083","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":26,"box":{"x":265,"y":715,"width":599,"height":12}},{"id":"eb6b30f6-d13b-4e37-b967-a6372b62f95a","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":26,"box":{"x":265,"y":731,"width":641,"height":11}},{"id":"81ede5a7-3a38-40af-8f05-7819adbd2050","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":26,"box":{"x":264,"y":746,"width":602,"height":11}},{"id":"160362bb-03b9-42c5-a2d3-e15f4078f6cd","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":26,"box":{"x":264,"y":761,"width":617,"height":11}},{"id":"7d415c97-4cb1-4fef-ba85-2722a2c5add6","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":26,"box":{"x":265,"y":776,"width":629,"height":11}},{"id":"4772278c-4a29-49ad-a7ab-6d699df6a974","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":26,"box":{"x":264,"y":791,"width":628,"height":11}},{"id":"a2bbdd22-35a1-4b9f-85be-f3a0263248e1","block_type":"box","text":"articles and books on these topics.","page_number":26,"box":{"x":265,"y":806,"width":251,"height":11}},{"id":"760a1a67-ee20-4010-a140-ce411b33770c","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":26,"box":{"x":70,"y":829,"width":764,"height":11}},{"id":"b0dbd1a8-6ae3-4072-abf1-8271441a6972","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":26,"box":{"x":265,"y":844,"width":642,"height":11}},{"id":"d2a1ee96-75e3-4146-94c0-e14f4dea986d","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":26,"box":{"x":264,"y":859,"width":593,"height":11}},{"id":"d3718121-7278-45b0-a633-1929fc294275","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. 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During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":27,"box":{"x":265,"y":111,"width":639,"height":11}},{"id":"b3b41090-62f7-4a91-bf09-cbe1b9fe950f","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":27,"box":{"x":265,"y":126,"width":576,"height":11}},{"id":"41c06dc5-bdb3-4226-a67e-6750ee488e84","block_type":"box","text":"exchanges, and other industry firms. 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More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":27,"box":{"x":265,"y":186,"width":626,"height":12}},{"id":"72ec8485-0462-45d8-ad3a-7bf1f17e1309","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":27,"box":{"x":264,"y":201,"width":608,"height":12}},{"id":"79b5af06-122c-4379-9ced-457353249aa7","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":27,"box":{"x":265,"y":217,"width":575,"height":11}},{"id":"0e02e493-9b49-4da1-bbc6-12ade37d646a","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":27,"box":{"x":264,"y":232,"width":591,"height":11}},{"id":"e2c2f600-920d-4c0c-a8ff-48802b971807","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":27,"box":{"x":265,"y":247,"width":627,"height":11}},{"id":"7ae94f75-bfe9-4733-b453-07a1d8be8742","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":27,"box":{"x":265,"y":262,"width":578,"height":11}},{"id":"bfe4670a-e1f3-4608-8571-c54c5daf2031","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":27,"box":{"x":265,"y":277,"width":607,"height":11}},{"id":"5180dc1b-8196-48f4-9a4a-49ca0318f6e2","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":27,"box":{"x":265,"y":292,"width":615,"height":11}},{"id":"2a7a77a4-7545-442b-889b-1b7bfed1b0eb","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":27,"box":{"x":265,"y":307,"width":638,"height":12}},{"id":"1efcf36b-3352-4f47-8e57-264e3dd8b31b","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":27,"box":{"x":265,"y":322,"width":635,"height":12}},{"id":"e9cade93-fc7a-4c09-affb-5906d7190e45","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":27,"box":{"x":265,"y":338,"width":642,"height":11}},{"id":"dde967c7-2d14-4cb7-8e5c-1fb5566e1b26","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":27,"box":{"x":265,"y":353,"width":627,"height":11}},{"id":"efe6915d-74d5-4557-9df1-8d5fdbc1adf0","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":27,"box":{"x":265,"y":368,"width":628,"height":11}},{"id":"1d5c4bdc-dd98-4ed4-a667-d6e29b9b2c56","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":27,"box":{"x":265,"y":383,"width":460,"height":11}},{"id":"979945fe-ac7b-41c7-aa48-7417bdb904d2","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":27,"box":{"x":70,"y":406,"width":818,"height":11}},{"id":"325a455e-beca-42f1-84d3-420bc3ec69f5","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":27,"box":{"x":264,"y":421,"width":603,"height":11}},{"id":"1bfbf412-1bfd-43f7-b935-8831940965fb","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":27,"box":{"x":265,"y":436,"width":606,"height":11}},{"id":"c9e2a454-0d2c-42f2-a3ed-b1b6f6615ddf","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":27,"box":{"x":265,"y":451,"width":608,"height":9}},{"id":"6ec9fd47-1fa2-409d-bb6b-deced8f3653c","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":27,"box":{"x":265,"y":466,"width":626,"height":11}},{"id":"5326e5f0-8483-49bd-9ed5-5ea5f547ca1d","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":27,"box":{"x":265,"y":481,"width":591,"height":11}},{"id":"dd900404-6ddc-440b-8501-3bcb38650755","block_type":"box","text":"various private and non-profit boards.","page_number":27,"box":{"x":264,"y":496,"width":265,"height":11}},{"id":"b0c43693-a974-4084-a50c-dd227cc83369","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":27,"box":{"x":70,"y":519,"width":807,"height":11}},{"id":"d0d381b9-3b42-4cc1-87c9-81546380f328","block_type":"box","text":"companies, most recently as a member of the boards of certain BlackRock-advised Funds","page_number":27,"box":{"x":264,"y":534,"width":641,"height":11}},{"id":"bc71051f-b5ec-40de-96ce-845cc8905331","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":27,"box":{"x":265,"y":549,"width":618,"height":11}},{"id":"dfe457ee-0c3a-4791-8119-c978a49acd1b","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":27,"box":{"x":265,"y":564,"width":594,"height":12}},{"id":"479c1808-6c42-4ff8-b288-3d7c297ac4cb","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":27,"box":{"x":265,"y":579,"width":639,"height":12}},{"id":"1572ecef-7238-446c-8f51-df47003acfcf","block_type":"box","text":"be an audit committee financial expert, as such term is defined in the applicable","page_number":27,"box":{"x":265,"y":595,"width":575,"height":11}},{"id":"3a439841-3e5a-43d7-a86c-bf46cc201d8a","block_type":"box","text":"Commission rules.","page_number":27,"box":{"x":265,"y":610,"width":131,"height":9}},{"id":"3ccb6bbc-84b7-41c8-9128-83dcbff37068","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":27,"box":{"x":69,"y":632,"width":808,"height":12}},{"id":"96da9bbe-4645-4e71-9353-03e2f00ca86d","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liberty Square Asset","page_number":27,"box":{"x":265,"y":647,"width":630,"height":12}},{"id":"42665fd3-d74a-4f39-833c-9c15de38da2e","block_type":"box","text":"Management, LP / Steel Partners Japan Asset Management, LP from 1998 to 2015, an","page_number":27,"box":{"x":265,"y":663,"width":627,"height":11}},{"id":"bb9dbf11-3868-4288-83f7-47531a49defd","block_type":"box","text":"investment manager that specialized in long/short non-U.S. equity investments, and was","page_number":27,"box":{"x":265,"y":678,"width":632,"height":11}},{"id":"b9982589-2b8b-4a6c-aa2c-f5ac912a1a25","block_type":"box","text":"an owner and General Partner of Neon Liberty Capital Management, LLC from 2003 to","page_number":27,"box":{"x":265,"y":693,"width":615,"height":11}},{"id":"a69c021c-4226-44a7-9e76-f5858632ab30","block_type":"box","text":"2023, a firm focusing on long/short equities in global emerging and frontier markets.","page_number":27,"box":{"x":265,"y":708,"width":608,"height":11}},{"id":"ae7786a4-cd28-410d-92a1-8b4827777cb2","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":27,"box":{"x":264,"y":723,"width":620,"height":11}},{"id":"c75f2dc0-c4b7-4119-8571-cbcc08f63d6f","block_type":"box","text":"economy. Ms. Walton has been determined by the Audit Committee to be an audit","page_number":27,"box":{"x":265,"y":738,"width":584,"height":11}},{"id":"8aa276cb-c944-4121-817e-9cf0784f6dbc","block_type":"box","text":"committee financial expert, as such term is defined in the applicable Commission rules.","page_number":27,"box":{"x":264,"y":753,"width":629,"height":11}},{"id":"8483229f-d509-4107-9805-ea5c9bee4b1b","block_type":"box","text":"Directors Elect","page_number":27,"box":{"x":70,"y":776,"width":104,"height":9}},{"id":"4588b20d-535b-4811-b531-390863f3e9d3","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":27,"box":{"x":69,"y":791,"width":777,"height":11}},{"id":"a463ce79-32fa-4255-9d6a-5cfea412134b","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":27,"box":{"x":265,"y":806,"width":613,"height":12}},{"id":"c0854e16-aa90-4384-914e-30f22bf1e436","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":27,"box":{"x":265,"y":821,"width":563,"height":12}},{"id":"e4879cb9-2742-44ab-8ef2-67ac3e6b67da","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":27,"box":{"x":265,"y":837,"width":607,"height":11}},{"id":"9b63ac52-e017-4200-8822-925a0d0b41cd","block_type":"box","text":"partner at Deloitte and Arthur Andersen for approximately 17 years. These positions have","page_number":27,"box":{"x":265,"y":852,"width":638,"height":11}},{"id":"eaf6cca3-822f-4cea-bebb-1e53534316eb","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":27,"box":{"x":265,"y":867,"width":626,"height":11}},{"id":"7e7f0658-a87f-4c1a-9991-20d8b81a7fd3","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":27,"box":{"x":265,"y":882,"width":563,"height":11}},{"id":"661f5748-306f-49bf-a687-a1a2fa515086","block_type":"box","text":"I-11","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"828b36bf-13a1-4687-8ac3-83d3248a00af","block_type":"box","text":"NM1026U-6032801-27/242","page_number":27,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"daafeb06-f3f1-411f-bb82-53fde628805b","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":28,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"db4f07c1-6c1f-4593-a577-43a376cf63d9","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":28,"box":{"x":70,"y":65,"width":833,"height":12}},{"id":"deab82de-7d55-4f46-896d-1a69e2ce977d","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":28,"box":{"x":265,"y":81,"width":638,"height":11}},{"id":"d8e628cd-4b19-4e3c-9232-353bfe013828","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":28,"box":{"x":265,"y":96,"width":608,"height":11}},{"id":"2e0a4932-cb69-426e-9556-5400e6d41e8b","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":28,"box":{"x":264,"y":111,"width":645,"height":10}},{"id":"168f7e13-9797-499b-a791-8ef335f68d7a","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":28,"box":{"x":264,"y":126,"width":639,"height":9}},{"id":"4cf79952-a0fe-44c5-b32d-fa291907a6dc","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":28,"box":{"x":264,"y":141,"width":573,"height":11}},{"id":"117432c9-1962-4e4c-836b-4dfe6efb6b0c","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":28,"box":{"x":265,"y":156,"width":625,"height":11}},{"id":"ae56879a-9e74-476d-a95f-bcfb757e984e","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":28,"box":{"x":265,"y":171,"width":610,"height":12}},{"id":"394cdb14-aa58-49c5-9de5-88996bc1cec8","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":28,"box":{"x":265,"y":186,"width":642,"height":12}},{"id":"006ac5c8-80e7-4bcd-bda4-8a48ee18960f","block_type":"box","text":"and fiduciary governance.","page_number":28,"box":{"x":265,"y":201,"width":181,"height":12}},{"id":"ee53fd25-4bbd-4cd3-88ff-5d22d8f59634","block_type":"box","text":"Interested Directors","page_number":28,"box":{"x":70,"y":224,"width":140,"height":9}},{"id":"036485b4-45e2-4c97-819d-17a221b7012c","block_type":"box","text":"Robert Fairbairn Robert Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":28,"box":{"x":70,"y":239,"width":823,"height":11}},{"id":"c8b3095b-af3c-4ba6-9f8b-d32ce83c69b3","block_type":"box","text":"years of experience in finance and asset management. In particular, Mr. Fairbairn’s","page_number":28,"box":{"x":264,"y":254,"width":593,"height":12}},{"id":"31e18633-95dc-41ea-9a51-6171fdfc6e8b","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":28,"box":{"x":265,"y":269,"width":629,"height":12}},{"id":"a8e655a2-0163-4b31-8544-af2203cc11c4","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":28,"box":{"x":265,"y":285,"width":639,"height":11}},{"id":"232ed7d9-c378-4e07-b4a6-758dd29b3952","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":28,"box":{"x":265,"y":300,"width":617,"height":11}},{"id":"7367aef4-4b2c-40cd-838c-3d118c4c56d5","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":28,"box":{"x":264,"y":315,"width":634,"height":11}},{"id":"1d428b21-7182-4664-bd9d-dd30bfd23782","block_type":"box","text":"a Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":28,"box":{"x":265,"y":330,"width":637,"height":10}},{"id":"83d17d18-1883-403a-a386-4cea31ab860c","block_type":"box","text":"and iShares","page_number":28,"box":{"x":265,"y":345,"width":84,"height":9}},{"id":"721c6226-9406-46bb-8ad4-fa8b1f7e5b15","block_type":"box","text":"®","page_number":28,"box":{"x":350,"y":346,"width":6,"height":4}},{"id":"fdff2940-87f7-4752-a66d-a33ab13991a3","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":28,"box":{"x":362,"y":345,"width":478,"height":11}},{"id":"6b7725d7-8157-4403-b03a-42b246dfc9b8","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":28,"box":{"x":265,"y":360,"width":585,"height":12}},{"id":"39fe82e7-410b-4f9a-a9ab-35d53f6c2b67","block_type":"box","text":"Strategic Partner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":28,"box":{"x":265,"y":375,"width":620,"height":12}},{"id":"37850aec-175c-4e30-97f4-3ed7b40b5000","block_type":"box","text":"serves as a board member for the funds in the BlackRock Fixed-Income Complex.","page_number":28,"box":{"x":265,"y":390,"width":578,"height":11}},{"id":"55375a58-9e20-413c-a508-1fd2e7c25813","block_type":"box","text":"John M. Perlowski John M. Perlowski’s experience as Senior Managing Director of BlackRock, Inc. since","page_number":28,"box":{"x":69,"y":413,"width":800,"height":11}},{"id":"bdcc7c99-5c72-41ab-8ca1-6cddb526288f","block_type":"box","text":"2026, Managing Director of BlackRock, Inc. from 2009 to 2025, as the Head of","page_number":28,"box":{"x":265,"y":428,"width":570,"height":12}},{"id":"f2e84da0-c742-422c-86ff-fd94aff8fcbe","block_type":"box","text":"BlackRock Global Accounting and Product Services since 2009, and as President and","page_number":28,"box":{"x":265,"y":443,"width":609,"height":12}},{"id":"66d1d199-49a9-4390-bf23-ec6b6619c286","block_type":"box","text":"Chief Executive Officer of the BlackRock-advised Funds provides him with a strong","page_number":28,"box":{"x":265,"y":458,"width":584,"height":12}},{"id":"8dbcf10b-9e81-408a-8f80-cf5035c0f3fc","block_type":"box","text":"understanding of the BlackRock-advised Funds, their operations, and the business and","page_number":28,"box":{"x":265,"y":474,"width":617,"height":11}},{"id":"b10346e0-9ce9-421f-b64c-06ed6903df19","block_type":"box","text":"regulatory issues facing the BlackRock-advised Funds. Mr. Perlowski’s prior position as","page_number":28,"box":{"x":265,"y":489,"width":620,"height":11}},{"id":"aa6d089e-9b31-4a81-a3ca-582f15443222","block_type":"box","text":"Managing Director and Chief Operating Officer of the Global Product Group at Goldman","page_number":28,"box":{"x":265,"y":504,"width":616,"height":11}},{"id":"a8e382e1-bb5a-4a78-9fa9-be1d095d3d46","block_type":"box","text":"Sachs Asset Management, and his former service as Treasurer and Senior Vice President","page_number":28,"box":{"x":265,"y":519,"width":639,"height":11}},{"id":"85c6eb53-8588-47e5-b6df-6c548484ba60","block_type":"box","text":"of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore","page_number":28,"box":{"x":265,"y":534,"width":603,"height":9}},{"id":"3d59e5d9-6062-4fee-8113-7979920fd5f5","block_type":"box","text":"Funds provides the Board with the benefit of his experience with the management","page_number":28,"box":{"x":265,"y":549,"width":582,"height":11}},{"id":"ea44e123-ff46-443c-8a9e-2bea108ce7b2","block_type":"box","text":"practices of other financial companies. 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None Over","page_number":33,"box":{"x":79,"y":370,"width":717,"height":9}},{"id":"02c42755-c9cb-4aa6-879a-fcd87375434a","block_type":"box","text":"$100,000","page_number":33,"box":{"x":802,"y":370,"width":71,"height":11}},{"id":"8ae514ec-fb9b-431c-8319-e3290262a2c6","block_type":"box","text":"Interested Directors","page_number":33,"box":{"x":79,"y":386,"width":141,"height":8}},{"id":"6d013109-e116-4d1b-8be5-13445aed6f6b","block_type":"box","text":"...........................................","page_number":33,"box":{"x":225,"y":393,"width":344,"height":1}},{"id":"531b8bd9-5cb7-4267-80a0-074021902909","block_type":"box","text":"Robert Fairbairn . . .","page_number":33,"box":{"x":79,"y":401,"width":140,"height":9}},{"id":"10a278d5-1f3d-4fb7-b85c-65865bea5a25","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":33,"box":{"x":225,"y":401,"width":571,"height":9}},{"id":"32d40f44-c5c2-4fd7-b171-119d42e8c00e","block_type":"box","text":"$100,000","page_number":33,"box":{"x":802,"y":400,"width":71,"height":11}},{"id":"6c303560-d169-41e9-8126-6092f5ff3882","block_type":"box","text":"John M. Perlowski","page_number":33,"box":{"x":78,"y":416,"width":127,"height":9}},{"id":"e01943c8-885a-42ba-a269-82b551526684","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":33,"box":{"x":209,"y":416,"width":587,"height":9}},{"id":"ae4ba176-340c-43e6-82b8-c9fc1a28afa1","block_type":"box","text":"$100,000","page_number":33,"box":{"x":802,"y":415,"width":71,"height":11}},{"id":"16f50324-3f28-4945-b468-4ad8aa08a46e","block_type":"box","text":"As of October 2, 2025, the Directors and officers of the Fund as a group directly or indirectly beneficially owned","page_number":33,"box":{"x":101,"y":440,"width":795,"height":11}},{"id":"0e236547-28f4-4a53-9430-e92129fd2a3e","block_type":"box","text":"an aggregate of less than 1% of any class of the outstanding shares of the Fund. As of December 31, 2024, none of","page_number":33,"box":{"x":69,"y":455,"width":833,"height":11}},{"id":"a465b758-a24d-4ac2-9c94-f08fe88bc5cc","block_type":"box","text":"the Independent Directors of the Fund or their immediate family members owned beneficially or of record any","page_number":33,"box":{"x":68,"y":470,"width":777,"height":11}},{"id":"876ffd72-1956-4c63-80c2-487e8ea33ee8","block_type":"box","text":"securities of the Fund’s investment adviser, principal underwriter, or any person directly or indirectly controlling,","page_number":33,"box":{"x":69,"y":485,"width":793,"height":11}},{"id":"8bd03d0a-b56a-4db3-aa1f-a3393bb922d8","block_type":"box","text":"controlled by, or under common control with such entities.","page_number":33,"box":{"x":69,"y":500,"width":412,"height":11}},{"id":"2c94eb02-22ca-4a94-a71d-5a5bcabe6b10","block_type":"box","text":"Compensation of Directors","page_number":33,"box":{"x":69,"y":530,"width":194,"height":11}},{"id":"94ee57f8-94ac-43cf-8566-f30998aff065","block_type":"box","text":"Each Director who is an Independent Director is paid as compensation an annual retainer of $345,000 per year","page_number":33,"box":{"x":102,"y":552,"width":796,"height":12}},{"id":"b9daa8f3-42e5-4a28-9f40-b2694461192d","block_type":"box","text":"for his or her services as a board member of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex,","page_number":33,"box":{"x":68,"y":568,"width":810,"height":11}},{"id":"913fbc4c-5bae-4ad1-86eb-2d23f1866639","block_type":"box","text":"including the Fund, and a $20,000 board meeting fee to be paid for each in-person board meeting attended (and may","page_number":33,"box":{"x":70,"y":583,"width":837,"height":12}},{"id":"978cf0da-bae3-46b5-a483-7e62b7162a20","block_type":"box","text":"receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings held in a","page_number":33,"box":{"x":69,"y":598,"width":807,"height":12}},{"id":"5111e711-f2e1-473e-be2a-6a84c47f502f","block_type":"box","text":"calendar year (compensation for meetings in excess of this number to be determined on a case-by-case basis),","page_number":33,"box":{"x":69,"y":613,"width":791,"height":12}},{"id":"2991f908-14c9-4153-9494-6a70190151e8","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":33,"box":{"x":68,"y":629,"width":786,"height":11}},{"id":"a8d8c728-e193-4b2a-b25c-7ac5c6996afd","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":33,"box":{"x":69,"y":644,"width":769,"height":11}},{"id":"a0959ae7-df15-4f62-8df6-3695bbaf5ac5","block_type":"box","text":"Committee and Performance Oversight Committee are paid as compensation an additional annual retainer of","page_number":33,"box":{"x":69,"y":659,"width":778,"height":11}},{"id":"31d8210b-c836-4c3c-bb5d-3ae6e7b11a13","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":33,"box":{"x":69,"y":673,"width":689,"height":12}},{"id":"7174a16d-0ab2-4aa4-822b-3cf30474f459","block_type":"box","text":"Each Director Elect currently serves as a consultant to the Independent Directors in the performance of the","page_number":33,"box":{"x":102,"y":697,"width":766,"height":11}},{"id":"a98950f9-4957-48b0-a9ba-e0bc225f224f","block_type":"box","text":"Independent Directors’ duties to the Fund and is paid compensation at the same rate as the compensation paid to","page_number":33,"box":{"x":70,"y":712,"width":817,"height":11}},{"id":"36bc8539-8a8a-40d8-9cef-98a6dddfcc41","block_type":"box","text":"any Independent Directors who are not the Chair of the Board or a Chair of a Committee. This compensation","page_number":33,"box":{"x":69,"y":727,"width":771,"height":11}},{"id":"f77b2506-9041-4512-b8b5-3e2c7611e293","block_type":"box","text":"arrangement will continue until July 1, 2026, when each Director Elect is expected to begin serving as an","page_number":33,"box":{"x":69,"y":742,"width":749,"height":11}},{"id":"df3f7e25-5863-4e4b-bca2-df8dfb5404c9","block_type":"box","text":"Independent Director and will be compensated in a manner similar to other Independent Directors.","page_number":33,"box":{"x":70,"y":757,"width":700,"height":11}},{"id":"84b18787-2b0f-4a0c-8a54-91df4030343b","block_type":"box","text":"The following table sets forth the compensation paid to the Directors by the the Fund for the fiscal year ended","page_number":33,"box":{"x":101,"y":780,"width":784,"height":11}},{"id":"e84f0ad8-c783-4aa7-b1f6-81dcd553dc6e","block_type":"box","text":"June 30, 2025, and the aggregate compensation paid to them by all BlackRock-advised Funds for the calendar 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Ailman","page_number":34,"box":{"x":69,"y":107,"width":149,"height":11}},{"id":"72b3e648-bb9a-4fd2-a9c3-4c55bc605f7f","block_type":"box","text":"2","page_number":34,"box":{"x":220,"y":107,"width":4,"height":5}},{"id":"c063354d-43b9-4642-8250-68d269d5104f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,544 None","page_number":34,"box":{"x":233,"y":106,"width":500,"height":11}},{"id":"ade03769-1487-4e9e-9896-86c67bbe2cbe","block_type":"box","text":"$151,060","page_number":34,"box":{"x":817,"y":106,"width":72,"height":11}},{"id":"77d265b0-0e56-4302-aa8d-a1a74594eb4a","block_type":"box","text":"Susan J. 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Cotty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,744 None","page_number":34,"box":{"x":70,"y":152,"width":663,"height":12}},{"id":"2839fc39-2562-44a5-9121-24fa3017e812","block_type":"box","text":"$435,000","page_number":34,"box":{"x":817,"y":152,"width":72,"height":11}},{"id":"62f15f23-0c31-44b1-8890-ac6a980786f2","block_type":"box","text":"Lena G. Goldberg","page_number":34,"box":{"x":70,"y":168,"width":122,"height":11}},{"id":"a36f1e6d-1927-4800-8066-ce4fda42bb12","block_type":"box","text":"3","page_number":34,"box":{"x":192,"y":168,"width":5,"height":4}},{"id":"cff1712c-4dcf-4f03-a2d4-54aeb7bd5359","block_type":"box","text":"........................................","page_number":34,"box":{"x":200,"y":175,"width":320,"height":1}},{"id":"e224c32c-c4d0-4cf8-a0d9-d409170abfa8","block_type":"box","text":"$926 None $480,000","page_number":34,"box":{"x":574,"y":167,"width":315,"height":11}},{"id":"971207fd-b728-4c58-8970-c90a7e7e9ff0","block_type":"box","text":"Henry R. 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Walton","page_number":34,"box":{"x":69,"y":273,"width":111,"height":9}},{"id":"bcff3fc7-3b4c-4862-b21e-8b1c84fd2ac5","block_type":"box","text":"9","page_number":34,"box":{"x":182,"y":274,"width":4,"height":4}},{"id":"ca9c1ae9-d569-4ffa-a98f-c2a833d35a53","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,811 None","page_number":34,"box":{"x":192,"y":273,"width":541,"height":11}},{"id":"90ceccb5-2b55-4006-afe5-19e5078631d9","block_type":"box","text":"$435,000","page_number":34,"box":{"x":817,"y":273,"width":72,"height":11}},{"id":"1a6cfeca-fe82-4365-820b-c59d3c2924f5","block_type":"box","text":"Interested Directors","page_number":34,"box":{"x":70,"y":289,"width":140,"height":8}},{"id":"1a57c69d-1cbb-4c5a-b258-dcec42b4755b","block_type":"box","text":"Robert Fairbairn . .","page_number":34,"box":{"x":70,"y":304,"width":132,"height":9}},{"id":"d7604734-f9dd-497f-8a80-ba9f6f691213","block_type":"box","text":".......................................","page_number":34,"box":{"x":208,"y":311,"width":312,"height":1}},{"id":"b53f79f3-d07c-4a7a-b079-49fad158e3c1","block_type":"box","text":"None None None","page_number":34,"box":{"x":575,"y":304,"width":296,"height":9}},{"id":"1ead9f25-f611-4e43-a545-0af66b597c2d","block_type":"box","text":"John M. Perlowski","page_number":34,"box":{"x":69,"y":319,"width":126,"height":9}},{"id":"c2a54c93-a65c-4091-bcb4-5bf365dd9de1","block_type":"box","text":"........................................","page_number":34,"box":{"x":200,"y":326,"width":320,"height":2}},{"id":"15b3a676-966a-42b2-8bc3-50db0ebd9cca","block_type":"box","text":"None None None","page_number":34,"box":{"x":575,"y":319,"width":296,"height":9}},{"id":"0f1077ad-5dfb-46a6-83dd-9c220b6e3ae7","block_type":"box","text":"1","page_number":34,"box":{"x":69,"y":343,"width":3,"height":4}},{"id":"77c063c9-c273-4220-b642-b08d3d84559e","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Director receives compensation, see “Biographical Information” beginning on","page_number":34,"box":{"x":94,"y":343,"width":788,"height":9}},{"id":"b2315619-b989-4c6e-a7fe-edbf1fb2016b","block_type":"box","text":"page I-12.","page_number":34,"box":{"x":94,"y":353,"width":55,"height":9}},{"id":"b8d8732f-8526-4b53-9cf2-be6b946d9c5c","block_type":"box","text":"2","page_number":34,"box":{"x":69,"y":366,"width":3,"height":3}},{"id":"bfcc46b4-c679-44ee-85d8-abaf57f562a5","block_type":"box","text":"Mr. Ailman was appointed to serve as Director of the Fund effective September 1, 2024.","page_number":34,"box":{"x":94,"y":366,"width":505,"height":9}},{"id":"703ea0bc-c5da-456f-9726-064fa5971504","block_type":"box","text":"3","page_number":34,"box":{"x":69,"y":379,"width":3,"height":3}},{"id":"dcfbf81d-0269-4c66-a56a-f1ce832283c4","block_type":"box","text":"Ms. Goldberg retired as Trustee of the Trust and Chair of the Compliance Committee effective December 31, 2024.","page_number":34,"box":{"x":94,"y":378,"width":658,"height":9}},{"id":"b48608b9-d280-418c-a60f-1353c7da7860","block_type":"box","text":"4","page_number":34,"box":{"x":68,"y":391,"width":4,"height":4}},{"id":"5c48bf31-8cc0-4713-b892-275bc7757383","block_type":"box","text":"Chair of the Audit Committee.","page_number":34,"box":{"x":93,"y":391,"width":168,"height":7}},{"id":"b28ce623-54df-43d2-83e3-9756dbbdb36d","block_type":"box","text":"5","page_number":34,"box":{"x":69,"y":404,"width":3,"height":3}},{"id":"36869a12-5791-485b-9979-659766f1e408","block_type":"box","text":"Chair of the Governance Committee.","page_number":34,"box":{"x":93,"y":404,"width":206,"height":7}},{"id":"99705d78-338d-46e6-a065-03be3651fd4b","block_type":"box","text":"6","page_number":34,"box":{"x":69,"y":416,"width":3,"height":4}},{"id":"77c653e6-8780-4712-acf1-8c17c5654b4a","block_type":"box","text":"Chair of the Performance Oversight Committee.","page_number":34,"box":{"x":93,"y":416,"width":269,"height":9}},{"id":"80609bcd-89ba-4f9b-a1de-f3fde7802f81","block_type":"box","text":"7","page_number":34,"box":{"x":69,"y":429,"width":3,"height":3}},{"id":"c62d7da7-1d74-410a-9bee-29d80165d07b","block_type":"box","text":"Ms. Richards was appointed to serve as Director of the Fund effective June 1, 2024.","page_number":34,"box":{"x":94,"y":429,"width":483,"height":9}},{"id":"049172d2-c311-40a8-9712-ab12831b39d1","block_type":"box","text":"8","page_number":34,"box":{"x":68,"y":442,"width":4,"height":3}},{"id":"30b52fab-35a0-4ec1-8635-49135f5409c7","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":34,"box":{"x":93,"y":441,"width":352,"height":9}},{"id":"4e0579eb-3f5a-4b8b-884c-074cb28d95ab","block_type":"box","text":"9","page_number":34,"box":{"x":69,"y":454,"width":3,"height":4}},{"id":"0839477a-2d90-4ceb-8a91-47ffa5ed29c4","block_type":"box","text":"Chair of the Compliance Committee.","page_number":34,"box":{"x":93,"y":454,"width":205,"height":9}},{"id":"5fa464c7-d15b-4ab5-85fe-a36343e83e3c","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":34,"box":{"x":69,"y":483,"width":432,"height":11}},{"id":"ab784fd5-a210-4852-ba48-70dba212d9e8","block_type":"box","text":"Management Agreement","page_number":34,"box":{"x":69,"y":513,"width":180,"height":11}},{"id":"d66e53d3-aae4-4c29-9653-28ca114fd5be","block_type":"box","text":"The Fund has entered into a management agreement with BlackRock Advisors, LLC (the “Management","page_number":34,"box":{"x":101,"y":535,"width":731,"height":12}},{"id":"11006f99-137d-4814-b57e-8273a7883a93","block_type":"box","text":"Agreement”), pursuant to which the Manager provides investment management services and administrative services","page_number":34,"box":{"x":68,"y":551,"width":833,"height":11}},{"id":"2ede4407-eb67-48f0-9c20-bb731c2f4afe","block_type":"box","text":"to the Fund and the Manager receives for its services to the Fund a fee based on the Fund’s average daily net","page_number":34,"box":{"x":68,"y":566,"width":786,"height":11}},{"id":"7840ec40-70da-4d1b-8dda-2b6e1d03cbad","block_type":"box","text":"assets.","page_number":34,"box":{"x":69,"y":581,"width":51,"height":9}},{"id":"9235af5f-1936-4800-90d0-cd36c3f97083","block_type":"box","text":"Under the Management Agreement, the administrative services provided by the Manager to the Fund include, but","page_number":34,"box":{"x":102,"y":604,"width":805,"height":11}},{"id":"df93b9c8-92a9-42de-9c4b-64bd1fbcf44b","block_type":"box","text":"are not limited to, the following: maintaining office facilities for the Fund; furnishing the Fund with clerical,","page_number":34,"box":{"x":69,"y":618,"width":753,"height":12}},{"id":"b554596c-4da6-43b2-b4de-aef74cc00160","block_type":"box","text":"bookkeeping and administrative services; overseeing the determination and publication of the Fund’s net asset","page_number":34,"box":{"x":69,"y":634,"width":794,"height":11}},{"id":"7db4f793-1e47-40d3-bb65-7ce9cbc0dff3","block_type":"box","text":"value; overseeing the preparation and filing of Federal, state and local income tax returns; preparing certain reports","page_number":34,"box":{"x":68,"y":649,"width":826,"height":11}},{"id":"35239d3b-6c9b-4dd7-a886-950395001a5b","block_type":"box","text":"required by regulatory authorities; determining the amount of dividends and distributions available for payment by the","page_number":34,"box":{"x":69,"y":664,"width":837,"height":11}},{"id":"b72fb5bf-9e14-4fb0-a629-f59c8427c5f4","block_type":"box","text":"Fund to its shareholders; preparing and arranging for the printing of dividend notices to shareholders; providing the","page_number":34,"box":{"x":70,"y":679,"width":817,"height":11}},{"id":"f3db0887-5119-43f7-aa53-7d408a7ad1e7","block_type":"box","text":"Fund’s service providers with such information as is required to effect the payment of dividends and distributions;","page_number":34,"box":{"x":70,"y":694,"width":812,"height":11}},{"id":"ab56bff4-48b0-404d-b994-de7f20c636e6","block_type":"box","text":"and consulting with the Fund’s officers, independent accountants, legal counsel, custodian, accounting agent and","page_number":34,"box":{"x":69,"y":709,"width":811,"height":11}},{"id":"a175ea5f-e4e5-412f-9db8-ad1e4838d2ce","block_type":"box","text":"transfer and dividend disbursing agent in establishing the accounting policies of each entity and monitoring financial","page_number":34,"box":{"x":68,"y":724,"width":827,"height":12}},{"id":"4b82bc0d-cc36-444a-8adf-acf268319947","block_type":"box","text":"and shareholder accounting services.","page_number":34,"box":{"x":69,"y":740,"width":266,"height":11}},{"id":"2784effb-103d-4dbb-a0ab-84ff91474657","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s","page_number":34,"box":{"x":102,"y":762,"width":762,"height":11}},{"id":"30856089-5cb9-46da-8d48-9844dea5ed76","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":34,"box":{"x":69,"y":777,"width":799,"height":12}},{"id":"f0313507-2947-43f6-aebc-96a3c1afb649","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":34,"box":{"x":68,"y":792,"width":726,"height":12}},{"id":"6433e8cc-8619-4eb7-bf42-cf89a782580a","block_type":"box","text":"June 30, 2027. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":34,"box":{"x":69,"y":807,"width":797,"height":12}},{"id":"2560044b-a031-4740-9789-33c51efba447","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":34,"box":{"x":69,"y":823,"width":789,"height":11}},{"id":"b2cc4b45-7108-4d98-8297-3f8d7ce05fa2","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2027. The contractual agreements may be terminated upon 90 days’","page_number":34,"box":{"x":70,"y":838,"width":810,"height":11}},{"id":"a9e2c925-8eac-47cc-8687-5402fcb6cc2c","block_type":"box","text":"notice by a majority of the Independent Directors or by a vote of a majority of the outstanding voting securities of the","page_number":34,"box":{"x":69,"y":853,"width":830,"height":11}},{"id":"dc1f934e-4a54-4b75-978e-e2b874c0b946","block_type":"box","text":"Fund.","page_number":34,"box":{"x":70,"y":868,"width":36,"height":9}},{"id":"7185eb4b-ede5-4a23-b27c-6f55eaf001c8","block_type":"box","text":"With respect to the Fund, the Manager has agreed to contractually waive and/or reimburse fees or expenses in","page_number":34,"box":{"x":101,"y":891,"width":792,"height":11}},{"id":"976449ca-b8e7-43b8-b82a-15bce9c17e1c","block_type":"box","text":"order to limit Total Annual Fund Operating Expenses (excluding Dividend Expense, Interest Expense, Acquired Fund","page_number":34,"box":{"x":69,"y":906,"width":814,"height":11}},{"id":"334a9240-76b6-4954-ac5f-e667289204cd","block_type":"box","text":"I-18","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"3a28f891-00fa-4e21-b422-16a51eeabd67","block_type":"box","text":"NM1026U-6032801-34/242","page_number":34,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"08f2aed9-2595-4e44-af04-b55072d530ce","block_type":"box","text":"Fees and Expenses and certain other Fund expenses (as defined in the Fund’s Prospectuses)) to 1.22% of average","page_number":35,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"b00fa69d-e42e-419d-9777-0f0e8d0cb7b6","block_type":"box","text":"daily net assets for Class R Shares through June 30, 2027. The contractual agreement may be terminated upon 90","page_number":35,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"c29b8301-8ed7-4ae4-9cfc-9e57fec8acb7","block_type":"box","text":"days’ notice by a majority of the Independent Directors or by a vote of a majority of the outstanding voting securities","page_number":35,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"07b66fad-8c2b-4671-9459-d36f2f78708a","block_type":"box","text":"of the Fund.","page_number":35,"box":{"x":69,"y":90,"width":83,"height":9}},{"id":"eea14a43-0b2f-456a-a42e-8ff61d371f8f","block_type":"box","text":"Pursuant to the Management Agreement, the Manager may from time to time, in its sole discretion to the extent","page_number":35,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"860be5ac-7396-4a74-abc4-f337704f0106","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the Manager,","page_number":35,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"525416d9-080e-4f2a-8f61-8c1dfca96cd3","block_type":"box","text":"to perform investment advisory services with respect to the Fund. In addition, the Manager may delegate certain of","page_number":35,"box":{"x":68,"y":143,"width":825,"height":11}},{"id":"f7eb1958-94e6-4f5d-b6bf-b6cf6829b74f","block_type":"box","text":"its investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":35,"box":{"x":70,"y":158,"width":801,"height":11}},{"id":"824bee15-a1d5-4b0e-be41-797fa4701a45","block_type":"box","text":"permitted by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in","page_number":35,"box":{"x":70,"y":173,"width":823,"height":11}},{"id":"8f68ff5a-ad05-4092-8aa8-356da326ee40","block_type":"box","text":"its sole discretion at any time to the extent permitted by applicable law.","page_number":35,"box":{"x":70,"y":188,"width":508,"height":11}},{"id":"ceeafd63-d1d2-4681-b9ed-8eb468e127d3","block_type":"box","text":"The table below sets forth information about the total management fees paid by the Fund to the Manager, and","page_number":35,"box":{"x":101,"y":211,"width":787,"height":11}},{"id":"22cd1028-f723-418d-8ef8-e1a4401c3682","block_type":"box","text":"the amounts waived by the Manager, for the periods indicated:","page_number":35,"box":{"x":68,"y":226,"width":445,"height":11}},{"id":"4baed7a2-7cf6-4f21-ae46-7a7d88df145b","block_type":"box","text":"Fees Paid","page_number":35,"box":{"x":717,"y":254,"width":55,"height":7}},{"id":"adf3649a-25bc-4de1-97ba-38a73cf1feed","block_type":"box","text":"to the Manager","page_number":35,"box":{"x":699,"y":265,"width":90,"height":8}},{"id":"4a7153fd-c68f-44ce-b914-5be38c574ccb","block_type":"box","text":"Fees Waived by","page_number":35,"box":{"x":820,"y":254,"width":89,"height":9}},{"id":"2e873cab-ba40-4aae-af7b-d4f1db8bc21c","block_type":"box","text":"the Manager","page_number":35,"box":{"x":827,"y":265,"width":74,"height":8}},{"id":"659c94bb-361e-499e-8129-4a0bc8d6216b","block_type":"box","text":"Fiscal Year Ended June 30, 2025. . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":35,"box":{"x":70,"y":282,"width":460,"height":11}},{"id":"d5770a12-d0ee-4ce5-afcd-4f546df397d7","block_type":"box","text":". . . . . . . . . . . . . . . . . $7,","page_number":35,"box":{"x":536,"y":281,"width":187,"height":12}},{"id":"2c204dad-4b24-4e86-a520-2a7671d7c198","block_type":"box","text":"688,560 $5,947","page_number":35,"box":{"x":725,"y":281,"width":165,"height":12}},{"id":"56bc0414-b434-483b-a667-f2285df656ab","block_type":"box","text":"Fiscal Year Ended June 30, 2024. . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":35,"box":{"x":70,"y":297,"width":460,"height":11}},{"id":"c1900e6f-3015-46fa-a3f9-ee8ed35f54b0","block_type":"box","text":". . . . . . . . . . . . . . . . . $7,","page_number":35,"box":{"x":536,"y":297,"width":187,"height":11}},{"id":"fb715aed-2626-4910-95bd-c8754504bede","block_type":"box","text":"788,144 $6,992","page_number":35,"box":{"x":726,"y":297,"width":164,"height":11}},{"id":"b43d0ce9-18d6-401e-865e-fb6c209a6cc1","block_type":"box","text":"Fiscal Year Ended June 30, 2023. . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":35,"box":{"x":70,"y":312,"width":460,"height":11}},{"id":"e7b2ffe6-e01c-4e4a-b781-5e2cff874a5f","block_type":"box","text":". . . . . . . . . . . . . . . . . $7,","page_number":35,"box":{"x":536,"y":312,"width":187,"height":11}},{"id":"aee3fa24-d884-4a9e-8e09-8efeaa126a48","block_type":"box","text":"941,304 $8,131","page_number":35,"box":{"x":725,"y":312,"width":165,"height":11}},{"id":"7567f368-3bb0-4ee8-93ac-ec275790386b","block_type":"box","text":"Information Regarding the Portfolio Manager","page_number":35,"box":{"x":69,"y":368,"width":327,"height":12}},{"id":"badb2718-2825-4c93-9059-5776eaaea019","block_type":"box","text":"David Zhao is the portfolio manager and is jointly and primarily responsible for the day-to-day management of the","page_number":35,"box":{"x":102,"y":391,"width":804,"height":11}},{"id":"cf4155a2-8e30-4aad-ad4f-9432e0aa7a7b","block_type":"box","text":"Fund’s portfolio.","page_number":35,"box":{"x":70,"y":406,"width":114,"height":11}},{"id":"afbd913b-26f0-42ea-ac87-0402bc137bb9","block_type":"box","text":"Other Funds and Accounts Managed","page_number":35,"box":{"x":70,"y":437,"width":265,"height":11}},{"id":"fdbcdb4a-cc7d-4c1d-ae0f-884b1759a292","block_type":"box","text":"The following table sets forth information about the funds and accounts other than the Fund for which the","page_number":35,"box":{"x":101,"y":459,"width":753,"height":11}},{"id":"c4745052-e10e-410f-acdd-f850200674a8","block_type":"box","text":"portfolio manager is primarily responsible for the day-to-day portfolio management as of June 30, 2025.","page_number":35,"box":{"x":70,"y":474,"width":739,"height":12}},{"id":"18e0abb4-c2fa-4484-85a2-d382e7b3cf6d","block_type":"box","text":"Number of Other Accounts Managed","page_number":35,"box":{"x":365,"y":503,"width":211,"height":8}},{"id":"a37023f4-10b9-4eec-9b91-f3f0c8b1e473","block_type":"box","text":"and Assets by Account Type","page_number":35,"box":{"x":388,"y":513,"width":165,"height":8}},{"id":"4ea51bd3-ace7-43c1-bc2d-58cc4f3c3c9d","block_type":"box","text":"Number of Other Accounts and Assets","page_number":35,"box":{"x":656,"y":503,"width":222,"height":7}},{"id":"a5506dfb-e1b7-491a-b9e4-d574870ebdd4","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":35,"box":{"x":634,"y":513,"width":265,"height":8}},{"id":"d15cd54d-0f20-4add-904b-0c1d7e082344","block_type":"box","text":"Name of Portfolio 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Pooled","page_number":35,"box":{"x":428,"y":535,"width":74,"height":7}},{"id":"7effb9fa-ccf1-448f-b36b-fe3f613247bd","block_type":"box","text":"Investment","page_number":35,"box":{"x":433,"y":545,"width":64,"height":8}},{"id":"28f4914f-74cd-4a8d-a88a-b7e3affc2524","block_type":"box","text":"Vehicles","page_number":35,"box":{"x":441,"y":555,"width":48,"height":8}},{"id":"31cc4713-3e45-4f1f-a87c-3353e492f643","block_type":"box","text":"Other","page_number":35,"box":{"x":553,"y":545,"width":31,"height":8}},{"id":"3a22b58a-1572-46ca-a920-13f9c31e74c5","block_type":"box","text":"Accounts","page_number":35,"box":{"x":541,"y":556,"width":54,"height":7}},{"id":"096b3668-a0ff-41e6-8cd4-25be0cadf4b3","block_type":"box","text":"Other","page_number":35,"box":{"x":651,"y":525,"width":32,"height":7}},{"id":"d464e451-9829-4517-9788-8bd6341f05b6","block_type":"box","text":"Registered","page_number":35,"box":{"x":636,"y":535,"width":62,"height":9}},{"id":"5953034b-1e62-4bc7-a45e-ae248a7190b1","block_type":"box","text":"Investment","page_number":35,"box":{"x":635,"y":545,"width":64,"height":8}},{"id":"10ddf05e-8475-45e9-beaf-1b858a8fea7b","block_type":"box","text":"Companies","page_number":35,"box":{"x":635,"y":555,"width":64,"height":9}},{"id":"2d688634-2c30-41c7-920c-57f49a5ddedd","block_type":"box","text":"Other Pooled","page_number":35,"box":{"x":720,"y":535,"width":75,"height":7}},{"id":"fc2e2001-e7a7-44be-93c8-6fab8b3cc12c","block_type":"box","text":"Investment","page_number":35,"box":{"x":726,"y":545,"width":64,"height":8}},{"id":"4e58586b-4c67-42c9-b9b4-d666832211b8","block_type":"box","text":"Vehicles","page_number":35,"box":{"x":733,"y":555,"width":48,"height":8}},{"id":"ade1d1e9-00d2-4b44-b591-0cf1350a2ace","block_type":"box","text":"Other","page_number":35,"box":{"x":842,"y":545,"width":31,"height":8}},{"id":"3b948546-1d55-4578-b0ca-60fede27cd31","block_type":"box","text":"Accounts","page_number":35,"box":{"x":830,"y":556,"width":55,"height":7}},{"id":"ecad385b-9570-47d8-88f2-f0fea425e73d","block_type":"box","text":"David Zhao 13 12 7 0 0 1","page_number":35,"box":{"x":74,"y":569,"width":787,"height":7}},{"id":"4b529ae5-839b-4fb4-8218-ab5fd9ec95db","block_type":"box","text":"$28.01 Billion $6.91 Billion $301.74 Million $0 $0 $57.81 Million","page_number":35,"box":{"x":327,"y":581,"width":572,"height":9}},{"id":"de64a03f-8f16-4f02-9be5-8bbf4f0bfadf","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":35,"box":{"x":69,"y":616,"width":304,"height":11}},{"id":"85b08ee2-4aaa-4817-8d9e-4fd1927e287f","block_type":"box","text":"The discussion below describes the portfolio manager’s compensation as of June 30, 2025.","page_number":35,"box":{"x":101,"y":639,"width":660,"height":11}},{"id":"818723a2-c9d8-407a-96eb-b57ad1c316f5","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":35,"box":{"x":102,"y":661,"width":774,"height":12}},{"id":"b6b2e275-047b-4106-aa18-255ce2e97b34","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":35,"box":{"x":70,"y":676,"width":837,"height":12}},{"id":"8af4c2f1-0b0d-4238-86a1-4d705f317cf1","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":35,"box":{"x":69,"y":692,"width":823,"height":11}},{"id":"45eea3ab-1eda-4b00-b0fa-de9b24fb7d35","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":35,"box":{"x":69,"y":707,"width":799,"height":11}},{"id":"6078d31e-e28b-4f26-9d8c-f3d90c4325c4","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":35,"box":{"x":70,"y":722,"width":670,"height":11}},{"id":"6be199db-1125-4e55-a0dd-7cbf49378eca","block_type":"box","text":"Base Compensation.","page_number":35,"box":{"x":102,"y":745,"width":148,"height":11}},{"id":"2dc4eeb6-e5e0-4d7b-a8cc-40d2ccbe5d24","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":35,"box":{"x":257,"y":744,"width":640,"height":12}},{"id":"0a8a793c-b101-48d2-82b2-fef0980d667c","block_type":"box","text":"firm.","page_number":35,"box":{"x":68,"y":760,"width":32,"height":8}},{"id":"09c7978a-b062-4c5f-9c73-754996bf4668","block_type":"box","text":"Discretionary Incentive Compensation","page_number":35,"box":{"x":69,"y":790,"width":277,"height":11}},{"id":"ef33ccbb-fb82-4c8a-8f7c-b55178e47e18","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities portfolio managers is based on a","page_number":35,"box":{"x":102,"y":812,"width":763,"height":12}},{"id":"4d9d82d8-15ad-4476-93a7-6191ff79b814","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic portfolio manager compensation program is based on team","page_number":35,"box":{"x":68,"y":828,"width":832,"height":11}},{"id":"8135f7fb-56f6-4066-a140-aa63916ba51c","block_type":"box","text":"revenue and pre-tax investment performance relative to appropriate competitors or benchmarks over 1- and 5-year","page_number":35,"box":{"x":69,"y":843,"width":815,"height":11}},{"id":"04f0617e-9efc-4e7d-b304-d82cd9f60130","block_type":"box","text":"performance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":35,"box":{"x":70,"y":858,"width":757,"height":11}},{"id":"3d01ef5b-c53c-45ca-91b9-2557c24d3edc","block_type":"box","text":"benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are","page_number":35,"box":{"x":69,"y":873,"width":814,"height":11}},{"id":"07c20f6b-8526-4a24-8933-93695a1c9a68","block_type":"box","text":"measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the","page_number":35,"box":{"x":69,"y":888,"width":780,"height":11}},{"id":"b6b84b27-1358-4b5b-8471-c503234a8c31","block_type":"box","text":"performance of the Fund and other accounts managed by each portfolio management team is compared and the","page_number":35,"box":{"x":70,"y":903,"width":802,"height":12}},{"id":"2fa13686-b2a6-41ed-be0a-acfada70de30","block_type":"box","text":"I-19","page_number":35,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"e1eda15a-306e-42fe-ad94-ba76bab7e89c","block_type":"box","text":"NM1026U-6032801-35/242","page_number":35,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5e2e8648-e841-46ee-ba60-8c29cb0f171d","block_type":"box","text":"period of time over which performance is evaluated. With respect to the portfolio manager such benchmarks for the","page_number":36,"box":{"x":70,"y":45,"width":824,"height":11}},{"id":"c40cd7fb-0815-4fe6-a613-6eafe8f99e99","block_type":"box","text":"Fund and other accounts are: FTSE United States in GBP; MSCI All Country (AC) Americas Index; Russell 1000 Index","page_number":36,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"78fecb6b-c6d3-42fa-bfc0-5d132a11f930","block_type":"box","text":"(GBP); Russell 1000 Index (Gross Total Return); Russell 1000 Value Index (Total Return); Russell 1000 Value Index","page_number":36,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"79cc2c28-67fa-4ab0-a50b-ce87b20f96c5","block_type":"box","text":"TR in GBP; Russell 1000 Value TR Customized Index Performance Benchmark JPY; Russell 1000, expressed in EUR;","page_number":36,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"0ab99222-0bef-46b2-9a3d-158a40e423b6","block_type":"box","text":"Russell MidCap Value Index; S&P United States MidSmallCap Index; S&P US MidSmallCap Index (GBP).","page_number":36,"box":{"x":70,"y":105,"width":734,"height":11}},{"id":"3732482d-d0f9-465b-8794-6d5b1ad227d7","block_type":"box","text":"A smaller element of portfolio manager discretionary compensation may include consideration of: financial","page_number":36,"box":{"x":101,"y":128,"width":759,"height":11}},{"id":"dddabb80-ff01-43d8-862a-d0d7b5a3a06a","block_type":"box","text":"results, expense control, profit margins, strategic planning and implementation, quality of client service, market","page_number":36,"box":{"x":69,"y":143,"width":798,"height":11}},{"id":"c0c30413-cbff-449a-9214-d0c527c722ee","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":36,"box":{"x":69,"y":158,"width":814,"height":11}},{"id":"8d02f9d2-cc66-40ef-acc0-8ac009e2ab1e","block_type":"box","text":"These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":36,"box":{"x":68,"y":173,"width":798,"height":11}},{"id":"9b57258a-670c-42c6-88d1-85deb54b6fa1","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":36,"box":{"x":102,"y":196,"width":389,"height":11}},{"id":"e16ceb81-0349-4ba9-8346-46afb1e58c3c","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":36,"box":{"x":499,"y":196,"width":383,"height":11}},{"id":"20ce431f-3073-4276-8ca2-5ca99ad81ac3","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":36,"box":{"x":70,"y":211,"width":815,"height":11}},{"id":"1a53a7e7-3626-4cd6-9c4c-8cf644515fa0","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":36,"box":{"x":68,"y":226,"width":522,"height":11}},{"id":"14072335-a554-4c63-826b-f576f11a8f47","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":36,"box":{"x":102,"y":249,"width":760,"height":11}},{"id":"21d161da-c772-484c-b1ad-1a00c4c66aa8","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":36,"box":{"x":69,"y":264,"width":795,"height":11}},{"id":"df11257d-7b2b-4d7a-a948-d6ac8d0c771a","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":36,"box":{"x":69,"y":279,"width":805,"height":11}},{"id":"b7a21f03-9c30-4b4d-afa1-68352d2eb8e0","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":36,"box":{"x":69,"y":294,"width":822,"height":11}},{"id":"16cc816f-3826-48ca-a31e-3a2b1a6f9e78","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":36,"box":{"x":68,"y":309,"width":839,"height":11}},{"id":"0ce504f2-2848-4c25-ac5b-e64954b40b22","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":36,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"3486fb8f-3a1c-45bf-acae-0a79eaf93146","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":36,"box":{"x":70,"y":339,"width":820,"height":12}},{"id":"980b865a-12a9-4623-bcbe-3711189f1d61","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":36,"box":{"x":70,"y":355,"width":801,"height":11}},{"id":"3bd1654e-5727-4b73-973b-2de26f649789","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":36,"box":{"x":70,"y":370,"width":831,"height":11}},{"id":"8952ea21-2a63-44cf-842e-90c401639882","block_type":"box","text":"manager of the Fund has deferred BlackRock, Inc. stock awards.","page_number":36,"box":{"x":69,"y":385,"width":460,"height":11}},{"id":"b2a5ab8b-dc83-4158-ab86-b0802ecce25c","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":36,"box":{"x":102,"y":407,"width":785,"height":12}},{"id":"c6ce0d58-4af9-4627-b8e3-bcf6bd477618","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":36,"box":{"x":68,"y":423,"width":836,"height":11}},{"id":"377ec1a1-60bd-40c2-a290-e9f4b35889ae","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":36,"box":{"x":68,"y":438,"width":821,"height":11}},{"id":"44fafdfa-9172-4cad-9be7-44e16eb40541","block_type":"box","text":"results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only","page_number":36,"box":{"x":69,"y":453,"width":829,"height":11}},{"id":"92023273-ab7e-46fe-a8ab-be445ea846d9","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":36,"box":{"x":70,"y":468,"width":835,"height":11}},{"id":"92591923-38ae-4c21-9308-c7148299b35a","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":36,"box":{"x":69,"y":483,"width":414,"height":11}},{"id":"9d7902ac-fc6f-44ce-bdd0-93f970c08a4a","block_type":"box","text":"Other Compensation Benefits.","page_number":36,"box":{"x":101,"y":506,"width":218,"height":11}},{"id":"c0391155-00dc-4c58-b3a3-a0046f2eba9e","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":36,"box":{"x":327,"y":506,"width":552,"height":11}},{"id":"dbae0f4f-c489-44bd-9846-5d517a4c6e79","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":36,"box":{"x":69,"y":521,"width":582,"height":11}},{"id":"1c0861e5-e77a-44cd-a968-54aee2f08f11","block_type":"box","text":"Incentive Savings Plans","page_number":36,"box":{"x":102,"y":544,"width":167,"height":11}},{"id":"a6a0b9f2-6590-49fa-92b6-7f8d9fab421f","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":36,"box":{"x":274,"y":543,"width":614,"height":12}},{"id":"3843252e-ff33-484c-8cb3-c69a066bed32","block_type":"box","text":"employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":36,"box":{"x":69,"y":559,"width":831,"height":11}},{"id":"3864c930-2a3c-47c0-9225-d32aa878d10d","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":36,"box":{"x":70,"y":574,"width":785,"height":11}},{"id":"6cddf25e-d5a8-49d3-b624-e12988f83ec9","block_type":"box","text":"company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a","page_number":36,"box":{"x":69,"y":588,"width":830,"height":12}},{"id":"12bc0b5f-87f4-485a-8232-ae3c566f2739","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":36,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"4f04f737-6ac3-4a5e-acfc-99f48b2daff0","block_type":"box","text":"($350,000 for 2025). The RSP offers a range of investment options, including registered investment companies and","page_number":36,"box":{"x":69,"y":618,"width":831,"height":12}},{"id":"27be194a-2b33-415a-bb55-03ccc05b5123","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":36,"box":{"x":69,"y":634,"width":798,"height":12}},{"id":"8df982e1-d583-469a-9db1-856ff6d17b32","block_type":"box","text":"participants for their own contributions or, absent participant investment direction, are invested into a target date","page_number":36,"box":{"x":70,"y":649,"width":809,"height":12}},{"id":"915cae7b-76b9-493a-81fd-b722d2128b6b","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":36,"box":{"x":68,"y":664,"width":793,"height":12}},{"id":"5e7b3a59-bc80-4f93-ab2a-1e717815784a","block_type":"box","text":"investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.","page_number":36,"box":{"x":70,"y":680,"width":832,"height":11}},{"id":"db4f9c4b-50c6-41d5-b89a-b49bd421524d","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":36,"box":{"x":68,"y":695,"width":805,"height":11}},{"id":"5d8cbca6-3d5a-4a63-b449-c1e02b85fe98","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":36,"box":{"x":69,"y":709,"width":808,"height":12}},{"id":"8cc3cfc5-b06c-48b0-974c-5ba11ae02075","block_type":"box","text":"participate in these plans.","page_number":36,"box":{"x":70,"y":725,"width":185,"height":11}},{"id":"c5ed0eb6-c5b0-49ca-9d8c-c911da50f711","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":36,"box":{"x":69,"y":755,"width":268,"height":11}},{"id":"fe379fe4-c394-4d5b-8065-736b50dfada6","block_type":"box","text":"As of June 30, 2025, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":36,"box":{"x":101,"y":778,"width":735,"height":11}},{"id":"60f980fd-dc82-4e3b-9685-dce0db9b5121","block_type":"box","text":"beneficially owned by the portfolio manager in the Fund is shown below:","page_number":36,"box":{"x":69,"y":793,"width":511,"height":11}},{"id":"a7c4bb44-2d8a-4695-ad6f-557ea4f4e815","block_type":"box","text":"Portfolio Manager","page_number":36,"box":{"x":69,"y":831,"width":105,"height":9}},{"id":"f4587fb3-b04e-4f53-abf9-26a23650245d","block_type":"box","text":"Dollar Range of Equity","page_number":36,"box":{"x":759,"y":821,"width":129,"height":9}},{"id":"a2fb07e9-a5ef-459b-bffe-6b731d0e87ed","block_type":"box","text":"Securities Beneficially Owned","page_number":36,"box":{"x":736,"y":831,"width":173,"height":9}},{"id":"0a0f355e-e879-448b-a2dd-a88be3726bb7","block_type":"box","text":"David Zhao","page_number":36,"box":{"x":70,"y":849,"width":77,"height":9}},{"id":"378b70dd-eb6c-4d19-b26d-fdc804ad3d71","block_type":"box","text":"....................................................................","page_number":36,"box":{"x":157,"y":857,"width":548,"height":1}},{"id":"7dbdc439-67b4-4a39-bc73-1396b5532f76","block_type":"box","text":"$100,001 - $500,000","page_number":36,"box":{"x":744,"y":848,"width":158,"height":12}},{"id":"ee91556d-dcf3-4149-a65b-8c0939807a6f","block_type":"box","text":"I-20","page_number":36,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"07576f69-e582-4c50-8499-32cf8d1cdfec","block_type":"box","text":"NM1026U-6032801-36/242","page_number":36,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"958b5bfb-9550-4091-b4d8-c6bf6a041a66","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":37,"box":{"x":69,"y":45,"width":403,"height":11}},{"id":"411217f3-b5f9-4c2e-9be6-8705c0fbc18c","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":37,"box":{"x":102,"y":67,"width":727,"height":12}},{"id":"4b41168b-1a3b-4b1a-83b7-463d1b3a3e37","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":37,"box":{"x":70,"y":82,"width":814,"height":12}},{"id":"37ee6a6c-6bc2-4514-b651-22db8210f649","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":37,"box":{"x":70,"y":98,"width":837,"height":11}},{"id":"9ca0a81f-9ecc-45b2-9f41-06ac8f8fafb6","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":37,"box":{"x":70,"y":113,"width":810,"height":11}},{"id":"719414e6-ce7f-4c79-bf4b-841c8a17fe39","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":37,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"5354cc3d-62db-4578-9f60-3d006b975fc7","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":37,"box":{"x":69,"y":143,"width":830,"height":11}},{"id":"26647d49-32e3-40f5-ad4f-6425c2790206","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":37,"box":{"x":69,"y":158,"width":828,"height":11}},{"id":"f02d5cd2-0b52-4af4-9cb5-3dd7ca247a8c","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":37,"box":{"x":68,"y":173,"width":834,"height":11}},{"id":"92f62c6b-34dc-4bc5-817e-d5ca1afa0887","block_type":"box","text":"in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition,","page_number":37,"box":{"x":70,"y":188,"width":777,"height":11}},{"id":"2fccc275-ab13-4299-8cc5-3a53fba418cc","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":37,"box":{"x":70,"y":203,"width":821,"height":12}},{"id":"61300f7d-e9c0-4fa7-badb-b10bef7e44f4","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":37,"box":{"x":69,"y":219,"width":819,"height":10}},{"id":"3fba3a2b-5667-43d2-ac8a-917fa8b2fd98","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":37,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"fdf75cc0-d156-483b-af89-1957ed743883","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":37,"box":{"x":68,"y":249,"width":804,"height":11}},{"id":"fb3c494c-8fee-4816-a48c-fb77ff84b1cd","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":37,"box":{"x":69,"y":264,"width":760,"height":11}},{"id":"65a87241-afdd-4c1c-919d-d6d99410223f","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":37,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"0f1c62c0-f28f-4708-a747-1264f3f65eca","block_type":"box","text":"are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the","page_number":37,"box":{"x":69,"y":294,"width":836,"height":11}},{"id":"a0945ddb-5498-4932-b2ec-174eb6afa0ce","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":37,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"b3e11d88-ec6f-4b3c-b32c-90eefe5e7ed8","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":37,"box":{"x":70,"y":324,"width":835,"height":12}},{"id":"fef38edb-8404-4c61-81bc-825bed15a5d0","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that a portfolio manager may be managing","page_number":37,"box":{"x":69,"y":339,"width":820,"height":12}},{"id":"8f6a98e4-03c2-4736-8dff-be20b73cdc1c","block_type":"box","text":"hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only accounts,","page_number":37,"box":{"x":69,"y":355,"width":811,"height":11}},{"id":"d0f807d7-cf1e-4a30-86d9-63699481fd9a","block_type":"box","text":"subject to incentive fees. Such portfolio managers may therefore be entitled to receive a portion of any incentive fees","page_number":37,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"d6f3f28a-8497-4f69-abc5-93dfe6c9428e","block_type":"box","text":"earned on such accounts. Currently, the portfolio manager of this Fund is not entitled to receive a portion of incentive","page_number":37,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"8edbd25a-46b5-41ba-a8e6-7af448d51b56","block_type":"box","text":"fees of other accounts.","page_number":37,"box":{"x":68,"y":400,"width":164,"height":9}},{"id":"61f737bb-3761-40f5-95cc-2e8de1fa9e0a","block_type":"box","text":"As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock","page_number":37,"box":{"x":101,"y":423,"width":788,"height":11}},{"id":"4a97ba64-b29b-4d3c-9ae8-86ace33ebc72","block_type":"box","text":"purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its","page_number":37,"box":{"x":70,"y":438,"width":839,"height":11}},{"id":"74cbf1da-060c-4aa8-ae14-05d8665c0a8a","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":37,"box":{"x":68,"y":453,"width":823,"height":11}},{"id":"38e810f4-48b1-4549-a470-23051be554a1","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":37,"box":{"x":68,"y":468,"width":812,"height":11}},{"id":"f024bf99-cca0-4abb-9eb5-eef3492744ff","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":37,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"2c7cfea4-bc11-451a-a4f1-68fb9445ff31","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":37,"box":{"x":70,"y":498,"width":826,"height":11}},{"id":"428195bf-b32c-4426-849c-1af4d9f1c4c1","block_type":"box","text":"Accounting Services","page_number":37,"box":{"x":68,"y":529,"width":150,"height":11}},{"id":"8d8ece6c-77d3-4f09-bcf2-a9060d7146a5","block_type":"box","text":"BNY Mellon provides certain accounting services to the Fund. BNY Mellon records investment, capital share and","page_number":37,"box":{"x":102,"y":551,"width":801,"height":11}},{"id":"deff4032-2238-45a9-a910-cc906e307651","block_type":"box","text":"income and expense activities; verifies and transmits trade tickets; maintains accounting ledgers for investment","page_number":37,"box":{"x":70,"y":566,"width":799,"height":11}},{"id":"7b0c3d9d-5207-41fc-b878-564b6219ebe0","block_type":"box","text":"securities; maintains tax lots; reconciles cash with the Fund’s custodian; reports cash balances to the Manager;","page_number":37,"box":{"x":69,"y":582,"width":802,"height":11}},{"id":"07bcbee6-1148-459e-8a82-a2ae346565f0","block_type":"box","text":"prepares certain financial statements; calculates expenses, gains, losses and income; controls disbursements;","page_number":37,"box":{"x":70,"y":596,"width":796,"height":12}},{"id":"634d85f3-0c31-4ba2-b74f-7f32819bf357","block_type":"box","text":"works with independent pricing sources; and computes and reports net asset value. In connection with its accounting","page_number":37,"box":{"x":68,"y":612,"width":839,"height":11}},{"id":"31b540ca-48c2-4541-818a-029d33182c6e","block_type":"box","text":"services, BNY Mellon also provides certain administration services.","page_number":37,"box":{"x":69,"y":627,"width":482,"height":11}},{"id":"435796de-e25c-4ce1-b996-cfc206293616","block_type":"box","text":"Prior to May 31, 2021, the Fund also paid the Manager for certain accounting services.","page_number":37,"box":{"x":102,"y":649,"width":623,"height":12}},{"id":"55f8dab7-4bf9-48b6-87c8-57ef47694625","block_type":"box","text":"The table below shows the amount paid by the Fund to BNY Mellon and the Manager for accounting services for","page_number":37,"box":{"x":101,"y":672,"width":798,"height":11}},{"id":"5fada8d0-3a89-43ee-aaf7-c099145142dc","block_type":"box","text":"the periods indicated:","page_number":37,"box":{"x":68,"y":687,"width":154,"height":11}},{"id":"38c075c0-ddd5-4f25-8ef1-da872f8b3aab","block_type":"box","text":"Fees Paid","page_number":37,"box":{"x":720,"y":715,"width":56,"height":8}},{"id":"3b2cd725-7379-4bd6-b37a-17be3d5b1554","block_type":"box","text":"to BNY Mellon","page_number":37,"box":{"x":706,"y":726,"width":83,"height":7}},{"id":"77a8ae09-c898-4346-9622-7e283e026904","block_type":"box","text":"Fees Paid","page_number":37,"box":{"x":837,"y":715,"width":55,"height":8}},{"id":"25f804bf-53b0-4803-a21d-5507a0430245","block_type":"box","text":"to the Manager","page_number":37,"box":{"x":819,"y":726,"width":90,"height":8}},{"id":"1450c67f-46e2-4b63-91bc-8609a8ef7060","block_type":"box","text":"Fiscal Year Ended June 30, 2025. . . . .","page_number":37,"box":{"x":70,"y":743,"width":271,"height":11}},{"id":"fbc32d8e-39ea-4e1c-927e-26a7efc6c3b3","block_type":"box","text":".........................................","page_number":37,"box":{"x":347,"y":751,"width":328,"height":1}},{"id":"963dff23-2a47-4bc4-80c6-91cd3160350d","block_type":"box","text":"$137,638 $0","page_number":37,"box":{"x":712,"y":743,"width":162,"height":11}},{"id":"8834db35-8102-447c-9ae1-1b68a03a18a2","block_type":"box","text":"Fiscal Year Ended June 30, 2024. . . . .","page_number":37,"box":{"x":70,"y":758,"width":271,"height":11}},{"id":"89e2e788-ca30-46bc-9c0a-7e369e1f5772","block_type":"box","text":".........................................","page_number":37,"box":{"x":347,"y":766,"width":328,"height":1}},{"id":"9150ceda-a6fc-4f2a-b335-8dd2a6bdb165","block_type":"box","text":"$138,106 $0","page_number":37,"box":{"x":712,"y":758,"width":162,"height":11}},{"id":"a3f9deb1-4a62-4346-9c03-7422f41dc470","block_type":"box","text":"Fiscal Year Ended June 30, 2023. . . . .","page_number":37,"box":{"x":70,"y":774,"width":271,"height":10}},{"id":"20715fef-7a38-42a4-ba7f-f9a931e96488","block_type":"box","text":".........................................","page_number":37,"box":{"x":347,"y":781,"width":328,"height":1}},{"id":"373f4639-ff1a-4c7b-ae67-f560327e051c","block_type":"box","text":"$140,274 $0","page_number":37,"box":{"x":712,"y":773,"width":162,"height":11}},{"id":"7029090a-7beb-4132-8a16-2972412f1d23","block_type":"box","text":"Custodian Services","page_number":37,"box":{"x":69,"y":830,"width":139,"height":9}},{"id":"8c005381-41b4-4e75-ae34-c60440cf01b2","block_type":"box","text":"The Bank of New York Mellon, 240 Greenwich Street, New York, New York 10286, is the Fund’s custodian. The","page_number":37,"box":{"x":101,"y":852,"width":788,"height":11}},{"id":"cb9c5266-5b26-4605-a6f1-684632bf8bad","block_type":"box","text":"custodian is responsible for safeguarding and controlling the Fund’s cash and securities, handling the receipt and","page_number":37,"box":{"x":69,"y":867,"width":810,"height":12}},{"id":"6148438e-b5a0-4c0c-aca4-66992cbcac07","block_type":"box","text":"delivery of securities and collecting interest and dividends on the Fund’s investments. The custodian is authorized to","page_number":37,"box":{"x":69,"y":882,"width":833,"height":12}},{"id":"8fde8678-6ba8-48d9-a37e-d35048ba3bca","block_type":"box","text":"establish separate accounts in foreign currencies and to cause foreign securities owned by the Fund to be held in its","page_number":37,"box":{"x":69,"y":898,"width":833,"height":11}},{"id":"b74ac979-aaf8-494b-9d18-3a02edaf603d","block_type":"box","text":"offices outside the United States and with certain foreign banks and securities depositories.","page_number":37,"box":{"x":69,"y":913,"width":659,"height":11}},{"id":"5dd9f2b7-db10-4017-8805-6326f2f890d3","block_type":"box","text":"I-21","page_number":37,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"ac3ee4f6-787a-4313-8b60-8faed5e61fab","block_type":"box","text":"NM1026U-6032801-37/242","page_number":37,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7fe1eb04-8f4f-493a-be41-f2dcec97816d","block_type":"box","text":"Transfer Agency and Shareholders’ Administrative Services","page_number":38,"box":{"x":68,"y":45,"width":432,"height":11}},{"id":"ecaf2b14-c1cd-46d2-8675-ee1d53620c50","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”), which has its principal place of business at 118","page_number":38,"box":{"x":102,"y":67,"width":765,"height":12}},{"id":"b6533e28-5516-479d-81c1-00daaa63558a","block_type":"box","text":"Flanders Road, Westborough, Massachusetts 01581, serves as the transfer and dividend disbursement agent for the","page_number":38,"box":{"x":70,"y":82,"width":838,"height":12}},{"id":"2e8145d2-9f0b-4745-ab77-a7da42682fac","block_type":"box","text":"Fund.","page_number":38,"box":{"x":70,"y":98,"width":36,"height":9}},{"id":"0d052a3e-7208-4e76-90f2-f3f53f76c57c","block_type":"box","text":"Pursuant to a Shareholders’ Administrative Services Agreement, the Manager provides certain shareholder","page_number":38,"box":{"x":102,"y":120,"width":762,"height":12}},{"id":"e37e5d61-92c1-44a8-ae94-24b2a873f133","block_type":"box","text":"liaison services in connection with the Fund’s investor service center. The Fund reimburses the Manager for its costs","page_number":38,"box":{"x":70,"y":135,"width":834,"height":12}},{"id":"b1525c3d-c35a-42b7-9b74-d4cfe2414ac5","block_type":"box","text":"in maintaining the service center, which costs include, among other things, employee salaries, leasehold expenses,","page_number":38,"box":{"x":70,"y":151,"width":823,"height":11}},{"id":"51ba9e7e-22e6-4428-8e36-01f9fbadeab0","block_type":"box","text":"and other out-of-pocket expenses.","page_number":38,"box":{"x":69,"y":166,"width":240,"height":11}},{"id":"7f0611a1-fd97-4a13-8666-d28637365fee","block_type":"box","text":"For the last three fiscal years, the Fund reimbursed the Manager for shareholder liaison services pursuant to","page_number":38,"box":{"x":102,"y":188,"width":775,"height":12}},{"id":"7dea0a50-bda8-4ae2-96c1-d7219fcd379b","block_type":"box","text":"such agreement in the amounts set forth below.","page_number":38,"box":{"x":69,"y":203,"width":342,"height":12}},{"id":"1507c00a-bd4b-4227-9f42-8d258cded6da","block_type":"box","text":"Fees Paid","page_number":38,"box":{"x":716,"y":232,"width":55,"height":7}},{"id":"3d028914-f313-487e-8d17-2e54418b7cec","block_type":"box","text":"to the Manager","page_number":38,"box":{"x":699,"y":242,"width":90,"height":9}},{"id":"96ba5c6e-a751-46ce-84bb-c00c414ac6eb","block_type":"box","text":"Fees Waived","page_number":38,"box":{"x":828,"y":232,"width":72,"height":7}},{"id":"37ad35cc-212b-432a-99fb-6d163db97401","block_type":"box","text":"by the Manager","page_number":38,"box":{"x":819,"y":242,"width":90,"height":9}},{"id":"1016cbe6-81eb-48de-9374-78b4f94808e3","block_type":"box","text":"Fiscal Year Ended June 30, 2025. . . . . . . .","page_number":38,"box":{"x":70,"y":260,"width":296,"height":10}},{"id":"8ee17862-5a4d-425e-9867-6d537fb80d33","block_type":"box","text":".....................................","page_number":38,"box":{"x":372,"y":267,"width":296,"height":1}},{"id":"aa4a2894-625c-413b-9d90-b7162bd52691","block_type":"box","text":"$65,771 $0","page_number":38,"box":{"x":713,"y":259,"width":160,"height":11}},{"id":"f829ac16-95d4-4af0-a638-c49551bb56b2","block_type":"box","text":"Fiscal Year Ended June 30, 2024. . . . . . . .","page_number":38,"box":{"x":70,"y":275,"width":296,"height":10}},{"id":"13323c6b-5267-43bb-ae59-85183375648b","block_type":"box","text":".....................................","page_number":38,"box":{"x":372,"y":282,"width":296,"height":1}},{"id":"91470575-aa2b-4d3f-a0a0-0830db5e10c3","block_type":"box","text":"$47,847 $0","page_number":38,"box":{"x":713,"y":274,"width":160,"height":11}},{"id":"3c8dabdc-010e-440e-a648-af498ce41e9a","block_type":"box","text":"Fiscal Year Ended June 30, 2023. . . . . . . .","page_number":38,"box":{"x":70,"y":290,"width":296,"height":10}},{"id":"9766f2f3-7746-4736-ba87-6245b72313bc","block_type":"box","text":".....................................","page_number":38,"box":{"x":372,"y":297,"width":296,"height":2}},{"id":"0d24175d-a8f5-4b27-a38b-cfdbfbdd20ed","block_type":"box","text":"$88,812 $0","page_number":38,"box":{"x":713,"y":289,"width":160,"height":11}},{"id":"6a4c429f-09b9-4119-8b98-e9a704a96b9d","block_type":"box","text":"Credit Agreement","page_number":38,"box":{"x":69,"y":346,"width":129,"height":11}},{"id":"2c3c1741-e700-462b-9d4f-cbab2c982d40","block_type":"box","text":"The Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”),","page_number":38,"box":{"x":101,"y":368,"width":765,"height":12}},{"id":"1e9f83ee-73f3-49ae-a9c9-26dc02576edb","block_type":"box","text":"is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility terminates on","page_number":38,"box":{"x":70,"y":383,"width":748,"height":12}},{"id":"ad960359-fdd7-4a56-97e3-f2e71fda855e","block_type":"box","text":"April 8, 2027 unless otherwise extended or renewed (the “Credit Agreement”). Excluding commitments designated","page_number":38,"box":{"x":68,"y":399,"width":818,"height":11}},{"id":"c4baa4fc-1435-45b7-83f5-95bf1ab8dbb6","block_type":"box","text":"for certain Participating Funds, the Participating Funds, including the Fund, can borrow up to an aggregate","page_number":38,"box":{"x":68,"y":414,"width":757,"height":11}},{"id":"5529fe8c-6f0c-4e44-9f14-f4f67d58d3b9","block_type":"box","text":"commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as","page_number":38,"box":{"x":69,"y":428,"width":801,"height":12}},{"id":"2d62ec0c-cb88-4c43-b8a5-71593ff645a0","block_type":"box","text":"specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet shareholder","page_number":38,"box":{"x":69,"y":444,"width":751,"height":11}},{"id":"086d8b3b-dce4-4b91-a030-2ff635711b44","block_type":"box","text":"redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit Agreement for","page_number":38,"box":{"x":69,"y":459,"width":784,"height":11}},{"id":"b8bd2437-00ca-4f70-bca4-93627c3a77a7","block_type":"box","text":"leverage. The Fund may borrow up to the maximum amount allowable under the Fund’s current Prospectuses and","page_number":38,"box":{"x":70,"y":474,"width":806,"height":12}},{"id":"9ba33e52-a496-40b9-aa12-d2f0aa76c7af","block_type":"box","text":"SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and other","page_number":38,"box":{"x":69,"y":489,"width":816,"height":12}},{"id":"07b8edab-3ef2-446f-b50e-807bad54f569","block_type":"box","text":"fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce the","page_number":38,"box":{"x":68,"y":504,"width":825,"height":12}},{"id":"3dd9a737-af42-41e9-8290-6644a734e7ba","block_type":"box","text":"Fund’s return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":38,"box":{"x":70,"y":520,"width":771,"height":11}},{"id":"be00b278-e5b2-4155-96d0-6552ad9d2877","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be","page_number":38,"box":{"x":69,"y":535,"width":833,"height":11}},{"id":"94c85d1f-5396-47ea-bbf9-77cceb65e134","block_type":"box","text":"charged interest at a variable rate.","page_number":38,"box":{"x":69,"y":550,"width":245,"height":11}},{"id":"7fd459f9-6413-4519-a7a8-afcd3409b28a","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":38,"box":{"x":68,"y":580,"width":491,"height":11}},{"id":"bd790f02-56f1-49aa-b64f-31addf54bb71","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":38,"box":{"x":102,"y":603,"width":773,"height":11}},{"id":"8fe6adde-e689-41a3-bcb7-c9d8f2d88e76","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“Affiliates”) for the Fund’s past three","page_number":38,"box":{"x":69,"y":618,"width":823,"height":11}},{"id":"74d15fb0-444f-4b37-b242-eaa5f2b20ebf","block_type":"box","text":"fiscal years. BlackRock Investments, LLC (“BRIL” or the “Distributor”), an affiliate of the Manager, acts as the Fund’s","page_number":38,"box":{"x":68,"y":633,"width":837,"height":11}},{"id":"0891c995-cffa-4116-84d4-63812ef02f9e","block_type":"box","text":"sole distributor.","page_number":38,"box":{"x":69,"y":648,"width":109,"height":9}},{"id":"f3065556-889e-43a9-b0f0-a37a1a181fa4","block_type":"box","text":"Investor A Shares","page_number":38,"box":{"x":601,"y":676,"width":102,"height":8}},{"id":"f2116af4-32e8-489c-a410-b052e0be94e3","block_type":"box","text":"Gross Sales","page_number":38,"box":{"x":414,"y":702,"width":69,"height":7}},{"id":"964caf88-a0d6-4652-a415-049aac0a01ee","block_type":"box","text":"Charges Collected","page_number":38,"box":{"x":395,"y":712,"width":107,"height":9}},{"id":"967b9608-6384-4628-8923-226adb8695ad","block_type":"box","text":"Sales Charges","page_number":38,"box":{"x":540,"y":702,"width":84,"height":9}},{"id":"253e512f-10d9-4b1a-a4de-6dc210f42063","block_type":"box","text":"Retained by BRIL","page_number":38,"box":{"x":532,"y":712,"width":100,"height":9}},{"id":"a30af7f5-31a3-4fce-9d46-1bf417501b83","block_type":"box","text":"Sales Charges","page_number":38,"box":{"x":669,"y":702,"width":84,"height":9}},{"id":"e9861f3a-6be2-474f-bee0-a85ef05c3837","block_type":"box","text":"Paid To Affiliates","page_number":38,"box":{"x":663,"y":712,"width":97,"height":7}},{"id":"419d15f3-9152-445a-bd12-a831a463a665","block_type":"box","text":"CDSCs Received on","page_number":38,"box":{"x":792,"y":692,"width":115,"height":7}},{"id":"feddd78d-c564-4471-813c-9deeb7e3e5d3","block_type":"box","text":"Redemption of Load","page_number":38,"box":{"x":791,"y":702,"width":119,"height":9}},{"id":"575e5529-f162-4769-88a4-20bf50ab60bc","block_type":"box","text":"Waived Shares","page_number":38,"box":{"x":807,"y":712,"width":85,"height":7}},{"id":"ecf2d667-a13c-4b32-8f3e-892e0269c7a8","block_type":"box","text":"Fiscal Year Ended June 30, 2025 . . . . . . . $81,883 $6,715 $6,715 $ 99","page_number":38,"box":{"x":70,"y":729,"width":811,"height":11}},{"id":"c7135bc7-e354-4358-9e52-5a970e919f62","block_type":"box","text":"Fiscal Year Ended June 30, 2024 . . . . . . . $70,175 $5,840 $5,840 $ 1,472","page_number":38,"box":{"x":70,"y":744,"width":811,"height":12}},{"id":"acec4d87-a8c8-47a6-858d-64d3001af7af","block_type":"box","text":"Fiscal Year Ended June 30, 2023 . . . . . . . $84,250 $6,828 $6,828 $12,933","page_number":38,"box":{"x":70,"y":760,"width":811,"height":11}},{"id":"93be6d93-d79c-4cbd-8a25-0b71ab3e400f","block_type":"box","text":"Investor C Shares","page_number":38,"box":{"x":760,"y":805,"width":103,"height":7}},{"id":"4c1779bd-df6c-4116-af1c-30dd15de4cbf","block_type":"box","text":"CDSCs Received","page_number":38,"box":{"x":713,"y":821,"width":97,"height":7}},{"id":"261598e8-ff4e-4941-b8a7-bcdaf53416cd","block_type":"box","text":"by BRIL","page_number":38,"box":{"x":740,"y":831,"width":44,"height":9}},{"id":"b6ffb598-bf06-4f7b-8a13-3c4e3af30254","block_type":"box","text":"CDSCs Paid","page_number":38,"box":{"x":840,"y":821,"width":69,"height":7}},{"id":"8c637c7c-94a3-439a-aa92-fd4d2eec95d3","block_type":"box","text":"to Affiliates","page_number":38,"box":{"x":841,"y":831,"width":68,"height":7}},{"id":"b29b42a2-d0fa-4c2d-b381-86c955e00691","block_type":"box","text":"Fiscal Year Ended June 30, 2025 . . . . . .","page_number":38,"box":{"x":70,"y":849,"width":286,"height":10}},{"id":"1e3bb501-70b6-4585-83c2-9eff4008fec5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 95 $ 95","page_number":38,"box":{"x":363,"y":848,"width":538,"height":10}},{"id":"39083166-f889-4fd4-8faf-59b30bcc2bcc","block_type":"box","text":"Fiscal Year Ended June 30, 2024 . . . . . .","page_number":38,"box":{"x":70,"y":864,"width":286,"height":10}},{"id":"54d0dc44-a0fa-4815-a66f-8880cfcfb1d7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 261 $ 261","page_number":38,"box":{"x":363,"y":863,"width":538,"height":10}},{"id":"ffffc73b-f44e-4aab-bbfa-b54bdf63c009","block_type":"box","text":"Fiscal Year Ended June 30, 2023 . . . . . .","page_number":38,"box":{"x":70,"y":879,"width":286,"height":10}},{"id":"56434cd9-8487-4ede-ba5d-b367fa1c3187","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,545 $3,545","page_number":38,"box":{"x":363,"y":878,"width":538,"height":11}},{"id":"4431dcfc-905b-4e00-8cf9-810b721ba5b3","block_type":"box","text":"I-22","page_number":38,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"77b84057-115d-467d-b5ec-61092e6436b5","block_type":"box","text":"NM1026U-6032801-38/242","page_number":38,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"27501488-480f-4137-b27f-d1783473b30b","block_type":"box","text":"The table below provides information for the fiscal year ended June 30, 2025 about the 12b-1 fees the Fund","page_number":39,"box":{"x":101,"y":45,"width":773,"height":11}},{"id":"f03e4aad-a044-4517-8990-40371d66b4c9","block_type":"box","text":"paid to the Distributor under the Fund’s 12b-1 plans. A portion of the fees collected by BRIL were paid to affiliates for","page_number":39,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"78c53240-2a9e-4b52-ae72-4cefbdfc043f","block_type":"box","text":"providing shareholder servicing activities for Investor A Shares and for providing shareholder servicing and","page_number":39,"box":{"x":70,"y":75,"width":755,"height":11}},{"id":"53cdcd19-fb15-4509-b8e8-880b1136d847","block_type":"box","text":"distribution-related activities and services for Investor C and Class R Shares.","page_number":39,"box":{"x":69,"y":90,"width":547,"height":9}},{"id":"b636a33e-be87-462f-b20d-bd91d44c37bf","block_type":"box","text":"Class Name","page_number":39,"box":{"x":69,"y":118,"width":68,"height":7}},{"id":"0fa661be-03af-40a3-bcca-84b410c36e02","block_type":"box","text":"Fees Paid to BRIL","page_number":39,"box":{"x":806,"y":118,"width":103,"height":7}},{"id":"9adb6ae6-8a5b-4336-af63-626e863fa0a2","block_type":"box","text":"Investor A Shares .","page_number":39,"box":{"x":70,"y":136,"width":134,"height":9}},{"id":"b17584a1-e2cb-41fa-baa4-eec6cffb8021","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,","page_number":39,"box":{"x":210,"y":135,"width":626,"height":11}},{"id":"aacb8725-8d87-4bd4-8b03-409e88f2a7bb","block_type":"box","text":"060,379","page_number":39,"box":{"x":838,"y":136,"width":63,"height":10}},{"id":"f9d64881-539f-4361-b168-3a1a21162951","block_type":"box","text":"Investor C Shares . . .","page_number":39,"box":{"x":70,"y":151,"width":150,"height":9}},{"id":"dc7a7972-52f2-4395-8727-73d44d9be80c","block_type":"box","text":".................................................................... $","page_number":39,"box":{"x":226,"y":150,"width":596,"height":11}},{"id":"87f9d156-e1d4-4ce9-9172-9e9f4cacebcf","block_type":"box","text":"110,900","page_number":39,"box":{"x":839,"y":151,"width":62,"height":11}},{"id":"fa76672d-a3bf-4f6e-8615-7223f9aa4bfa","block_type":"box","text":"Class R Shares","page_number":39,"box":{"x":69,"y":166,"width":109,"height":9}},{"id":"3a45662f-53a2-44b5-bd84-305facce23b5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,236","page_number":39,"box":{"x":185,"y":166,"width":716,"height":11}},{"id":"87b7f879-8db1-4761-87d0-6e5484086df0","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":39,"box":{"x":68,"y":198,"width":318,"height":11}},{"id":"e090f365-276c-44a5-8fa7-fc4f86e70e3e","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":39,"box":{"x":101,"y":220,"width":790,"height":12}},{"id":"b337a29e-7ed9-4149-9b9f-cf4ce112bb05","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":39,"box":{"x":68,"y":235,"width":731,"height":12}},{"id":"3422a5cc-3537-4b29-8af7-dac8f5ba70a4","block_type":"box","text":"June 30, 2025, is set forth below.","page_number":39,"box":{"x":69,"y":251,"width":243,"height":10}},{"id":"a999ad02-f25b-4e49-a59f-3c39edfdeceb","block_type":"box","text":"Investor A Shares","page_number":39,"box":{"x":805,"y":279,"width":102,"height":7}},{"id":"4325ef31-8279-446d-bbf3-2dd569e82a81","block_type":"box","text":"Net Assets","page_number":39,"box":{"x":70,"y":297,"width":76,"height":9}},{"id":"2321a01e-fa0f-464c-a697-3adcbb64f7e2","block_type":"box","text":"............................................................................","page_number":39,"box":{"x":158,"y":304,"width":613,"height":1}},{"id":"7e3ec2ef-4eff-45f3-800a-53030dc02865","block_type":"box","text":"$823,987,311","page_number":39,"box":{"x":803,"y":296,"width":106,"height":11}},{"id":"f84a334c-05ba-4bfb-8e01-453032fea482","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":39,"box":{"x":70,"y":312,"width":245,"height":11}},{"id":"97b8b809-9670-4dbb-8de7-e511898c7b08","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,","page_number":39,"box":{"x":321,"y":312,"width":524,"height":10}},{"id":"c369d1bf-b1f1-43d7-8f47-b663c830600a","block_type":"box","text":"254,508","page_number":39,"box":{"x":847,"y":312,"width":62,"height":10}},{"id":"1d3aed7c-30a4-4037-a97f-2142a24c13d1","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":39,"box":{"x":70,"y":327,"width":571,"height":11}},{"id":"259b439d-9ae4-4485-8e83-ee7c721b4fa5","block_type":"box","text":"................","page_number":39,"box":{"x":647,"y":334,"width":124,"height":2}},{"id":"068bf230-ec39-482b-8c1c-9bc4a5058514","block_type":"box","text":"$19.97","page_number":39,"box":{"x":857,"y":326,"width":51,"height":11}},{"id":"01c97fe5-9a0c-4bf7-965e-1974016bd65d","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":39,"box":{"x":69,"y":342,"width":534,"height":11}},{"id":"f834bf6c-4da3-4ab0-99e3-b8a8e113afb2","block_type":"box","text":"1","page_number":39,"box":{"x":604,"y":342,"width":4,"height":5}},{"id":"4657dfd2-15fc-4861-b5cc-b920b44e9071","block_type":"box","text":". . . . . . . . . . . . . . . . . . . $1.11","page_number":39,"box":{"x":623,"y":341,"width":286,"height":11}},{"id":"f7ae2f9c-e99c-4e17-97a8-d7e882df5302","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":39,"box":{"x":69,"y":361,"width":702,"height":12}},{"id":"1db02d18-1a39-4d74-b955-4c6c1b7c310d","block_type":"box","text":"$21.08","page_number":39,"box":{"x":857,"y":361,"width":52,"height":10}},{"id":"13657cc8-8c33-4ed1-8a3d-05bb78ea24b6","block_type":"box","text":"1","page_number":39,"box":{"x":69,"y":394,"width":3,"height":3}},{"id":"ae96f588-5a7c-40ba-918b-00e080d6b4c9","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":39,"box":{"x":94,"y":394,"width":541,"height":9}},{"id":"9495f922-d4ad-483b-baf7-c190bfe1d7d3","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’ net asset value computed as","page_number":39,"box":{"x":101,"y":414,"width":787,"height":12}},{"id":"c6fc6197-2438-4efa-bb7e-bc1e07d104a7","block_type":"box","text":"set forth above for Investor A Shares. Though not subject to a sales charge, certain share classes may be subject to","page_number":39,"box":{"x":69,"y":429,"width":833,"height":12}},{"id":"ec2ff8be-c704-4339-8c4a-9128d40f9b2d","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":39,"box":{"x":69,"y":445,"width":813,"height":11}},{"id":"b089819d-0cfe-4865-828e-5bb38d89bf23","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this SAI.","page_number":39,"box":{"x":69,"y":460,"width":377,"height":11}},{"id":"69d9fc12-4f87-4da2-a1fa-f17d5f930ea3","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":39,"box":{"x":68,"y":490,"width":302,"height":11}},{"id":"eccd19fb-72a3-4561-8bb3-859491b8bed2","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":39,"box":{"x":102,"y":513,"width":609,"height":11}},{"id":"e3eafdd0-2bf1-4642-9b7d-f674cd9d82e2","block_type":"box","text":"Information about the brokerage commissions paid by the Fund including commissions paid to affiliates, is set","page_number":39,"box":{"x":102,"y":535,"width":789,"height":12}},{"id":"f1a993c2-0b6c-480e-9d0c-4a0e12851f33","block_type":"box","text":"forth in the following table:","page_number":39,"box":{"x":68,"y":550,"width":191,"height":12}},{"id":"704565b3-4869-4135-ae2f-8eab076ce0b6","block_type":"box","text":"Aggregate Brokerage","page_number":39,"box":{"x":613,"y":579,"width":125,"height":9}},{"id":"31457979-bb32-462b-b777-867002898cfe","block_type":"box","text":"Commissions Paid","page_number":39,"box":{"x":623,"y":589,"width":106,"height":7}},{"id":"570c7618-8128-4b66-92c4-ae9ff4fc7ba6","block_type":"box","text":"Brokerage Commissions","page_number":39,"box":{"x":769,"y":579,"width":140,"height":9}},{"id":"b9717976-9426-4c24-90b7-7cf144d62cfd","block_type":"box","text":"Paid to Affiliates","page_number":39,"box":{"x":791,"y":589,"width":96,"height":7}},{"id":"79268b6d-8127-487c-bc9e-fe2859558c30","block_type":"box","text":"Fiscal Year Ended June 30, 2025","page_number":39,"box":{"x":70,"y":607,"width":234,"height":10}},{"id":"5575d5d0-2b98-45f0-8b07-d3c380f91603","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":39,"box":{"x":311,"y":606,"width":344,"height":11}},{"id":"6d2a581a-0d9b-4029-9183-6887d86a83f4","block_type":"box","text":"091,914 $0","page_number":39,"box":{"x":657,"y":606,"width":191,"height":11}},{"id":"73c07905-9db5-4ef4-8a11-cb4c459ff0c7","block_type":"box","text":"Fiscal Year Ended June 30, 2024","page_number":39,"box":{"x":70,"y":622,"width":234,"height":10}},{"id":"a8b57a5b-52f8-49fd-a7e4-2bfe6031c14e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":39,"box":{"x":311,"y":621,"width":344,"height":11}},{"id":"1900a20b-eea3-4976-9c2c-40dda73f9aea","block_type":"box","text":"437,021 $0","page_number":39,"box":{"x":657,"y":621,"width":191,"height":11}},{"id":"319ec884-2bad-4afe-88ce-eb65b9178f60","block_type":"box","text":"Fiscal Year Ended June 30, 2023","page_number":39,"box":{"x":70,"y":637,"width":234,"height":10}},{"id":"7a650c0f-a761-4721-93bd-0e68427e3dac","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":39,"box":{"x":311,"y":636,"width":344,"height":11}},{"id":"90345cd8-20f4-4d2d-9e7a-7cb626d72453","block_type":"box","text":"017,387 $0","page_number":39,"box":{"x":657,"y":636,"width":191,"height":11}},{"id":"a5c600bc-c13a-4086-b037-3397eb400d8b","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":39,"box":{"x":101,"y":661,"width":770,"height":11}},{"id":"6f718893-f28c-4e50-951a-2b8c81d3e4d5","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":39,"box":{"x":69,"y":676,"width":814,"height":11}},{"id":"678ad153-eb04-4ddb-b948-db820ceddf66","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended June 30, 2025. The provision of","page_number":39,"box":{"x":68,"y":691,"width":833,"height":11}},{"id":"b55a9e07-bc36-4972-ab7b-e8c7c366e605","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":39,"box":{"x":69,"y":706,"width":822,"height":11}},{"id":"e0be89a6-1865-4463-bee6-f35bcd09d90a","block_type":"box","text":"with such brokers.","page_number":39,"box":{"x":68,"y":721,"width":130,"height":9}},{"id":"d641077e-a558-4f99-b812-e05aa20cae47","block_type":"box","text":"Amount of Commissions","page_number":39,"box":{"x":325,"y":749,"width":141,"height":8}},{"id":"2c9662c8-a223-4b9a-8bc0-c789c8f237a7","block_type":"box","text":"Paid to Brokers for","page_number":39,"box":{"x":341,"y":760,"width":109,"height":7}},{"id":"50dca364-1374-4f00-88d1-3a1d3520d6cc","block_type":"box","text":"Providing 28(e) Eligible","page_number":39,"box":{"x":327,"y":770,"width":136,"height":8}},{"id":"e4e3392b-7642-4c7d-94c0-93edf3a9e7af","block_type":"box","text":"Research Services","page_number":39,"box":{"x":342,"y":780,"width":107,"height":7}},{"id":"671c626b-e546-420c-a3af-9c5eb0373ce5","block_type":"box","text":"Amount of Brokerage","page_number":39,"box":{"x":528,"y":770,"width":124,"height":8}},{"id":"f0927391-66e8-4e94-a665-b3dcd0c4afd6","block_type":"box","text":"Transactions Involved","page_number":39,"box":{"x":527,"y":780,"width":126,"height":7}},{"id":"aa0c9265-00c3-46f6-b5ee-455070a6d488","block_type":"box","text":"$505,726 $1,154,440,027","page_number":39,"box":{"x":359,"y":797,"width":291,"height":11}},{"id":"c549bc7a-1966-4dd2-8a82-c16bff53dc41","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":39,"box":{"x":101,"y":821,"width":796,"height":12}},{"id":"ab40ea54-de5e-4685-89d6-07371937f8d2","block_type":"box","text":"10b-1 under the Investment Company Act) or their parents as of June 30, 2025 if any portion of such holdings were","page_number":39,"box":{"x":70,"y":836,"width":825,"height":12}},{"id":"e87d9c56-5666-41b0-a112-499f464bb744","block_type":"box","text":"purchased during the fiscal year ended June 30, 2025, is as follows:","page_number":39,"box":{"x":70,"y":852,"width":489,"height":11}},{"id":"126b2009-ef48-4d50-aa3d-a6bcb6d8e5cf","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":39,"box":{"x":69,"y":880,"width":840,"height":9}},{"id":"f7c8dccc-f774-4d10-9a06-b0c02e7e5079","block_type":"box","text":"Citi Group Global Market, Inc. . . . . . . . .","page_number":39,"box":{"x":69,"y":898,"width":274,"height":11}},{"id":"84376311-4a6d-44a9-85c2-20ffd9b925bd","block_type":"box","text":"............................ E","page_number":39,"box":{"x":349,"y":898,"width":315,"height":8}},{"id":"baf2d89c-5371-4c15-8ab9-ccb508b8db2f","block_type":"box","text":"$74,574","page_number":39,"box":{"x":797,"y":897,"width":62,"height":11}},{"id":"5bed7e0d-0bc1-4d68-b27e-bbd7bb2cb286","block_type":"box","text":"I-23","page_number":39,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"d7da7685-42a9-45de-ad94-0031191a0ee3","block_type":"box","text":"NM1026U-6032801-39/242","page_number":39,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"97d3687b-9c7c-4c0a-9f7f-2a598acf98c0","block_type":"box","text":"Securities Lending","page_number":40,"box":{"x":68,"y":45,"width":135,"height":11}},{"id":"6faaef78-5a7d-4988-b07c-1346b43adc09","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":40,"box":{"x":101,"y":68,"width":807,"height":11}},{"id":"1de371df-11ad-4411-bd27-0d8573a53a7a","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":40,"box":{"x":69,"y":82,"width":817,"height":12}},{"id":"775b7d69-e4de-4113-aa98-f56bd5958a83","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":40,"box":{"x":69,"y":98,"width":813,"height":11}},{"id":"092c7be3-6554-488e-9e2b-d1d3a6326c06","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":40,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"c762cf82-8b5e-42dd-a639-a8fad4718e6c","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":40,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"c79c0383-d11a-4920-ab7b-b596a5466abc","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":40,"box":{"x":70,"y":143,"width":646,"height":11}},{"id":"e16694cd-12cd-458d-9301-5326430abca2","block_type":"box","text":"The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as","page_number":40,"box":{"x":101,"y":166,"width":735,"height":11}},{"id":"02919102-2a2e-4038-a415-5a5b92d63852","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":40,"box":{"x":69,"y":181,"width":834,"height":11}},{"id":"7bef8304-6ca8-42d0-8802-85a7bfc215f6","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":40,"box":{"x":70,"y":196,"width":822,"height":11}},{"id":"92ca1ac9-6915-42d1-8fb6-74ec16e2205a","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":40,"box":{"x":69,"y":211,"width":787,"height":11}},{"id":"b4610376-9bb6-4f77-bdb1-a80a4d4aa67b","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":40,"box":{"x":69,"y":226,"width":783,"height":11}},{"id":"f67cd653-3bc0-43bb-bef2-067ce6d42ab8","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":40,"box":{"x":70,"y":241,"width":800,"height":11}},{"id":"9e229e2d-0f92-45c6-8942-187c0fd9c922","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":40,"box":{"x":70,"y":256,"width":813,"height":12}},{"id":"ba7380e7-2543-484b-b272-90e8ac9103c9","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":40,"box":{"x":70,"y":271,"width":830,"height":12}},{"id":"6bf0baf8-3c3e-4eaf-9475-18107bfe0344","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":40,"box":{"x":69,"y":286,"width":773,"height":12}},{"id":"8c738773-1383-4f59-8bd1-7a3f7f6878f6","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":40,"box":{"x":101,"y":309,"width":776,"height":11}},{"id":"0dea7ade-165e-4191-a191-825a9326117b","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":40,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"c1a42cfa-23f7-4fd8-8ab1-2ebea7ce5d85","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":40,"box":{"x":68,"y":339,"width":812,"height":12}},{"id":"782fcb17-41aa-4a00-9cbc-e037396363cf","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":40,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"1c4917eb-b1a9-48c1-aad5-8e8079bd1dbd","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":40,"box":{"x":68,"y":370,"width":835,"height":11}},{"id":"474bc226-4748-4f48-ab08-da7865c85342","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":40,"box":{"x":69,"y":385,"width":818,"height":11}},{"id":"90cacd17-4b20-49e0-a9af-a63cb94fe6e7","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":40,"box":{"x":68,"y":400,"width":789,"height":11}},{"id":"0b0f9050-9718-4c3b-8de4-1224c77f27f9","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":40,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"b8e0b58b-bb44-4398-9bb9-e195fc95898c","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":40,"box":{"x":69,"y":430,"width":839,"height":11}},{"id":"de728203-4dbc-47da-90c0-fbc0896d38bc","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":40,"box":{"x":69,"y":445,"width":802,"height":12}},{"id":"b2cffa10-9686-4d13-b771-66ec8e473af2","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":40,"box":{"x":70,"y":460,"width":830,"height":12}},{"id":"fdffc0f3-3022-43f6-8529-5c44df24e333","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":40,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"f54a2b65-f6da-4a4a-a619-84bc6882be6a","block_type":"box","text":"Fund’s returns on securities lending.","page_number":40,"box":{"x":70,"y":491,"width":258,"height":11}},{"id":"be9f1448-94dc-4b04-8958-8c8853852361","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":40,"box":{"x":102,"y":513,"width":774,"height":12}},{"id":"e9c20f8b-bc0c-45cc-bd4f-f7a7336b8b9f","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity, or fund of","page_number":40,"box":{"x":69,"y":528,"width":794,"height":12}},{"id":"e71810ba-a475-4d3c-820a-a3a32e62a04d","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":40,"box":{"x":68,"y":543,"width":809,"height":12}},{"id":"a8d68891-ddc2-4992-ada7-d1d84724af31","block_type":"box","text":"Fund and BIM.","page_number":40,"box":{"x":70,"y":559,"width":100,"height":9}},{"id":"ceca1db2-7851-4c3e-b957-53ad0d3e102b","block_type":"box","text":"Pursuant to the current securities lending agreement: (i) the Fund retains 81% of securities lending income","page_number":40,"box":{"x":102,"y":581,"width":761,"height":12}},{"id":"99483483-6710-42c4-bf06-725486f7e9b4","block_type":"box","text":"(which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities","page_number":40,"box":{"x":69,"y":596,"width":832,"height":11}},{"id":"d564e7b0-7293-47f2-8c22-5e5845dd2eea","block_type":"box","text":"lending income plus collateral investment fees.","page_number":40,"box":{"x":70,"y":612,"width":334,"height":11}},{"id":"79a5cc64-0210-4b8f-945c-a14ae4adcf57","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":40,"box":{"x":102,"y":634,"width":753,"height":12}},{"id":"e652f5f6-5548-4420-bb5b-409b8b981b45","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the the Fund,","page_number":40,"box":{"x":69,"y":649,"width":805,"height":12}},{"id":"7297b9f9-2ea4-48da-9c67-78e22d9fd0e7","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":40,"box":{"x":70,"y":664,"width":817,"height":12}},{"id":"482d7510-1d88-4583-8f5c-371a100ceb5f","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":40,"box":{"x":70,"y":680,"width":794,"height":11}},{"id":"3a6df03a-8341-45e3-adf9-72d467546e08","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":40,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"871e5c0e-da17-40df-975b-7c3a36711d8e","block_type":"box","text":"Prior to January 1, 2025, the Fund was subject to a different securities lending agreement.","page_number":40,"box":{"x":102,"y":717,"width":648,"height":12}},{"id":"c22ed9b7-62e9-4cca-b9f6-478b96f6975f","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended June 30, 2025, primarily included","page_number":40,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"aaec0932-a3ae-4bb8-991a-68c2345099bf","block_type":"box","text":"the following:","page_number":40,"box":{"x":68,"y":755,"width":93,"height":11}},{"id":"038756ae-281d-4326-b5a0-48bfdeaa7430","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":40,"box":{"x":69,"y":775,"width":818,"height":12}},{"id":"6c6102b6-c09a-4e43-9fee-c0d3c6e7bc71","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":40,"box":{"x":102,"y":790,"width":333,"height":11}},{"id":"353983e7-78ff-4108-a7d4-8e219b358b45","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":40,"box":{"x":69,"y":811,"width":538,"height":11}},{"id":"9409c31b-055a-4080-9922-111638776df7","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":40,"box":{"x":69,"y":831,"width":330,"height":11}},{"id":"41458fa6-f0b6-4ab1-96a5-ae015a0be781","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":40,"box":{"x":69,"y":851,"width":834,"height":11}},{"id":"9a69da33-95e6-49ab-8247-a52f5a4a0157","block_type":"box","text":"of excess collateral, as necessary;","page_number":40,"box":{"x":102,"y":866,"width":246,"height":11}},{"id":"5fcb522e-c0ab-4a03-86db-418878c2c330","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":40,"box":{"x":69,"y":886,"width":562,"height":12}},{"id":"c1a8473c-3d59-4db4-bcea-eac39cf05d6a","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":40,"box":{"x":69,"y":906,"width":665,"height":12}},{"id":"2006b821-d9c4-456c-bb0b-19e0a1409bba","block_type":"box","text":"I-24","page_number":40,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"3f7b458f-4971-4664-aba8-95c5d413d272","block_type":"box","text":"NM1026U-6032801-40/242","page_number":40,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8e292901-07bb-405a-be44-d577e16cb96a","block_type":"box","text":"(7) in the event of default by a borrower with respect to any securities loan, using the collateral or the proceeds of","page_number":41,"box":{"x":69,"y":45,"width":822,"height":11}},{"id":"3de9ff8c-004d-48ba-8dd5-0e8cf3c38386","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":41,"box":{"x":101,"y":60,"width":803,"height":11}},{"id":"1bfe5634-0988-44f4-8ad4-a882e79e9b35","block_type":"box","text":"of the loaned securities; and","page_number":41,"box":{"x":102,"y":75,"width":203,"height":10}},{"id":"7bb40fa3-6cd7-458a-a838-6f0a0d47b370","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":41,"box":{"x":69,"y":95,"width":808,"height":11}},{"id":"ce62a111-3d4a-485f-9746-cb84ee9f142c","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":41,"box":{"x":101,"y":118,"width":805,"height":11}},{"id":"dbc57555-d6ca-4a1d-9dc4-d14ac85dd3f1","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended June 30, 2025.","page_number":41,"box":{"x":69,"y":133,"width":550,"height":11}},{"id":"8fcc57c0-fed6-4a84-8deb-f76b3a78ced7","block_type":"box","text":"Gross income from securities lending activities","page_number":41,"box":{"x":69,"y":161,"width":343,"height":11}},{"id":"6ebacf77-1cee-4ad8-9445-52f457488aa0","block_type":"box","text":"................................................","page_number":41,"box":{"x":416,"y":168,"width":385,"height":1}},{"id":"2cd6ef81-fec5-4f15-b5d4-542917c789fb","block_type":"box","text":"$1,269,716","page_number":41,"box":{"x":822,"y":160,"width":87,"height":11}},{"id":"bc4ecc66-0a76-4005-a87c-405c0613cb12","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":41,"box":{"x":70,"y":180,"width":565,"height":11}},{"id":"0dd8f440-8042-4d62-ac2c-f760a784043f","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":41,"box":{"x":79,"y":195,"width":599,"height":11}},{"id":"f1623de7-3314-498e-a4af-ab3e1bb3e66d","block_type":"box","text":". . . . . . . . . . . . . . . $ 33,476","page_number":41,"box":{"x":685,"y":195,"width":224,"height":11}},{"id":"2f61874e-22d7-4ab8-960e-f690089cea80","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM. .","page_number":41,"box":{"x":79,"y":210,"width":673,"height":12}},{"id":"b854a988-4f45-4dab-bde5-428700599565","block_type":"box","text":". . . . . . $ 10,184","page_number":41,"box":{"x":758,"y":210,"width":151,"height":11}},{"id":"d5b2abc2-e706-40fe-a9fe-e75fb043d4f2","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":41,"box":{"x":78,"y":225,"width":551,"height":12}},{"id":"f61ebae8-5987-4b9c-aed8-231fe848c4a6","block_type":"box","text":"..................... $ 0","page_number":41,"box":{"x":636,"y":225,"width":273,"height":10}},{"id":"84059afa-7897-4190-9ff6-3eae202e4ee1","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":41,"box":{"x":79,"y":241,"width":567,"height":11}},{"id":"5de7c36e-0e55-48a6-b977-e4103219eb1a","block_type":"box","text":"................... $ 0","page_number":41,"box":{"x":652,"y":240,"width":257,"height":10}},{"id":"8f892a56-2717-4838-b485-ac0c8d7a029c","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":41,"box":{"x":79,"y":256,"width":289,"height":11}},{"id":"1340cb15-bc5e-45d8-b0ff-1d05c8fddb81","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":41,"box":{"x":375,"y":255,"width":470,"height":11}},{"id":"b5711e09-18f5-4bc4-9764-7378f565a047","block_type":"box","text":"082,734","page_number":41,"box":{"x":847,"y":256,"width":62,"height":10}},{"id":"124afb14-c229-48f2-8399-2d70d8c24daa","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":41,"box":{"x":79,"y":271,"width":542,"height":11}},{"id":"810a2744-dcba-4338-9e75-0db4ad04df80","block_type":"box","text":"...................... $ 0","page_number":41,"box":{"x":628,"y":270,"width":281,"height":11}},{"id":"128d2965-4222-4c4d-af67-1174ab1552c5","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":41,"box":{"x":68,"y":286,"width":455,"height":11}},{"id":"68a0eb06-ffa7-41c2-802e-a4ca36c22463","block_type":"box","text":"..................................","page_number":41,"box":{"x":530,"y":293,"width":271,"height":2}},{"id":"b2fa1f15-51eb-4fe6-9404-f2fa69aa89dd","block_type":"box","text":"$1,126,394","page_number":41,"box":{"x":822,"y":285,"width":87,"height":12}},{"id":"06366394-b812-491a-8d81-4996a13d3f98","block_type":"box","text":"Net income from securities lending activities","page_number":41,"box":{"x":69,"y":305,"width":327,"height":12}},{"id":"aedcd4f2-d1a9-4744-965e-b02c24d8676c","block_type":"box","text":"..................................................","page_number":41,"box":{"x":399,"y":313,"width":402,"height":1}},{"id":"a254b7c6-ace5-4164-8b71-3e3b07e23222","block_type":"box","text":"$ 143,322","page_number":41,"box":{"x":822,"y":305,"width":87,"height":11}},{"id":"d78f3168-018e-46b4-a434-f926cf154755","block_type":"box","text":"VIII. Additional Information","page_number":41,"box":{"x":68,"y":341,"width":195,"height":9}},{"id":"c2b0458b-90da-421a-996e-1a3eee56a30a","block_type":"box","text":"Description of Shares","page_number":41,"box":{"x":69,"y":372,"width":156,"height":11}},{"id":"69391318-845f-4935-931f-f898d4849ac2","block_type":"box","text":"The Fund is a Maryland corporation incorporated on March 22, 1977. The Fund converted from a stand-alone","page_number":41,"box":{"x":101,"y":394,"width":779,"height":11}},{"id":"5736f7a7-13b9-4577-a49e-e10023bcaf6b","block_type":"box","text":"investment company to a feeder fund on October 13, 2000. On February 9, 2015, the Fund ceased to invest in","page_number":41,"box":{"x":70,"y":409,"width":791,"height":12}},{"id":"cca16e6b-05ae-4af5-967a-387a7f38b796","block_type":"box","text":"Master Basic Value LLC (the “Master LLC”) as part of a “master-feeder” structure and instead operates as a stand","page_number":41,"box":{"x":70,"y":424,"width":823,"height":12}},{"id":"61d162bf-d512-4894-83e1-8cc55b02d932","block_type":"box","text":"alone fund. On September 29, 2006 the Fund changed its name to BlackRock Basic Value Fund, Inc. Effective","page_number":41,"box":{"x":69,"y":440,"width":784,"height":11}},{"id":"30c46a2a-f361-4c7b-9e41-82677075b840","block_type":"box","text":"September 1, 2021, the Fund changed its name from BlackRock Basic Value Fund, Inc. to BlackRock Large Cap","page_number":41,"box":{"x":69,"y":455,"width":796,"height":11}},{"id":"844cdfef-2b41-443d-a7f1-77ca646367e5","block_type":"box","text":"Focus Value Fund, Inc. The Fund is classified as a diversified, open-end management investment company under the","page_number":41,"box":{"x":70,"y":470,"width":828,"height":11}},{"id":"802a90b6-5376-4469-9941-ec01262ac825","block_type":"box","text":"Investment Company Act. Prior to October 2, 2006, Investor A Shares were designated Class A Shares, Investor B","page_number":41,"box":{"x":70,"y":485,"width":812,"height":11}},{"id":"21ca9394-ae09-425d-a7b1-bef727491b34","block_type":"box","text":"Shares were designated Class B Shares, Investor C Shares were designated Class C Shares and Institutional Shares","page_number":41,"box":{"x":69,"y":500,"width":836,"height":11}},{"id":"88872102-fd49-429d-b5a4-db50e6e28674","block_type":"box","text":"were designated Class I Shares. Prior to April 14, 2003, Investor A Shares were designated Class D Shares and","page_number":41,"box":{"x":68,"y":515,"width":801,"height":11}},{"id":"1453d53a-ea04-484c-b08c-783b369476cb","block_type":"box","text":"Institutional shares were designated Class A Shares. Effective on the close of business of December 27, 2017, all of","page_number":41,"box":{"x":70,"y":530,"width":840,"height":12}},{"id":"217cff60-bbaf-45c3-a59e-3bd589bef017","block_type":"box","text":"the issued and outstanding Investor B Shares of the Fund converted into Investor A Shares of the Fund.","page_number":41,"box":{"x":68,"y":545,"width":740,"height":12}},{"id":"24c2c20b-9bdc-4e88-a531-fed2c9924fd2","block_type":"box","text":"The authorized capital stock of the Fund consists of 1,600,000,000 shares of Common Stock, par value $0.10","page_number":41,"box":{"x":101,"y":567,"width":795,"height":12}},{"id":"b21368ec-2b3f-436c-9ada-4f79414a02bd","block_type":"box","text":"per share, divided into five classes, Investor A, Investor C and Class K each consisting of 200,000,000 shares, and","page_number":41,"box":{"x":70,"y":583,"width":827,"height":12}},{"id":"e016d6f4-4491-4c31-8c4d-b90a72df1894","block_type":"box","text":"Institutional and Class R each consisting of 400,000,000 authorized shares. Each of the Fund’s shares has equal","page_number":41,"box":{"x":70,"y":598,"width":814,"height":12}},{"id":"4e07a6d9-7f1d-4bf3-9ce9-166599c37a2f","block_type":"box","text":"dividend, distribution, liquidation and voting rights, except that Investor A, Investor C and Class R Shares bear certain","page_number":41,"box":{"x":69,"y":614,"width":837,"height":11}},{"id":"3cdd4197-7aad-4256-8398-f0f406facf87","block_type":"box","text":"shareholder servicing expenses and/or expenses related to the distribution of such shares and have exclusive voting","page_number":41,"box":{"x":69,"y":629,"width":836,"height":11}},{"id":"0cfaace1-bfd0-427d-9685-9cf40104b425","block_type":"box","text":"rights with respect to matters relating to such expenditures (except that Investor C Shares have certain voting rights","page_number":41,"box":{"x":69,"y":644,"width":828,"height":11}},{"id":"80bc645f-7c61-4b2d-9334-a89b25e5d641","block_type":"box","text":"with respect to the Investor A Distribution Plan). Each issued and outstanding share is entitled to one vote and to","page_number":41,"box":{"x":68,"y":659,"width":809,"height":11}},{"id":"e603ef59-b832-43b6-9833-f2f614da0c00","block_type":"box","text":"participate equally in dividends and distributions declared by the Fund and in the net assets of the Fund upon","page_number":41,"box":{"x":70,"y":674,"width":780,"height":11}},{"id":"58f923fe-7291-4284-b80f-154709b10d97","block_type":"box","text":"liquidation or dissolution remaining after satisfaction of outstanding liabilities. The shares of the Fund, when issued","page_number":41,"box":{"x":70,"y":689,"width":823,"height":11}},{"id":"3103ab12-eb58-47f6-ad0e-f0a176e6cfae","block_type":"box","text":"pursuant to the prospectus, will be fully paid and nonassessable, have no preference, preemptive or similar rights,","page_number":41,"box":{"x":70,"y":704,"width":816,"height":11}},{"id":"4b046091-6c25-455b-b043-54cdc3a679a4","block_type":"box","text":"and will be freely transferable. Exchange, redemption and conversion rights are discussed elsewhere herein and in","page_number":41,"box":{"x":69,"y":719,"width":815,"height":12}},{"id":"9bb0be79-49f0-4cb3-af92-ed6badcf3893","block_type":"box","text":"the prospectus. The Board may classify and reclassify the unissued shares of the Fund into additional classes of","page_number":41,"box":{"x":68,"y":734,"width":807,"height":12}},{"id":"accf4bd9-79e6-4f1e-a088-76b8e66221be","block_type":"box","text":"Common Stock at a future date.","page_number":41,"box":{"x":69,"y":749,"width":227,"height":10}},{"id":"ff03374e-fccc-4806-b4d9-6735de6af1f0","block_type":"box","text":"Principal Shareholders","page_number":41,"box":{"x":69,"y":780,"width":162,"height":11}},{"id":"ad2a3055-3b64-4c7f-8e86-942d976a5502","block_type":"box","text":"To the knowledge of the Fund, the following entities owned of record or beneficially 5% or more of the Fund’s","page_number":41,"box":{"x":101,"y":802,"width":773,"height":12}},{"id":"0e3fca2f-37ff-4b57-a387-4242c51ebcd0","block_type":"box","text":"shares as of October 1, 2025:","page_number":41,"box":{"x":69,"y":818,"width":216,"height":10}},{"id":"f39b1e5f-3d28-45ca-b468-6fd76d63c7ff","block_type":"box","text":"Name Address Percentage Class","page_number":41,"box":{"x":69,"y":846,"width":792,"height":9}},{"id":"00fac6f2-f44b-45ad-bc88-8bb1f6873f40","block_type":"box","text":"Merrill Lynch, Pierce, Fenner & Smith","page_number":41,"box":{"x":70,"y":864,"width":262,"height":11}},{"id":"6797ae94-648c-4bcf-a0b3-bd61753916f2","block_type":"box","text":"Incorporated","page_number":41,"box":{"x":70,"y":879,"width":87,"height":11}},{"id":"9887728c-229c-4f35-9a14-6322327a6f66","block_type":"box","text":"4800 E Deerlake 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Certain information contained herein may not be relevant to a","page_number":43,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"333fad4b-ff7e-47ab-b43e-db31763cbc3a","block_type":"box","text":"particular Fund.","page_number":43,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"ef23b3a5-7f48-4151-bcdd-7e7baf3254cf","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":43,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"4c0d1b5f-8625-4da0-82c5-ebf4356ae43a","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":43,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"ebbaf5f5-ddbb-470c-bc8d-eafb7a9462d7","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":43,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"ef29f067-d678-4ae5-a7d6-389a9300765c","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":43,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"b2be7607-7fed-4625-ba74-702c51db1cdf","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Part","page_number":43,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"d17c5e2c-dcef-4f32-9f91-9221e3507cac","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":43,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"8d823511-ed06-4175-8f01-4819df797fcf","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":43,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"d8b5f88e-0054-4ebd-9ebb-d9db9b9032f3","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":43,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"1a33eaf6-3ecd-40fa-bf2b-6d8f0c82732d","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":43,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"a171bd02-aa96-423e-9143-dc48662b732a","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":43,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"e836a278-ca92-471d-81bf-9e18a4f8b504","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":43,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"f4bdf7be-9ca8-4db5-84de-35f0bea658ca","block_type":"box","text":"Asset-Backed Securities.","page_number":43,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"6ed07935-7db8-4a74-b31e-b6c34aa3f942","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":43,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"0a9a69ee-7520-4eb7-a684-8db943a2acaa","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":43,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"77a7b956-fdb8-4a59-bd55-4bd44020ab97","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":43,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"5489eec9-6f27-47a4-9ae0-b21e6e73f06d","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":43,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"d383a635-ba60-4daa-9047-84f0562b4a93","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":43,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"99e734d9-a663-4786-baef-255f25882031","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":43,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"78f4cbdb-dd32-4792-8e46-5417c8f3f424","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":43,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"b9a455e6-71ef-466d-a049-05829a6a366d","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":43,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"b7a60f0d-d576-458e-b4fd-e637b6ba2475","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":43,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"78dca392-6441-45bb-a506-ff7eab3862b2","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":43,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"33e90a87-f65c-4fc7-8a26-ae8aab0078a9","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":43,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"ce8f2f37-4c1b-4573-b9e9-3c2929e1680a","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":43,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"addcedc3-3fb7-4402-b393-29b62e61e066","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":43,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"2b7c3ea7-0c4c-48d3-91b2-40ae66730010","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":43,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"977bb1ec-b099-413e-aad8-f76f92cd97ea","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":43,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"08683a25-6e77-4b45-aeed-10cb401d5d91","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":43,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"309a5c22-8d42-40ea-932b-ebc2d5ef92f5","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":43,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"60aae541-aa9a-4b4e-95bc-f03ad58ee43f","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":43,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"4c72a237-20e3-4282-91f6-a4e8e63a38b2","block_type":"box","text":"II-1","page_number":43,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"503b66db-658f-41c7-8a55-687c9058e54f","block_type":"box","text":"NM1026U-6032801-43/242","page_number":43,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"294d8db3-7572-4a99-8557-1adbc4418029","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":44,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"fd1368c4-0730-46cc-a99b-35d9b6dd98cf","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":44,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"915adbd3-f05b-4a3b-9cbd-f51d88caa5a6","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":44,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"6c670abc-df03-431c-932a-360f70e9f3aa","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":44,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"2f68c1f7-c4f6-43b1-bd63-b83b572c81e8","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":44,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"78c0da7c-cab1-43b9-a741-330ef49b849d","block_type":"box","text":"Asset-Based Securities.","page_number":44,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"1534231f-da05-489f-a192-1bf6be0a37ba","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":44,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"0d3e5dae-473a-4d85-a366-6d85f16639b0","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":44,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"07e9597c-3f7f-4021-84cb-6406f5dc886c","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":44,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"585ae9dc-f906-4b63-ab60-fb0dbf9ac01f","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":44,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"58dbea51-5084-4903-b2a8-96887942f9fc","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":44,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"e7603f8c-7005-4ac8-9d0e-43b0a73742bb","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":44,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"d18dccce-fa9b-4b84-bba9-3c13b1124997","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":44,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"20dac914-9cd6-446b-a1e4-ea2b502b705a","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":44,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"91714cba-6da8-4d67-9f70-56e4d149ba90","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":44,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"5db0cd60-db8c-4018-961d-c63052e39b4d","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":44,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"284c2780-f597-4226-9b90-17421d16af85","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":44,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"76bafb71-7ab8-44d5-94c9-32b4bcf3bf24","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":44,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"26e58d16-bb4f-4a22-889e-62382ef101c3","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":44,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"9b057b00-e6ec-4301-8db3-e5eeaffefab1","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":44,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"38797b3b-291e-444f-9a36-484ba1bc7d72","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":44,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"46a42b98-bf6e-4390-a99c-c35ba9cd52d4","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":44,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"440fa500-8dd0-4f52-bc8a-cf72f94c6399","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":44,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"322318d5-e69b-454e-9dac-5bb398dbcab8","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":44,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"594ddba1-e91c-4990-be29-52757a74f8ef","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":44,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"137e57af-54eb-4f96-8176-9d48b92e81e0","block_type":"box","text":"appreciation in the underlying asset.","page_number":44,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"4b315a0c-a627-42a5-a7f7-bfe1eb9bc441","block_type":"box","text":"Precious Metal-Related Securities.","page_number":44,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"7ad7ffcb-5f34-409d-8e0d-31b5fc419bba","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":44,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"f92673b0-8ab2-4823-af1f-f0111b30dc0c","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":44,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"0934e2e1-5edf-484f-8e1b-2a315f5ed9a8","block_type":"box","text":"e.g.","page_number":44,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"25b147ba-227d-4433-859a-bdf27ada91ce","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":44,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"98e737da-1aaf-4277-8786-356c9fb159da","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":44,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"f6d8449b-d61a-4363-966a-12c37e50b437","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":44,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"ff870e85-ca54-44dc-9a71-81943102d9a8","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":44,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"4574e03a-a022-4b2e-b070-528706e9b4a3","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":44,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"7c023ae9-938c-486a-b870-22cdd612b8a3","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":44,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"86c6ebfb-a684-44de-85c6-2082710f5e48","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":44,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"8ec553f8-a7fe-4758-988e-c1b983928f9e","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":44,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"336179f8-fb8f-4539-9c37-95f6c34b9802","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":44,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"3c707228-0cd6-4a52-af7a-597ab8f077ce","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":44,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"9577b688-9306-4a5c-8a21-a44692ef545d","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":44,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"8310479c-ad9f-4ec0-a534-f7c885800b46","block_type":"box","text":"South African gold production.","page_number":44,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"c0332c23-9e7e-4c4a-9bd2-e134cc113d15","block_type":"box","text":"Borrowing and Leverage.","page_number":44,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"d152b421-ed23-4fad-b3ab-529e4bb6e45e","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":44,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"029bcd57-d161-4e64-939c-fe82953ea454","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":44,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"41e584c7-9b4e-4c67-a791-63783736f0fd","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":44,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"76825572-8760-4513-8939-44b7ab6b05a5","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":44,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"a0028f54-d691-4e68-818b-6d84cdb5b440","block_type":"box","text":"other securities transactions.","page_number":44,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"660fbdac-ae7e-47c1-83ee-91582639be97","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":44,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"a228c542-7d1a-4e0b-adf4-eea7380bf5f8","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":44,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"a598478b-5ff8-4ea8-b8a4-4962497195d1","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":44,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"be62e44d-4fe1-4c58-b05d-9d1b5ea781de","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":44,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"1d2bfee0-72c4-4047-80a4-aef57266978e","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":44,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"a9913b4e-2ee7-4296-850c-f6c9c1a7e231","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":44,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"5b2483ad-a228-4657-86e6-3dd734ff1051","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":44,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"3d45b12a-cc60-4bba-9914-0df9df4b906a","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":44,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"82af2a37-aa83-4dae-a5e0-d40b37648f12","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":44,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"39d5205d-2b92-4fd3-8660-936fa5594079","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":44,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"57df8806-4c63-4473-997d-0338325077dd","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":44,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"4862e1e4-a70b-45b6-a57c-a319a3d04ed3","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":44,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"c30614bd-eb15-459b-a13a-296749d65334","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":44,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"57c192b1-1ad7-4ffc-87ee-93f61c095704","block_type":"box","text":"II-2","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"30b7352c-92a5-4b0a-876e-054ef1cf2fb2","block_type":"box","text":"NM1026U-6032801-44/242","page_number":44,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"adc0503e-2596-4417-ae80-29ff909819f6","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":45,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"b2645e2d-30df-4282-950a-e1d52ce86b33","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":45,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"49c0e685-dba4-4878-bfc8-aa9ff3516a33","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":45,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"abca0c7c-01b0-49f3-8a13-5f990f64eeb7","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":45,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"af937e79-393a-4ab6-8f4b-ba8cc310144c","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":45,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"8b53d92f-564f-4bd2-b676-70ec6ddd473e","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":45,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"a76e8473-9e22-48a8-8fff-82713012155e","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":45,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"f369c8c5-89d1-45c9-a0dd-33cbaaca7f88","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":45,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"53565453-3bde-4896-aa7f-aa9761766fdf","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":45,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"4eab46b6-7554-4147-926f-5e9bcc5b2c7b","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":45,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"a3814603-df47-457b-82ec-ec8e3c9ae87e","block_type":"box","text":"Cash Management.","page_number":45,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"f0f36b7d-e487-47e0-b74d-108ae8e51dd0","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":45,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"547ea2af-3148-474d-b551-5cf7fdd70783","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":45,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"285abf1f-bd67-48f1-8291-a20ee38c29b6","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":45,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"7064ab55-5dac-4218-a429-8f15f3fb4ca7","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":45,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"314f98a8-3ebe-4881-9a7e-57b91bf430be","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":45,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"aabe33ea-a888-4be9-b43b-cb2dc4cdfbcb","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":45,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"f50d0af9-bbc7-4521-9e76-54660a0552a9","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":45,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"0d5b4a82-19ee-4f81-9e8c-5078834edc2e","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":45,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"72932909-ea9a-4b0a-b49f-c89d316f9949","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":45,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"8f82628d-5a45-4ea7-aeb7-526f78419635","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":45,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"c5507a3b-0bf0-45fb-b769-937174a3e5f5","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":45,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"0b461454-e8e7-4268-af67-f69ab843bbea","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":45,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"2c767579-143e-43dd-bec9-a78326e533ef","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":45,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"e372b90c-b5ae-4200-9aa1-f0e4cb7eb572","block_type":"box","text":"Collateralized Debt Obligations.","page_number":45,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"057e2703-130f-4702-b0d4-df84c772a537","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":45,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"fec6b550-8333-48a1-a862-188116b67336","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":45,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"38f64ff0-13be-4264-a5b0-26b3f47c473d","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":45,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"1b936df5-93b8-4e81-9593-75b5ae897e87","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":45,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"2bae7060-9fac-4a10-822d-47c70fcd8c11","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":45,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"d00cb1d7-d7f8-4dc8-88be-4bd17e2b5e05","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":45,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"5aea0169-eded-4091-9b90-bed1717d38b2","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":45,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"66b351fa-bed5-4463-ba21-101afd964f11","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":45,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"5a289d94-4eae-44f7-86ee-7fefbfdfd412","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":45,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"fdfb67b9-8f31-4d8c-9855-768d89fc3dc9","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":45,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"c418486c-9ebf-4f77-b41a-ad14b028d787","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":45,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"33bda9cb-06c0-48b7-9aaf-a510c7d83735","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":45,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"fd9899f5-a596-4be8-bdd5-5c6a20bd7183","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":45,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"f7b28fee-7de6-47d7-980d-990ba5215a35","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":45,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"985d6775-1bdc-41c0-a04e-f445f91b00ad","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":45,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"d90976f4-a1fb-429a-ba17-1ca69a21a5d3","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":45,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"9492866d-2a22-4841-bb98-ba1bc0809dbe","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":45,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"9832f3fd-85a5-4bcb-8703-80b1a5ba0ee8","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":45,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"bf2d40ca-2c47-4c62-97d0-236d86a6b49e","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":45,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"710c19f2-e8be-484f-91bf-bfad083d40b9","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":45,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"471cd1ad-7741-406a-a71d-84b5e925c1ec","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":45,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"60fa5843-d4c2-4460-a5d8-62be6ac5efad","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":45,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"00f9c22a-a7b2-414b-bff9-3898c3085957","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":45,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"2e62a474-e5f4-4f7d-9810-750b4b85e9db","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":45,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"99249828-7286-4188-839f-f151879210c9","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":45,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"caf3a67d-a4ff-4db3-b98f-ad2406a354ea","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":45,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"d6df6e02-8b20-4464-9b9f-419c528b61ab","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":45,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"39500973-cc53-4f54-82c8-05f5a51b477e","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":45,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"e6cfd8e8-539c-4f0d-95c4-6c1cbe295beb","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":45,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"100287e3-2fdc-4b54-82f6-fb69aae83be0","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":45,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"a8e69b54-06ee-4adc-9cac-5071cb6b95e4","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":45,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"7da1a361-f0fa-4825-a8ed-8fbaff3b3099","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":45,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"05f09141-db96-46f0-8dc7-4ea64a9b7ec9","block_type":"box","text":"II-3","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"4d877bd2-33ff-4581-864b-cce1640c033f","block_type":"box","text":"NM1026U-6032801-45/242","page_number":45,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"339dffde-d819-46fb-a6c9-a691c1121d3c","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":46,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"322b4e5c-5d3f-47db-8d52-b695da5cd3c2","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":46,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"9ac6aae4-d069-430b-b4ef-772f1d12cc63","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":46,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"e2a865cf-e78f-4473-8d23-b74122ebb75c","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":46,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"f2a5d828-c7cc-4d02-9c59-421803e3169a","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":46,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"604dc55e-e806-47cc-abb1-6ac0b3bee916","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":46,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"f01aa881-3004-4a75-bcb3-9c099b918ef0","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":46,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"73ef30f6-c571-468f-9935-e685da1c6894","block_type":"box","text":"Commercial Paper.","page_number":46,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"0bd12a2c-8309-4204-b6ad-050228d9c3fb","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":46,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"e87e7ad9-f45f-4bfd-b703-51aef6794115","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":46,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"368f2252-a4d4-424c-b41c-5a4ce6ec1075","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":46,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"323e570e-eaf4-45bc-8682-9fd835fa6c4e","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":46,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"0f105237-2e7b-4f94-bb7c-d3e75253b157","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":46,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"a67f667f-8dc5-464a-9330-096efd029248","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":46,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"8a44d1dd-fe49-4368-b7d3-e4ac39705b48","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":46,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"dcc0046e-a6ac-42ae-b084-981dde639cee","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":46,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"1af675df-31ce-4401-b494-ce05f4549570","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":46,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"04274dc8-38f2-4f80-a2a7-74447aa5f0e8","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":46,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"53b6fd7b-d31a-460b-a16c-cc55242944ae","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":46,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"4560c125-285d-4fa3-b3d6-27e072076150","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":46,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"dbb00a68-dd90-4aab-9569-56c10ff5e1ba","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":46,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"83668d29-0cb7-4fa8-86c8-2573ea39939c","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":46,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"318b29e3-2ce6-4a53-8a1a-5137bb23d56c","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":46,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"2767254d-cc90-4832-b552-465cb8ad803a","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":46,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"0c634a99-9dfa-43e4-a370-36d72cd53e51","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":46,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"e6351fc5-b782-4bfb-a0f3-5b80e56d03e5","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":46,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"be731fcd-f15e-4e83-9b37-7d0ce91413ed","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":46,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"bdbf8213-18e4-4871-8245-f32ddc378c63","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":46,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"d58b2e13-c6de-4b48-a848-a4d8dcc6f208","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":46,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"e89d2027-a689-474f-bef6-08c2f443d8d8","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":46,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"a44ae792-6226-43aa-8dbb-65dd66fc2776","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":46,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"101ab620-891d-4a45-80dd-3b04caafe25c","block_type":"box","text":"variable.","page_number":46,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"d4e83e9f-5fcc-496f-9854-7e4d2d1b6717","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":46,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"d90755ab-9bc7-4849-b45a-7e5dd35bd798","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":46,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"6319017b-e868-4076-a3dd-68fe559a748c","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":46,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"9b2f5f6f-b2ef-46b0-a680-7086e588e5a2","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":46,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"b38375d5-e877-4aef-a97c-53762e0e6c1d","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":46,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"7ecffc83-ec22-4d32-b351-37d01208dab2","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":46,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"5a15f41b-6d84-4154-b721-3662546393ac","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":46,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"948f66c7-4eaf-4f45-beb2-60bdadf0cd37","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":46,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"27f5068e-5ec8-4c60-a8cf-b9bcfe5c9383","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":46,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"3e1419e5-c932-4658-88c3-ef7a6b63a212","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":46,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"37b710b7-28b1-43c1-9c68-88c41d20e354","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":46,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"6f529475-d503-4fc5-903a-b521dd741c1e","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":46,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"aef19f4b-4c1a-4dc8-af3c-173ba9f65221","block_type":"box","text":"correlation with stocks and bonds.","page_number":46,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"1d3b27a7-67ef-4362-97b2-cf5bb2185746","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":46,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"39a2b063-2178-4f85-bc97-5434e53a06d3","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":46,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"20f2ab95-aea3-40d6-b22d-618f8082b861","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":46,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"fa300591-a11e-4632-9620-77128525b9d5","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":46,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"69c43535-03f6-49b5-b607-59d92d2dad20","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":46,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"afb1a5f4-d7b1-468f-ae02-74b8e31a7689","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":46,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"ca38bb70-0456-4ed4-9db0-25e13abad6a7","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":46,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"4ae9c330-a1dd-4c90-bc90-9fd606cd62c7","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":46,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"74d4e5fc-a473-40a6-86b1-75bfbfefc455","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":46,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"8317f8f1-d70a-442b-8d53-1d5fc6850405","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":46,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"654eebea-1bf9-4a79-b244-fbcf38305abb","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":46,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"ba6b6b6f-ee46-4b55-bd88-bf36c8044ad1","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":46,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"bc91ed9f-64af-4e14-aa9f-4139e0d5f7c6","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":46,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"549947d5-e347-476f-bb5c-945c64ccfcfc","block_type":"box","text":"II-4","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"ad4e48b4-ced2-42cc-a92d-9829c2f35b7b","block_type":"box","text":"NM1026U-6032801-46/242","page_number":46,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6cf66895-439d-4183-b95e-e9e94a0648e3","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":47,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"5b6929e9-94d8-4a39-a65f-8ece63bd61be","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":47,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"d60da056-c233-4848-b345-37935df6e172","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":47,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"83c95dab-cbdb-4350-aefe-b228e5b59c62","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":47,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"13948d96-09cb-4ae5-ad85-6eb800dc519d","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":47,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"6b0b0749-37c4-44e6-8977-6b384108928a","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":47,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"297f1c74-1730-487f-87fd-3c585f3e0385","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":47,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"9223c2a3-a491-4f86-8e28-6a5fba966e0a","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":47,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"d71bebd1-626d-4d7b-bef4-150d27c04023","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":47,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"d586f253-9ead-44d5-8393-9c9e426c22cf","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":47,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"f9ed84e3-5dc0-4c94-8532-7f720dfbf581","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":47,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"7028d8fe-0438-4868-8f44-d040e3a673c5","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":47,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"8a1b1d70-961b-40f9-b16a-60330666ce3d","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":47,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"94308752-a851-4c68-81e7-275b592c2d7f","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":47,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"5a0707cf-aba8-4e0b-a2c8-9107ee15bc3c","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":47,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"8c14bf3f-2190-4223-88a4-d353feedfd27","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":47,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"068cf3dd-6bcc-4f0d-84bc-cb0f9b2ba537","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":47,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"77814eb7-15f1-4bb3-ac01-90622a2d72b9","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":47,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"19e26647-67c1-46e3-ab29-77632975dd62","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":47,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"ba9db17a-5609-4d88-bc1e-3967bc8ff75d","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":47,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"e2a1bb18-dec4-489c-9a68-e094dcf10be6","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":47,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"3d2c4551-da11-4a14-b7b4-5c87a2badc19","block_type":"box","text":"the Manager believes are relevant.","page_number":47,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"76a45357-9e4a-4818-ba5d-5fb533cff6a7","block_type":"box","text":"Limitations on Leverage.","page_number":47,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"812146c6-ddc1-4a3b-870a-4394a584e748","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":47,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"e782febf-bda5-4b34-985d-a1d589b36f70","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":47,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"fe3f185d-9be1-4e00-90c7-d1319a8b25e3","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":47,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"4cdfff78-e758-432b-8884-9da7ce030557","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":47,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"26819a65-56c3-4690-9161-787c70707208","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":47,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"12f6bfc4-047e-424a-bd55-8613f062ec5c","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":47,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"6dff316f-05d7-46dc-b7e7-c316c798d9a2","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":47,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"f359a697-f19c-4684-9325-9cdfd5c059b9","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":47,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"0298ea0f-dd43-4b7f-bdf0-e54873c60655","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":47,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"5a86ef3f-da13-4aa7-9c2d-345ddee28fdb","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":47,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"bbd7b759-92fd-49b8-9a1e-f5950681e856","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":47,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"31c60798-52d5-4a41-b788-317fdadaac0b","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":47,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"c02896c2-c235-4049-8a3a-4647382804f4","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":47,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"c3017658-7eb2-4005-abdd-da1aaca6800b","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":47,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"05b5b571-1074-4608-b689-23a8071ad70f","block_type":"box","text":"Counterpar ty Risk.","page_number":47,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"5a6ad037-1999-40f8-a575-43f13fdaed03","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":47,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"1aa68aa2-bcbf-461d-849b-453173a0c263","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":47,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"cb9aaeeb-fde0-4ffd-a01e-803861b78888","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":47,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"d39e1085-9af9-416d-b850-a90883a2223d","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":47,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"d7f0292f-da7e-434c-8927-3e868d5456db","block_type":"box","text":"e.g.","page_number":47,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"71f36b15-83a5-47f3-a2a2-bb535542acb0","block_type":"box","text":",","page_number":47,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"e2ef2960-9f9e-486a-bb96-11f47c11099e","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":47,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"03f51f69-f827-4500-b356-164ee611a0b5","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":47,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"0b3c6353-9a6e-4591-8fc7-e0bfe5d05b7c","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":47,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"a124b9aa-cb58-4a59-9116-1148e3ffacaf","block_type":"box","text":"obligations under the structured note.","page_number":47,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"2ed08fed-4df8-47a5-a6c7-cde7b9326457","block_type":"box","text":"Convertible Securities.","page_number":47,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"2e91c004-022d-48e0-9dad-0a15d8a3b462","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":47,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"62a5ce1d-77a3-4561-8c0d-60430f358e1d","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":47,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"f625f3e7-f775-4f92-82ec-26771bf159c8","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":47,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"5615caca-0859-4f82-b182-7119f7e0ede7","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":47,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"be199948-9944-4e93-b0de-65f4875e385e","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":47,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"cdc8057f-e12d-406a-8d27-1d0d57b335db","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":47,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"0d26d986-645e-4c13-a3db-391a6c0fbd0c","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":47,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"540729fe-3770-405c-97f2-3b3f5f03361e","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":47,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"3b6754a1-0143-4552-8ac6-65cd224bad9f","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":47,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"98852c05-a47e-40e4-9fc5-4ec62d81f729","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":47,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"2d0b3e65-b232-435d-abff-81a673d70f6a","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":47,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"4a638917-03a9-4087-a930-6c56d8926636","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":47,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"b8de13ac-5946-468f-bd6d-fb01061aeddf","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":47,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"1d649ffd-a8f2-4fe5-bbb5-0d8641918012","block_type":"box","text":"II-5","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"4f80003b-9bdb-4160-9ba3-5ec8f9a03262","block_type":"box","text":"NM1026U-6032801-47/242","page_number":47,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"86cc43c8-db5f-4190-8448-003b25b70e92","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":48,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"34a0f58c-7914-4b36-8ad1-2953c77b76dd","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":48,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"94082308-8fb3-4177-b2ae-2eb65c95add1","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":48,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"425718d5-9128-4afc-875e-be1ca124345a","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":48,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"a6b289e5-d5fd-4f38-98a7-0284d62caeb9","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":48,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"9de20039-5b3d-48a9-b062-2d479ff3f513","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":48,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"69de4601-79e7-488b-b49c-fd5dc1b091fe","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":48,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"2c30aba3-844f-4289-b2f9-bc7c97315238","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":48,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"5cd8668c-6a6d-4364-a877-201d73a558e3","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":48,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"64f4c9a4-2f71-4e28-ae8c-0e8e508d2236","block_type":"box","text":"things.","page_number":48,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"2c6deb24-2695-4680-bc01-967a6a026e76","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":48,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"2b521af6-eb38-4618-8c77-a45718c15034","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":48,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"4906077d-4de5-4a83-bfde-c200af566ccf","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":48,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"6b425b17-aff9-44c9-8580-d3967e2f68ac","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":48,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"112ea749-84cd-4c56-80f2-64b8441d3dbc","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":48,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"7be31efd-c065-4a8b-8079-4644aba66542","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":48,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"f6f7203b-311f-4938-bfc8-cd941c09bc73","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":48,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"c0a9507b-dbbe-43ab-b031-3a627f0b7a13","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":48,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"c6192a66-2632-4f27-b5e5-26d6435c73a2","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":48,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"02df421b-9bf7-408d-9599-2899a49807bf","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":48,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"92db9468-ada4-46b7-aa42-a5247a0b82be","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":48,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"0c941b29-fdf5-46a4-bca1-639359f131d3","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":48,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"1d8ac256-d55c-4fa1-8087-d7c5b39774cf","block_type":"box","text":"i.e.","page_number":48,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"366ff74a-b630-4f9a-936b-95443b2f452f","block_type":"box","text":", strictly on the basis of its yield) is","page_number":48,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"6690292c-48d8-4e5c-9657-a6d41513e86d","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":48,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"1e01d908-d51b-4f23-b7fc-c37af02e7d1a","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":48,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"287917d9-b59c-4855-9242-e7f44d9b3777","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":48,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"ae3619c9-7ce8-4433-8e98-e309fa68ee6e","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":48,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"cd7373d1-77bf-446b-afa1-6fe180cbeacf","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":48,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"863ef39b-2dd6-40a6-93db-6c53f1205b26","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":48,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"063a7bec-f4e9-4c15-a791-6d68d4819874","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":48,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"c3e9b4b7-995b-45f2-9af5-0d318e8a9bb4","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":48,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"af83a85e-f67c-429f-a283-1898bfddf6fb","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":48,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"5e47558c-a4d9-4f60-82eb-1c932616b819","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":48,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"d5886148-3d59-4eb5-bc48-887d6603e79a","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":48,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"fe1e8128-bb02-4071-9a93-64b6ba46d7d9","block_type":"box","text":"than the securities’ investment value.","page_number":48,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"a98964cf-73e5-4ab3-9a58-717102046627","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":48,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"14ba7615-5c54-4ed0-87e2-f1fc66ad3940","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":48,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"ceecae6c-667a-4f00-9a2b-cdb0c7789188","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":48,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"af8cb322-f604-4fca-9d4b-01dfd4b9cec2","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":48,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"f659e921-ab2c-4ed3-8cc8-0b1b757ef6a4","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":48,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"03cb212e-3a04-45ad-b9e0-449c303943ca","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":48,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"8f88088e-9f83-41e3-8477-7e1229dbb504","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":48,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"c6b072bb-0c8a-4829-b9e4-99083a136c97","block_type":"box","text":"security under certain circumstances.","page_number":48,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"27516c1f-7a66-4600-aac5-fe3de5c761c6","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":48,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"1effb7f8-e1a6-4320-aeb2-9131ef411aa4","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":48,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"ef968fe3-1a79-4671-a4e6-43ed7c7d7571","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":48,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"795b5c89-d74f-4799-9d57-65603a11440f","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":48,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"537b2843-44d2-48fe-b743-8dec016e4376","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":48,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"b2f5f126-e6e9-44aa-8558-72acdc81929a","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":48,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"8ebaa14e-c415-49b7-95ac-aff189eacd7a","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":48,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"2a83eb41-4f3c-4fd1-aca5-e17dad9fb023","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":48,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"d9bcc51a-3c0f-46a8-8d67-ec3e744ba042","block_type":"box","text":"i.e.","page_number":48,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"a8a7395a-50c7-42ba-8d74-058b25d7b5ed","block_type":"box","text":", fixed-income (“fixed","page_number":48,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"27bf0683-a053-491e-bd56-2b89e73f1d24","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":48,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"fbf32df7-97f4-42d0-bbdd-f038c0955efb","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":48,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"30ced37f-7d9d-4cc3-ab80-70eb49fed43b","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":48,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"62607818-9103-49cd-be12-3477d60395b7","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":48,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"91fb1a2c-0436-4940-85f3-d63cc0d2c79f","block_type":"box","text":"II-6","page_number":48,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"a92b88e8-266b-400f-8a5e-a23aa61374e0","block_type":"box","text":"NM1026U-6032801-48/242","page_number":48,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0fd5208f-95a4-46d2-aa4d-9ac4252d36db","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":49,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"761b498e-254d-4831-b889-2d9a65df0c74","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":49,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"8a55fc4b-7fa3-417a-9910-f2ee13159cd6","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":49,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"8b1d091a-68d0-4c7e-ae22-3b7cb8c5667b","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":49,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"6d35178d-1d3b-419b-be6a-2ac3da702230","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":49,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"60fcc4f8-f8e1-4c46-919b-7a04a3342338","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":49,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"a799f3e7-27ba-4274-9caa-82648efcc257","block_type":"box","text":"component.","page_number":49,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"a32fea48-1455-4326-8ad6-c4737981ee43","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":49,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"b013283a-72b7-47ff-abe5-c0547e5ddce4","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":49,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"a847b52d-71fb-4528-b082-9cc2a94f56c6","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":49,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"6ef62be4-35d2-4fad-9980-8861759623a1","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":49,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"6e7cc0a7-4768-4f4a-a4a0-2435b8d47587","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":49,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"f1840f11-4417-417f-9729-9f8d6c450e42","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":49,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"efd6be55-af18-4497-af27-b67038db5f06","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":49,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"85d69f44-893e-4a6f-b081-72b3ad72e91a","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":49,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"d4d43fe3-3df9-4486-8f4c-a35bb7e15f1c","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":49,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"ab8a5ae5-0a3f-4fd1-ab0d-d19d8e3a5510","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":49,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"f1f1c23c-25e8-4512-95ce-2870418353c0","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":49,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"dc577327-a225-4705-80b6-393f29a260da","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":49,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"b990f202-cf49-423e-910a-244f578b7ab5","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":49,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"aba48d4c-1d3d-4e3f-8980-a1c61dae7ba9","block_type":"box","text":"favorable market conditions.","page_number":49,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"802a7fb0-aadc-42a3-8977-d053100ee50b","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":49,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"043c6050-f35d-4013-87f6-efacff0f7851","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":49,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"9a999922-ceb6-41ad-97ce-d2dcd3262e7c","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":49,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"6b357d8a-6f02-46ac-b563-84e0797da4e6","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":49,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"a6c7984c-8b9e-497c-9579-6f1856b6d3aa","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":49,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"9d152045-6fc7-48f5-943f-3ea461f40862","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":49,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"ef1ed2c2-9834-45fa-b5fc-a79dd342ae34","block_type":"box","text":"Corporate Loans.","page_number":49,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"71ae24ff-abfa-44b8-8ae9-dd6913578299","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":49,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"b93d8ae6-9b78-4caa-8553-93f15f91fbec","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":49,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"7367ea3f-c620-4db1-a43b-5fa82aded47a","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":49,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"bd551f3f-b030-4038-89fb-a2febbcf92b6","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":49,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"771b854a-7938-4306-bc98-9d921ea2ed66","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":49,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"bce14018-989e-4ec6-8ae7-3859e76c52f9","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":49,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"f9435e36-dd70-4a34-9af3-83a001b6d810","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":49,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"764d5b96-d0e8-4ae6-9fdd-75c4d2a76cb0","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":49,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"231d77cc-9b99-4a6d-9f1c-0782570ce7b3","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":49,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"382cfa9b-462a-43bd-86c1-deab90511425","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":49,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"6f07ad50-b151-4a10-b3d8-d4b3fadb9f16","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":49,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"79033547-e8c5-4e6e-9a5a-b88f7672b1e4","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":49,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"f266921d-d670-4a06-8789-2e45f5e981ec","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":49,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"f9258278-f4d3-4618-ae4b-06c0178ef71a","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":49,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"a45f4490-e3b6-4b3b-bdb8-53750fbc594e","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":49,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"ecf3577c-7585-462b-a25d-1c203baeabfe","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":49,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"9a29354c-519e-43e5-bcf9-c748036433c5","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":49,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"517cb465-10c1-4c39-99e0-793d3406e893","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":49,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"be25372e-27c9-44c1-8652-9294c762359d","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":49,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"bad8931a-8ff7-4a92-92df-3952346284ac","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":49,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"6c05f5b1-f188-40eb-a5ab-14387ec6c719","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":49,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"b522100b-95f6-42f6-8e70-57011e88b07b","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":49,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"c637a97a-2e2f-4c72-ad5b-685904712a7f","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":49,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"78c5ce73-2593-4aec-af86-fd8aa840f4f3","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":49,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"83b77b31-4a29-4ff0-af93-68bb2c038b39","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":49,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"c7a1392b-afca-4de7-935a-32cbdad0df43","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":49,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"4ea19736-31a2-42bd-9d18-d427f5f96ce1","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":49,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"08fd87a0-c4ed-4f2b-a1f3-482985cfd5a6","block_type":"box","text":"of the borrower.","page_number":49,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"200fd1a1-3127-463b-b7b0-d30eafb9f9d0","block_type":"box","text":"II-7","page_number":49,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"e1c301f6-cc96-4634-839c-ff633067655d","block_type":"box","text":"NM1026U-6032801-49/242","page_number":49,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"11154a8f-859e-4e57-bf52-3422979935dd","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":50,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"8c41b886-1048-4a1d-8611-e1b322f1c0c4","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":50,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"5f23f899-49cb-429a-abc7-ab857d7e8b71","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":50,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"8534f49e-041f-4ef4-b04b-656edaaad752","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":50,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"9b40a8dd-869e-4fdf-9ec4-d7b687dd9ce8","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":50,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"63c2ae6f-c471-4fa3-b50b-3b0f96b9f549","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":50,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"283c0b00-20ae-4707-b6bd-ebd9705b49c2","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":50,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"4dd6b0dc-566c-4478-8d40-05670c0ccf8d","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":50,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"61d181ac-0e7c-48f6-b431-54b1db4d3108","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":50,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"07af52d0-c5a6-44f7-976a-4d0311edea42","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":50,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"1f78f368-70e9-4624-9bf6-dd77010cc145","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":50,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"7275d4e2-7697-442a-a19f-b4916eed8730","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":50,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"6a9a049f-3047-4126-815f-f284d1ec62ea","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":50,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"553b303a-9bd2-42cb-9e31-1a0e300b5eb4","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":50,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"9dc6915a-8fd2-4ce0-bb6d-8850932403c5","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":50,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"2934919b-f35d-4904-98c2-18f96c5570a2","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":50,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"790eea4c-a373-4ad1-8505-b7c94510e3ac","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":50,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"5be4336e-7514-4300-a606-08c823954614","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":50,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"d09ac0e7-9377-49e0-bc5e-4d086ea7b1dc","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":50,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"c17b64fb-a0a5-4ad8-afae-88c93dd2759d","block_type":"box","text":"state law.","page_number":50,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"e6c9f789-6774-4da7-803b-fc4793164bdb","block_type":"box","text":"Direct Lending.","page_number":50,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"9c3ab36e-2549-4450-8388-1ff6f073a591","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":50,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"5aa462cb-56f4-4639-a3e5-7d235b5df94b","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":50,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"00e21eb5-6956-4929-9137-49c6a7fa0c52","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":50,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"ac70da62-52b4-49b3-8d70-53717868344a","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":50,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"6fee31dc-576d-473f-b85f-1761a756664d","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":50,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"f3a07499-e2fe-4cf3-987a-12dd812eb6c1","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":50,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"bf5aacd1-0201-4599-b262-60e48e7752e0","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":50,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"d3ad50ea-eef0-4c33-a172-4fbeafc18298","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":50,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"6b2e73c1-2a24-4a4c-bef1-2181409307e9","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":50,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"b81c5311-b0c2-44f8-b8a6-42e54cbc1f3c","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":50,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"05cdc749-aa0d-4fac-8da4-42408027258c","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":50,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"18b9c022-f4d4-4e97-8a29-440080424476","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":50,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"cf18560a-465f-4584-8799-63c687986c84","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":50,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"868eee47-9fb7-4d0e-b5e1-c1cf222fbeb1","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":50,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"56f74719-d3f2-454d-bee4-4a5e0b66e596","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":50,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"2acd6f46-5d2b-4853-927c-57007a3530a5","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":50,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"1027a248-db40-49d7-8a14-f6acec5f01cf","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":50,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"c706c49b-cf0d-40d5-b214-d81b8acbb591","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":50,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"4b9125b8-40b7-4663-807e-217bf847c624","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":50,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"d38eca69-0d8a-406a-837f-e9ff711b85c2","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":50,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"11aeb5cb-0c4e-45d0-862d-35b677502b53","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":50,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"d56659ae-e4b2-42c2-bfde-533a3129b9e3","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":50,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"cec52c2a-49db-4e30-a2e2-73cea726f047","block_type":"box","text":"Credit Linked Securities.","page_number":50,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"954f03c6-e6e8-4505-a79a-6a7b9cb4d1bc","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":50,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"637fb9d7-fdda-44da-b5a0-b43ba60a823e","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":50,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"1e4b5648-c03a-4176-b711-249f6dc9a858","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":50,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"03b50bc6-1bf9-4be8-9ffb-2164498a4271","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":50,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"f55157db-b8bb-4996-8919-46845ae1ec27","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":50,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"a4e17d21-6a30-4cec-8da9-4a15745305cc","block_type":"box","text":"traditional income producing securities are not available.","page_number":50,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"959ff790-cea8-461a-bcbc-74dd5820ed56","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":50,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"7f849df2-3a47-4265-a324-e237f99356d5","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":50,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"c0ce52c5-f14b-4dd6-9f5c-97f1b56aaecd","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":50,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"5b1ac0a6-26c4-4545-a537-cd2e277f9404","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":50,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"ba96b14f-ee64-4165-a5fe-fc392eaae7e7","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":50,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"89277b7f-0e7d-404b-a2f3-cea343dc5406","block_type":"box","text":"II-8","page_number":50,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"f4e2c254-0ef0-4334-9591-341c881d9600","block_type":"box","text":"NM1026U-6032801-50/242","page_number":50,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"413fedac-9abd-42f4-bc6e-8ee5f3daff0b","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":51,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"cf6a85fc-3c79-44a7-a37b-755c61ec79ab","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":51,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"06c64263-c4ab-46ff-930f-bf8256c63c5c","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":51,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"b576d42a-d51d-4af8-bf0a-2a307f85ed98","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":51,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"b6fd16c3-0124-4332-8a48-9fa17e098487","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":51,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"00bc18ab-de87-43a2-9cc6-77e0ddc92aef","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":51,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"4d546e06-edd8-48fd-bc15-3f12f50cf312","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":51,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"3990d693-d67a-4070-ae65-45f27bc8731c","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":51,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"8149a5f5-dae5-4324-95c4-34aded57a53f","block_type":"box","text":"investments.","page_number":51,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"6dde1945-4eb3-4838-8748-de14382329b1","block_type":"box","text":"Debt Securities.","page_number":51,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"ea5a915b-381e-4219-9c37-24e9d45ad3ab","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":51,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"a6834cc7-a426-4942-aa22-c979653825c0","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":51,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"7e1830f4-2bdb-4291-a2fd-00d0fa41d6ad","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":51,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"0856baa8-6d81-4358-b75f-02764e493e24","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":51,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"f6297699-1391-4e0c-94e6-8d40711b6205","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":51,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"37658df1-051a-4a03-9351-9343ba895d2d","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":51,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"0784d85c-af1b-46fb-b1e9-b7360630be0a","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":51,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"2bd93ca0-e7fe-4251-9e6e-1c1917f0e1c3","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":51,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"2e5075ce-0e59-4752-bb88-ef4ef1d222e4","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":51,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"9a832cda-c8fa-4b07-9582-eef44767dae1","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":51,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"2555a816-ddf3-4919-ac06-314363b747a6","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":51,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"285e95b0-7114-4f0b-8d03-b95062430c3d","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":51,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"f83ed966-7917-455a-8f50-04c21482f890","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":51,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"200cda13-e1c6-4516-8213-e176fa2876f6","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":51,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"62a2caeb-9e02-42a5-a211-0744c3e4ff9a","block_type":"box","text":"lose value. This is known as extension risk.","page_number":51,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"8f30b371-e1bd-42e6-833b-8c4f1f3ea096","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":51,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"e33d0a9c-d48e-4af5-88f9-dbbd2a1b8bd3","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":51,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"4fd64181-a7c1-4db7-a947-5f2715619d1a","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":51,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"4e251cc8-65b6-4f7a-8723-b2f0e58eafab","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":51,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"94fe7621-f186-4289-8649-07b404ab7c1c","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":51,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"dcfd43cc-defe-41d4-9d7b-0f801e519824","block_type":"box","text":"Floating and Variable Rate Securities","page_number":51,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"0a1f4d57-de9e-4802-a894-de7ee6f95c31","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":51,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"cc1b227f-0057-4e47-9c62-92f1c1ea573c","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":51,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"41ab12ed-8fd4-4d6a-a874-17bd6656c872","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":51,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"37d33765-d3bf-4d57-92d7-2ed6060f9b9f","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":51,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"3a1c000c-9485-48bb-9a1e-11af09d0da46","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":51,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"86c9c3c4-319c-4ac8-a6fb-4a66da36e5d8","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":51,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"8fb983d8-552e-44cf-95ba-78a48de49c76","block_type":"box","text":"market interest rates.","page_number":51,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"46d67fa5-bc8f-42ba-b9ea-7a3a7b4b5164","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":51,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"62be232b-1ee7-4382-9af0-9a2b6d798aca","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":51,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"c4243cf5-e78e-4437-af12-c3ecbac97325","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":51,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"5b27587d-08bb-4b21-84db-7a8839d391d7","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":51,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"e13a0f6d-0fd9-47ad-975c-f67c4e8c7ba2","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":51,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"446c3590-17be-44b3-85b0-4512193b1787","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":51,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"0e3106ba-76ea-4e40-a595-7f565d696e1f","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":51,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"bbf6ee23-77cb-4d8f-a262-1e45cdfb370e","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":51,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"50092589-b10c-4788-b970-ca8c2d7dd43d","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":51,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"27af8ba8-b7a3-47bd-93f4-759a6694baca","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":51,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"add5d808-5de7-494b-8112-bc7eaffa0e88","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":51,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"4c2c9e55-e2ed-4e0b-b6ef-434ad890d0c2","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":51,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"653755e0-4c40-4844-8436-a3d00bb27732","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":51,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"f46580f5-a298-4896-90ed-c98639322e0e","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":51,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"1aec71d6-6c39-4351-a4b8-388d34263609","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":51,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"16c8997a-64bf-498f-8d1b-fac13b552e68","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":51,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"0f8d1c0b-7ffe-4848-b319-4a1737834113","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":51,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"da150d35-0ed4-4dbc-8243-feaf117f813b","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":51,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"e1495a21-8cd2-4b69-84c2-e559c9ca1290","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":51,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"231166ed-038f-43ee-aa1d-a968ae45cae9","block_type":"box","text":"II-9","page_number":51,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"3e6f55d3-f285-4da3-81a1-bb7a147890db","block_type":"box","text":"NM1026U-6032801-51/242","page_number":51,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b218bddb-f483-4cbc-b301-bcc5998fb58f","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":52,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"844a5297-ec06-455b-8348-d8786526a6d7","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":52,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"45c9dc9c-1cad-4b38-ad85-a71a157a6a9f","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":52,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"3817c89d-3446-45cb-bd50-e0732c366f08","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":52,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"7bd2b01b-1dcb-4101-b9c4-837c1c76febb","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":52,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"c1018d13-ad44-4a8e-bc7a-638ccb392d67","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":52,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"30607d10-c616-4c79-a617-738888e51e43","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":52,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"61e0c1e4-3577-4300-a33c-16c0b79a9744","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":52,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"a93fe705-f9d1-4ff9-86ed-f282bb86af7e","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":52,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"99864040-f284-4546-8694-d8005e31f70b","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":52,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"6d5ec8ba-71bc-4225-a5f2-23235f0f3db8","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":52,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"dd136197-2a41-4625-9b17-5c91484d66cd","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":52,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"8a6f70be-8d1a-4210-b54f-9482739b3545","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":52,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"92f3293f-4a23-43ed-a56f-fd47f6d10c95","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":52,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"317753fc-c9ff-41cf-99e1-1164ae220cca","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":52,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"7b934bb7-4b99-4052-afbd-95f06c285792","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":52,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"cc0170bb-bde6-475d-89c9-fad74cfd94a4","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":52,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"181f30b5-8e32-42b7-b627-182693f389fb","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":52,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"676dc184-4b3a-490f-9ab4-62566a4d7e9d","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":52,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"bd69902c-b46b-4d52-a0cc-3d4ddb3e79b5","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":52,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"373009af-a9ab-4dea-aee3-edfb9847cebe","block_type":"box","text":"United States.","page_number":52,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"e2315989-3bf0-4ca5-a5b4-40baa47b6f03","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":52,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"f984ee0a-e588-4cea-bf57-f40394bee790","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":52,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"fbb333db-0786-4059-a894-95e01169150d","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":52,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"d9d92873-5cbd-4699-82e3-a13c5bf4a62e","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":52,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"68f33fcb-3421-431a-8623-b7b77826e11f","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":52,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"08be277c-a02b-4aed-8e22-5c69eb9387ff","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":52,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"c6747039-f551-41af-a9cb-5ff28d3fee67","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":52,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"0aebb6c5-104a-4e27-b1ca-be84691e8aff","block_type":"box","text":"i.e.","page_number":52,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"ea6ec2fb-c93b-4503-a466-d9d357d474b6","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":52,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"56854c02-5251-4318-955e-9e81beed6263","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":52,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"d3d13d19-edb8-403b-b51c-da556a5ad09f","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":52,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"a461fb5f-6955-44cd-9068-537a4e68299b","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":52,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"d9bc59dd-1f90-4ed7-8c2f-b523aeba091d","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":52,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"f09e7c9e-000b-4b1a-899a-e45205c10a27","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":52,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"b8fec54e-eeb7-4cb7-b36b-7665d5fed34a","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":52,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"0c3658dd-38c8-4178-8aaf-155588317dab","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":52,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"82299b01-fc1e-42dc-a0ef-358277091d7f","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":52,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"39a6e2d0-a36d-4e4b-936f-b6ea8a2fe207","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":52,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"52c1b246-4fca-453c-b64c-8ba4cf66938f","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":52,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"caa7b038-7c03-4533-9416-2b627c26ebf8","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":52,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"fb9efbb6-857d-4a99-89cb-cf986116fde7","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":52,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"7118d8e7-2dc5-4ee3-9802-ecb6f5e24f00","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":52,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"e17e6350-e7f5-4b86-b2cd-53b42c9d4c32","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":52,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"f3366cd2-e33b-4a41-9cd0-dab327a89970","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":52,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"7807a243-f4de-44ef-91f3-aa7b0869f717","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":52,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"997e8bef-7493-4185-bd88-25f409facf63","block_type":"box","text":"risk than higher rated securities.","page_number":52,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"fbd2170e-9551-4523-99ac-db05c5c6429c","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":52,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"950e1085-ec55-448c-919f-7b54d50b2779","block_type":"box","text":"•","page_number":52,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"cf30c83b-ea75-4f1d-857d-3dd5264b2ca3","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":52,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"aa4f6fb5-8247-4b0f-adae-54ce9a828fdc","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":52,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"ab314cc4-3607-498e-a0bd-7527728c5793","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":52,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"bdb64bbc-31f8-435d-b483-893cb8044a11","block_type":"box","text":"unavailability of additional financing.","page_number":52,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"e80ac49e-7e42-46c4-a9d9-814185e69029","block_type":"box","text":"•","page_number":52,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"455f1d6a-84f4-4481-9707-3813281ff097","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":52,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"e574f1b1-1413-4b06-973f-7d02352e2bbc","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":52,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"7b709362-51e6-43a7-9259-849d7348ce5b","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":52,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"6d6286af-86b8-42a4-8618-6418b67e4f75","block_type":"box","text":"II-10","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"520282e0-7473-4094-a022-765e3690bcfb","block_type":"box","text":"NM1026U-6032801-52/242","page_number":52,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"553cda5e-ce82-47f3-8903-87500520b297","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":53,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"d1a35bc0-9ba9-4df1-9506-19a5b2b781f8","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":53,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"14e04ff5-12f8-4aff-9600-11d65a1c1daf","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"5f431539-2306-4943-a1a2-1b31090fa96a","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":53,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"6b78dcc7-4fc6-41a9-9349-2358ec08018a","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":53,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"a6791809-2fe2-4fad-a557-263bc8c405fd","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":53,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"72f282b8-410a-4f81-b289-10aa07ec666e","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":53,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"f332f580-d4e7-4e8f-a1cc-0521c1019e2a","block_type":"box","text":"investors in higher rated securities.","page_number":53,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"e895249b-9b42-4741-821d-1bc4b87188cc","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"a7e90680-fed7-4ce7-9546-50c30c7578b8","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":53,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"79aed855-d043-4a02-bb0b-cad139086315","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":53,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"1740d14f-0ef7-49a1-8516-c8f9a056f9b8","block_type":"box","text":"lower yields and may lose income.","page_number":53,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"34b2abe8-5141-47a0-8b73-b9021458a08c","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"96fa1f85-2aba-4732-913e-1d9789b53a63","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":53,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"84bd39b2-e1a8-455f-8979-d16179fb757c","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":53,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"b428a4a4-ea32-46c7-a399-745e72fe99f4","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"b79b02c1-c356-4fd7-9db7-7a72f98c3920","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":53,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"77a6873c-0972-45f8-b0e2-946a6e399acd","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":53,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"c6cb817e-a137-473d-8a6f-10160551715c","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":53,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"22f62856-4d5d-43ec-aa9e-ddcc384667ed","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":53,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"bf799907-e351-44b3-90fb-77314c160362","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":53,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"a81bb31c-028e-4bb1-b904-69b26f57942f","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":53,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"ac81da15-3003-44b8-bae6-5731c61eed3b","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":53,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"233e6717-4d21-49e7-8422-50ae05aa945f","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"555dd4bc-1045-45dd-b89e-c377ce87d1fc","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":53,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"2dcafeee-f5d2-4541-8068-e581779dbed3","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":53,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"fac6ed35-1868-4990-9eb0-ed9e2519cb3d","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":53,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"78f805b6-7fc9-435a-bf57-1a78c3a8c22b","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":53,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"b2c17903-b10f-4cff-b9f4-85f55e481b17","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":53,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"5b7f69c8-1408-402c-88ec-6370a068b833","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":53,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"c2c313b1-7af7-4e19-a85d-c3b0b14a1ea5","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":53,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"f090b164-8fa5-4966-b00f-4f70c55c0068","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":53,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"f9a5ff25-135d-4c83-8931-4c835ae389fb","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":53,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"d9bf901e-ea48-4512-bf52-8424bdf153e8","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":53,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"3c4b6854-ad3d-4d80-8bc4-135a016efaf5","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":53,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"54521f92-a636-47c6-b1e4-59d44ccad0b5","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":53,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"ca661309-1bec-40de-872b-c105eb093b85","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":53,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"b8abd6eb-d4f1-492d-9b83-fb6886305fac","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":53,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"1cb5e2be-6722-4f30-9ff4-4580d31d6e7c","block_type":"box","text":"role in determining such valuations.","page_number":53,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"66f1e68e-2a50-4a4f-8c69-9aaa117eaf96","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"77bcfa50-8c81-474d-aa89-d2e860e539da","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":53,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"34407c67-a983-44ae-aaa4-d5a445cc2226","block_type":"box","text":"a defaulting issuer.","page_number":53,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"d2bed9a2-d447-4a4a-9d30-dfdf5e1fd795","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"9ac74855-e77b-4668-b30e-752eda8078de","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":53,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"87d239b8-d57e-4bf5-9951-901b77280268","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":53,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"bb6b72f4-eb59-4823-8c31-217dbeaad351","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":53,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"68394ff0-9a1f-4d7e-bd62-fde742c1a367","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":53,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"d09a68ba-b597-4a2d-b824-3185691b290e","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":53,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"9dcde154-8a09-4bc5-a609-7d0cf2cea427","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":53,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"17036626-3ddd-4ca5-9426-1ef7484fd7b1","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":53,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"b0363171-0be1-409c-861d-4ba7ff98b7c7","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":53,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"5ef9c1cd-3312-4496-8021-3afbcd5d679f","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"6269fed6-80c7-4223-ab18-41544403ab00","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":53,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"8826f0a5-159e-442e-9f89-1f30559a213d","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":53,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"4c474b4f-19fc-4483-abf8-06cc5ebe40db","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":53,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"a477387a-6335-47df-baca-e16b2095a7bd","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":53,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"85169c64-be02-4960-9ac4-8b22bc010ffe","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":53,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"ee4c8bf2-e4c1-44b4-ac3b-8451ca632f61","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":53,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"03ee1120-3c63-498c-a716-d6f4983ad2f5","block_type":"box","text":"higher-rated securities.","page_number":53,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"0113a5c5-711d-4513-87d2-6e5b3e4f3aba","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":53,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"610e6730-2e36-45e6-9bc4-f75da323a431","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":53,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"a715a59d-2a26-43c0-b17a-97656eb4a57e","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":53,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"0f3598c9-3694-4748-8659-0accdbabbd18","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":53,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"4dd67cda-c8d5-460d-8ec3-01ebcad0dc7c","block_type":"box","text":"II-11","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"70ded5ce-581d-4087-84c6-ee13beecee59","block_type":"box","text":"NM1026U-6032801-53/242","page_number":53,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d44dcfe5-175b-4b5e-b912-d89c26f6d0bf","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":54,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"c1c2b10f-7a5a-492f-a596-827d42806900","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":54,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"cfe14007-d648-474f-84d6-10702a169871","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":54,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"223f96d0-f6cf-4420-b188-0f9984cbd375","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":54,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"d5d2e378-9a3f-4873-94c2-6bd271bf4aef","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":54,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"d45eac85-1aaf-489a-aa7b-e6125197a334","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":54,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"5b591a47-61d9-4fef-b47b-0625474ddac0","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":54,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"29dbe790-70d7-42d0-82f5-ac7f00b0c096","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":54,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"0e7eec25-25d3-4f7b-9135-5d2f44a391b9","block_type":"box","text":"Mezzanine Investments.","page_number":54,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"897ba884-9b99-4142-bb60-7b73e4ab5e54","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":54,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"d907af8b-48b0-4d4a-a884-f4606b5d45ba","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":54,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"c4a435cb-f756-4bc0-91e1-b4385d1f46f8","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":54,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"47ad71e2-ac6b-4838-aa36-6850646ce21b","block_type":"box","text":"e.g.","page_number":54,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"870c8059-08e6-4f39-b5d5-77adda3d9ef6","block_type":"box","text":", with","page_number":54,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"2b52b689-10b2-492a-b86b-5ec0fde620f8","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":54,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"a25a15c3-093a-4e29-bea2-0b28d973b071","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":54,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"04d7c92a-3ebb-4279-9909-138d4ab793b2","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":54,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"4bba59dd-d532-4692-8066-b6a5b203a9ca","block_type":"box","text":"other obligations of the issuer.","page_number":54,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"63a8b0e3-30a9-41fa-b53c-7c034fdf70df","block_type":"box","text":"Pay-in-kind Bonds.","page_number":54,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"4881196f-4ff1-458f-9216-b397bc25a0de","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":54,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"a6fc8332-cb71-48cf-843f-de9ef1a8816d","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":54,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"815af653-0cd6-4c8e-aacb-2f11354b20c8","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":54,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"206835b9-2a58-4631-a7ef-91bd884377e2","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":54,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"125229cd-3f0a-444a-966a-71d711c826a9","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":54,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"ac9acb62-547d-40c7-8f13-821a2a820d4a","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":54,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"028c5f94-4887-489e-8ec1-e06652c9a719","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":54,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"0142338f-e2cc-4ce7-8db7-a28baa01f16c","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":54,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"03911a79-2335-4ded-b20f-2e0bcb0b4121","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":54,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"b51e6ad0-0ea6-4ee3-a2bd-49ac44cf8973","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":54,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"851e7ea3-a70e-4382-8277-a2bc49dca27a","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":54,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"ddc677a3-fe82-4e6c-befd-04b599361582","block_type":"box","text":"Supranational Entities.","page_number":54,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"a5280043-2821-4e36-8944-feee7b63bd56","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":54,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"09668013-7708-4e19-b608-caa421407e02","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":54,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"f48f1495-5a46-4839-9e37-123df74cdc87","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":54,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"840e8d88-a021-4d96-9d4f-185198d6073b","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":54,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"d6c88925-6ab4-4279-b7b4-17a0935e597d","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":54,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"24a110fd-fce9-4eaa-bddc-1a9e2470bf50","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":54,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"fec9031c-756e-4b37-a2d1-60c1f6173f19","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":54,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"e09a927e-dc6b-4257-ae67-581891402960","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":54,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"d054e41b-69ef-4b9c-867b-5359eaf0c8ad","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":54,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"29206af0-7084-400d-b481-c4a14fef8be3","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":54,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"d1b63007-f139-4261-9a08-ceb225f9b6e3","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":54,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"45db922e-bb25-45ce-8b52-8d51be508732","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":54,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"ab0416dc-8bf0-43d4-a377-ab0308a55003","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":54,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"dfb48192-3e06-44b0-8435-13d69d34e2a9","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":54,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"65d13b7e-f203-41ef-9e12-840ff5cf4058","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":54,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"0dc0a020-428a-429f-ae71-a9403227faa6","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":54,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"fac76254-7929-45e8-852b-8662a4f8e640","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":54,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"12f510ef-c5e9-472a-897d-c400410d156b","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":54,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"09b79e60-8b25-411a-8f2d-f6a1852884cb","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":54,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"80428650-89e2-45a5-925b-fe2ab12132f0","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":54,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"be184eb8-98b9-41a8-b858-b10da281dd77","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":54,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"ccae26dc-b580-4b5d-bbd9-c8cfe5f7b690","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":54,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"199ebe42-68ec-4cfc-8bf7-d3c39d5f3d3c","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":54,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"43878054-affa-4715-932b-0fa3dc9ca252","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":54,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"de7dae85-1f5f-4fa6-9da7-7adf02f84d0f","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":54,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"64d2cd4e-113d-4630-a6ed-e759a5ddf945","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":54,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"2796ebb4-af82-46f5-a665-93eefcb41beb","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":54,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"d411ac49-054c-4071-b685-3b1ba6025d72","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":54,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"664ca7ad-62d6-49db-a470-b452d38dcb57","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":54,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"704895e1-5565-4fef-95e5-9bcf18b77495","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":54,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"1789c50d-b043-4553-8be2-8e38ade990d4","block_type":"box","text":"II-12","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"98e29aa7-3b3b-403e-83cd-b9e605ce3448","block_type":"box","text":"NM1026U-6032801-54/242","page_number":54,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7769c44c-8b7b-4187-98ed-36159070fa24","block_type":"box","text":"Derivatives.","page_number":55,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"68fc8725-7796-4ce5-af96-1415f968d318","block_type":"box","text":"General.","page_number":55,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"f8e17ab0-09ed-4d95-9d68-d14866db368b","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":55,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"e6c70c7c-3389-45cb-8721-91b560c73021","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":55,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"9f5dcf4c-5195-44ac-ad40-ccc16970ea12","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":55,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"47b344a5-f708-4e6a-bbc0-6f5635512b6f","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":55,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"c8b2bc74-afcd-4f7a-b164-670c0308c724","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":55,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"d6435171-7ecf-4ee6-91ea-9d639e76bb8a","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":55,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"003e90a2-3a95-45fe-9553-c7476bf36bff","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":55,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"bb5e9483-face-4b6a-8ba2-7e93d8483045","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":55,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"dc2133d0-336b-4623-a6ca-56cd8c66efd6","block_type":"box","text":"i.e.","page_number":55,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"837e9467-a342-4727-8e6e-9660db05bf56","block_type":"box","text":", the payment","page_number":55,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"03679ae4-e31e-46a0-bc5f-ab02a6f3bfae","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":55,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"7c39a984-627b-4079-966f-ad0399ad4698","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":55,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"b234f419-bfa9-4e21-b7ed-a6f61c9f70ed","block_type":"box","text":"Hedging.","page_number":55,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"c4c642a8-7378-40f9-a0f0-d986058d8c26","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":55,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"9e645605-554a-4309-9d59-7575868f187d","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":55,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"f7f26194-2819-406c-9810-43c8f3ff0ae4","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":55,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"50576c1d-6c68-4d2d-a74d-03ce81a837b9","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":55,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"6a4533c4-5ba2-42ec-8144-bcf7c96db217","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":55,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"567a6c3a-9db2-48f3-8e07-92c9ef199f12","block_type":"box","text":"correlation risk,","page_number":55,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"085c623a-5a2f-4fc0-b0f7-2a6925bbbc73","block_type":"box","text":"i.e.","page_number":55,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"f2e35def-15d9-4b01-8a80-a3ccd1aa44e4","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":55,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"36ecd8ba-a730-4912-9d77-6ef589e95ef5","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":55,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"b31a10e7-834f-49af-8706-d55e24000d1a","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":55,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"10c64161-6405-4421-9fc2-5fe0f4704b90","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":55,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"1787ec98-d8f2-44de-9020-70d65688a6ba","block_type":"box","text":"Speculation.","page_number":55,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"1a6fa4bc-8ed8-4b3d-887d-6663f5da7a31","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":55,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"00d43972-ad4b-48ec-a46c-b3b60f7ae4f8","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":55,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"75592bf5-bc56-426c-bc06-b47bbe722902","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":55,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"70dfadbc-9aff-451e-91b1-60de242f75b0","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":55,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"32e99374-8095-4d87-9548-5bc14e25b66e","block_type":"box","text":"in certain cases may be unlimited.","page_number":55,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"f74a4373-3f88-48cc-a6c6-d6aaae19a576","block_type":"box","text":"Regulation of Derivatives.","page_number":55,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"4b902daf-c303-48ed-9c30-5f9482ea4617","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":55,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"6d510b7b-376b-4e68-a20a-b95ce4644c50","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":55,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"94b2d143-1e3a-4d07-99cc-4ee72eb93b74","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":55,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"7fa67ab3-13a0-4464-afd0-9962619738d7","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":55,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"328414fb-6498-4144-a3de-bfd4285afd54","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":55,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"1f4ff3c0-ead4-4a9b-b9fa-bea2831cde6e","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":55,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"f871a93a-90fc-48a0-89a8-41a0021b9285","block_type":"box","text":"coverage”).","page_number":55,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"20d9328f-c09d-4699-87c8-705e41c8e9a1","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":55,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"080b8456-9b36-4d9f-aff8-320d54d7e707","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":55,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"9c2c3aef-56f0-4fde-b38d-e03e2c20ea20","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":55,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"5937f5b8-cd19-49bb-8480-53dedc75cf83","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":55,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"8baf56ad-50c4-4a51-98c8-ace6d7e3258a","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":55,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"250e3b45-aa66-4c45-b427-7235d5027cd3","block_type":"box","text":"financing transactions (","page_number":55,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"f03cfa9c-f214-41b1-ad49-c766a4721999","block_type":"box","text":"e.g.","page_number":55,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"815dca3b-dae1-42cf-8b6a-88a5c3eaba38","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":55,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"f5eaf220-baec-4ad1-9611-b366ecee7530","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":55,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"3c5700b2-332f-49ab-b678-90224e20f961","block_type":"box","text":"securities (","page_number":55,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"8423332e-70ea-46da-b39f-55bc1b1a2162","block_type":"box","text":"e.g.","page_number":55,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"09032f44-9228-4bfc-8ff2-44f15d60fc7d","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":55,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"4c30466b-538e-4a6f-8c1b-1c83540b9df5","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":55,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"17ff2ad5-faf4-4c9b-b923-484889ea7cca","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":55,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"04ca9357-c509-43cf-9b67-fe789fa07fc6","block_type":"box","text":"Commitments”).","page_number":55,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"0e747f28-81d8-4bf0-919f-d05021a1b636","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":55,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"f21e122a-f618-4d22-9fb2-3745f3e5267f","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":55,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"e6941680-8a5d-4740-98a0-facc1ed20834","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":55,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"07f94d92-2e90-4db0-a2f2-1f45b00a0964","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":55,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"0b684494-294e-477e-84a7-0ad69f41ecfa","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":55,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"d5abf3bb-7e34-49b7-9d88-96312a387c48","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":55,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"e32a0f2b-f968-426c-be2f-eea09f475f41","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":55,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"da666094-5008-4463-a7b5-9085cc209613","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":55,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"1b1a0105-b9e3-4678-bdd7-7a2b7d503fb5","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":55,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"834d0cd6-cd4d-44e5-ac24-711c9e64327f","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":55,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"ac6edd4f-aba6-4584-b624-1716137724ae","block_type":"box","text":"II-13","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3684f8c5-7ee3-407d-8a27-f886456d16a3","block_type":"box","text":"NM1026U-6032801-55/242","page_number":55,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"61e43dfc-ca0b-4f25-8680-bb13804664b6","block_type":"box","text":"Dodd-Frank Regulations.","page_number":56,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"9f374cde-6584-4037-86ef-91d667be9276","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":56,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"c1460dc8-7a9a-46af-9852-4c13aef125f2","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":56,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"7abae54f-feb4-407e-9be1-3c8f2272910a","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":56,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"3cef2b66-5bc1-4b52-9954-aef936b0f6f0","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":56,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"c6e18037-9ba3-4b1d-8d6f-938011b90f9a","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":56,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"587b14cc-9e39-41d1-aa5a-1552c36eaaaa","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":56,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"dfbcc506-7d21-4963-b44a-1b2078cc329d","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":56,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"4715effc-fd8b-4e3b-b9b4-83c16d6a69a1","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":56,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"d9cc5cd2-8dd9-4b81-bbdc-66edd4ffa2b0","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":56,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"6ef7fddc-89a6-4531-8d71-580467bf92d9","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":56,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"c99364cc-885b-43f4-9f8c-d8c2f5e4caf1","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":56,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"8bca9596-87e9-44a0-bc58-839edce750d2","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":56,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"039d0442-34d5-4ef2-92dc-f056a6b2b19f","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":56,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"c9931493-9b9f-4a1e-8264-096ca9b11b71","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":56,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"46c51428-64c8-45da-a40c-caba16413bbf","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":56,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"75a60eac-c0a9-4f3c-8592-25e10ba9b139","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":56,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"47c95667-692c-4e54-8c67-278ebe9fb54e","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":56,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"9a00565d-aac5-407b-b49d-4b71fc7caaee","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":56,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"d956cbac-1d55-47fe-afc0-db756693c488","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":56,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"5ac405f5-118b-4550-ba56-51bd067a687f","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":56,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"d2342bc9-7f70-40f0-b9a0-c555cb485eeb","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":56,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"7265dafb-1361-4da0-8c46-95da0a746cd0","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":56,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"95bdde44-39c6-45e5-b0c0-0f5a2e0a9bfc","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":56,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"82820d3e-f311-4333-bd06-98ab9ea392fb","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":56,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"33615deb-f8c1-4dbb-a9df-7da979a86644","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":56,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"44b6df59-d47f-4c36-a567-ecfd9f662612","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":56,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"b1a0aa88-031f-46fd-b4e4-c767360f8a05","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":56,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"9b989dc4-bead-46d3-a74c-a726027c6528","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":56,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"76ca1cd8-81ed-4250-b027-76d1e80457a8","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":56,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"306bce81-7210-4cc4-bd29-e95e4dd32ead","block_type":"box","text":"member.","page_number":56,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"c350422f-cea3-476e-92c2-2061eac957b4","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":56,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"bd818ad5-817c-4113-b139-ff497648c790","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":56,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"251e9a53-de4a-4a8b-98fa-80185c7c5b88","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":56,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"91de2bff-c199-459e-966c-78a7f171f068","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":56,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"1576f50e-9ab3-4f14-bc38-8d3febe06742","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":56,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"129e4c60-4a3f-46df-a106-fc207444c4c2","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":56,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"c93569af-e261-478b-8866-1b84ae118693","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":56,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"e318bda1-ead2-468d-b79d-6351d26cc5a1","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":56,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"ed8fd7bc-4208-43bd-8293-db063fd506f6","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":56,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"fff92ad8-918b-4dd1-a144-bb603e5f0a71","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":56,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"348e4375-a41f-4a51-a035-1beaf3c3ebdd","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":56,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"87ee9153-7c86-4bc7-9ffd-899fc22777a2","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":56,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"c782eb90-c9a3-45a9-9e6e-f8a18e204c42","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":56,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"f62d36b4-8df1-4d60-94cb-a0779b6b84a0","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":56,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"e8724ab5-21db-4140-b396-e2dd74ad84e3","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":56,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"f01c65f3-49a4-44ac-90ec-a0a0df40b420","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":56,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"78880d45-0622-4f25-b106-d132bf5d7b87","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":56,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"0595eee3-9802-4a8f-80a1-e7123b5c09ca","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":56,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"68e9f11f-9591-4f82-abe8-5d20a13ae266","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":56,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"fae30309-e6b6-42bb-92a5-3e3f94ba8c90","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":56,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"240880ce-a711-4292-8f5d-f748ac68c9c6","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":56,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"aaf460d1-5a49-4259-9c32-0e67283320b2","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":56,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"7109b1d0-b6c8-45b1-af31-4bce188a0dfb","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":56,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"3fd9e689-b542-4b50-a264-d39da4617939","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":56,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"f5d42b96-2b6e-4950-8e85-7559a631f384","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":56,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"e3a9cb21-13b2-46f2-8cd2-d53f34511623","block_type":"box","text":"II-14","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e58d7a8d-3697-41d7-8719-999a81ea65d8","block_type":"box","text":"NM1026U-6032801-56/242","page_number":56,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7cad9c81-0fe2-4298-9aa5-d7ee4c88c7c5","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":57,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"b1df8b5b-4ccc-435b-ae31-1a80e875d2f8","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":57,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"c99190a0-7c1e-44ec-9777-69b20365aec6","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":57,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"a4a6527a-7e66-42a7-85a2-ab0878b2c638","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":57,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"d2449248-41f1-458b-b55d-64c939ffe8ac","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":57,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"89c94bdc-3b89-4e75-a44f-ac062697d9d5","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":57,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"9044a92a-a072-4e9d-9ce4-25c93ce88a31","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":57,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"4f366914-e3a6-4996-bfd9-34ee31151eac","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":57,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"477a3931-739a-448a-ae1c-18367392a3ae","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":57,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"b41f7597-5770-4946-b930-20971860a424","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":57,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"552f6c50-e1d7-498f-be84-10b84c2216d5","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":57,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"e45cc4d1-7b69-4683-a177-bcda6df68da0","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":57,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"790d1655-e43a-4074-8695-206d6fb68f73","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":57,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"15b11f40-e70c-4c7d-b6d1-27d1b744d4c2","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":57,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"6a805d77-39e3-4b5f-9b3f-d88cc43c2df1","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":57,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"ac42a7b4-b1d4-48ab-97f9-0816ac31560d","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":57,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"8f9ced8e-bd63-46e8-9832-6e0a0ca27bac","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":57,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"58edd9da-9d5c-4384-9029-fd47110cb18f","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":57,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"54a32c64-43f3-4fcb-bc6c-41e402c8cecf","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":57,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"beb2ec56-5941-4695-895e-213a2ff3aead","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":57,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"e10faaca-c500-45b4-8347-5865dfb9f7f9","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":57,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"b98fa997-a288-4a2a-83d1-41205cc92153","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":57,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"129b4e5a-40a3-4336-83c5-6af78edde029","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":57,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"01fa60f2-cf4a-41af-8cfa-ca1c55421dca","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":57,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"28cf03c1-05e6-412f-9921-c408882b4043","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":57,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"c482ea5c-20af-44cd-9be0-9488c2357fd1","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":57,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"2bcda745-7bad-474b-a8ea-0ea1446c3716","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":57,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"59b9cd1d-8c08-4444-bf28-dbb428aabd37","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":57,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"3e1bdc5d-996a-46e1-9470-a95b03972f92","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":57,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"7638a42d-fa91-42f3-8a18-c6e7082ebdfd","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":57,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"e304d7ec-cdd0-4c76-8298-93173e225fe1","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":57,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"88a6ae6f-e8f7-4464-9c49-abc5b44a7022","block_type":"box","text":"collateral received under such contracts.","page_number":57,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"3023b1d3-f9bc-495f-bcd7-fda6d9c13b87","block_type":"box","text":"Risk Factors in Derivatives.","page_number":57,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"02f22e78-79a4-45d9-a11c-c10e1ee6a387","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":57,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"39ac9f4b-de69-43ad-9be2-d7cac3364a38","block_type":"box","text":"Correlation Risk","page_number":57,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"0af7fe76-49ec-4601-a869-c4dcb5826916","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":57,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"c79ece52-e713-48db-856b-d83c96b30bfe","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":57,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"7b345c16-2e50-4baf-9950-e34c8306117f","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":57,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"9c6b3c43-96a7-49e2-908d-070d9effb1dc","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":57,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"542b8f45-9759-417b-bec6-60c8709d5509","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":57,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"05237087-13f9-425d-9c1a-35bd6d5acee0","block_type":"box","text":"Counterpar ty Risk","page_number":57,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"cd321dd5-4b57-43ad-8fb1-37b567865116","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":57,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"8d86e074-e3ab-48d1-aba2-87784da2da21","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":57,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"0630a0c7-e75c-484d-bc47-11d0189bf8c2","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":57,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"0d6d6ca6-833d-4fee-9c7f-d0dabd7de425","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":57,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"9a54f3fa-0b9a-4d73-ad8f-dda068f8e136","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":57,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"51e81628-3768-4314-aee1-f442587d4560","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":57,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"e640fb6a-da28-481f-8ab1-a348b0a95fa6","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":57,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"5fd4d6a5-a2b3-41d0-a750-184b2964a63d","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":57,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"02f3026e-bb36-4460-90cc-949dab463256","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":57,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"0d88e3d0-c534-488c-af3a-efeee26db0ff","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":57,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"38e40fc0-fe35-4197-99c8-2774be9da43c","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":57,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"8acb0a46-322b-459a-aa5e-43fd8005c2e3","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":57,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"684d4eed-872b-4688-83c4-86bf66719395","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":57,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"e4cd97e4-b422-4104-8cc7-015660f55116","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":57,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"43db553c-2eb2-426e-9063-a313446f5037","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":57,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"39221fd5-b5a1-4269-a7ab-4236f3fa49a8","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":57,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"76ea84cf-3b7e-4410-bf01-ea0156d898c6","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":57,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"4293bbd7-7565-4223-af69-f93a3c895824","block_type":"box","text":"II-15","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"df3151b0-3caa-4c09-ab59-a15025acb88a","block_type":"box","text":"NM1026U-6032801-57/242","page_number":57,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"aa3e84d7-1bfd-42c3-b3c7-d6b6850f6a58","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":58,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"15042a16-0948-46c3-9d31-409339eb7c40","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":58,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"2c07d9b0-b9a9-4b7f-91f9-16799aa747e0","block_type":"box","text":"by the clearing member.","page_number":58,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"05755d24-4766-44fb-a85f-54e6e6b11082","block_type":"box","text":"Credit Risk","page_number":58,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"ab085a75-50c2-4168-a764-53f38a55b183","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":58,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"7b92eed3-4609-4398-b54e-340ffe46346b","block_type":"box","text":"honor its financial obligations.","page_number":58,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"1f257318-17dd-479e-b0ce-fe4e1ed1bc3d","block_type":"box","text":"Currency Risk","page_number":58,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"abe77d74-79bd-4c89-95af-3518630f879f","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":58,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"1904dfbf-8e55-441f-97be-a10d0c796bb5","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":58,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"7c3a6717-bde6-4a7b-88e2-f08c76f8b5fe","block_type":"box","text":"Illiquidity Risk","page_number":58,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"1cf2119d-4f38-48d1-87c2-38dfba24d1ac","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":58,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"56ae976d-e475-47ba-a5f6-d7e8bb418d61","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":58,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"98c7a566-3809-4bea-b247-fb374480ddcc","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":58,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"9fef76e4-5709-4b7b-b0d4-ae2e17b7f1eb","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":58,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"df28e957-bd7c-461a-a0ee-8bf60cb3042a","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":58,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"8438ca49-bd70-447a-b76e-628a4cdde59e","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":58,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"717cee42-a4fb-4cc0-a9f3-b3ce0c4b6192","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":58,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"de4fafaa-e940-4b2d-b2be-90c89c56012b","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":58,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"09b836c0-5923-462f-a125-3e1a9db141a8","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":58,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"3b60289f-5b82-4ab0-b648-b6061870b4f1","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":58,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"bfad3762-d351-4e9c-93d1-01979127fbb6","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":58,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"9ec57140-257c-4f41-b925-1e40bbf9a827","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":58,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"f36204c6-19f1-4a2a-bd5b-0db4d4871ab2","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":58,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"e1784d1e-a011-4753-9437-fc81560c5791","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":58,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"721888a8-94c6-44bc-ac79-16fd567b2722","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":58,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"53c0d61d-d736-4c35-b0d2-167c081f242a","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":58,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"c337795b-149d-4f51-b9c0-1daaf19304f4","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":58,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"22d1ab3a-7350-418b-9b6e-b7a7f750bb52","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":58,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"e474e23b-5ec2-4baa-bb43-4310aec0ef59","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":58,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"c5f5b896-7052-4e89-a0fc-98bc133901e7","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":58,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"ca3089cf-e353-456a-88a0-b35d4e12a1f4","block_type":"box","text":"may be disadvantageous to do so.","page_number":58,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"07bfde78-f654-413b-bf1d-413452f49b4b","block_type":"box","text":"Index Risk","page_number":58,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"3ae7e3cb-867b-496f-b51f-33342892f23c","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":58,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"e2651c0c-e118-4c92-a3b9-421a91384a97","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":58,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"f0d8988b-7742-4f6c-881a-56b1a6d0e6b6","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":58,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"f33b69cf-4da2-4bab-8fd1-411c7bba5850","block_type":"box","text":"Legal Risk","page_number":58,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"331e39ec-f3c5-48ce-9626-8d26f07c1924","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":58,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"107e7233-0960-4f6d-8a9e-9db13b44d73d","block_type":"box","text":"or enforceability of a contract.","page_number":58,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"4c96f4ea-a91d-4166-995b-20ac3f5dd4d1","block_type":"box","text":"Leverage Risk","page_number":58,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"0db0a795-47ce-4dfe-8ce9-101b6786a16c","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":58,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"b7aead10-d1ff-43da-beb2-22535ae8dad2","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":58,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"4e885db8-89a5-4b25-823c-bc7c49517cc2","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":58,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"48f3d191-6f16-42b9-9184-bee9f9918baf","block_type":"box","text":"Market Risk","page_number":58,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"930916df-4d71-4d46-a081-c255bd7501e5","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":58,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"8749b541-42b3-4549-9961-0fa0972dbc3e","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":58,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"08f849fb-a60a-4399-8464-b5a8074fb080","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":58,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"9965f3ec-33d7-4f4c-9a02-fbea2a91ee04","block_type":"box","text":"affected.","page_number":58,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"6333ebf6-8164-4fe2-82b7-45f380ddbf27","block_type":"box","text":"Operational Risk","page_number":58,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"87fcf8c1-b7f4-4dec-b091-b9e6f95c54fd","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":58,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"7d3d098c-231a-4cb4-9afa-9a77b38def9d","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":58,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"66e8e028-3ba9-40d7-a14d-bd24e86d15c8","block_type":"box","text":"Valuation Risk","page_number":58,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"bd469de8-a0ce-494d-b0d0-b69697dce19f","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":58,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"fd8cf359-f271-4aaf-b5ce-0fb5acc51eb5","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":58,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"c43ebd4b-cf7a-4feb-b51d-62a6819829b6","block_type":"box","text":"complex instruments or quote prices for them.","page_number":58,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"702812b1-d226-491c-b91e-a309ca3efcc5","block_type":"box","text":"Volatility Risk","page_number":58,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"b9100418-e897-42c0-9055-b52c3c0a1a5b","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":58,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"452f19ea-d7eb-4b7e-b485-6dc08f4d7c8a","block_type":"box","text":"Types of Derivatives Transactions.","page_number":58,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"3334c3cd-2b29-4761-be98-8a4402e7bb4a","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":58,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"5793c18b-8ce8-4e0c-adec-7b5b4007a4a7","block_type":"box","text":"including the following:","page_number":58,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"7cf50d7e-f7d1-4f1f-954d-f80a70a20a5e","block_type":"box","text":"Futures.","page_number":58,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"32bf5610-ecc5-437f-8daf-98fda8b4fd3e","block_type":"box","text":"II-16","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"58ba4737-fb5e-414e-bca5-b68f9f36f989","block_type":"box","text":"NM1026U-6032801-58/242","page_number":58,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9601388d-106c-4595-8068-56833fbe3b68","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":59,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"36d8a5d9-8db0-4905-aa84-229348debf03","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":59,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"c093f6a0-f4a2-4115-b671-b0d5252a5fc1","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":59,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"be01f53c-a315-48fd-825c-04facf9b75df","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":59,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"93c89567-9a55-4cef-835b-cce57c205cb9","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":59,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"a5db6489-5bf8-4ec8-9b39-d373fe2dbcbe","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":59,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"7802043b-5929-4d16-be37-b6a7789ca4db","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":59,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"4ec500dc-c81a-45a9-ab7e-6fae2f3eeffe","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":59,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"09a62f39-0336-4332-97cd-5a82f005dce8","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":59,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"72890202-4cfa-4eeb-a8a4-402926145692","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":59,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"de550115-48fc-46bd-b33f-1b121fbac020","block_type":"box","text":"of the futures contract.","page_number":59,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"5c5dd97f-7f5a-4a7b-9bda-4168d8ac1c54","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":59,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"250c85e9-14d3-4487-ba8b-3ff8c641aa46","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":59,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"1a1926ea-f71f-4643-9c2c-fbc82dcecb52","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":59,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"12f141f1-c8b8-4ffc-a7ac-cc10799e0dc0","block_type":"box","text":"relating to the futures position.","page_number":59,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"7efd3835-44ed-4418-8ab0-fb73a327a5c6","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":59,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"79e3935b-dd20-41b2-abd0-755c2c200202","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":59,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"d0512516-5865-43a5-a8c6-e0c3d736ba0d","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":59,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"412928b6-0d04-4a21-a148-f5ab6d5d397e","block_type":"box","text":"Regulations” above.","page_number":59,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"460c4bce-1e1c-4712-9f33-19cf81bdb33b","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":59,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"92f4dda3-c076-4556-9d8f-aa332e500a80","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":59,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"692ba2c9-4c8d-4492-bf25-7bc63a00b4d1","block_type":"box","text":"(","page_number":59,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"87901890-e0bc-4c4b-8f5a-d761bdcd7c2a","block_type":"box","text":"i.e.","page_number":59,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"a63ae990-1253-4a30-8629-bac09a16e7ba","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":59,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"9a1eed35-987e-4b85-9be0-d46ea9fae45c","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":59,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"a6d450db-2d06-4fc3-a123-c84e74ab27d0","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":59,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"b487b652-2ced-4c7f-ae4d-81449bbbf47c","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":59,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"5a69bdea-a8c9-4f94-a294-6d06790241fe","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":59,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"d151fd9f-ab9a-4316-956c-6752e909b537","block_type":"box","text":"Fund intends to purchase.","page_number":59,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"4956d1e1-54c5-4236-9c38-eb32a9e266d5","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":59,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"4dd85d3a-ff15-4744-a556-b9ccf00054d6","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":59,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"83a1bb39-ee75-4f8b-bd46-7706f59f4c26","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":59,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"3e8a381c-ed51-495f-ba30-32c0c090699f","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":59,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"723c403f-a251-4ecd-bc44-cd80aca3d5c3","block_type":"box","text":"illiquidity.","page_number":59,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"6734aff4-8963-4f52-9477-adff91a71baf","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":59,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"d4947a33-a6e7-4986-be3f-15d51a980c65","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":59,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"b2fea1b2-9cc8-49c3-89da-2f26c9185024","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":59,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"ed3758aa-da0d-4a44-81ba-72e853d61612","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":59,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"40857ed9-2665-4ae1-9b02-54fb4490407f","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":59,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"484d99cb-f906-4796-a89b-608b08ef5423","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":59,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"3acddf6c-9605-4ad6-b60d-a01e5669538b","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":59,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"2f25715d-e7c2-458d-9637-ce388949a639","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":59,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"f2596636-3d3f-414e-9c2d-462e7bd7f9f4","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":59,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"4dd9e29e-5cd1-4c41-9dee-4e814c404775","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":59,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"82b602d2-ed6c-4a04-8c18-2ed33e144906","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":59,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"694676c5-b09e-4b39-88de-8220eb4903c3","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":59,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"e532dd4a-1a14-47e5-a6bf-d632c1403f60","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":59,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"8e7c93ab-ce83-4cab-aa0a-8ac10175b3d2","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":59,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"6cce051f-dfc3-41b3-b305-97abdc3d6981","block_type":"box","text":"Swap Agreements.","page_number":59,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"fe85999b-aaa5-471f-8336-67392eda5696","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":59,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"884cc184-db8a-41bb-962d-05cd94997116","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":59,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"7d978596-8a34-4901-b125-4f4154d473ce","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":59,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"4263fa1c-2413-4c3d-ab4e-7131a015c00d","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":59,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"b1ec8c0c-ee1b-449a-8a12-02c285cb462e","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":59,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"b80f93cf-32a3-4bd3-9132-c848a833b8ec","block_type":"box","text":"a “notional amount,”","page_number":59,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"cfdfda90-3ab2-4421-9858-a2898523091c","block_type":"box","text":"e.g.","page_number":59,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"62e77e7d-34f1-44af-9285-163b5c9e6643","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":59,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"30b31c41-1923-46e1-9718-1c808884e8e2","block_type":"box","text":"II-17","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6c804b9b-b63b-47d4-9108-1ccbfa4d4887","block_type":"box","text":"NM1026U-6032801-59/242","page_number":59,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"db6a9c2d-c670-43e6-bb3c-9aca77306b59","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":60,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"53900f57-d194-4e7b-815f-b7497e1f41a8","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":60,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"d856f42d-248b-40b3-90b8-1451f494a6b0","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":60,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"865d583c-1c7b-417d-8068-01d02cbf6b16","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":60,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"29c75ed5-375d-40e4-941b-6c2f69240b89","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":60,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"939cff8f-5dc1-4b51-bc1a-2684352654d7","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":60,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"ed94c86a-0aad-4d9e-a5ed-5a1e8662710a","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":60,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"d1c06b0d-a819-4fb7-b4a1-82e41ac807ee","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":60,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"eb72aa51-e324-44f9-93e9-c47cbc98c799","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":60,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"9179a3e0-dced-498e-89d6-18d3637b3b55","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":60,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"ec977cab-769c-4011-97a5-53aa12507873","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":60,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"fed38064-f1ff-4c34-8668-461d6c3e58de","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":60,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"f0795014-e18b-4b12-9bc9-26f5e27555a4","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":60,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"a06b4ecd-172d-40a7-8365-5b4b08c91231","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":60,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"ca254370-7324-4dc1-8709-27aaf96b3260","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":60,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"e81c2200-604c-46a1-a165-e9e4884fd92f","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":60,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"d38bd6cb-9a2c-4547-a1c8-7cf963ea8c49","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":60,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"0fa519f4-647b-4b10-b8c5-18fda7aaad72","block_type":"box","text":"index CDS.","page_number":60,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"27a9912f-4e99-4244-9d7f-2566a73e0e32","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":60,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"eefe5d81-0f2c-49c2-aecb-31ef41097461","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":60,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"b1b1b467-03c0-42d8-957a-23079e3e072d","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":60,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"b3e22d38-1dae-4df8-ac9a-b893e1cf86d2","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":60,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"9bba5af3-2ec3-4aa8-b1bc-b8fff219b7ab","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":60,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"b449391b-8466-46c2-b9c9-1a8f85f2194e","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":60,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"bd28fe5e-34d9-4bc5-bb54-31f84cbbba61","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":60,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"51e6a214-f2e2-42cf-8e15-14c73c140f4f","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":60,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"f9987d95-2bcc-4eed-9b49-833c1757e76e","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":60,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"933e72ec-2385-475e-9711-0c99345a9a8b","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":60,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"854aecb1-f43f-4ec2-b515-09da2729bbe4","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":60,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"fe898ea3-e5f2-4e85-bcec-bbed6eea9b13","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":60,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"9599ba17-d21c-41c5-a3a5-8d24a7e8d7ca","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":60,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"1242e725-7fae-42ce-acba-ffc0269d2c09","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":60,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"6bf3fd0e-db81-4e4a-b62f-6674667c8fd0","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":60,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"f1c9eeb9-f792-4041-8cad-5937613dd11b","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":60,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"212a2b6a-9b78-42aa-80b9-38fb778bd117","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":60,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"e0c3befb-6bc2-4b97-810b-2853a109d3b4","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":60,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"e0cea69d-944f-464c-96b9-8cb4ed14efdb","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":60,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"59d92408-4cde-4255-b9d6-02d24e95bb9d","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":60,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"f686e2da-e0b9-4915-97a0-2f15b5d4e91c","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":60,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"12235944-db15-465b-9354-1e8f8626f2ec","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":60,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"53927553-38e1-4175-8414-6f6dd1d9ba2d","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":60,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"dfa476cd-d98f-43a3-b479-4bf2f3ded82e","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":60,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"b4f61af4-7a29-4cdd-922d-8547ac667901","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":60,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"31f7e18b-4a44-477f-8536-3daebdcbd38f","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":60,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"1074386c-5228-4667-8625-20c79dd976a7","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":60,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"e01cfda3-1a3b-4e11-bb20-ee6ec1072ec8","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":60,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"eca744c9-3534-4495-896b-5edcd75fefe1","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":60,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"b0b141ba-647a-4c53-aafe-87054c2873c4","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":60,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"504b4282-0a85-4f58-9878-b567324cafe8","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":60,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"37f336f3-3538-40da-aafe-466439f79cdb","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":60,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"25097953-74a3-4c30-a99d-7a50025f5445","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":60,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"cf4d674a-cb11-4d2a-bcd5-7e26b4076545","block_type":"box","text":"conditions.","page_number":60,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"04045fe8-5ef6-44d1-9b23-433fafd84b90","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":60,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"b2d6a22a-92c5-4e4a-a8c7-d7dc2b0e1c93","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":60,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"2abafabe-5404-4b3b-9ecb-6d8db7362736","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":60,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"05464038-0c6c-40aa-992b-2c0b335e2820","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":60,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"9fd13804-001a-4812-b51d-9f80bed12722","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":60,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"769f302f-9f6e-444c-a57b-2ecd6a3d1723","block_type":"box","text":"II-18","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"38ad2483-2a3c-4111-a92e-4dc811168590","block_type":"box","text":"NM1026U-6032801-60/242","page_number":60,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f4d8d9ec-3435-4eef-94a5-62836a2c1250","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":61,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"bffaa4ce-edfe-4bab-baf2-31a9ec0371a9","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":61,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"ac8a906d-d503-431a-b728-6fd3914014e0","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":61,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"3a61944b-1ab4-44e1-8b47-7102c11d115e","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":61,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"fec6b844-485e-45d1-b140-1e5c131f10d8","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":61,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"c8988a41-b901-44e1-a0d6-74f063fe8327","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":61,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"181f3355-90c1-40f5-8bdf-0e819ecb0085","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":61,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"abe5233a-1d54-41d4-910a-95e6bc5f08c3","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":61,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"268ab525-2a7b-4741-a177-e98a7d24b19d","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":61,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"8629c0e4-86b9-4ade-993e-20f753341d12","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":61,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"eef40cfd-d95a-4fe4-b007-ec0e9e22dfc4","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":61,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"dfcb0900-fa69-4d2e-8b43-d5621be44128","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":61,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"6a32c1a1-591e-4e79-b55c-73dfcdbfa740","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":61,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"d69b725e-c547-4ce5-9f93-4ccb4de72379","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":61,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"67e55ca5-123d-476b-979a-3ae88333d8a3","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":61,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"a64ee503-ead2-4661-99df-30c95e1a069c","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":61,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"36f214cb-0548-449d-882d-9f2c52fa07c9","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":61,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"4b72f1ab-0c09-4532-af37-e74dc904b00e","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":61,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"55f3ae80-a6b0-4594-b247-e29bfd5c087e","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":61,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"1b6a2565-b020-4cb0-a8a2-3bf2ec528331","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":61,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"38ec7634-349c-4b34-980f-b2f8f8cac47d","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":61,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"c5446132-6201-486b-a97f-af6f1f08e315","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":61,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"598776bc-97a2-4ca5-90b4-a4f47d20dca9","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":61,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"bd2d41ff-b4c7-448a-80ce-eabda4fc32f5","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":61,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"86ff2681-52c2-4852-bcd6-d93c9fd68cf3","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":61,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"529bef5b-1843-4c63-85a7-2d093cb8eb65","block_type":"box","text":"cleared interest rate swaps.","page_number":61,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"a9bc755f-d2cc-413a-9b29-46ba798f4881","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":61,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"481ae782-f943-430d-86aa-f5facfcd1f31","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":61,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"7b55f2e3-23ee-49ef-b337-556f5febce50","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":61,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"1de45ce1-e7ef-44a1-9865-56da8db21759","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":61,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"c9168462-77e2-44b9-9ad2-03951015459a","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":61,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"6ff8797c-4ac8-4028-8b02-a4118a9d106f","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":61,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"8efa0cd6-1b41-4dc6-ae6e-6a8daeafe839","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":61,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"95209dac-045a-44f5-b04f-3459e421ed11","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":61,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"470a4b8c-257b-4307-9740-8a7831440745","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":61,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"a946a4c3-e263-4860-a2b6-32027974dfe6","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":61,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"7a0d8dd4-8bab-40e8-b278-cb6f8cb11843","block_type":"box","text":"or variable interest rate, index or asset.","page_number":61,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"356eac25-ad96-45ba-9356-43fac50e05a0","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":61,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"bc89f4b8-1edd-4c86-8ff8-8c108a3ca913","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":61,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"fb678f7f-be10-4f75-80c5-ca57ececdbf8","block_type":"box","text":"such interest rate floor.","page_number":61,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"85fdbcb1-0c06-4530-9183-450b640e1116","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":61,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"2518a2ab-b0f1-420b-a997-4ee83df45bd3","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":61,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"1b284c59-c90e-482f-bf6c-e595a5cb5073","block_type":"box","text":"such interest rate cap.","page_number":61,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"a7e4fa60-2995-4f4e-a93e-f8f786b157e2","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":61,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"8a4d1ce2-08bf-47e9-9484-d003c190f00f","block_type":"box","text":"commitments to pay or receive interest,","page_number":61,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"6a4d2571-d200-47cd-955e-728eb3296476","block_type":"box","text":"e.g.","page_number":61,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"b39f3e5f-b644-4a0c-ab3e-54a9b3a90f83","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":61,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"af308ed0-68e0-4cbe-b763-645f13f4fba4","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":61,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"11fd3911-de88-44f0-8730-1d0a35667afd","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":61,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"729a3cfd-13f3-48b6-a8f4-5799e01baacb","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":61,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"15df7dc2-307b-471f-a756-a0401ca237fe","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":61,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"8b31a3c4-356f-43ed-b19b-b6c457e1227d","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":61,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"775c276b-51ea-4ab9-a059-32c2620c1493","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":61,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"397c8d10-0376-441e-b5df-4e90470e5efa","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":61,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"5bb464d2-d30c-4708-87da-1ccba5b5029f","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":61,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"adb193c4-1b2e-421b-8fac-a646a22b6fbf","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":61,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"35c97401-af75-4246-845a-8634a085b784","block_type":"box","text":"II-19","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e1b9caaf-3ffe-4be6-b8c1-309c886b30bf","block_type":"box","text":"NM1026U-6032801-61/242","page_number":61,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5a15b9f4-9bb3-4013-a6a6-042ec812611d","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":62,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"3d91a88d-553b-46fe-a85e-7ed6616de686","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":62,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"6a57542c-56f8-4349-9a70-9a57c7dd5047","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":62,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"dad09377-c31e-4066-a5c9-9057fb31990e","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":62,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"d3663830-71ff-438d-92ea-126584b6ff0c","block_type":"box","text":"Total Return Swaps.","page_number":62,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"e4288258-61fa-49c9-8f7e-b84459fea28d","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":62,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"04d49c75-adbe-468a-9b32-d72df9f8d23f","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":62,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"cf066fa9-2b7d-458b-9f7a-9be0f50fcfea","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":62,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"eae96c6c-ff83-411b-a696-37e2578a4341","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":62,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"8719403b-6dcb-454d-a8d2-b9a82b260cde","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":62,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"b5fba88c-16fa-46cc-ba74-12a6c04575d0","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":62,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"594752d9-c5a9-40ff-84c3-72428fb991f7","block_type":"box","text":"“contracts for difference.”","page_number":62,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"19247162-9941-4474-8fd6-5f1e12ec93bc","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":62,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"16362f6e-45a6-4c65-943a-0a41b88e3bfd","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":62,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"d9c4c2bb-b933-4b62-bc17-177dfa515138","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":62,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"91007112-6929-4d2f-8ac0-95057ad60393","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":62,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"7bbc8076-6fbd-4bde-8aba-75ef811b6053","block_type":"box","text":"the notional amount of the swap.","page_number":62,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"c328c739-1edc-4ce7-830b-cf473f953b0d","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":62,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"20386c44-d00d-4086-a5b4-6d237e3b51f5","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":62,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"e1ea716c-554a-416b-84c3-44f0862c9838","block_type":"box","text":"Options.","page_number":62,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"06fd4777-fdf1-4e0d-8059-6bfd59139c86","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":62,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"07b1f155-a25e-46ee-8be2-ab6cad6a6b4c","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":62,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"75e91492-24d3-430c-956d-2a18f36e69a5","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":62,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"8d403c4d-479d-4d18-a9a1-269d742144f8","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":62,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"cbc78752-e585-4a21-962a-806950f69225","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":62,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"c6c64265-9777-4bd9-826e-61f0c805887a","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":62,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"20a5f349-8acd-4b43-9919-1a9a90fd1144","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":62,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"71763ee7-aa8c-4406-a7c8-b0442fedf1cf","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":62,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"56092770-75be-4c0a-a0a2-cd8cca1df112","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":62,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"d7315ea5-efc5-40e9-a511-cd53353f5840","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":62,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"429282e8-7e4a-4e7e-abc9-1be1e66bab51","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":62,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"2fd2e7fe-31c8-48a9-9d97-5e0d498be62a","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":62,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"40c5ed46-65ed-4574-b620-906496526e86","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":62,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"1382fe0c-6ce6-4e53-bcf1-df27330a9e1d","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":62,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"0aed3ec3-ac0d-44dd-93f1-02cb6e500074","block_type":"box","text":"OTC markets.","page_number":62,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"5d1b223e-6f79-4ac3-955d-005f84c8c8fd","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":62,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"8e2aa449-f1e2-4ff3-9243-a8e76e5ac1ec","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":62,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"46a4871d-2b32-4987-af65-4362d6b3f654","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":62,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"14b066bf-9e2c-42cb-8c70-e102a7e00885","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":62,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"ab528577-6eed-40c3-9861-ac8070db72f6","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":62,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"a5efc41e-1189-41c6-b5d0-b8613171836c","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":62,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"0b13da07-5884-4346-a806-45bebad1bf73","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":62,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"1f9ef4c6-4f30-4d15-b381-2b876755cc62","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":62,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"455656db-d2df-4c77-835c-4bf29f23373d","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":62,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"294df494-c8f4-4614-8025-07bc3a2969b4","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":62,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"b7f08beb-f0a9-4a02-ac6a-556a646dd869","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":62,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"69cc2c77-84ed-4e41-8d2d-8fbd209ac5a5","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":62,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"fd9dd231-06ff-475f-8eae-bf7782937e55","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":62,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"e6fb0e04-cea4-43af-b2f8-d0934bd26f7e","block_type":"box","text":"terms.","page_number":62,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"79d1f892-6712-4751-9cc3-e08f85314ade","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":62,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"a928c6e6-2911-4102-8235-b4c72b2964c7","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":62,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"1800f42a-3c64-408c-b086-d9de11c3fe97","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":62,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"3f6f1f13-b63e-46b5-902a-f1dc461957c0","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":62,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"a3a7374f-e23f-442b-8df8-614f6cad19a1","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":62,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"0c9d7086-9ed9-45d6-8649-8b5839d3f10d","block_type":"box","text":"II-20","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d2b9c0dc-5f08-4c61-8f4d-6fe3b64cb346","block_type":"box","text":"NM1026U-6032801-62/242","page_number":62,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ac0bacec-b921-4b3e-8cd8-1822381f4fd7","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":63,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"31e8b75b-79e5-4739-83af-fd9bfb6dc5ed","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":63,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"e391aec2-4215-4f79-8b85-f9fffd562e58","block_type":"box","text":"Call Options.","page_number":63,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"cc9a98ab-e5b3-4c4d-aab8-ed5b6ed5e024","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":63,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"ca4bc5ad-6851-4e0a-993b-f74b09d95f46","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":63,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"933657c7-731d-496f-a9fe-4a39e50ed3c1","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":63,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"2cc4ae89-0a55-448a-ac41-f8b249909194","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":63,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"fd0e933b-0075-47e2-a180-2012e8def073","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":63,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"9d2298e7-a2bf-4415-9ac0-58beba99b63c","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":63,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"e1d3f10a-b881-40f4-bd6c-097fba3a5231","block_type":"box","text":"of the option.","page_number":63,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"bd6ef261-d464-4866-8802-e96ff482ae2e","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":63,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"4b50c297-b66a-4e5a-bf1f-1e66ae98f276","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":63,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"3b52a7ad-291a-44c5-bc20-6c975a2c8969","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":63,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"d02a9edb-b87f-4cff-a283-4e9e2339281a","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":63,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"45abf364-bc65-4628-8192-cb92b69e2143","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":63,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"090a3a68-d4ca-4f4a-ab59-fea68edc63b2","block_type":"box","text":"A Fund may write (","page_number":63,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"fc31c868-57db-44e6-b04e-d69bb8878187","block_type":"box","text":"i.e.","page_number":63,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"f2709c17-fc4b-4407-ac4f-6e56ced990bb","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":63,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"8677499d-4cbb-44a1-ac4c-a0f2ae868c8e","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":63,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"798d7135-d7a2-45c4-aa7f-5ed8f4faa8e6","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":63,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"f7805afc-0cc1-466b-b2e2-130674854c44","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":63,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"bb7eb608-8755-4cad-913f-27de9b16a0b6","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":63,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"48d12fa7-ef4b-456a-b9c1-07e126c66b9f","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":63,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"37e38b09-8b90-409e-8aa4-5a297904546d","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":63,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"4fc86b55-4e8c-4c50-99bf-f1394a6a14ef","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":63,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"6548997c-853f-4b2b-9548-83c218746a8c","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":63,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"48b2f5a1-3774-4f83-8f09-652066b5df50","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":63,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"6a89b294-491b-42bb-b230-7de463eb434a","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":63,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"338c6f45-f826-40a9-96c8-50a9ddeba793","block_type":"box","text":"A Fund may write","page_number":63,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"ad6d1dca-ae14-40aa-86fd-c5a02925ba61","block_type":"box","text":"(i.e.","page_number":63,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"78db138f-5bbe-4b21-9c40-4c9c759ab697","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":63,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"3b777369-1289-4fe6-8621-5ccaf528dbc0","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":63,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"a58cb5ed-714a-4acd-8224-cbc498188652","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":63,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"05acf600-f68b-428b-811e-b3a37efb2b46","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":63,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"01810cc3-7ebb-4557-9e84-cc62dace5b39","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":63,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"2cc81f22-bff1-48eb-acdd-b56a59039002","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":63,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"4e147c2a-4593-48e9-8e27-4f78785c82a9","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":63,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"c369ced6-5a8c-45d5-94f7-e0111c25e6a0","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":63,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"f91f9edf-63aa-454b-b726-6a4ea308f4cb","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":63,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"c4e1e651-6b47-4a80-8855-3f400be1a207","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":63,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"0f530c55-a292-41cb-9c76-93397d37ceba","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":63,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"30517c97-a9ab-4ea2-ae61-66866cc366be","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":63,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"ab1f9c83-9094-49bd-8cb9-f8b4b73c6d70","block_type":"box","text":"Put Options.","page_number":63,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"2e856aa5-b86f-4922-aed3-8613a609c654","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":63,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"a5b328b7-0368-4255-854f-fe35d9873a87","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":63,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"7272f9c7-fcfc-487f-b1eb-afbd31db1cb3","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":63,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"a640cfaa-cbe3-4213-ba96-94ae8af12b5e","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":63,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"201b3c1e-5511-4354-88f0-96e5af024a4d","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":63,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"eb6c4b0a-14e2-4b38-bb72-d538d89d9691","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":63,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"da920ae9-29d9-4f49-890b-5da2786748d5","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":63,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"ccb8ea8f-804c-449d-9a4d-2ec9352a000a","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":63,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"1f149d1c-e069-4276-8ec0-18e5475e37bf","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":63,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"3a23a70d-0740-4092-be64-a1d639a14e0f","block_type":"box","text":"purchase uncovered put options.","page_number":63,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"797db0f4-d189-47ed-974e-d6b2d7a47c8e","block_type":"box","text":"A Fund also may write (","page_number":63,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"84095cde-5053-4dfb-acba-74f964af2e0a","block_type":"box","text":"i.e.","page_number":63,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"f1deb9a8-3772-4e52-9630-08af8bda72de","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":63,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"f838f2d0-4b25-45d9-9497-6ae7d122c0b6","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":63,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"f11e77ed-37d6-4372-b02c-088d49423129","block_type":"box","text":"A Fund also may write (","page_number":63,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"57381e28-a3e1-4974-a708-27928233103e","block_type":"box","text":"i.e.","page_number":63,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"d3fcf2ba-d7e0-4421-bedc-e9dde53cd6d7","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":63,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"0028d922-72f1-47be-92e2-2c84cc741914","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":63,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"ff23ff22-461b-4ca3-a381-785b71db5210","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":63,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"929bc0af-3693-4d3a-8ad6-c36f659d726b","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":63,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"bd370750-3806-4677-9fba-9e8bbe07f44a","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":63,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"8f64ad02-f379-45f0-81c8-ff2e2cd7f360","block_type":"box","text":"II-21","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bd8dbf38-f64e-4d78-97e9-5fc86aa3b99d","block_type":"box","text":"NM1026U-6032801-63/242","page_number":63,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c93de5fc-e0d5-42fd-b934-b93b7e70a9c0","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":64,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"d8c407d8-b493-4b08-a100-f99cf1720fe7","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":64,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"fc58fb39-2d77-4bf9-9d28-473d8ee3eb5f","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":64,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"63628e03-ff42-443f-93e6-c8743a71b8af","block_type":"box","text":"the exercise price.","page_number":64,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"3851b514-2eca-42e8-beed-f0122f085f1c","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":64,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"bd9c3973-2e96-45eb-828d-f57f76343084","block_type":"box","text":"The following information relates","page_number":64,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"513c1949-3212-42c5-b7ca-0e2d16fe8596","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":64,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"01792dce-e223-4ac6-8b15-6befc4c57b82","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":64,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"3ff8f37b-508e-4743-863f-51c6ccd728bb","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":64,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"d01bcaf8-a393-46ba-a46e-cec6b7d53e45","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":64,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"1b34c310-46ab-4c8a-91ba-2f3109d3ff33","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":64,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"d18d728d-c83e-4d68-ac95-75db4610c0e5","block_type":"box","text":"market in order to maintain its “cover.”","page_number":64,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"c0d8b302-a990-4476-863a-8a765c3bd4cf","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":64,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"5324317b-3993-448f-84ff-c07aff26f59d","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":64,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"d4b3e763-1723-4631-acd3-4ac75a37af03","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":64,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"99e94fd9-8de9-48d8-ba5a-b3f257e24de1","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":64,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"60e8e87c-f4d4-409c-a3b0-7cc3a90a880b","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":64,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"85d1a735-8341-4337-acda-275b51bba332","block_type":"box","text":"and incur transaction costs.","page_number":64,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"01cab6a9-01ca-4aac-a7e9-57836119e01c","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":64,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"9fca7cee-4199-4ff9-8fed-149b735d0471","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":64,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"eeeb7e92-f9b7-4dd5-b208-66584db4bdb1","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":64,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"5a4d6939-a142-4908-b020-c8d9887583c9","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":64,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"673b51c3-6041-4c8b-baee-050212823256","block_type":"box","text":"i.e.","page_number":64,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"6bb3db41-ee53-4422-baf6-e201999dcff1","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":64,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"d45d3338-978f-4ee9-8b0a-deb91c4aa427","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":64,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"056c8a7e-5fe7-470f-9324-a3132c3f0789","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":64,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"aca5f259-7231-46c9-a27b-ccc65688e950","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":64,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"2187a57e-37a1-4a36-ae14-e5b354e59a8b","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":64,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"11165a4e-920c-43b9-b975-16ff62ce7f8c","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":64,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"e395e1cc-4191-42b1-8453-8bbf41f21d08","block_type":"box","text":"required, to be cleared.","page_number":64,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"9a7d6f35-8e07-41c2-9c49-8d46300bb05a","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":64,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"eb9b4e76-3a33-475d-8c65-54871bbd4f08","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":64,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"8a85be4a-b3f5-4564-8084-6625abb124f9","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":64,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"ff612069-0137-4f0d-8d56-b5c6ebefafee","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":64,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"95396409-a835-4c69-9d16-1ae94a5456bb","block_type":"box","text":"Derivatives” above.","page_number":64,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"63852d6b-ae79-46a7-85cf-153a2d5121cc","block_type":"box","text":"FLEX Options.","page_number":64,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"24d74cdc-7401-4f58-8ab2-3f8d1b136df9","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":64,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"d280667d-78b8-4025-be67-fad7b0308fd7","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":64,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"9a4464af-51a6-49ec-8b26-017e52b6c2f0","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":64,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"e59731b1-b716-4b44-bba3-72e94641dd6b","block_type":"box","text":"exercise prices, exercise styles (","page_number":64,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"0fdde3bf-aa89-4efd-b3bf-d788908151a1","block_type":"box","text":"i.e.","page_number":64,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"3968cbf9-085d-4f3e-bd87-1e4884ff5c58","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":64,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"97534ce6-1e24-437e-9018-e2319022c33e","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":64,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"de5618fe-4a4d-488b-820a-c3fc0e08f2f1","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":64,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"0f0dd32f-8507-43cc-b138-9c724dfa9c1b","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":64,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"7e1cadae-6f3c-4d0a-a85f-db7d95fc22dd","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":64,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"f0bc22c1-8035-48ec-a8f4-d4f180e80107","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":64,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"d8a7479c-09bd-4afe-88da-763d1b4c1dd5","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":64,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"40e5146c-d42d-4904-aeb8-fa2b305d5b6d","block_type":"box","text":"FLEX Option’s expiration date.","page_number":64,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"0b77c640-0e21-4fc0-8845-f2f5e299a2fc","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":64,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"945fe0f0-8d89-4f9d-9e7b-85c9a102a692","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":64,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"3272dc24-931d-4189-bffc-8d80914698e6","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":64,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"f82385b4-3ed5-427b-855c-192953c3140f","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":64,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"3d290eee-aee8-4743-871a-cc4ea50ed117","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":64,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"a4c0e7b5-1787-4645-b98b-5722584d82ed","block_type":"box","text":"FLEX Options contracts.","page_number":64,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"785c82b9-3853-49ab-820a-74a013fe37a7","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":64,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"a7a9baab-5fe5-4aea-bfe4-30b77d61227e","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":64,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"02604ed1-3a37-4800-8986-c9615a93e1a6","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":64,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"5d8d6113-c9fa-4395-9d30-25f840b250b6","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":64,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"459e3cda-4fb2-4621-94ed-5c018851bebf","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":64,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"bb8fb4bc-a503-4e64-846c-7f57215b73d6","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":64,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"afa74efd-14bf-4a13-8912-21fc4aaf75c5","block_type":"box","text":"II-22","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0011901f-f108-4f10-8d5f-d3f084e920b3","block_type":"box","text":"NM1026U-6032801-64/242","page_number":64,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9965c680-3204-4341-9602-7878ec9062d0","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":65,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"f3859a4a-36da-4068-b7c6-8820fbde5e47","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":65,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"5d2ebe08-1555-4c7d-b61a-6bcddb6bf65a","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":65,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"8a175e95-6820-48bb-81e4-74f54e79c3fa","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":65,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"92228e32-8a59-497e-ad23-277610285665","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":65,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"aaecc578-5a7c-496e-92e3-8ae6c17560bb","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":65,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"d62c44d0-3940-4008-8a93-9e5cdb9d2805","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":65,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"e023f9b7-0ade-4f62-80a9-4724bcc67aaf","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":65,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"dd2f3faa-c628-4e40-ae29-657c02b373cc","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":65,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"6b640d8d-fffd-4830-8959-5d7794d192f8","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":65,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"ab68db2d-f80b-41db-9669-e1fe190c4cd9","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":65,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"65936ce4-322d-4137-b20c-f35b0997500d","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":65,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"d9abb1d6-4f56-4590-b9db-920805284a70","block_type":"box","text":"expire unexercised have no value.","page_number":65,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"d2afd27f-c865-4e18-9338-1789e38b1a8d","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":65,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"f1235750-8b20-4d76-aac2-cc15a50761a0","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":65,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"26061dd8-0c57-45ec-b5ba-fc8b06781899","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":65,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"e559f117-af67-46de-8286-fa343dec3f5f","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":65,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"d1a406f0-cb22-47b4-8470-208a1412d47d","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":65,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"6d5c6334-815e-4b22-9626-423a39c8dcec","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":65,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"bd8e189e-7d13-40d9-a941-a287dac6f313","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":65,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"4285b3e4-a9ec-443e-8e8e-b1cd9a6e6708","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":65,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"006668e9-5b42-408a-acf4-91a93950708b","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":65,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"e5a48388-3d6e-42cb-bc52-0ca5f05fff51","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":65,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"3283af01-b7d1-4016-8a66-799c47274366","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":65,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"0a16b3ac-0653-49f2-b55d-62ff697fdffb","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":65,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"a51493fb-47c9-4db8-8664-c467ee916cb9","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":65,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"498d0778-7012-489c-9004-745b1936907a","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":65,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"6b0f9392-02f6-43b6-a17f-8bd9e9c45acd","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":65,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"988d1baa-f0bf-4be9-aace-9c8133a09bdd","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":65,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"af5f5ad3-90df-4c4a-ad58-a9620d12de20","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":65,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"3168e99f-d8bc-436f-b2ab-e6038893af06","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":65,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"e5b5983e-8c06-4175-a79d-4936881f80d9","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":65,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"17dcd673-93f4-4573-9a19-6f1b7f971226","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":65,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"17d89c48-3cff-49bb-909b-28fd37770c78","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":65,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"cf24c178-75d5-4652-a9f0-ef7d6b696b0e","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":65,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"2087d984-4736-46f9-8947-c998e53687ba","block_type":"box","text":"Foreign Exchange Transactions.","page_number":65,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"88b68bc2-1647-47af-9c38-40f0acd10314","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":65,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"5c33e7aa-7db0-421f-9603-f4ae87c638c7","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":65,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"0c9ab4f8-6eb9-449d-8ba1-a56ac7a0768c","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":65,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"0f843742-4cff-403a-801c-e205a9cb7482","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":65,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"5d811db4-953d-4984-85bb-3e30bc2cbc93","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":65,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"b6370f0a-6969-42df-baea-93bd816381b4","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":65,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"c6c09c1f-0a33-4335-aad6-270c1e8da950","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":65,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"e96625a5-8720-4daa-a3be-84767502b618","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":65,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"6b129ef3-151f-46db-aec7-0eb02b2cb06f","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":65,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"88d4f3d8-59e2-4cd8-b49b-8cd870d38556","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":65,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"85489620-03ff-465c-9bca-1302adde1ffd","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":65,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"96dc37e9-0592-4f76-81eb-6fbd6a340e51","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":65,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"bede9019-22ab-4f60-a91e-99778c91f49d","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":65,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"c49c0b05-dee5-4f86-ab75-13eea6373457","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":65,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"ba4a889c-5ed7-4600-9011-d1a348ef2b61","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":65,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"9d1f40b3-1a74-4ada-94eb-ff6abd560974","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":65,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"ba5efe2a-5be7-4137-8dc1-cdf60a59d6c4","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":65,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"2e82b844-2466-4d10-833c-7602713356bf","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":65,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"447defcf-adcc-4bb9-91b7-295dacff4189","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":65,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"b03f52ef-0607-4aa5-aee7-01e805159c03","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":65,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"a3cad8a2-730b-4c87-8bd7-18250978cbd7","block_type":"box","text":"II-23","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7850149f-1126-48a6-b2c6-5b53a1c05439","block_type":"box","text":"NM1026U-6032801-65/242","page_number":65,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8a2e6c40-ea9f-419b-885e-e0f6ddf974e5","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":66,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"261824e7-0adb-4bdb-a89a-8d914cf037fe","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":66,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"d7e17558-682a-4aa7-9f27-703aee486c3b","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":66,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"3f3ce743-3da9-433d-b54e-c1bd10be32b1","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":66,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"cb3c8b3f-bd6e-411f-8ab2-ee1b42091393","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":66,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"0b583869-c056-4853-8060-5fb44d31876f","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":66,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"076ab32b-d3c4-434b-80ac-48230bb814a4","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":66,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"d949fed8-917f-4b65-94f1-27f0ddcd1c6a","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":66,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"d5353731-bba9-4da3-a683-2c1fd29ff68f","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":66,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"4d54aaf5-c8ca-4ce8-a4b1-dba12ac4b347","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":66,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"2ee5b63e-8d3e-4fd7-bfb0-2aee1f9e9437","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":66,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"10a4bd0f-1b81-46d4-b67b-7ea29fb87af2","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":66,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"89d3a9da-524b-44d6-8d82-139972cf7a9a","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":66,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"997dc0c5-fd07-4997-9337-5f7a30660210","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":66,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"225e83e7-7c77-499a-9cfb-676ca3045ab6","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":66,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"7429cf15-c687-4adf-a584-bb066654355c","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":66,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"2ce10f12-ba9e-40aa-af98-cfc96982916d","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":66,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"a624d133-6b87-426c-8568-188e83b771bf","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":66,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"b8f4e62a-4aec-4169-b07a-805525eb2572","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":66,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"f70aa7f1-0fb2-4449-a723-60197c956757","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":66,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"f910b33e-e406-48fe-9e60-66e3d48f76ab","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":66,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"90827da4-32f1-4754-91b5-e94079fff318","block_type":"box","text":"involved.","page_number":66,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"13b811fc-f8d8-4f73-b972-d5316e006984","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":66,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"bbcc1546-f39c-459f-a5e4-cdf80857f99d","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":66,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"8f662acf-9ac9-473a-8898-e58fc097b568","block_type":"box","text":"denominated in such currency.","page_number":66,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"d5924bbe-e626-4418-857a-dad6145af84f","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":66,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"bc8180cf-9534-4af1-910d-300e8b1d6407","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":66,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"84196b1b-e694-41b5-927f-a9fbc0a0e695","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":66,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"42fccef4-9a25-45b5-a42a-43e9f2aff508","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":66,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"73bdaf8b-76b0-45ca-a753-8bf060e718f7","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":66,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"3015df2b-2dec-4f16-b8d2-f30d6d0a0c29","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":66,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"0ba3b0f6-7702-4e7a-8c09-947252489db4","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":66,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"f821fb44-2d4d-4622-9514-d18a5d7c4446","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":66,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"0eaf70e1-dc5f-4841-8354-c6e46cd85414","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":66,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"f252511f-1fa6-42cc-acf2-7fa8ce946858","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":66,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"1e2c0dc1-84aa-4972-95e1-9642ec5de8df","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":66,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"a699f83b-fcd8-472b-b416-22c5ac6184d5","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":66,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"03241088-d574-4ea2-8272-ad7807b15812","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":66,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"0edd41de-69e8-4935-a63d-7f7c7ff8a1c6","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":66,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"817ed4c6-74f8-4fa3-8854-d9198ec32ff0","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":66,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"ffb7033c-85e9-4c30-8230-b17e0a23dec2","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":66,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"d63361aa-a586-4c38-bfad-fc3e2b990fdc","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":66,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"d3aaef54-a704-49cc-a19a-f18495a6a0d6","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":66,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"bbf6d313-5359-476b-861a-c73ce744fffd","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":66,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"572692c5-d0d7-47d4-a91d-3f59f71714b3","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":66,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"d900a6e9-0681-43e0-a582-1ccaaa8868d3","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":66,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"b2eea591-17ab-4ebc-bfc5-f4f4b83c21f2","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":66,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"04ebe656-68ce-45f7-9c13-cc4b4e8bf74c","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":66,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"0caa5145-e739-4a82-ba83-ec10d039587a","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":66,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"6d3174e3-1154-45b3-a5dd-2a6b638ee1e4","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":66,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"a5132e5e-6eb1-403a-9308-4318a80fd991","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":66,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"e55f8904-4342-4d41-ac74-db361d552e13","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":66,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"463f9972-2c43-4056-ab6a-9a8d1d9c0d63","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":66,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"ba6e7933-cb64-4342-95a0-74a717212bdf","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":66,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"b49e29fb-4140-44f1-a73f-b5c858c30603","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":66,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"2aa1272d-5286-413c-bb07-d00b211072f5","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":66,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"dd93f37b-d635-4278-8f07-28264d89b12f","block_type":"box","text":"II-24","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8c1d8e91-abbd-4506-bfe5-657bbe942129","block_type":"box","text":"NM1026U-6032801-66/242","page_number":66,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5ac27ebc-f625-487c-a2e2-86e9c3534366","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":67,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"49203e17-87a6-4b5d-86a5-c5e9ea457e0e","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":67,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"8602ef70-257a-4ad4-94e1-d91ee01f35a6","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":67,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"36b35f4a-a4e9-463f-b34a-94edfa1f2f35","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":67,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"38047479-f3b6-48a3-9b9b-6114cbd89248","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":67,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"9cc1b8e4-70f9-4503-ae50-24177402d579","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":67,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"0f11d439-6d9b-405c-9e95-579c7f77eb0d","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":67,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"89928adf-d54e-4e4c-b9da-5377a2261996","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":67,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"e9113b6a-5713-478f-9e46-20aae8237a65","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":67,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"376068b0-a587-438a-a2f5-f4e54847642c","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":67,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"35d2401d-8127-4f0b-a3da-3e0617c53833","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":67,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"57554612-f187-41c3-a80d-2158411678e3","block_type":"box","text":"traded.","page_number":67,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"1ccdb1db-8260-48b2-9a7d-6a9fbec1e671","block_type":"box","text":"Currency Futures.","page_number":67,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"121a7329-bbaa-4d20-8f06-47fd42cf856e","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":67,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"640efe58-5e6f-4fb2-8684-09d255b6a1a6","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":67,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"7b790572-f87b-46dd-98a9-b1a98074068e","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":67,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"58bd0eda-a49a-4326-9309-c2e52898269c","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":67,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"b631403c-6c2f-4bd2-977a-d48ed5d57371","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":67,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"94fd9b1f-586e-4914-b180-183a8fe938e3","block_type":"box","text":"Currency Options.","page_number":67,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"7bd0c0d8-3be2-4c2f-8f6d-ec064e0f9739","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":67,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"a5a117c8-58a0-45a6-ac7c-7c490a8a89bf","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":67,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"68079e0c-9992-4788-9383-12534dafbbb6","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":67,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"2b18fcf9-a52f-4120-87be-6737579edf66","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":67,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"e2a5096f-312f-4fb1-bfdc-ac50342f006f","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":67,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"03d89783-d7b5-4109-80aa-8967d80955f3","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":67,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"3be41b26-b18c-4a60-9770-8160617dd4f1","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":67,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"1da4f92b-598a-411e-9f4e-afa40fccfae0","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":67,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"2383fcbf-f750-4dee-96e8-4d3ec5f68562","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":67,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"291b8a2d-ef03-4899-a04e-3ae2bac2a448","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":67,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"7197372e-8ba1-40a2-8d94-2080dfe93ac5","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":67,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"56be1f26-3fe6-41db-9fda-fdb2f5247837","block_type":"box","text":"Currency Swaps.","page_number":67,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"3723e04a-c3cf-48cc-b10a-daf37f9a46c6","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":67,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"8720fac4-9912-48e1-90dd-256a436bd6d1","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":67,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"7e033c3f-a8f7-4629-bea0-8b86ec88233a","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":67,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"c4751515-8f2e-4541-8df9-a5889c5520d0","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":67,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"ce224940-e5f2-4dde-adf8-0c0ece5b3306","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":67,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"64eafe73-5420-4ba6-967a-4240921f1a0a","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":67,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"ff7e0f79-fcce-4ed0-b64a-db314064bc92","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":67,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"bddb60e3-81c3-4da2-b06f-4d6407c80a73","block_type":"box","text":"Distressed Securities.","page_number":67,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"be05205e-9df2-4992-b876-cdec5f94a577","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":67,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"2584cdc9-c7fd-4074-a529-aa8472984820","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":67,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"170102de-1286-483b-b781-d96919081fc2","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":67,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"577deac1-6088-4308-ad97-3732700ae183","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":67,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"89a1c192-0e08-4cb2-895f-806a74e990d3","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":67,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"c52dfe7b-98e0-4c01-8c04-fcd0d9f1a7f3","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":67,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"43e18de6-d182-4dfa-bfcb-aa23dc88d19e","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":67,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"a215c10b-6dbc-4e16-b83f-ea33ad2739b0","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":67,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"9ff69b04-7db5-4e01-841d-2f9d3538bf97","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":67,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"1040b6a5-9402-4eaa-a18c-b0e2f1406567","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":67,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"15776428-54a4-4315-b276-02630414952c","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":67,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"dfa0995d-a244-4b7a-ad90-393378d68f09","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":67,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"a0a234b3-fdb8-4000-b1ab-f84dac150708","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":67,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"c373eb93-dfc8-4d66-abcb-e5ff69a54b79","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":67,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"fff60f15-5c92-433d-a90a-a7ca0f182293","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":67,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"b14003fa-3f66-484b-9bab-b5455de6fb05","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":67,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"c60c7b84-3838-423d-ab8b-89b486798329","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":67,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"788c22cc-ac2a-47cb-a09e-4ac04ad29d93","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":67,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"754ac76a-9dc0-4f8d-9624-acf61ae0fb5e","block_type":"box","text":"satisfied (","page_number":67,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"1635644a-0858-429a-8651-4f4b699a9931","block_type":"box","text":"e.g.","page_number":67,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"4fb4fa5f-c210-48f5-a37b-42bd0169b2ae","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":67,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"1e056bd4-399f-445f-a18f-1b2153157f66","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":67,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"9ffe20e8-f474-4ccd-b8c2-3372b085dd87","block_type":"box","text":"II-25","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"86c480b2-8988-401a-a34b-2065c7c9b355","block_type":"box","text":"NM1026U-6032801-67/242","page_number":67,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a2169f5e-f7f1-4578-a06a-2a1493bd5c91","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":68,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"6e2dcdf6-4ffd-46e2-b3a4-8a8239f0e932","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":68,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"74c307ca-53cb-4405-83d9-b4cf50014bdd","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":68,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"afac1ce8-30ab-480b-8f01-853186822d33","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":68,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"f3f776a8-0328-4fcd-9115-4c864eb7e900","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":68,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"48b4403e-8e53-478b-aba1-c67c831741e1","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":68,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"024d32e0-9cae-4fd1-935f-78d93b5fb489","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":68,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"01394833-562b-4755-b076-5bb599c57c2a","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":68,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"967d3a16-0e44-4561-abe6-4e7c0add3e1e","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":68,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"a46c7cc3-7da7-4ce7-98cd-d88ade524e20","block_type":"box","text":"affairs.","page_number":68,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"b522c67f-da4e-4f0f-9fd5-5951b8b397ad","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":68,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"bbd05890-7379-4356-867b-b8f33bdd5f32","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":68,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"171432d4-cdca-45b7-90ad-5e653ffa9f9b","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":68,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"95207388-3e9f-48ee-9840-d84baaa50a50","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":68,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"f04ac2cb-429e-4258-a2c7-430bf049841a","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":68,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"abb31331-f3c8-485e-9a6a-1303f0c13714","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":68,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"6ac52e6a-55ea-4279-a1d0-61bc49de8b1b","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":68,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"d23f75c5-db9d-40e7-b8f8-195bbce5c366","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":68,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"b041a88a-2ded-488b-9ea3-d15258559b2a","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":68,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"e0be08ab-8e54-4fc9-a431-1e6682a64c3a","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":68,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"6c0ba78c-410f-49ff-87aa-761c2199a629","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":68,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"0911f41f-80eb-43f0-93b0-48894563c304","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":68,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"8494f63e-4d91-41cc-8789-892732a9ce75","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":68,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"a34e51b0-accf-4313-870a-b0b2ddc7fc23","block_type":"box","text":"Equity Securities.","page_number":68,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"5ab65c0d-040f-4f41-939f-f377b8075242","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":68,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"5ed428f5-f3ad-4a74-9889-9ae5b14792c7","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":68,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"4a5ace7b-3664-4b17-a093-18732770085b","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":68,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"51bf9aae-9089-4baa-9e5a-b8d2aa80e36e","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":68,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"425acd21-5c2e-420f-91a3-5500aa7b0773","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":68,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"3e2703f6-69c8-40a2-b232-40ff2d93452c","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":68,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"6d1d914b-277c-4199-9fa3-712bb4ddd621","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":68,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"4eb1fc8d-3a15-4c84-b3fb-86e905db89db","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":68,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"02690d57-a7a7-4bb7-aa7b-881cfb25a67d","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":68,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"2b0bc2d4-6d9a-45de-9781-d6e47dcc4a6b","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":68,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"048767da-11c1-4797-a721-28af61ad051f","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":68,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"33c7520c-17f8-4f5c-8519-07b6422aa7ea","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":68,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"36976865-61c4-4422-bad2-ca5bc6681dea","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":68,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"c80330f7-c1ac-4410-96d4-0183031c468c","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":68,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"a672b15e-bbc7-450d-97e8-a8f858635887","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":68,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"18e8408a-34e1-46ef-8de2-a157284a1dcb","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":68,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"d29d2c91-fa4d-4bb0-a0b8-4a455e19f32c","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":68,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"cf86f7b9-9ce4-4a9d-85d7-a383cb07dd83","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":68,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"b13bcee0-b3b6-412a-a942-1eddca2e4bd6","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":68,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"412a2a9f-c82f-4eb9-abc5-bb07faf0f3f2","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":68,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"d9569529-8466-454b-88b4-e1c2a5590ca6","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":68,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"1dfcfb6f-6673-4127-9c9e-bddd0b071b75","block_type":"box","text":"initial public offering.","page_number":68,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"ede0cecd-cd0f-4e72-9fb9-ea8af69bad82","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":68,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"208bea58-6c82-4413-a304-61ca8a2d2b07","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":68,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"0f086911-26e7-4f2f-9329-55f591416dd4","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":68,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"a5024440-0930-49e1-9129-9adcbdb715b4","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":68,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"c43fc88d-ceac-475e-a5ad-30716ccd41f9","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":68,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"f6d9cf5c-6e10-4c32-b3b0-05da9c8ac22e","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":68,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"d3f80f4d-8217-4a20-b1c8-bc4a29169761","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":68,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"3a1d7c98-8ef5-4fb0-800c-bd2523377d15","block_type":"box","text":"more established companies.","page_number":68,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"19e56bfb-b9de-4556-8b5c-21120968ca7f","block_type":"box","text":"II-26","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"047fd35d-b871-4a22-a497-cae6ca4c1950","block_type":"box","text":"NM1026U-6032801-68/242","page_number":68,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"41a3dda5-e765-49a7-98cd-d67f0ccd9cc3","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":69,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"76fcf180-cff5-45bb-91d4-c0f4beb2adeb","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":69,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"42ea1ea3-af26-4570-bff4-c4a853608a33","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":69,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"8511b10a-14ba-4e12-947e-c4857a4339e1","block_type":"box","text":"below.","page_number":69,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"eba05891-58e3-426e-93d1-b551ea6cb147","block_type":"box","text":"Real Estate-Related Securities.","page_number":69,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"c1a29b35-4f59-4d19-957a-227bbf664399","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":69,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"3c4ea740-5fcc-4785-aabb-9345d093bb3e","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":69,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"44ef5ad4-c8e4-4e5b-80f5-cbd507fad51c","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":69,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"9a1352cb-6884-47ef-985b-5956e5412be7","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":69,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"bf0eb84a-2154-428f-a00e-2d86fb62261d","block_type":"box","text":"conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks","page_number":69,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"29917851-5d00-4782-925b-13b9e663b852","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property","page_number":69,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"8184446f-89e6-43f1-a7b7-1e0d4b6c2123","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":69,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"cb1ffdd9-6a10-490a-81c1-b3c132ffc708","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems;","page_number":69,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"6911e126-72b7-4339-830b-36fe17d5dcfe","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":69,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"f2c107e5-12da-4a43-83fc-835e0442f31b","block_type":"box","text":"earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":69,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"eff5c0b0-126c-4b02-aeb1-35c019a0487e","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":69,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"27bf5bf2-5c43-4cc7-8c3f-33b620f8a2a7","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":69,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"6930f446-653d-4e87-8a67-d68e6a32ab32","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":69,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"890bc385-4ca7-4e21-ba7b-91577de645ba","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":69,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"ccf446a5-bd43-45d9-a451-eb26840df496","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":69,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"87b324a7-59f0-404c-9143-7204b19f4d0b","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":69,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"93070aa6-7618-4a44-bd45-9de1b342350e","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":69,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"1c122c82-f99a-451c-a824-02c1b8b79838","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":69,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"3094b7d5-0980-4ae5-8ba9-5dae5228afdd","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":69,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"9acfdc69-c000-4282-bc5a-c904862d4e6c","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":69,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"8eef2974-362f-4313-9e68-c86e3e5dda7d","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":69,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"0b485abe-a2d4-408e-9477-f955bb72c6eb","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":69,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"e9e19565-da35-4c8b-998b-17543893d324","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":69,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"2563b426-d8cd-4a26-b7ff-ea746f3526eb","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":69,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"5294391a-ece9-44a4-a697-23d8615bc2c0","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":69,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"6f7960a5-1217-4b86-b9b5-aa993d05fdbb","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":69,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"463c6672-4bc9-46b9-a809-974d132420ee","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":69,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"5357ffcc-6ad0-4b96-8842-b68831e38b79","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":69,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"61cc9808-e9fd-4e81-87fb-fb15222df9f2","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":69,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"67eeb266-8043-46da-9367-5fa59cb6c3a0","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":69,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"11d4d080-2f8c-498d-ae04-6ea8b0e2940c","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":69,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"7634a5ff-60a1-438a-8a93-59bfacd0e64c","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":69,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"29fa747e-bb69-4027-8301-a830f2f4443d","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":69,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"7b314315-204a-4f29-98d3-ee7f3ed214c0","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":69,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"37e4a4bf-68e8-425f-8867-bc7cfcbc74f0","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":69,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"a4176ed2-866e-4d29-b017-4c2a49802789","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":69,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"1200a793-09ba-4c94-8cb2-a16a1ceb4238","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":69,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"5b3aba08-807e-4729-87c2-5cb4a5186c12","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":69,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"b663f253-61bb-4858-938a-5fcdb73e3e79","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":69,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"5318cae7-670f-4d71-bead-b3d9d2eee5a5","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":69,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"f373dbdf-d23d-4763-b884-02fc0eabf33c","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":69,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"651881fa-a602-4554-b7db-91c745d4201c","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":69,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"a5c07a16-84c8-4403-a467-49a501b2f52e","block_type":"box","text":"cycles.","page_number":69,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"2c8bafeb-7f6a-4c6e-933d-0bad5437425c","block_type":"box","text":"Tracking Stocks","page_number":69,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"43569d27-a263-4e02-81ad-c9900f061fab","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":69,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"83fcc6e4-06d8-4fc1-ae47-7961124ceb1c","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":69,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"55a763b5-b92f-4daf-8457-17c3e28a824e","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":69,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"b9bb3a4d-8262-47b1-9d2b-61b47a25bd8e","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":69,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"046f24a0-1b50-42d6-9701-48f1d998d553","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":69,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"7aaec8f1-2298-4f79-8967-d181e27b380a","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":69,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"5627dc6b-809e-48e1-9505-cc95cc029bc8","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":69,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"2a195a9b-0a06-4244-9f1f-9177b6e064ae","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":69,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"0dd8e496-caf6-4713-82ed-845035fad387","block_type":"box","text":"II-27","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"79d273fc-ad4b-4152-987e-2df754d58643","block_type":"box","text":"NM1026U-6032801-69/242","page_number":69,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c8d528fd-9066-4d0b-906f-d5c2c15c5c84","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":70,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"9b6f3246-4bd4-4733-afb1-e7e36abc5b4e","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":70,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"3d042c37-1c66-4e59-87ff-769e1114f548","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":70,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"27a7bc5f-ef49-4cbc-8524-6bf1fa3c44c1","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":70,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"27491ab6-8d0c-4c1f-b3e0-f996dd68e5b8","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":70,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"0d2f4ec0-012a-4428-8eff-83a5d09ef654","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":70,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"6133de7a-21e0-4b72-b34d-99de45f644cc","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":70,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"6f97af3c-71a7-43f9-908e-4d8af9cb5262","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":70,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"84ca40ed-453e-49b3-9124-a7f9d4b447f4","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":70,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"5873506d-d308-4f14-a278-c75e59a90898","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":70,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"16ff9818-b5ab-48cc-ace3-3de80d3bb78b","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":70,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"0655d481-2d89-4708-88c4-22b864043c4c","block_type":"box","text":"ETN.","page_number":70,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"278722eb-9a95-4c04-b932-c485cb4bf262","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":70,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"a44e8172-4f66-44f4-b666-438a433c4db9","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":70,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"eaf3b2a8-5527-4b7b-b251-fcf3432a0ec5","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":70,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"9935d086-2a37-4035-a44f-9582b8009935","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":70,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"6b80edb1-9fdf-41b7-b93a-5a419cdf5f89","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":70,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"a7f27798-a950-4e69-97de-0f8e24e8e6f1","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":70,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"d967b53b-e1ce-4d05-87d2-d922f73e3dff","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":70,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"be9e5de5-d350-4a4d-bdb8-268b1a2bdae7","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":70,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"8ac2036b-9332-4d5b-a7aa-3154eaa46dec","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":70,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"635e5fc4-eec5-4e38-afd3-bc7754175978","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":70,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"ab1aa368-7a7d-4920-85be-786881753225","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":70,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"383e672a-51dd-4494-b6a8-1b62348c3ca3","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":70,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"a7017361-de04-4d8f-8157-99be4b5b270b","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":70,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"d9305961-9aed-4b5e-9e4e-5c609557f38e","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":70,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"79ee79be-460b-465a-b54b-d1f6778ec892","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":70,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"0eef0bbb-7826-4fdf-b727-4413dfdc7636","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":70,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"45ad9eee-1ac1-46bf-a3aa-366231df568b","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":70,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"186269e9-0222-40c5-8330-4c24eae0388b","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":70,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"033ea481-ae9e-4744-993c-5cb8bf6ec817","block_type":"box","text":"Foreign Investments.","page_number":70,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"c0d8c787-1d83-4663-911d-02f4cfdb8955","block_type":"box","text":"Foreign Investment Risks.","page_number":70,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"bc05f5b9-5d1b-487c-be13-96b00899716f","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":70,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"c7dc73b2-73d0-4f1b-b270-400e764953e3","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":70,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"cdb42af4-00b5-467b-b60c-a4724614eeb5","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":70,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"ff08f4b6-bad8-4082-855d-f95941437950","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":70,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"ac4bfaf0-7cf7-430f-8f37-28540e411cb8","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":70,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"5c63a9f5-b5cf-401a-b900-128a8a930576","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":70,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"a32751c9-3821-4fa5-8cf4-0a22d99582a2","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":70,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"b1b29db8-07c6-401d-ab7c-1382f54b66e4","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":70,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"cf6c3fe3-a20b-4b53-8993-c19d06c1a989","block_type":"box","text":"benchmark index.","page_number":70,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"0a9e7b98-f9d4-47ec-b311-c8c0c2949c8c","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":70,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"cc988e4c-18a9-4bd5-bc84-d385cb1c75fd","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":70,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"4ac70a79-1572-4a86-9ce3-ce666b8dc67d","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":70,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"29f25ce7-8fbb-40c0-84ad-15d285e2f5c9","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":70,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"7d98b621-2c86-46fa-a3ee-cbc1d54335a3","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":70,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"082d1365-2aff-490a-8f9b-ab6848f3f96e","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":70,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"c038b9eb-f9d7-4dfd-a269-5a779c8cc054","block_type":"box","text":"securities and zero-coupon securities.","page_number":70,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"5ff44327-2f5b-408b-b08f-276f7bf1eccf","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":70,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"1deccade-ab83-4c67-9e7d-2f662193166c","block_type":"box","text":"taxes.","page_number":70,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"25203cbf-5fa4-4f80-8eb3-b1219e7f01f4","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":70,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"fd463c29-5ebf-4895-838f-3cba7d0ee7e2","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":70,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"4573596f-4f13-40b0-aa4c-22227cbb1d11","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":70,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"fc5b1552-762b-4459-8369-ab08302fa481","block_type":"box","text":"II-28","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2a7d01a0-0383-4134-b24d-cec7c8fa2cf5","block_type":"box","text":"NM1026U-6032801-70/242","page_number":70,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"80234136-055f-4e50-948e-9414bd779e14","block_type":"box","text":"underlying security (","page_number":71,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"db080270-ca15-497c-9050-b485abd6f5f1","block_type":"box","text":"i.e.","page_number":71,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"fd439dc5-cb56-417c-8fa3-1e3d8d5373f1","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":71,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"6428cccb-2a84-4abf-86fa-609a95eee788","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":71,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"633ca1e1-da79-42c6-a11e-10a729aa56a5","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":71,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"b66fb8c0-5211-4f3c-9d89-a61214e4adb7","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":71,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"cd0f11fd-db08-4cab-8b07-8c35b52123ed","block_type":"box","text":"Foreign Market Risk.","page_number":71,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"ef0dea0d-ae16-4b80-b8e8-968d12251a67","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":71,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"8ca62db2-20f8-4071-8bb5-2ec7a9c26524","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":71,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"9d4d2abf-06e7-436b-b338-ee3cc7a4261a","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":71,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"eaef4316-6c32-44d3-be44-05fb77975d43","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":71,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"ffd6928d-6d98-4af6-806a-223675d8cf02","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":71,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"7df93d24-f3fc-4c2a-b890-cc49ef5e234b","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":71,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"494fe0af-c26f-4f51-b1b0-444de7b77ffa","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":71,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"4bb1c3bc-489d-470a-9afc-d9f6a1e02a61","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":71,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"fc426475-f67b-4e47-b770-b940ac8ca1ff","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":71,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"6f047fdd-ecf4-472e-9f4b-1fd288a4224e","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":71,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"cd375ab4-8bb0-4ad3-8b04-a7cd6d253316","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":71,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"1b9efa7f-b5ac-46aa-b3ab-de8f98bc7711","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":71,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"c24b1376-d37b-4ece-8808-d0f5bc4c1232","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":71,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"54348e64-ee5c-4949-8a56-152bbb8206d8","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":71,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"52a968f4-83f8-4be6-8433-1c78409fd13c","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":71,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"3747631d-0ad4-4d8c-9363-1602d2666fca","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":71,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"25895dd5-262b-4139-add6-b2b31fbe29f8","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":71,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"2c0b114c-d52c-41da-a31f-1d728684a10b","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":71,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"14431dbf-4ec0-48b5-985f-61390a368ec9","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":71,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"310612dc-c6ea-4a5c-9edc-59b2d03fafec","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":71,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"3cdf8814-1189-45ec-aebe-32e731b8ef90","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":71,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"5bb019dd-f814-48ab-8f0e-9649a8854b07","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":71,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"5d6c9f78-eeef-4d3f-a1d4-e41112cbd987","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":71,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"0216c57e-74d8-4229-8449-8e686ecb1009","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":71,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"088f78c8-ede8-4986-8e95-ea14656d5a44","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":71,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"4e05edba-5ae5-416e-858c-de6691506a47","block_type":"box","text":"Fund’s operations.","page_number":71,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"ce0c76e2-d562-4e7e-a849-a9c96605ab0d","block_type":"box","text":"Foreign Economy Risk.","page_number":71,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"277de882-43f4-4493-ba8c-c08c9c1dc19e","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":71,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"1fb21fdc-1249-4582-81ec-320a2b89a947","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":71,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"d27a3b79-948b-4893-896f-006fad918ba1","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":71,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"6d109080-5eb8-4a2b-9c9b-1dd164e3d62f","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":71,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"df216111-b7e6-4f56-95a5-a09c2305d083","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":71,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"ead6dc5c-10a3-4bf3-9255-67508636a508","block_type":"box","text":"measures.","page_number":71,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"44d2d6bf-1e42-40c1-a8c4-971d8c8a137b","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":71,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"85ac7a87-aecf-444b-b6ba-627270a52820","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":71,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"f1b29b9c-3743-4e3d-98cb-dfb408c74c45","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":71,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"50684aeb-922b-45cb-a3f3-8fefc9e4cac2","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":71,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"0f126ed5-1a17-44cb-a32d-185395f0fc83","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":71,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"04968408-62b4-43ae-9a4e-a0579d133be5","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":71,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"d953d5fe-fb51-4bd3-8dfc-c909aff579fd","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":71,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"8dd1aedc-5a62-4e2d-a10c-ca5534b89bf9","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":71,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"1b566602-7c5c-4b50-9ce1-6994339a77e6","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":71,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"0473f2b0-de1f-4580-be5d-3cf6de2f07d1","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":71,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"d3480496-3a18-4112-beba-bd7d700fe625","block_type":"box","text":"United States or abroad.","page_number":71,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"0329b75f-3190-4054-8c5b-11752889ab96","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":71,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"38092a14-feae-4f2c-9b24-fb7c6d3f2043","block_type":"box","text":"Many foreign governments supervise and","page_number":71,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"7d0054c1-4d3d-4da4-9580-e1574b1a5952","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":71,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"e9afa07f-d96c-499f-a2bd-a00cbb29813a","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":71,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"c6545fea-a2b6-4412-95cb-2f5a3d1a6114","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":71,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"39b9d0da-ad61-45bc-935d-42b4f6797de2","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":71,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"bceb48f0-4918-4d15-833d-a228556f20ad","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":71,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"d8c85d52-2a63-4d5a-94ae-13d646c029e1","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":71,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"1938e135-6520-4791-8024-55548a06f840","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":71,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"941f17b3-d90d-4486-9935-82db5a6c9a57","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":71,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"49410b42-21a8-4acf-98ee-122933d3edca","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":71,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"4532951d-9e67-4e34-a85d-be13a1cd0dc3","block_type":"box","text":"II-29","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5f9200b9-3179-4f8f-b073-1ceda85bd303","block_type":"box","text":"NM1026U-6032801-71/242","page_number":71,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9a89d86e-829e-4b72-b518-dac12462d9b2","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":72,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"91e9dd1d-a834-45cf-8d44-58e3a4b41a19","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":72,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"268510e4-0c07-49c8-a09f-b8663673fd61","block_type":"box","text":"investments.","page_number":72,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"e85e9b13-5288-4fd2-8eac-63bfd6121c1a","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":72,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"9bc3ffbd-2ccb-4166-9f35-192289c7a7b6","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":72,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"3055e6fe-949f-49f5-925a-7e69d35a5863","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":72,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"347ba616-c8e9-4c93-9cbb-2d9b41994422","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":72,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"5531f5b4-80ac-417d-8979-a9a0ae830018","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":72,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"27ef3b03-a46e-4f7f-af18-267a2cedfb77","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":72,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"976031a4-e07a-42bf-817e-d7953b8ae86c","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":72,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"5eb41c9a-cf35-47d9-ba3c-473f4797b45c","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":72,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"30808cce-8f7e-4340-9c92-4be2ef6aadd3","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":72,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"0bfe3879-b3b8-448c-b2f8-07646df23ea2","block_type":"box","text":"States.","page_number":72,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"285a282d-4b11-4618-96fa-f1aec1cf49fe","block_type":"box","text":"Publicly Available Information.","page_number":72,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"1192c6d8-bbfa-4133-b815-06832bc0d107","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":72,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"2a2dff0c-7771-4102-a321-7db06c91ea14","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":72,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"ffba0c9e-5e20-458f-8d92-2a5d22afa363","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":72,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"20fc0a55-842a-4fab-8654-84a94ff6ab10","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":72,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"b7065ee9-aaff-47bf-8e04-5bfaa0268f0b","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":72,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"84d5d2f2-9add-4e04-8f27-58a772f4e4c5","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":72,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"94a60e48-5ed6-4e1e-bfb1-7b9a7c699016","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":72,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"f91a88c5-b914-41e0-81f0-c0bdddaf4fd4","block_type":"box","text":"United States.","page_number":72,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"b0d90d3d-d29a-484b-9a2b-7b3c08d8ff0b","block_type":"box","text":"Settlement Risk.","page_number":72,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"a6ce1584-fae0-4c0d-8c23-374ea3d6ea13","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":72,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"f65dfbfb-94d4-474e-95d8-dd8d62c41580","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":72,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"f4c903fc-1924-461f-9350-7a8e3470f826","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":72,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"9ee63fa0-339f-4e99-86a0-a0de6a77f104","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":72,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"a4c1f715-baad-4a1b-a171-5fc96b985a5f","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":72,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"404a50a9-d56e-4ba7-9f0d-b2dd09c8bc13","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":72,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"80ef960b-4ee4-4b32-8eda-e5888201d1aa","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":72,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"46c52300-59ef-495d-976a-b6e43a7579bc","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":72,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"ff34ac86-d6f6-4838-8d0b-b96a2ba9e8fc","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":72,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"6bc63bbe-2d5f-41df-b47b-02f4c0956939","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":72,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"98d33a4b-074a-49f8-ab9d-704961d29605","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":72,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"8ebe1840-a9b0-44d2-adaf-b1460257add1","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":72,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"474ca536-c5a3-42f6-8312-301fbb28a62d","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":72,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"64ae91b0-a142-40b5-aab0-b1e6e248056d","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":72,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"dba140cf-e980-48ec-bbdf-6b5bf42c7f3f","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":72,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"d12448da-e26d-44f5-8b7e-0a7967673518","block_type":"box","text":"Sovereign Debt.","page_number":72,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"9ca02f8a-1657-4384-b1ae-4d6b74d613a2","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":72,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"778745bd-e359-4691-9ab5-f6937acdd23a","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":72,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"bbb91e19-d862-43e3-92b6-b857593d4669","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":72,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"98549348-9ed5-4993-af66-4b61e8798457","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":72,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"97f54551-39a3-431c-b216-9d3ea045d472","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":72,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"778cda5e-f1e5-476c-8ffb-dff130373cce","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":72,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"085fe213-c95a-47a4-97f7-9c92ebc7e24f","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":72,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"d20e9f06-d3c4-4d73-a655-08b97833d625","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":72,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"a1d8cb8f-1c78-4cbf-8110-a73f1b3775e9","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":72,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"3d6d8c14-17ec-43b9-b619-a622217c1607","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":72,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"978fa386-3c85-4222-83e8-33471d70cdfa","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":72,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"7465bcf2-8b87-47e9-aa23-acb512b4e8f2","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":72,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"fda4db7e-5198-4737-b561-49908f16ef59","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":72,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"5dd8164b-2fd7-4f66-ad4c-edbfa23040cf","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":72,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"81a3caf1-e724-40d5-b743-87c487d93cec","block_type":"box","text":"debt.","page_number":72,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"ccc5a35a-de0b-4ca8-83bd-00e1183e586b","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":72,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"b60d4085-c1c1-473b-b31b-39d5928ffb90","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":72,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"9d77d87e-1fce-45ba-bb2c-7ea7c3877f6e","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":72,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"f91311af-f3ff-46bf-927f-2c0a9f3b9c55","block_type":"box","text":"II-30","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"20a2536c-992a-4ea3-8c16-42ae5d14b952","block_type":"box","text":"NM1026U-6032801-72/242","page_number":72,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3f9dabf0-b326-4b3b-a5c6-b86360b6c9a3","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":73,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"f33aff51-7271-4562-af88-e92eeddac8e7","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":73,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"c0e3f61a-d4b9-4607-88f7-ca0a43763e4b","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":73,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"54c0427e-5101-4955-b01e-13189ae0adb8","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":73,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"8c81de36-78c2-44cb-ac55-c0485b995eca","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":73,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"126c4bb4-04c6-4649-94e8-a469a85e7007","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":73,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"8a46435e-b2f9-4ba2-8b56-b57757bc636d","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":73,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"e4023a24-f08a-425a-b316-4e2bed42282d","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":73,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"beb679a3-c6d3-41e4-ab76-89269ac0d800","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":73,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"8e8d0fcf-a004-47e6-b6b9-bcadd22c2f7c","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":73,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"2de240d2-5fd1-4c1d-b84a-ef962347ebf0","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":73,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"83670d6d-99d3-4d56-8a2e-e7bde69ec898","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":73,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"ead78f06-c48e-4951-b72d-9f18de74d781","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":73,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"0a6ed00e-f7af-4cb2-b247-ed268eb27de8","block_type":"box","text":"in the Fund’s net asset value.","page_number":73,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"8a0a3585-b61e-41fb-b8ab-163e6cb5d9fe","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":73,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"4aaea141-2bcb-4923-b734-6782dc0010b0","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":73,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"13566373-6f83-410a-90d8-dc3263ee7ddc","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":73,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"0b8e867c-81d0-4455-8378-1454e538d25c","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":73,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"0c2bdbae-fe89-48ed-b486-d5a42ed0991e","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":73,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"40cbf92e-a763-4166-8967-d3aba9a9184e","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":73,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"06d0b653-de74-4f44-947b-46366bc60ba3","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":73,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"57f045ff-fcc1-4200-92ff-7b0ab8e1b845","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":73,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"d6bc3d3c-4072-48fc-b3f4-4f40ab3180ed","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":73,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"afdead86-f941-4c7f-9c94-d08db6969b83","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":73,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"ab7f63ed-d512-41e8-9f83-e1574ef3299c","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":73,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"459968da-f9da-4ff8-999b-02e07d8361aa","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":73,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"001394f3-bcec-4612-a7ac-7f7516b95c04","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":73,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"7d6e40a6-988a-4d53-b63d-b254c5db7ff6","block_type":"box","text":"trends were to continue, it may have an adverse impact on the U.S. economy and many of the issuers in which a","page_number":73,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"d15c7cbb-05a8-43cf-8722-b9945a2365f2","block_type":"box","text":"Fund may invest.","page_number":73,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"2941b30a-1709-4ff9-a4bb-6b6a8fb7f7fc","block_type":"box","text":"Funding Agreements.","page_number":73,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"23eb785d-b489-47cf-9370-d95776498d3d","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":73,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"8bbaf481-2cc2-4fd8-bf4a-8422308348bd","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":73,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"89fad8a6-2cba-4c60-b6e8-331ff3fa812b","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":73,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"c0b9da0c-2aa4-4353-ada4-7b6cea914228","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":73,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"c665cab3-6f8d-4f46-83dd-42b260dd0abe","block_type":"box","text":"not be less than a certain minimum rate. The purchase price paid for a funding agreement becomes part of the","page_number":73,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"c285470c-41ca-413d-a153-322a6e56562e","block_type":"box","text":"general assets of the insurance company, and the contract is paid from the general assets of the insurance company.","page_number":73,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"5e9423cf-afbf-400d-96cf-244d69e92b2a","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":73,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"289ce179-2b49-419d-b094-50dcd20faf89","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":73,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"f6375446-2771-4671-9053-ba351919f9d6","block_type":"box","text":"Guarantees.","page_number":73,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"0d7f87f1-8e37-4522-9e8c-7176da143b9d","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":73,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"f58a8691-802a-46d7-ab06-fe30e68a15e2","block_type":"box","text":"issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will fulfill an issuer’s","page_number":73,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"f415450c-ea47-4045-bbaf-d240baf636d9","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":73,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"5e2dfa63-e447-40ca-a1a4-7df63b658611","block_type":"box","text":"Illiquid Investments.","page_number":73,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"e7abbac8-382f-406c-9230-305a149aba53","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":73,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"0e548820-d142-41a6-85cc-e38982ba6e2b","block_type":"box","text":"Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any","page_number":73,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"cbc4bcf3-46d8-4bf9-a990-0bbfcb3c7387","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":73,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"e554ed88-0b95-4c2e-bf6d-3bb098fb49cf","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":73,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"b503530c-461a-4968-86c4-6849a48c808d","block_type":"box","text":"investments may become illiquid after purchase by a Fund, particularly during periods of market turmoil. There can be","page_number":73,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"9fd53430-5cbb-4fd4-86dc-721a799f2917","block_type":"box","text":"no assurance that a security or instrument that is deemed to be liquid when purchased will continue to be liquid for","page_number":73,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"4dce2cf9-3871-4ebf-b188-698d0987e5bc","block_type":"box","text":"as long as it is held by a Fund, and any security or instrument held by the Fund may be deemed an illiquid investment","page_number":73,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"0e25292c-db8f-43f9-b880-14fa979f0ad5","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. A Fund’s illiquid investments may reduce the returns of","page_number":73,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"7764f9c6-f02f-4b02-9c9a-f5f7c5d27cfe","block_type":"box","text":"the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. 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If illiquid","page_number":73,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"a84756b7-2b2f-4c7c-a312-3b5fb72ce166","block_type":"box","text":"investments exceed 15% of a Fund’s net assets, the Liquidity Rule (as defined below) and the Liquidity Program (as","page_number":73,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"96f5ed8f-11f7-465f-84f1-f29fb0023f4d","block_type":"box","text":"defined below) will require that certain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":73,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"1799b5ba-49e0-4b03-8237-c1a79a3db5cd","block_type":"box","text":"comparable liquid investments. 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The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":74,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"934e36db-61cd-47f0-ace0-378b72c8c228","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. Investors should also be aware that","page_number":74,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"54dbec3e-95c1-4b73-9ca9-c05d30beceb9","block_type":"box","text":"the investment performance of each index is a hypothetical number which does not take into account brokerage","page_number":74,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"7dea8df0-6e1a-4caa-9e07-9844a10f14ea","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":74,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"541c4429-d436-441c-9efd-c95a4feb822a","block_type":"box","text":"(","page_number":74,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"d28af57d-62fd-46ba-aa73-50927d3ce27c","block_type":"box","text":"e.g.","page_number":74,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"7c2b4b40-6d0f-409f-af8c-d1b83e7ea24e","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":74,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"d5d7b9fc-fcae-4d00-aa9d-563222e49d5d","block_type":"box","text":"replicate the total return of its target index, the Manager generally will not attempt to judge the merits of any","page_number":74,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"5f27a5f1-51c5-413d-8ea5-65b7d1b04118","block_type":"box","text":"particular security as an investment.","page_number":74,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"7e0aea8b-bc08-4b3f-abe1-092906d78d33","block_type":"box","text":"Tracking Error Risk","page_number":74,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"24a3ee77-5a7b-4dab-8688-49da2116f7dd","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":74,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"def72165-8449-4f7b-923e-575284f6f8fa","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":74,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"815447cb-28e6-404f-a5c4-659484ec46d2","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":74,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"489ffa07-a5fc-4306-8a84-6d0d4052a4da","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":74,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"2d67ab90-5989-47d4-9ee2-464b7cc9f813","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":74,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"8bfa8f06-3eaa-4a6c-ae2c-ac9d153a6c1f","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":74,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"a892f4c0-41b1-40a2-98cf-268246f7badb","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":74,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"838bdf23-50a2-4754-87a1-300b4830fd63","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":74,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"e030c3a0-6fe4-4aad-bfc6-becab4bd9777","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":74,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"1f8fd41e-b9b8-44f0-85f3-f1f696620f21","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":74,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"1dca152c-1034-4b19-b9db-4c87efacb586","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":74,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"9d0fb003-05e2-4af2-a02b-251bdfe6c9ab","block_type":"box","text":"When an issuer is introduced by an index provider into an index tracked by a Fund, the Manager may conduct an","page_number":74,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"36825cc7-b759-4007-938d-3e6a91c3565c","block_type":"box","text":"analysis on such issuer’s securities to identify and screen for outlier high risk behavior (such as rapid or unusual","page_number":74,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"a6916d65-b043-4278-9cd0-9251bf1ba5a4","block_type":"box","text":"price growth that does not appear to be supported by publicly available information on the business and assets of","page_number":74,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"ec1e8aa3-ef01-46e0-bebf-9374676f26e1","block_type":"box","text":"the issuer, unusual or significant short interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":74,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"72de9bfd-0849-4696-9412-4c184e99b228","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). 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If the securities continue to be included in the index, the Manager may underweight or","page_number":74,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"82e3e862-e207-4f86-a1e7-50c6bfad262c","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":74,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"0c975ee5-d6f1-4228-8d00-3f51f6f84fed","block_type":"box","text":"error due to the divergence in the securities included in its portfolio from its underlying index. 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S&P is not responsible for and has not","page_number":74,"box":{"x":70,"y":778,"width":803,"height":11}},{"id":"07dbab2b-4032-4141-b456-e92fd3bc5958","block_type":"box","text":"participated in the determination of the prices and amount of any Fund or the timing of the issuance or sale of","page_number":74,"box":{"x":70,"y":793,"width":787,"height":11}},{"id":"35f8a4c0-aa33-4343-a335-e38b651c8225","block_type":"box","text":"shares of a Fund or in the determination or calculation of the equation by which a Fund is to be converted into cash.","page_number":74,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"dd358254-1ad3-4996-81f5-1d2dfcac3237","block_type":"box","text":"S&P has no obligation or liability in connection with the administration, marketing or trading of any Fund.","page_number":74,"box":{"x":69,"y":823,"width":742,"height":12}},{"id":"3be6faed-ca83-477e-b6ca-1fa4c8f7d517","block_type":"box","text":"S&P does not guarantee the accuracy and/or the completeness of the S&P 500 Index or any data included","page_number":74,"box":{"x":102,"y":846,"width":761,"height":11}},{"id":"7fc2e66a-5291-4faa-ac18-971efe9a3646","block_type":"box","text":"therein, and S&P shall have no liability for any errors, omissions, or interruptions therein. 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To","page_number":76,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"3095f0a8-2ea7-4d72-b5f6-d49a0ba184c9","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":76,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"c2631772-a096-48d3-a966-1fb53cbafa33","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":76,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"92c04343-1594-4882-806e-668d9d233876","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":76,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"36c0bf67-c766-4250-8123-a154bbc8bbb7","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":76,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"7aef67e3-3d18-4224-a325-67ab7d30064e","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":76,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"a6f339ad-42e6-4c4b-b0ec-b2126e507764","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":76,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"7ae65df2-ce4c-4bd6-998f-1fbc7330bb03","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a security","page_number":76,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"57749670-321a-4921-9006-6d1257ec4f9a","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":76,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"49d05cfa-76b4-4717-bb21-17e3f03a5235","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":76,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"799ba8bd-3ffc-4aa9-b62e-abebf9aebc62","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":76,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"5ff09962-1456-4f35-a854-1985f7d1fb2c","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":76,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"393319df-9e1e-463e-bca8-0faeac48586b","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":76,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"8565387f-8e99-4704-8e1c-44057672b677","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":76,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"af733faf-cdd5-41f4-91f5-febea7cede56","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":76,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"e75b86e9-76e4-4668-a589-c414892878db","block_type":"box","text":"Inflation Risk.","page_number":76,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"13d376d2-5675-461f-b6f7-12d0023b08de","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":76,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"9ae0f1a9-145e-4553-b8ec-48834533cc15","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":76,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"1280b7b9-c0cc-464d-830d-5d2cab11307f","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":76,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"1031b294-2cf6-4ba3-8934-99207fdaca26","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":76,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"7f2c0911-ce99-4f9e-b88e-66e381befd38","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":76,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"13455563-32a3-4549-9ceb-75f331934e82","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":76,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"90d2e1a9-51f6-4d28-adf0-71577b48a66d","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":76,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"4dd35856-843f-4129-b7db-970edfe86e53","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":76,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"438a0966-3d20-4508-b1f7-52ffded0caa8","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":76,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"010ee1a3-c46b-4491-91bc-20a26558a443","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":76,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"134450c5-e0d8-4c68-a98f-2b1c7df1f8f5","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":76,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"454ba510-1e3a-4802-9e30-4171aac93755","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":76,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"054bc864-2e93-4716-8479-2ab10ec0438b","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":76,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"5facfc1e-915b-48a1-afdd-f443ec2bbf20","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":76,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"f746ce6f-ea11-497f-947b-c9ee5bb1746d","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":76,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"4ccfc5cc-adfb-4f73-bceb-e9e8594502c5","block_type":"box","text":"II-34","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"821e4096-d267-4b74-9932-a98b744baa84","block_type":"box","text":"NM1026U-6032801-76/242","page_number":76,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7b7b8cad-5e7a-400f-9659-b5e3bf17f9dd","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":77,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"fc49af62-c43e-4fd6-8e8b-5f41ef3b8f19","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":77,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"3f510511-eaff-4fb7-81a1-2f26f9323b14","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":77,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"927c1d36-7f66-42cf-b370-da2c44cf4020","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":77,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"f70313db-1b66-4e86-a4e1-215828f9463f","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":77,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"c798d35f-0c4c-48fc-a987-5d0b952a73eb","block_type":"box","text":"be available for very limited periods.","page_number":77,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"3ae3c70c-9830-4a30-9d7d-a72eece2a54b","block_type":"box","text":"Investment in Emerging Markets.","page_number":77,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"76fc7e16-3ec6-41d7-b89c-4b009a4fee4e","block_type":"box","text":"General.","page_number":77,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"7c2d23e8-e9b3-4c4a-9051-0ca08c8d9224","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":77,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"00ec5800-5233-42eb-80b6-f22d9284e603","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":77,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"9696daed-a683-412a-8004-e8e8544d80ed","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":77,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"0e8d17c0-61d8-4bfd-8597-3a24bc629bb8","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":77,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"2c430583-d079-4c3c-aade-f4ebf0ff7326","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":77,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"3d135dee-dce8-422b-9d81-d6a179b817ca","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":77,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"66b64a72-4d9b-4842-9cc3-af91ce0dc7bf","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":77,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"88f63d65-6e9a-44ed-8000-beec94c6d6b6","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":77,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"733a2491-ec10-42c7-ba28-f9eda74dc674","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":77,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"78211a59-1b81-4707-9ae9-a19e5ee23d5b","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":77,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"74608f2a-8bf5-49f5-ab1b-deff50aa0f68","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":77,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"8a8bca90-999c-417d-bc22-7c04f628dd54","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":77,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"e2853ff7-c6af-45e1-b353-9ed876aed30d","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":77,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"3c72e5eb-9b8a-43d4-97df-a4e73aa19c94","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":77,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"1af07c56-fead-4539-93a5-a27841b8a3c5","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":77,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"14b06df2-a289-45e6-9d38-df7c379cf2a6","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":77,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"949a1fe2-ee80-4271-affb-41bdb6eb1367","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":77,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"dcd6e30f-7691-474c-bbf9-107413ed5e4d","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":77,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"ae35857b-6c51-454a-bdd4-bb7582a96c03","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":77,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"f4a20634-5176-4a1b-a363-3e42a67768f0","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":77,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"1d53460c-fab7-499d-98f0-eff7b576f75b","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":77,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"a1f15902-1de1-410c-ad7d-8b90f53de0ab","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":77,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"9d193b53-0256-4dea-a544-7ef6e80ece18","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":77,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"44c2a6f3-cd61-47bf-95da-1f684446d5f0","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":77,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"75796aeb-bb3f-481d-ac62-7fd261d01755","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":77,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"ebf0804c-4359-4456-8ccb-80575c149c84","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":77,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"e2b8b640-54c9-459c-8ea7-c96d6496e41d","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":77,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"d726ca14-97a8-4338-a42a-5d84f4623237","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":77,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"505855a4-c297-4e61-b9d7-de3c87c0eb34","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":77,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"0743a3c1-909b-44db-9e15-2bf12816a4b3","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":77,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"cd5bddb0-4015-40bc-9967-1a7be98fdc8c","block_type":"box","text":"volatile than investments in more established markets.","page_number":77,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"b5d2321b-1143-45ac-92e4-4b076ae65424","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":77,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"6536eaed-e3a7-42a8-a694-eac8d7e91114","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":77,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"9e81f574-3021-4ceb-8045-4df438dafe06","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":77,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"05e033cd-0b9d-483e-a7b9-ceda4520fa22","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":77,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"42e8c156-9829-41fb-bd85-c73c14d6daa6","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":77,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"d611b13f-f44e-4072-a3f9-6400ef315f83","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":77,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"9096d064-a467-4fa9-bd20-660d389284ec","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":77,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"6b949728-3fdd-4e5d-abfe-2d983dbb888d","block_type":"box","text":"acquisition or disposal of securities.","page_number":77,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"271619a1-1841-44d0-85ca-c914274708ca","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":77,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"66554fec-57aa-4ab6-9270-412a3b241470","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":77,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"7b04ea83-e81e-4bbb-a033-05bcc9b9dc23","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":77,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"0f51e3c8-3e71-4c32-a548-bf27c7b93ce3","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":77,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"907e9e21-f6b3-49cb-a5fb-e25b73a7c4f3","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":77,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"191381d0-b82a-40e8-9fdb-6c5c192d84ff","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":77,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"6b0b9991-5c3a-46ea-821d-d0ba56e0ece4","block_type":"box","text":"II-35","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8ec2afee-01f0-47ee-9c68-1ef267f41604","block_type":"box","text":"NM1026U-6032801-77/242","page_number":77,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3bda4d9e-4eaf-4f48-b81e-d3763508e60e","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":78,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"8b03712b-b77a-49e3-93dc-54acd71e53a5","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":78,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"8ab72d55-58d7-4e7a-8ff5-71a018e5901d","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":78,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"07e715f3-4c65-4488-b0b6-348543509ef4","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":78,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"535b303c-034a-4d70-b3e1-a5c580d3f64b","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":78,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"19021efb-644e-468c-82f9-e8e743114348","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":78,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"2bfe428f-5098-420b-b627-372e42a9a8c8","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":78,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"1b300055-b363-4d18-9c09-b5044531becd","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":78,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"e0661ca7-3846-4bf2-8bd1-5e9c47bc4ea5","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":78,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"af5b6a1a-a1dd-4f73-a46c-cccfe976e697","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":78,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"3c78839f-b1ca-48f7-a902-23ae49a01ea1","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":78,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"eb3126e9-378c-4551-ac6c-e34585425f5c","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":78,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"0252be35-3579-4a9e-8d6c-4418d61011fc","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":78,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"57a633f1-46b8-439d-b2f0-477a676eb573","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":78,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"ad508087-b7ac-458c-a262-2ad3568914ca","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":78,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"55198d9e-0a10-4b81-882e-447cf4055916","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":78,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"fcdf68d9-0808-4790-ab6b-1f8591e22642","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":78,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"98a30399-3bd1-4e02-b93e-5e02dc3eef85","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":78,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"88d7cfe6-e6f8-4461-a3a3-046da5592268","block_type":"box","text":"performance of the Fund.","page_number":78,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"24866cd7-981d-4338-80b7-8d1db818a771","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":78,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"ee2d33cd-3e38-4b6c-aab0-0eced4716e0f","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":78,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"e6c92738-ced0-4efb-8212-6a087d79c802","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":78,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"f710cad3-b667-4f51-a270-067e85fd4846","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":78,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"50f01221-35f9-4b56-a05a-7c68178f7bea","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":78,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"7e66c24c-c5a6-4f38-907c-070749aeb167","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":78,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"b3572928-885b-4457-b7a0-30d40fc19c6c","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":78,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"1ac68328-e428-4a58-9b76-971fcb9c4d9e","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":78,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"3cee7d7b-ff07-498c-95eb-8c4dd11de1c6","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":78,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"f1e2d6a0-b1dd-407c-865c-580bf83168e6","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":78,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"b27e6422-8f0e-4c3d-84b2-ab187b0ed0d6","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":78,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"7141046c-6385-47ca-a51c-fc54e7455b2e","block_type":"box","text":"affected by a variety of factors.","page_number":78,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"c3001653-e9b3-4ed2-ad66-43cd654a1d35","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":78,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"1fd77d56-c260-4c10-bdab-d09dc3da920d","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":78,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"2aedde11-1885-4a9d-95b4-c41152f5d7ea","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":78,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"fa9f408c-95fc-4c8c-938a-5d3d7c383574","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":78,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"3b02fdbd-fa57-4970-aff5-aebac6e5a076","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":78,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"1c89b9db-4870-47ba-b4b3-75b96bc8154a","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":78,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"5957685e-bfe3-42f8-b65f-4eb51922568f","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":78,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"1192d385-71bc-4209-9304-c03d251c8db1","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":78,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"f84654a3-4c7e-411b-8ce2-305375f20478","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":78,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"fe3b3c44-ca3f-45f4-a9dd-446507a9f03c","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":78,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"b8b15e7f-6280-4398-a361-b640f8e316a8","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":78,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"ff600822-e5ed-4547-b239-143d5e7a4dfb","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":78,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"92ecec0e-a3d5-4f3b-a560-6b7d5b7b3b94","block_type":"box","text":"nations.","page_number":78,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"cff0d58a-caa5-48ff-9938-9febbfca5371","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":78,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"62b76325-3bc8-4266-8cef-38803635f82f","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":78,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"45e7537d-525c-46ae-bc0f-c8112b35713f","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":78,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"7ae92305-a54d-4aff-9502-3ee9a1562047","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":78,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"3eb15f9e-0c8a-417b-83eb-dddcf8f6ae33","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":78,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"b8c246a8-64cd-4122-affe-9006b8035718","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":78,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"94396d11-b39e-4eb8-9fff-693ded53fa90","block_type":"box","text":"market Asia-Pacific companies.","page_number":78,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"a2f7b0f4-1149-400d-b768-7de567c8ba9c","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":78,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"617be9a1-8b63-4a87-8497-8022c1aa12bf","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":78,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"581e7518-e681-4425-83ca-a979ea5e1a51","block_type":"box","text":"services for such securities outside such countries.","page_number":78,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"a9e80916-2aab-4fe7-9087-4db49839c7bb","block_type":"box","text":"II-36","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b04c3463-671d-4285-8d57-19fc0228a737","block_type":"box","text":"NM1026U-6032801-78/242","page_number":78,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c9cfcf17-bbfa-4c7e-896d-a707906c7bfc","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":79,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"a835b795-0ec3-4ac4-b394-ac7d7c8dff92","block_type":"box","text":"to commercial banks and foreign governments.","page_number":79,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"cf4f3f5d-def6-4d36-969a-3273d29cb709","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":79,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"15d7b454-a8da-4b2b-a325-b0f64a60a8c7","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":79,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"f03abc89-5b80-4648-a6dc-0b495dd6b40c","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":79,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"df855fae-b1eb-48db-96b6-38834be05ae8","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":79,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"74634da5-13de-402f-86c0-75495b3f7d2d","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":79,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"720cf400-90c9-4545-a3be-facd37146ea9","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":79,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"1920a4de-e581-458a-96ea-2c64731a0150","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":79,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"094425a5-defd-41f7-b876-d5d1d2dc9325","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":79,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"6c67d981-e77d-4964-8531-b4679fbad0e2","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":79,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"741608ce-9ecb-49d1-84d0-b8be128b6f26","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":79,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"07768579-ca52-49e3-a3b0-a8d22ce99c13","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":79,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"82da6dd4-642d-4f81-a6f5-13835e0f4c0a","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":79,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"39dfaf3d-c481-4553-804e-4e678008aadb","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":79,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"3e93eded-746d-441f-8bcc-f2c5c3b668cc","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":79,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"f0721729-5a6c-41af-be22-c1a2d73613bb","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":79,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"c6c476c9-b283-4f1d-b67a-1d9e693a1f0b","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":79,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"895d18fd-8145-4e53-89d0-43a1491d74c1","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":79,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"9ce885de-2914-48aa-93de-0688205311cd","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":79,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"7f9f2bb2-3aa5-4bca-b6d1-16d97c12e84c","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":79,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"cf9bdb33-52f6-4f99-94bf-886049edf78b","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":79,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"d7192285-116f-4fca-b852-800bf3dc3f70","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":79,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"796c3943-4695-46a3-84db-931d02fbeddc","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":79,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"4a1e28e1-f9af-45ea-9fac-99b655c848aa","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":79,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"6c8889bf-0c23-43ad-a5ae-585d0299ebba","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":79,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"4bbd95d9-7646-454d-8b88-9efc20b15755","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":79,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"12f29eb9-4433-4c88-862d-e90a0e0d15dc","block_type":"box","text":"investment at that time.","page_number":79,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"edb40b0d-811b-45ad-a1b8-f552c48a69c1","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":79,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"1b6642ce-b3c9-443c-b600-2c1d418e9979","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":79,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"384a1646-8660-4bc4-b7ed-6b0b05fc717d","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":79,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"4a95dfed-c7b8-4766-9e2b-81ceb0f4790e","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":79,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"c829860d-f6ba-4cac-88e6-77c9223cf52e","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":79,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"a3916562-5d78-44e3-a61b-3f7d6a67b5f4","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":79,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"11c4ba25-22af-48b1-9e66-91821befc785","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":79,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"83baa565-1bbc-495d-86eb-383b79ac6cb7","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":79,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"39b655e0-591f-43c4-98be-63f63076b2a6","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":79,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"bb16e576-21a8-47d4-bc65-e82885e48854","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":79,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"e7fecf26-9536-4d91-9c79-2b5dc325f870","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":79,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"b1055f3d-9be8-4bca-8f9a-df8050572923","block_type":"box","text":"government).","page_number":79,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"56046068-407c-406d-878d-1887e73e27c2","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":79,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"d47dd035-4e3e-47da-9179-de657ae85cc1","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":79,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"a0de60a0-2849-473e-a874-9ca268273b41","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":79,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"ef40eef4-a223-4dd0-8870-a662d1bf9aba","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":79,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"a0b4145c-b820-498f-91f8-16a847f5049e","block_type":"box","text":"foreign banks and other financial institutions.","page_number":79,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"b7ef9f74-958b-43a8-aac3-0255c618c1c4","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":79,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"238ffcd6-4fe4-4a3d-9712-2521c0d52d7a","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":79,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"c7b05654-08a4-4462-aefe-55c1ac08cb01","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":79,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"640417bf-70e1-4272-a296-479df2441adc","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":79,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"21a85b5b-6007-4266-b055-58555eaf7871","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":79,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"fc1b4611-d63f-4232-bff3-ddfcca017af0","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":79,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"0b11ccbc-5fd6-46b5-a12d-bf50c271bb81","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":79,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"45df09fb-765c-42e7-b4ef-e525b9493cea","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":79,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"72d8bacc-0a2c-4e66-9cc5-34209ce68b75","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":79,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"57c49ee1-dc85-42b8-9b11-fd9da9743d6d","block_type":"box","text":"II-37","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"78616947-b7a0-43c7-b996-3cd127092a36","block_type":"box","text":"NM1026U-6032801-79/242","page_number":79,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6c44a615-704d-4e98-8f9b-46c632944995","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":80,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"ceccd283-03f7-42d8-825e-be2f3e650d19","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":80,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"9752d627-eb01-4056-8d34-eb8ad5242e38","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":80,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"af7672e2-f5e8-45ca-903a-a3685dd2b0f3","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":80,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"9e422813-cc7b-4250-adf7-daf922e5e6bf","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":80,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"b7473fbe-7a22-428b-9e93-9c0354469e24","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":80,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"63b9ab48-89f6-48c0-9755-54f6005e9d50","block_type":"box","text":"foreign securities.","page_number":80,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"1a18b277-4e3d-4665-8997-ab591d352260","block_type":"box","text":"Risks of Investments in Russia.","page_number":80,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"2e4327f5-f6d3-4216-b263-2c7cb193a9bd","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":80,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"74bff7a9-0f82-46a6-a6ec-726ab6ab1705","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":80,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"3600b807-b78d-477a-a9eb-9a54542611b8","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":80,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"bb3bcfa3-a992-460b-99d3-7b1428dc0ec6","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":80,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"8346de01-0782-4514-96b3-ee86d6e5ea41","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":80,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"98a0e8ce-67f3-491b-821c-f3b70212ff43","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":80,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"7ec20e89-ecd2-492c-a310-1a5276be743e","block_type":"box","text":"developed markets.","page_number":80,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"0d60098a-ff36-4fb4-ae37-db836aecdb9a","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":80,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"db430c12-20cc-480c-b6c7-0494048071cc","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":80,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"1f6f1de4-c271-4368-ac6e-c927edca7d10","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":80,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"06f30ffc-f60a-4453-ac82-757b0cc90106","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":80,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"28ca6587-2b33-49a0-acc2-aea5e4440bdd","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":80,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"ce4f6e09-38ff-44e3-9cb2-35b8139c3e3d","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":80,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"674dcd42-9ff0-4541-8333-66788a97f9af","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":80,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"cd17d478-a424-406c-b473-63c51f743a0c","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":80,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"830d9428-23d3-4910-b96d-5801aeb489f6","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":80,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"88590c52-b129-4f74-9041-d1976575ec3c","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":80,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"1192b195-96da-46bd-aa5e-72fa455e3639","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":80,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"dc469356-ffea-4a8e-b5fc-4d7946e57b5f","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":80,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"958d9b88-bcdd-499d-b731-4a306eaa3738","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":80,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"7d92fcd6-a31a-4c17-b517-a31a586661dd","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":80,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"67961ec4-da6f-4ad6-94bc-0df1f4337d11","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":80,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"a7b8f6f7-1ca8-402a-bce6-4340eb69f5c3","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":80,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"bc6bfc5b-f3c0-4afc-ad0c-05e2e594fcac","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":80,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"97e8cfbd-303d-4353-bd34-c62eb3c9e22c","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":80,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"ee4399e3-4308-4f70-81a3-adf9a35e461e","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":80,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"565060a4-25b7-4dfa-93e1-4bdd88c499b1","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":80,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"d3848c57-6e46-41da-b665-b83e467aed40","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":80,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"162d2325-8eb4-49f0-a510-5fcbe288a395","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":80,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"76350611-7b78-4473-b8ea-e1c57f2c3bbd","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":80,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"941c6204-f37b-49d7-9c13-0711aa03cb87","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":80,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"08bdaa81-1ed8-4775-be5c-b43a039680a0","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":80,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"14726c9d-09c8-4ed3-9424-c82d5a949bf5","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":80,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"09967d6c-0e0e-46b4-b19b-62b9238e6728","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":80,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"9db8de81-b691-431d-8d66-341a13ee1b63","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":80,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"c67a1a6c-62da-40ac-b320-062c2c276270","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":80,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"bd4b7be9-d3db-45fd-aa7e-4ef80f3864f3","block_type":"box","text":"sectors globally.","page_number":80,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"a6fa7a85-afe2-4f35-86f0-0fc21f649490","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":80,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"68397b31-3a64-48d8-93ce-e8ee9b2a0701","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":80,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"55cafa68-42ab-4f3d-b00f-76b2cb45fe8a","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":80,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"5494da25-5c57-4915-af17-badc3b6cfc3c","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":80,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"e2f643f7-35de-4eec-8ae2-032b4688efac","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":80,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"b5c697d7-8224-4bcd-9353-099fd9d2af88","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":80,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"35dc9605-bff3-40b8-92ce-e347d1414494","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":80,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"91ec3495-b61b-4e31-b801-2e9155396428","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":80,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"8ab3fd26-e370-40d9-abab-40899266c45e","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":80,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"8ce7bf70-6ca4-4e46-9132-498d08bac0a0","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":80,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"1613ba43-64cb-420a-be2d-2871918f9918","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":80,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"dd3eaab8-332e-4c4d-9ef1-de9b1fa9786f","block_type":"box","text":"II-38","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6ed2d3ff-5c58-4afa-996b-2dd73cbd412d","block_type":"box","text":"NM1026U-6032801-80/242","page_number":80,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a7caeb22-242d-4f55-8e66-e8330206ed34","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":81,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"c374232b-34cb-4b8b-bb70-d21f8204c35e","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":81,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"7b6f41fd-6420-42d0-8427-933e84e4ae72","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":81,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"50b2bcbd-e4e9-431c-b3bc-d34e9baf5c64","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":81,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"ccb0c536-5178-471d-b5e8-e2bae7cbc675","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":81,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"908fbc89-9491-42a7-98c5-5eb274d6d981","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":81,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"6373155d-f346-4df0-a82a-9b5e8c6413a5","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":81,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"f302fdf0-64d6-4849-8a3b-eaf68c18e02a","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":81,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"e51b1d2f-b959-46e5-815c-6d458836ad69","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":81,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"f4738e7c-adbe-4802-85ca-526d0a301b16","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":81,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"f9af5409-a800-493c-a12f-90923bbdec50","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":81,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"f96ef1c3-1bf1-4559-ad56-32d4ce04afd7","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":81,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"ece292bb-1e46-4a2a-8bd6-823ebfd9f38f","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":81,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"b39ca40b-fe55-4d5a-a3d0-a0a4feb0a122","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":81,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"1851eeed-54b9-4d83-82de-30006c7ae5be","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":81,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"dafd7220-3ae9-4979-aa56-8a35072487bb","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":81,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"684608ef-9f0e-4c30-bad5-6d7afc495b0b","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":81,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"70743f69-fc8c-47a5-8ce6-68335fb395be","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":81,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"22f07449-4f72-4df5-80a6-7e1564f1f903","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":81,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"0f6642c6-98b7-40a6-bfe4-ab1e5942e0f0","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":81,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"41e43456-dd47-49f8-8645-139df0549f7c","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":81,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"fa2ab827-034a-4ece-b524-1f8b440d569b","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":81,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"6df29577-82dc-4aca-bfc6-2334c87f7a4f","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":81,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"0d703806-92d4-4135-be9e-710624a361f7","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":81,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"66216867-c1e4-4768-9508-2b3f041a67b1","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":81,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"445adb35-e526-419d-86ed-03e7aa019e2c","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":81,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"e59ca923-4127-4157-91c0-bb8205bd3bcb","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":81,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"7e5affbd-d7e7-4215-9f44-fd913dc27f54","block_type":"box","text":"impacted.","page_number":81,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"7243d66e-53d1-417b-97c0-6d523bde55b2","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":81,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"2efe764a-1eb9-4c5f-a052-13d39bf5e1f5","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":81,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"4c5d8b58-60d0-4367-a399-9362ab5042dc","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":81,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"a22dc04c-a84e-4c47-a4b6-17adb464984d","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":81,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"a89c90c8-804c-4b44-989e-927180b3408a","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":81,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"5edd07e6-0a5c-45e1-8c28-ff74493ac785","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":81,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"884608f0-5ec3-4b1a-8d45-4c30a8c6fcc2","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":81,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"406e1f22-e9a4-41d3-a2fe-5ea95264c19a","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":81,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"1b916fbb-1d72-4da2-a37d-b54c255f17f7","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":81,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"c6e5ce4f-6c8f-4223-a7c7-e30bac07eeb2","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":81,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"8b8897c8-e4bb-423e-8d38-e92b92a7d305","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":81,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"83546a26-5531-4ac1-99b9-f0e6a042b71f","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":81,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"30168d3f-47b8-4e5d-92bd-c3b069a1c81a","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":81,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"54325331-1bfa-429b-98ca-e6f1294d5957","block_type":"box","text":"economy.","page_number":81,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"24cd6d63-0cac-433e-956e-c6f305b6dfbe","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":81,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"f6ed3d1d-ee32-4993-9ed6-4114ad41dafa","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":81,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"f1985abb-c23b-4863-8dd6-ea96686c7a50","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":81,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"3dbb1b56-4b09-46c8-9ad1-395d9cf8f798","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":81,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"945ece30-8921-4d00-8d5b-f6741870dcd6","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":81,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"94e059ce-214d-466f-8a24-428f3959ec4b","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":81,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"8e56385b-8cac-4b77-9e3d-d3da4ed59a04","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":81,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"1c277b07-ba91-4a38-a941-12ae39bc4782","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":81,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"27e7e510-aed7-42a7-a533-3a35730b65e9","block_type":"box","text":"typically the case for investment managers.","page_number":81,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"824d7ddf-a3e4-4045-9132-1a1305d4309c","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":81,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"c3046ae6-b1ac-4225-acf7-5ac20ccd3824","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":81,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"4fec800b-e23b-4eee-8de0-26867afe1e77","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":81,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"811aba12-b2db-4772-8954-5c6b1a7aa2a9","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":81,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"16f1aa4f-a6b8-4377-a3f3-ac3df070c06f","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":81,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"b970ef5c-1767-4efd-a08b-f20e490ac973","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":81,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"48003512-9263-4c27-8a5b-c2203c3aac73","block_type":"box","text":"II-39","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fe05442b-6bc6-427f-a2f3-2e28d1577c5d","block_type":"box","text":"NM1026U-6032801-81/242","page_number":81,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"71690484-c9b5-4a5a-9895-58f0ee15d340","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":82,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"afa49cc3-3139-47b2-b667-b7f1fc4b28df","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":82,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"fd33ec07-e776-4489-9fd5-bfac6a87bd45","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":82,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"fc5b0997-2803-48cd-ae59-efb6f92d312a","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":82,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"06a355e7-094b-4313-9ae6-f180c7dbea21","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":82,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"bd495e08-a333-4d83-893f-5ba381accc45","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":82,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"ac6da2dc-c89d-4adb-b056-951f9f29130e","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":82,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"4bea25f8-8f73-4922-8cae-a4d61b4affd0","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":82,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"68514e96-6640-4fb9-815c-899d92cb4135","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":82,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"cf6fa802-d110-4895-8a3b-0e11b7814077","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":82,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"f91de447-7218-4ae2-9201-4f3867a420ce","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":82,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"7bc7bcd2-e647-4279-80d4-d3df975afcda","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":82,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"01a1a395-1866-4a90-8aab-42848d3cd02f","block_type":"box","text":"will be indirectly subject to those risks.","page_number":82,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"3c14e3e3-3593-4267-9a8f-f81d50a5ab76","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":82,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"4bc431f6-8814-4698-af03-1c3160b4b39f","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":82,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"5ad8d3a3-9ddc-4fef-9a97-296290107bd9","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":82,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"8a441a72-aee9-4e24-b6c7-2bb96db03c02","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":82,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"150461fe-194a-4102-a07f-2be387ef764c","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":82,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"072b0fe2-7443-4dc8-bf7e-9d8bffbabaef","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":82,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"927fe02c-4948-462f-b27f-ccfbe47fffa7","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":82,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"628000ac-2f43-4ed5-8c36-c32ab22a2e3d","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":82,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"d62a8269-aaa9-4e6c-9d28-4d8e88abff5c","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":82,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"fef90126-ee61-4e11-86ff-04ee85fcc755","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":82,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"a48a30eb-3e8b-4620-a6a0-5cc769ace30c","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":82,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"2a45dda1-43c2-4730-ab8a-5acd7bed93cc","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":82,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"2a383674-3766-42be-84b4-7ebd985169b5","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":82,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"f2b6d97c-48c3-4a78-a197-6ae413055deb","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":82,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"e4a84e21-14ee-4dd0-bf0f-c956d551da61","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":82,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"b86bef15-f258-4bf9-bb13-484daa25eae2","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":82,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"18d468bf-2647-4029-b1e7-14391511c03a","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":82,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"40254b06-a57d-4320-a2c7-30862c75b34e","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":82,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"55bc8ede-6e31-42f8-8f6c-c71fa6f88673","block_type":"box","text":"impact on a Fund’s investments.","page_number":82,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"175fca6f-0a8f-477b-9159-2a507e88c925","block_type":"box","text":"Brady Bonds.","page_number":82,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"a5159973-a184-427b-a39f-8fbb42d5f2bd","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":82,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"e6b7e03a-5926-4fc4-b427-dc2993b445a8","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":82,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"7ae446db-afce-44fc-9036-0d7e0d2f9009","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":82,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"109c1d86-fa9f-40ce-ab35-e631657ad374","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":82,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"807a965f-4346-4255-bb11-ba6ad749e159","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":82,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"13e4a8bd-999b-4823-bda8-e973e822edc8","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":82,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"d18df3fe-b453-4be6-96ea-fc25e8ac17ad","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":82,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"924193f0-a02f-496a-9beb-fc7ea16313c7","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":82,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"c5f19049-6c8a-415f-acd1-0a57dd7a78d0","block_type":"box","text":"Venezuela.","page_number":82,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"86db0a5e-f63a-4413-b41b-640cddafff67","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":82,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"f673d0f8-eaa5-4296-975c-6a585bb67cfe","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":82,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"25ab9689-e9a1-4c1c-b7fb-f75f02eee09f","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":82,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"f90af846-d8f8-4d50-a8b8-da36569d6c36","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":82,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"1c52de92-a691-4a3e-97c1-ee16d122a9df","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":82,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"350438fa-5fc1-4bdf-a75a-a7f6e0f6e824","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":82,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"f994ba41-dacb-4f0c-815b-60780738b270","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":82,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"5684e9a3-e93d-431d-99f7-45909c84a161","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":82,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"f880bd6d-2ce2-4950-81b9-069368001178","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":82,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"c4e72e87-fc15-4679-94d3-b28973cfee40","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":82,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"4e0d1ff6-3c2e-47b0-a2cc-7606b79f9cee","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":82,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"2a84411d-7b21-4236-a6e9-f318c0b42d43","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":82,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"00ef3e76-4925-4652-b357-113ae581de31","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":82,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"ad2cde0c-b7c9-4df1-8e75-f9f0d80dd933","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":82,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"2feda03e-3f0f-45a8-8b72-a619e16d583d","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":82,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"57e7f684-4b94-4cd6-91f6-1da4cb5e357d","block_type":"box","text":"II-40","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5696d7b9-72da-4f99-9dd3-722be7c3f991","block_type":"box","text":"NM1026U-6032801-82/242","page_number":82,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1363ec4a-1102-4034-ade3-96f2b7608f90","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":83,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"24406389-9bbb-4269-9319-d2b39e4eba34","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":83,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"9f6927ae-20a5-456b-b0dd-73f50d71a117","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":83,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"e474b4d8-4065-4193-b43d-fcaf319e16e3","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":83,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"d450c3e2-fcc7-4f51-bf11-5811d77c2137","block_type":"box","text":"China Investments Risk.","page_number":83,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"096a24bf-aa45-48d8-8ced-c623300445e5","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":83,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"7169d803-05f2-445b-a703-853d950dcb14","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":83,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"f96d9ccf-eee7-485e-8c0a-20291513e5de","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":83,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"598582b5-2f3b-4a98-8620-7d1369dccfeb","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":83,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"d2aeac1b-e1f5-4cfd-97d4-4bd9c0ce70bc","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":83,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"5e0f7831-fd79-4989-8bcb-1c8801b5f5b9","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":83,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"4469509b-f194-44ee-a48a-06ac2d3d0472","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":83,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"a3a8dd26-9cee-413e-9f54-462de129e6b9","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":83,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"fa1ab80f-1d91-4920-aef6-f52c8fcbd404","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":83,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"f9d2307c-73a1-4836-87a3-df8e7810ddf8","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":83,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"7d70fe98-f413-411c-a761-e22867f21ceb","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":83,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"5ee6ef16-e868-4926-a1fd-252d0201acd4","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":83,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"94bec9bc-fccf-4110-9ecd-a0eb0b9f5abd","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":83,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"d8aed757-ff94-4d24-9265-c6d86afab4db","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":83,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"ef5aeb67-69ee-44e5-afa3-0a9a695d10c6","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":83,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"4c607687-4be1-46e6-a359-97fa74185e24","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":83,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"a8a6069c-62d9-4867-b6af-223328099394","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":83,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"edfef261-edd7-4d7d-9680-64c224d75efc","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":83,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"54506eb7-2ca5-4a48-85b9-99c70e061d61","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":83,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"8e974c70-058c-463c-a77d-2aa613f0b5dd","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":83,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"97cd810c-8129-4bce-a45c-87f448e3edb5","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":83,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"0c32af2f-321e-4f93-86be-cac0d49cb50d","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":83,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"e55d8d9a-216c-4f1a-913d-015932c70dbb","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":83,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"4faa0866-93ad-424c-ad6f-d3c747e8c7c9","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":83,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"cf0ac6bb-8d9d-4be5-8b64-def83e84e030","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":83,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"584bb7c0-9161-4f83-996b-121e6f337d0b","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":83,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"8c2a8b3a-7dcf-4d8c-9b69-ec89dd20e389","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":83,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"5b76072d-3362-4f1d-ab47-391e4fe56328","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":83,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"e457f325-b313-4707-8e7c-765ed7cfb6bb","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":83,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"fe525b61-9e1d-41e7-8536-96900fb5a689","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":83,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"53146f90-de8d-4cac-95e9-e7092c159f27","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":83,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"64c941e7-1a6b-41d4-a785-6015856298e9","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":83,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"baedfbb0-5182-4d67-ad32-24503576c84f","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":83,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"54c9017b-eb0d-4b44-97b6-6a6257c950a4","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":83,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"5633a74e-a8da-4cd7-bc70-3834004f7f59","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":83,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"966bc1c1-cfc9-462e-9ca6-2934f5b0b692","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":83,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"f0369676-09d3-4d0f-be51-60451cb56c42","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":83,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"727ff416-91f7-4924-abaa-48db42119512","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":83,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"162b46ed-8d07-43af-a832-37bc93d548c1","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":83,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"a2436db0-f347-449f-9f76-50e30b88ea8b","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":83,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"be432980-c2e5-456e-be30-1bd83d53c4f1","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":83,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"07f42ff3-9ce9-4d12-9fe7-bfc46b696ed8","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":83,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"b38977a6-8dd7-4e55-a557-c9cd5b303021","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":83,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"b1161f7a-7667-4363-b2a0-13abb6787055","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":83,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"a2b60938-f006-476f-8276-c64fbc2134dc","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":83,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"fce3d6cd-f9cc-4821-ae65-47a196e3cf55","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":83,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"fe0cbc54-4491-4193-bd9a-e207adaf6e6c","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":83,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"af031c2d-445a-4964-bee6-c38f0292fd73","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":83,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"cca45885-7866-4b29-b2c4-af17c7799372","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":83,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"d90eaed1-24d3-4786-972f-2eccd5641bb5","block_type":"box","text":"sub-custodian.","page_number":83,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"a6bf60e3-404d-4aa5-aaf7-3ec598cf1bec","block_type":"box","text":"II-41","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2bc6ada8-3c80-4234-b16e-eb0752b53033","block_type":"box","text":"NM1026U-6032801-83/242","page_number":83,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1ec0f735-aa9c-4acb-af39-ab6d34e690ad","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":84,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"fbc57c88-6e78-421d-84f7-e5b5c12603fc","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":84,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"90de7cea-4960-48f7-b144-cfaa38a3badc","block_type":"box","text":"on investor protection considerations.","page_number":84,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"9c4fb363-819c-43fc-abd9-fa79203d73c1","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":84,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"b749e199-8cde-4799-8380-32d2d85aaef3","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":84,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"0369ba37-e39d-48e7-bc67-0bf6b9298394","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":84,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"d820c8d6-9ade-4580-a521-c89e964d0e08","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":84,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"c55e1ddc-cade-4522-ba20-568dd896c42a","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":84,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"efdf0f81-77cc-406f-addd-9313cbf62161","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":84,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"03c7a8ef-79a3-4d93-be81-6b7ce2aa4f0a","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":84,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"a7a60fa9-e1cd-490f-91a1-5dbb0ac7f921","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":84,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"2de08095-d61d-449b-a78e-a4a20d1a1b1d","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":84,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"3e07ea94-7024-4925-bbcb-95cc025caba2","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":84,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"bef4f9fb-7357-40de-8fed-6e9452b1360d","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":84,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"95bb835b-4400-4876-9c02-bc6b872b4e5b","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":84,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"cc5417c1-109a-4a34-b1b0-c47a46c6cf42","block_type":"box","text":"accounting firm.","page_number":84,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"9d4cf46d-878d-44e2-8847-787bc7a1b905","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":84,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"4e6f9c4d-4078-4c2c-b52b-df9719ee2ec7","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":84,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"ea1ab90d-20d2-407b-9803-8158f6dc83b3","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":84,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"8c0ddca9-0335-4ad9-919c-9938e82478d8","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":84,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"e92fc6fc-b5b4-4aaa-89dc-07a3c8dda8fe","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":84,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"50677c70-80f5-45c6-ae36-b9ee6edf2501","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":84,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"e0c164e9-2a3d-42b0-b372-fe2f3e617299","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":84,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"de908b3c-4cfd-4783-ab7b-089fd036b476","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":84,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"86be6303-6412-435f-a2e7-6db34274b9cd","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":84,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"f0812145-a559-4ef3-96c3-f4f4c3b22fdf","block_type":"box","text":"RMB (“CNH”).","page_number":84,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"463c39d4-d3db-40ff-82db-2571514c643c","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":84,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"e2d286b5-817c-431b-962a-b53e87d40907","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":84,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"19cb82c7-be82-47a2-8706-9b507a8c539a","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":84,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"92d656c5-d12d-46fc-af77-67aef096c342","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":84,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"03a68a46-7ef8-4c04-861a-043b6b737e84","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":84,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"482942d9-8bb0-44cf-9783-24d243e2600f","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":84,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"82640484-6455-4d94-849f-98d567714f95","block_type":"box","text":"represent equity ownership in the operating company.","page_number":84,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"145a6c55-b5ae-488f-8936-f2c3ac1d8e5c","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":84,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"18509b3f-9bc1-4305-abcf-f0c7cdf48b5b","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":84,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"c42b3a10-07db-4f70-b409-5b19d1189cc7","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":84,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"2fa6fd43-6032-4422-83a5-788b21a355e7","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":84,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"f4fa675c-e9d2-4351-8153-0838abce0259","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":84,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"ae20750a-bf44-483d-9ee8-deb98d53f5a9","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":84,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"383022f3-2f50-4f91-8c6e-0301e34c8758","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":84,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"1a92c4a8-6116-4d78-a209-faf454eea30f","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":84,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"bb3fc6a7-b035-43c3-a3e4-323b1b353c67","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":84,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"647eb0c2-0ba8-4ba4-b6a6-c5ff787d65da","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":84,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"4bc6191c-ad0c-4728-af61-63f8a05be311","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":84,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"581625e6-917d-4421-a772-6a02dff0288a","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":84,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"042ca479-eea8-4468-aa38-9ff4f660f8b8","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":84,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"0c8a8785-770e-4c7f-ac78-73908a956333","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":84,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"075ddb94-918a-4427-8bb5-cafecf1cfb2d","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":84,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"a686dc49-cfa1-4306-ad23-320c24208769","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":84,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"977a979c-4bdf-466c-994e-9393fdb77d0f","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":84,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"4716e300-23f4-4936-bc87-c0003ae6ec2f","block_type":"box","text":"losses to a Fund.","page_number":84,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"e0d2974e-c36d-4114-b54b-3958a3ff90a9","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":84,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"ee1d2912-052a-4e16-b499-cfa101ef7cf9","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":84,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"08d486c1-71e1-4d0e-b16c-7b2941a6aabe","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":84,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"06111f11-8984-4f2e-9c3a-530956ae5aa4","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":84,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"c3401e76-dbf1-4f5f-8961-76d1bce1f4f3","block_type":"box","text":"II-42","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"542bd39e-0e49-455d-9372-2b1f50f390e8","block_type":"box","text":"NM1026U-6032801-84/242","page_number":84,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"571409b8-64c8-4dbf-a5de-001198fcbb8f","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":85,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"2f69b1c0-8970-430b-afa1-3e7e963dce59","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":85,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"6efd6808-f0d5-4372-8775-a9fc53e53b8a","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":85,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"c56d3d40-5f52-4d59-8c84-1be4a1f4e036","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":85,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"87b51f35-ab94-488f-8359-4b9d3c882e27","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":85,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"f771e994-f057-43b4-bac3-fbab1835efcd","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":85,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"5e7b8cf2-fdb1-4f05-857a-0cef26a85869","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":85,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"3de3fb50-d8a2-4e0a-bca5-2b5512a9edf4","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":85,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"3bcc5519-88af-4e81-a013-0485bac02374","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":85,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"0a909a04-5823-456b-88b2-3564bc87c54e","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":85,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"54607fb8-1dab-48e7-a61e-377df56c437c","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":85,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"7e6a065b-8f87-465a-8429-f20f2f22022d","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":85,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"598dbd50-7190-4097-af22-a11f9879d638","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":85,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"5da93dfc-2bf9-4084-aecc-63511c18063e","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":85,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"47ecf620-3661-480b-b29b-f338aa0bc68a","block_type":"box","text":"such companies.","page_number":85,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"4fd55b8c-e220-444a-883e-5a0d3ec2ff3c","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":85,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"ab86cfdf-e9bb-4a2e-a24e-d8f6d2d3b63c","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":85,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"33eec65f-184b-45ac-8045-529fbdd13d5b","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":85,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"fa8c616d-801a-44ff-9389-c94b7d2de770","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":85,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"6e93a39d-d977-4d77-b4e6-49df3b735c98","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":85,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"04757126-45b6-4586-98f4-73456197c958","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":85,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"b5ddf4e8-02c6-459e-b69f-37b0bfdee10b","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":85,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"036962f1-2a97-42f0-a22a-90cb608e4337","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":85,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"c12aedae-ad75-451e-8b90-d9f74e3fc171","block_type":"box","text":"standards.","page_number":85,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"04c20069-b2fb-42ba-984e-0c3a8af30065","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":85,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"9359cf91-db10-4ef8-b8d4-66584b8dd91e","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":85,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"907ff9e5-f74e-4f9a-ba17-00a156398b21","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":85,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"d1e33028-a6dc-454d-a5fb-efbbae332a9e","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":85,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"09e5fa57-a301-408c-b204-ebaa4941c092","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":85,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"d5baeb73-8884-4359-9ae1-aa05d12c7299","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":85,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"cb6286f6-b2cf-4e46-9d0b-df2044193af5","block_type":"box","text":"General","page_number":85,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"ebc8f476-6294-4165-a6a0-682b6a9a2a2c","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":85,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"88aa2015-ce94-4d5a-8b85-fa0a7ff15b64","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":85,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"b60d3f46-37d8-4046-90a5-19929186cbc0","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":85,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"e72fa30b-9c86-4edd-9c64-09c93a3bd8b3","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":85,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"8569507f-3d98-4eb1-9e7b-6063ffa42311","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":85,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"cc214c07-4800-4bf7-8d58-4c2dabc3b86a","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":85,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"7623bd9c-a9ae-46e9-b29d-c8266efb6e0c","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":85,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"2624b25b-f34d-4cbc-b613-d3577c6a3c3b","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":85,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"9d4ea220-63aa-439c-b84a-45845d6e7f81","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":85,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"15de002c-61e2-4789-9f4b-3961290d76c3","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":85,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"4b3d18d7-91ee-4040-bd2f-486e7d1c6476","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":85,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"c66130f7-c9db-4cde-b7a7-d7ea8fa4cd0e","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":85,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"adfd7bb0-2ac0-43e0-bfc2-2e23b6f809cc","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":85,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"1367eddb-2593-45ad-9ffe-8e3004dbf977","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":85,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"63ba0fc9-669c-464b-bc16-8a120e07b10f","block_type":"box","text":"company established by SEHK.","page_number":85,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"ca7e60ba-a7b3-4db3-9399-35082eaf52a2","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":85,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"53014a52-2537-4463-a204-e40ed4ecc4e7","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":85,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"412fb081-b9fc-4a8d-877e-14847824f81f","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":85,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"5f9aaccc-39a1-4b36-91dc-e8146d45dfcc","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":85,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"297ac280-25d1-4b20-8f36-d5ed8f5ffd71","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":85,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"267e7202-bb08-4d86-a56e-1ff0c10ac3e3","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":85,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"8b2d7780-a799-4273-ac3b-0f331723ca85","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":85,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"3b886778-b7cc-4b32-961d-2c7d2a3cc833","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":85,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"aef67f02-7cde-4306-af5e-57a3f9e64cb0","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":85,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"bdf2b2dd-f561-4101-9f63-c48951dc1b04","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":85,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"83acb400-7ccd-401f-a575-c1f1ff5b9ea1","block_type":"box","text":"II-43","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a9f8181d-f7a9-4b17-8e99-a5ea9f0282c9","block_type":"box","text":"NM1026U-6032801-85/242","page_number":85,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ca5c8324-3471-4509-9b5b-c19b334c2d94","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":86,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"65759a07-462c-4328-9c45-f864fbcc4cc8","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":86,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"c3810b30-e7f1-4e00-a88e-ce706779c827","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":86,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"ece3bac0-54dd-4fef-af92-d7aa8ab001df","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":86,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"4ea5ae6d-9939-429f-93b3-fe43a6f23418","block_type":"box","text":"i.e.","page_number":86,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"6acd9188-7d18-424b-b756-8c4e8d3019f3","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":86,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"6665ce03-9f1c-4f88-8bce-4ed72ab47929","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":86,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"bfb568cb-cbbd-4bb6-9fae-3d0e2b29ea39","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":86,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"181f0597-5d30-4238-955e-645a5d21b730","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":86,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"8a636b86-d6f4-4beb-8c97-eec63d693d5c","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":86,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"71da0c2b-f030-48bd-97fb-a011876b7ef3","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":86,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"4ff38b8e-2b82-466c-a5cc-8ef109359997","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":86,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"c5d0d01d-bc6d-431f-9679-73995b794e31","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":86,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"5fde46e3-6a53-4106-b466-b69e0ee7dfac","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":86,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"7a947468-5d36-45a2-bc4c-30e68d395965","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":86,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"f100aff6-1fd3-45d9-aa1e-200eddf62621","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":86,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"5736f529-6611-43a0-ae65-c005a2fb3c4a","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":86,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"e27dfa3a-600e-4991-90f6-89d9a088f30e","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":86,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"a210f196-07c6-42ed-ba8a-1fec93055e17","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":86,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"76eac04e-0eba-4c5d-ac11-b7d4169c58c4","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":86,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"48fc2b47-0cf6-4f49-af85-3d8b1358f0e6","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":86,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"a4988ce3-8ed9-433a-8128-a5f49a7a4adf","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":86,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"e06e8ff7-0fca-4604-9ca1-302f570ef110","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":86,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"cf4fd1d9-82a0-49a8-9b77-404329c0cc22","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":86,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"f058eda5-24c3-4123-951c-6c20f48754d5","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":86,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"dcb4cf53-3dff-4664-b556-846c46c9599d","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":86,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"1e3f9575-69c9-4893-bd9a-06e3c8333f11","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":86,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"78d6e257-1f44-426b-a586-65bb96243c94","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":86,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"9db7887b-3ea3-4168-bc31-f7f9bc2553f3","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":86,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"2ced5365-c39e-464c-9007-de08a3fd5b5e","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":86,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"4c7e1c17-6d98-4143-9cf8-8d971a6ed392","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":86,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"f891ea84-f20a-490f-bea9-ed96cc928af0","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":86,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"72a298e4-a0cc-4388-ba07-dd1baa1c1a9f","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":86,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"7d7aca92-6b85-407f-ac43-96ffa99551fa","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":86,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"ce2319c5-be12-4bd8-bd24-c062271ec0b6","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":86,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"4f5178de-c0c6-4e73-b912-9c987a47f544","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":86,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"19fbd980-4e46-4401-aa88-fbc55320e3c0","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":86,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"e333c23c-b4d4-4760-9f66-58088d9c847c","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":86,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"01d024c4-e093-4a3d-b50f-2eda82d9517f","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":86,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"2f5692e9-b163-4424-880b-eb669d93087c","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":86,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"4ecb1de6-bcaa-432f-9052-2ab625a9af40","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":86,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"4ba19276-65a9-410f-bfd6-d7fd7c2eaa98","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":86,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"cdc7fd89-5c6b-4fb0-a720-62f3b0a91d3b","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":86,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"35903396-7f2d-4e05-8a69-5ca5acb06d43","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":86,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"e7ac61df-e5dd-4600-ada3-ec3330741792","block_type":"box","text":"PRC.","page_number":86,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"3b94c272-6665-48b3-ae02-def66916b507","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":86,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"be6d4099-ba4c-41ba-b2c8-07a66ae6b7e1","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":86,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"0b609c2b-d860-47ac-aab1-538fc36b1d87","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":86,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"b456f298-ba01-4909-8b40-f33519397323","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":86,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"3f40adf5-211e-437d-87d5-1a80ecfc7315","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":86,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"f9a45210-a256-4447-95fc-65df9713b693","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":86,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"b743c846-3ff0-4a93-9766-c4510c21903b","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":86,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"42404e20-eb74-48ee-9955-84c58011dd67","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":86,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"fcd33065-f244-4d55-97c9-64f0bc20c5f1","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":86,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"e2fc771b-0ff6-48f6-b0a8-0e68e78469ac","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":86,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"46898433-01b5-4ffd-bd87-e590438c73db","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":86,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"0c027c07-0f3a-4db3-ab36-ec5cd8f1ea79","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":86,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"ebc034a7-91a9-4b1e-bb50-ab7d6969d092","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":86,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"3a55ef1d-678b-4043-b80b-29702a0b84eb","block_type":"box","text":"II-44","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3b032e6f-6a36-451e-9008-d97c64196cb7","block_type":"box","text":"NM1026U-6032801-86/242","page_number":86,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f661cc7d-a0c4-450f-b1e9-67431c79160f","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":87,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"12cfea16-f7f1-4c38-95d7-3c559c0f2f30","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":87,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"846916b9-8ba0-4267-862f-0a51e42724ad","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":87,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"51c5c335-1ef7-43d7-b0ef-1e46992ac1af","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":87,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"bdd5dcd8-22d8-4033-abb3-98cc28d45715","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":87,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"a0520d0a-bb5c-48ef-b58c-acd426d3ac01","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":87,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"cc886d77-2daf-4059-bf30-37e94b40dff1","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":87,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"c19b8f3a-50f2-4033-8278-bfb752035e42","block_type":"box","text":"Suspension Risk.","page_number":87,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"ae6726b4-1647-4943-9383-cb9b5ff11dd9","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":87,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"4e41e64d-f774-4845-a56a-ba62855b0046","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":87,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"76446ec1-c89c-4862-899e-7b221c135b9f","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":87,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"570591e5-2051-4ffe-b76d-d58bde242199","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":87,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"18603827-03e7-450c-a9d7-9d7994d76dfd","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":87,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"5a735bda-6f08-480d-ad1a-087af1eeed3e","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":87,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"729b9f4d-124c-41e7-80ed-8c9df364343f","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":87,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"b02902fa-cddb-4ea2-9a2a-56178192708b","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":87,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"2541b6bb-2926-4717-ad15-016ed1be9dde","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":87,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"49bacce6-7b38-476a-8357-70edd8549488","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":87,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"f1cc0e84-c9ea-4fd7-a2ba-0ff6da95e2d0","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":87,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"01bff8ed-db24-42aa-8014-5a05530951f3","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":87,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"ff039e10-23ea-46f4-9db9-b24e26d4e49e","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":87,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"f3b0fe20-1da3-45cf-afd5-94c3d59e6600","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":87,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"cd52ed52-aff7-4771-b928-6724d9bd7773","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":87,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"5ca8385c-ed8b-4ac7-876a-d4da823cf54e","block_type":"box","text":"A Fund may invest directly in the","page_number":87,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"b209dfbd-875c-42ae-a6b7-8e1eea386cf3","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":87,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"30997a81-420e-4ff7-83a4-822988478c5a","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":87,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"18b7e951-c201-4997-9757-f917c980b40c","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":87,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"61545bdd-bf7b-41a2-bce2-a285054b0bf3","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":87,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"d2b067f8-e5ca-4f42-80f5-8de6efd2ef68","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":87,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"371d2ca7-60ed-4fa5-9ad6-437b4e93a68a","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":87,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"7ec0e73a-29a2-40eb-a4ac-04d6f95cdbf1","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":87,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"4c6113f5-a6d7-4df8-92af-7bcd70d25283","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":87,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"c47bc1ec-8171-40e7-a9cb-755e2701f040","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":87,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"d0fc1722-31a5-43cc-97d5-972b9b0d385c","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":87,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"e53e4c7a-272b-4002-8809-8ad2aa0a259a","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":87,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"459d7a43-2e50-4bd4-beba-13c0f68f8bdd","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":87,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"2fe9f7b3-5832-4948-a232-d569eec2abee","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":87,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"16a7da85-1141-4ebe-9e8d-ce48e92a82ac","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":87,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"59559cc3-44e1-4c09-8443-ea262b030ed9","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":87,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"e3bf84b7-ceb1-44dc-b13f-974316b48e52","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":87,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"e79ca932-9b97-4d8f-bcdf-7f4c15fd06ce","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":87,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"dab25b6f-1bec-4655-8e9b-4a86a83e2e1c","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":87,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"01d14cf3-3548-4130-90f1-8ec3f2e1c13e","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":87,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"e44afc6f-126b-4ecd-a5dd-461b63edd380","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":87,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"2af7c211-3011-4280-8e49-a7ff41cc9fe1","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":87,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"4c1acfde-6534-4207-b49b-67a80023e45a","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":87,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"cedf13ad-5337-4ca8-a8d1-dc864ea23e39","block_type":"box","text":"i.e.","page_number":87,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"df3cdd3a-8f72-467f-82c8-9ea266e45d08","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":87,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"f5471f5c-4a2b-49cf-ae1b-8528e4eff821","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":87,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"59297986-1ba0-4847-98b9-bccd2ff36d2b","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":87,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"6eac36ac-2400-4a07-9123-cf1d2b961df3","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":87,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"8fc230ce-87e8-4475-b3c5-3f629a10bc61","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":87,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"78fb6c88-c7a5-4059-8b9b-d9f113da2c93","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":87,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"3400c4b1-b1c0-450f-925b-4215b814860f","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":87,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"0ee94976-1de0-4fad-848b-0e5bdf37e7da","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":87,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"2abac8a2-2b37-4c28-8708-f3963b3bbb07","block_type":"box","text":"parties.","page_number":87,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"1119df85-71e0-4783-9998-7ac6173dfad0","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":87,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"2e8896c3-5c9f-489b-87f6-48b2b3a89912","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":87,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"da3becfc-e8e1-4d15-812d-8a44f55c9346","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":87,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"7c5085d9-a892-4b45-8a90-5fe6ed4be08e","block_type":"box","text":"II-45","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fd23b9e5-1901-4079-8b7a-5ed2a96215fb","block_type":"box","text":"NM1026U-6032801-87/242","page_number":87,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"67796ae1-2b0f-4cdc-89c7-e0f205b8cc28","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":88,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"21cf4dc1-8269-4c85-bb60-ea20e2f00dc7","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":88,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"b9941b3c-5298-43fd-9d0c-5ea5e2d8d3bb","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":88,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"3d539303-7094-4b95-a959-6151cb84511b","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":88,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"6f7e836f-9db9-4cb7-a79c-abd8531f7943","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":88,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"46f0d217-409a-4d9f-95b5-d629058ac2e8","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":88,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"84a7f9c6-c039-48ce-bdc8-828c1786a890","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":88,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"21239239-97dd-4538-a498-5ea25831563d","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":88,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"853f5eef-7ad9-4203-a488-dca8b1479431","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":88,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"dcfa2ee0-65da-472c-86df-03f049109e84","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":88,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"bd518fe9-17ca-4003-ac3a-db417d003754","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":88,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"bdc5c3c3-67fa-4dc8-857b-dd150bbb3423","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":88,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"6014bd09-1755-4cff-864b-903bc8bd97c0","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":88,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"5ec8fdf1-f0eb-40ae-a2ce-e75151875091","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":88,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"feb2fddf-c09f-423a-a995-2ffbf2bb0116","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":88,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"6f42180b-7edb-4be7-b8f6-d709da821e7a","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":88,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"04877d27-e4b9-41fa-b42c-99b29576562f","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":88,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"3588d85d-a349-45f6-a810-c4fac16c9121","block_type":"box","text":"performance.","page_number":88,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"d63b2b57-3ea6-4c74-9098-d53b5f50248b","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":88,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"2a6b4c8d-948a-4618-84d2-8d5a286975b1","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":88,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"1dd4a1c9-2564-44a2-9c42-37a968eeead9","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":88,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"16f5318e-f551-4d47-9321-1e4c2c6b42e4","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":88,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"764dbb26-cdaa-43a5-9914-0e1d2314121a","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":88,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"9767b3c3-1be2-40ba-8dd2-1b4040ea5e6e","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":88,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"ac82b102-a2c5-4ace-b080-e85ae981bf1b","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":88,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"346df561-b47e-4875-8f3e-8b339d851128","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":88,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"fa67b9a7-75fa-4ec8-ace7-82f77ef91cd7","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":88,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"fc40053e-abc1-4ee8-be72-9f95408992f3","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":88,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"b27b0341-8077-4209-886a-2ffac62f167d","block_type":"box","text":".","page_number":88,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"e603fcd2-34a7-4fd7-b815-6bf09963e114","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":88,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"c0658338-6ebb-4a97-bae0-4f6d61009f21","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":88,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"48e028a2-927a-474e-a1d0-76bf46cbaf31","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":88,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"2b121f2e-5f0c-4393-a1ae-a7e148763cb1","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":88,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"068ff5fb-f029-4f25-9464-7c46b830f9d6","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":88,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"41dd39fa-ceb2-461f-ad0b-0ef88decb4db","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":88,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"ee037c08-041e-42f8-8add-440c5005a053","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":88,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"7712d7db-ff0e-4585-a725-fe8dc6133c2e","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":88,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"ac535a53-2dc1-4f63-b7d1-090ee9b506e9","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":88,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"6a735b5a-f1d7-4b51-a63d-1402d371b73a","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":88,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"b8cb9d56-770c-451e-a0a7-e563eceff1ff","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":88,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"5b6da4d4-6e5f-4dbb-8a36-bc7167012b12","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":88,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"810d7179-fc21-4eff-807a-26a60f4d73e7","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":88,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"8eb93e0a-6ad7-48c0-a458-ded504b931b5","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":88,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"be8bc040-d5b9-4de4-9c46-692bb1d7b298","block_type":"box","text":"without notice.","page_number":88,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"89ec9acf-5abe-4955-96b2-7539606b44bd","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":88,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"d9c95e95-033d-47ca-81fe-380e76a0c313","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":88,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"32cc3759-2c3a-4e02-9ac8-4f8c91b590d3","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":88,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"9d336568-99d7-49d2-95a7-10ba0379eca9","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":88,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"b8d9a300-878c-45a6-9479-c51e9ecdd629","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":88,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"38b4da79-ef98-4af6-8559-1d507291444f","block_type":"box","text":"December 31, 2027.","page_number":88,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"208dc2ae-d3d7-4c1f-b12d-79357e39498c","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":88,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"92529ad8-1d10-4c5d-a2da-08c4c02d1a77","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":88,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"ff36c3d5-be86-45ae-a481-26f9eff09822","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":88,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"a34fb263-634e-411f-8b63-575ed6511819","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":88,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"d7427e54-014b-4310-be04-9e45f6be0903","block_type":"box","text":"II-46","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"39e0a010-06f0-4f53-9f65-b45fa9a5f339","block_type":"box","text":"NM1026U-6032801-88/242","page_number":88,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a77c86d9-ea41-4657-8eab-a42a10f35213","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":89,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"e60b3b7e-ca94-4ee6-92f8-537cc5075c72","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":89,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"39beca63-68a5-4af8-9cfa-f6f4f4b1bbc5","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":89,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"41e4b47f-5b3d-4c61-8679-9a24aaf55a9f","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":89,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"32c4ff72-204c-42a7-bd2a-c977ee349033","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":89,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"0617380b-c6f3-4b8d-9fe6-704c8a31c6ff","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":89,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"d89b861e-db85-4583-a1b7-4fbabc5d6d94","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":89,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"f023e7b0-2d13-4e9d-9688-ddf37ff9a70e","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":89,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"62ce58dc-8354-4e50-88a0-aece647310ab","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":89,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"2ed13d45-d918-4660-8342-be0a341b1d57","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":89,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"bb651941-4263-4979-a347-c69a130eb62d","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":89,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"b0f0b1f6-c0b1-48f0-bb69-2feec95a2dfa","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":89,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"5c4a6b29-2fa2-400f-80bd-a5d1ce4f6ff3","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":89,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"046ee58a-9de1-4a4e-a285-c0761d692087","block_type":"box","text":"PCR sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":89,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"ca8fb3e2-6a9c-41f5-8694-4d4517e21442","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":89,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"ebb338ef-08a8-4001-84e2-1ea0b11f8991","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":89,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"75d57090-2d42-4667-938b-c2d82e1ea9a2","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":89,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"12415105-9f49-4cf0-b71c-9dda08c267cf","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":89,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"baf662c2-361e-4317-a110-77794317fa9f","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":89,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"edf2121a-8dc1-4e87-9e38-cb68a099b513","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":89,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"0fc42686-60b7-47fe-b3dc-e533e6a66d92","block_type":"box","text":"the PRC in notifications.","page_number":89,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"4cd7a698-9b9f-4309-b262-25be2b472324","block_type":"box","text":"Investment in Other Investment Companies.","page_number":89,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"079e9abf-ddc6-4c9d-9c39-c9b261eb2a54","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":89,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"d0bf4cd6-64a3-47c2-b8c7-010d2d31bf25","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":89,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"a45b6aad-a083-4464-bb82-7901402d4b92","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":89,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"dbfb789c-b978-419c-9cb1-eec8c280bfef","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":89,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"0e5b1e5b-ac16-458e-b215-6231a2681868","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":89,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"3b816e7f-2de5-43ef-9d03-324b38fb7fee","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":89,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"80707ddc-5ca0-42b1-a6dc-eeb1ab29e5ef","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":89,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"51cadaad-1f36-4730-90ae-d68962db15cb","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":89,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"b7c25e1b-9e31-4092-9db1-7597ad02729b","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":89,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"ed5d1c2d-7fd5-4825-9b55-947b1c88c43a","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":89,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"c362264e-94d1-48a0-8347-2591e1aee310","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":89,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"f394fa93-fe9c-4a8b-91c4-97eecfda9c23","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":89,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"8ffde279-aac8-40b2-a961-4d10ac52f3d5","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":89,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"56f77fba-4b7d-4762-9341-bb7870d7f71d","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":89,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"980578a7-4910-479a-8abe-9383572c11d6","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":89,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"41bec968-81eb-4854-a75a-ee8ad637ff0c","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":89,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"8939796d-7b8c-4866-8e1a-42abfa938bc7","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":89,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"6b642325-7886-4d49-b080-a904c008c752","block_type":"box","text":"subject to certain conditions.","page_number":89,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"d0097b49-1a48-46d7-af45-c63a293b101b","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":89,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"680d4fac-cc15-4bfb-9e99-0b40749962fe","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":89,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"f9152939-b727-4b61-a2bd-b547d5fecb63","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":89,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"e9b7cc8e-72cc-402e-88c4-cdb652e8f020","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":89,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"ef256abb-3b35-40d7-b3d9-b8c530403360","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":89,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"afe0b5f5-84df-4259-898f-d4ff4d08fe1f","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":89,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"252ff419-3683-42d7-a40b-e17b1e476c4d","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":89,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"704299d3-a043-4f37-857b-e55f1d40c171","block_type":"box","text":"loss.","page_number":89,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"5643cd7d-15cd-47b3-9223-b00d1fc4996b","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":89,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"71a3af16-6c02-4c5a-8eb0-68a0b5e0985f","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":89,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"a1e60caa-a8f7-40eb-9aac-940bd539689c","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":89,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"56069adb-d930-4f53-a7de-70e38837e50b","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":89,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"4488a649-b8ec-4432-a0b8-eea9cb6f9c6e","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":89,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"bbfd570d-2ceb-471d-bb1e-6e9134cbe240","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":89,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"230ab384-096a-4834-849f-be560024cb3a","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":89,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"1d3ce567-d2c8-4aef-8e9a-4e3e5357e9e8","block_type":"box","text":"II-47","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c46d3722-599c-41d3-b3e3-21307fc96874","block_type":"box","text":"NM1026U-6032801-89/242","page_number":89,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f4503e47-f3c9-4614-a718-3708947463c8","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":90,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"63b7654d-0395-4662-a392-f039c7a1b6f3","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":90,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"02889300-4c20-4a82-96c7-747b8d7cc609","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":90,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"97e92fae-ad42-42e1-9b59-9d88429759aa","block_type":"box","text":"assets.","page_number":90,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"76a90fa0-316f-4a1a-9fce-b6f3849d566a","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":90,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"0e2dfd36-4b18-4824-be1b-f958a2f1c83e","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":90,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"eb031790-8423-4a93-a6b0-265689953878","block_type":"box","text":"e.g.","page_number":90,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"30fc72ee-34c3-4498-a73e-c12a969e4421","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":90,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"60c9fb61-8e42-49a0-91f2-af988b00508a","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":90,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"8b2028a7-94eb-4cf6-9cd8-280f654aecae","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":90,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"9fc18cd3-d4f0-41d9-9b78-fa7fa293bf65","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":90,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"a76c37d8-cfd9-4115-8a9b-43553fb48c34","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":90,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"395466dc-a03d-4ce1-bb0a-afdbe745b2a5","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":90,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"7822d908-5427-44d6-8a19-f4971cc63a19","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":90,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"cdf80a86-1cef-466b-8129-34295438d025","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":90,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"b176aa46-cbdc-440f-880e-7af37ff3c4c6","block_type":"box","text":"countries.","page_number":90,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"d821a5f7-a359-48a5-96d3-cc65172c7f48","block_type":"box","text":"Issuer Insolvency Risk.","page_number":90,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"335574d0-165b-490a-878f-6e20d6a10cc9","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":90,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"e8b9a798-c783-4202-8d0c-4118682082e7","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":90,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"ad3838b2-376a-4866-ba13-38d4e539daf3","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":90,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"3093e56a-e477-4ad4-99d1-a73179a120a9","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":90,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"f105d4f8-cac9-4ecb-a93b-6f5c3cb4c2e4","block_type":"box","text":"issuer uncertain.","page_number":90,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"1a4e0f59-1a7f-45fd-a33b-3e4448898c0c","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":90,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"303f2ade-f33f-4107-9e8c-28e0414f17dd","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":90,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"b2c523a2-3731-44b4-bf48-e28ea00c477c","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":90,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"1cac7f11-c060-4f9a-b978-1ab6578372f6","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":90,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"4d4c60fa-20f2-4b29-91f7-fa4c0f83a28b","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":90,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"3453e804-2bc9-442f-a91c-a8da545f4e8d","block_type":"box","text":"eventually be satisfied.","page_number":90,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"e36117b5-c91d-4ccf-b858-1f36b5d24c12","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":90,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"82513365-e14d-45b6-b956-3eefb05898af","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":90,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"cf74faee-c964-44cf-9ace-e4645e17f007","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":90,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"b9195e55-b703-4f1f-ae2c-392e54877f93","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":90,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"967844a5-1d5f-4e26-91aa-08fd17d0c7b7","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":90,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"d28a3106-8da1-4e88-b8ec-38cd53ff40e2","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":90,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"efd29da9-5e3a-404f-a372-386c802b22b0","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":90,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"9efa29a8-1b43-49b5-a34f-3f0dc9d0b82b","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":90,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"e7aaf247-6594-4e53-86e6-a225502a0274","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":90,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"7dcd2613-14b5-4754-8041-566d0b0df8e0","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":90,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"958cc876-6102-4111-8ce7-3c587a707cf4","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":90,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"bd7682e1-9858-4601-b0c9-f0bc8ef55664","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":90,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"4d4f232d-8de1-44b3-829e-dceae2b2b28a","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":90,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"36c36cd4-d8dc-4ccc-93b2-be9709e7bf3f","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":90,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"2ebab8f9-b625-4c4e-997a-06eb8260f107","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":90,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"46b5032f-d3d5-4256-8c7b-bd3902661f74","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":90,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"aa0b4565-fc83-4e8b-8170-f0106662e5ee","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":90,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"dc27aa07-c412-448c-a0cd-084d734839b5","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":90,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"47e45be9-2dbe-4c60-bb8d-21c9d35767b9","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":90,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"bf2f8f67-2aad-44a6-8df3-86f31e57dfbf","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":90,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"4255fbda-3266-4ab7-b19a-08fcdabc6ca2","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":90,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"3a532fda-a1cb-405e-8521-19e2215587f8","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":90,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"a046f630-d708-4f1c-9cef-f838405a603d","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":90,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"c3beb4e6-3a4f-4633-a237-87c284d21f58","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":90,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"d39234d0-789b-4762-8435-7e298bf58107","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":90,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"b69f1fef-34f6-4942-971f-28480c26c10a","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":90,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"0bf5c620-497f-4030-99ac-299770e6d92c","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":90,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"773d07cf-b1ff-470a-9551-7cfe06960d1a","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":90,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"48ef1987-16ae-4963-bcd4-71ea56ca3768","block_type":"box","text":"that assumed generally by an investor.","page_number":90,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"f9644f4e-8e07-4aa7-8896-e854d345f262","block_type":"box","text":"II-48","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5bc3bda0-93e2-4a45-8e89-d5c763be6e5a","block_type":"box","text":"NM1026U-6032801-90/242","page_number":90,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"51c317da-2e49-4a76-8376-bbe18ff05c90","block_type":"box","text":"Lease Obligations.","page_number":91,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"5b539a88-d1c5-4e42-9f1e-63843e8f0165","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":91,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"cab93dde-5881-4345-93f7-49202ec565e2","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":91,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"31af8f4b-7722-4c89-b6b6-fd25d7cf78bd","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":91,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"79cce356-9418-40b6-b0ca-f13533150681","block_type":"box","text":"Life Settlement Investments.","page_number":91,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"7dc91c6d-5d72-44ee-91c6-42ac90dc20ca","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":91,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"4236dcd1-b927-4af5-a622-86d772a8926c","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":91,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"6a1dba6c-edbf-402c-bbde-ee4ce2aab904","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":91,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"3afcfb63-98b3-47eb-9fdd-cfd8d2a1ea75","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":91,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"89dcb41a-074e-4b27-b51d-95794e1cf101","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":91,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"207087a6-43c6-4cd4-aa19-b4d4fa3850bf","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":91,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"3563c1da-03f8-4089-89ab-ecc497a67107","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":91,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"2528a0e7-f3dc-47b5-8054-e73dc84bfccb","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":91,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"c1a4e2b0-f0e8-40c9-91e4-149a5e47927e","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":91,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"c9867cd9-764a-4d7e-9a6b-e41cef52a815","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":91,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"9996e2c9-ddcf-4096-b40b-83c9a7481faf","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":91,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"358dd58a-11e8-4ad6-bee9-6f123d1a299e","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":91,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"960a0acd-8292-43bc-9761-dd02c6eee8cc","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":91,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"3da06c29-f274-420c-baaa-7afddf1dc72d","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":91,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"ff7fb24d-ca5a-4a7c-a8ea-afcaa5fcb0d9","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":91,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"d01729e5-67cc-4284-8e05-ee2d354244ea","block_type":"box","text":"Liquidity Risk Management.","page_number":91,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"be72e79f-7d6d-4a50-97cb-865c8b74cd62","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":91,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"82ff76af-1d51-43f0-834f-0c1d0b427a8e","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":91,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"d218ebe7-9929-4a03-96d3-a2e76194b2d5","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":91,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"51bc0534-5bd0-4ff9-ac44-56099f79bc39","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":91,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"c2a343cc-a5bd-485c-a695-ca475d991512","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":91,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"e22db52d-8eab-488b-b6af-3ebdf900e19b","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":91,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"a70d273d-35de-44ac-8b4d-f26235b45fc1","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":91,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"fe57938e-43cf-47fb-9b7f-0da02307f85b","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":91,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"94f0359b-5da1-4b8a-a5c1-290bacc849c2","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":91,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"af1e2944-2c1c-469f-bfbc-f080e3e872fc","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":91,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"3c299e9f-4242-40a9-a09d-806860091640","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":91,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"ff31bede-0bc1-43b7-878c-4934209d1cdd","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":91,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"96332e2f-8df1-47c7-bc8c-e8789b331aad","block_type":"box","text":"Master Limited Partnerships.","page_number":91,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"2909daab-3b5d-48a8-bf15-f4efec839b74","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":91,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"830e0452-6533-4b23-9314-2728a5c1f0a2","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":91,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"46eddd1b-5186-47ec-ac7c-50732af6aa13","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":91,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"23714b7a-695d-46ff-bbdc-23403de89a59","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":91,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"6b6a7d13-b2f1-468e-9e19-9ac26faa3c79","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":91,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"4b772ad2-3dc5-4b67-a9a2-9bf1a0dd4839","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":91,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"0ff061ef-baac-4b55-afce-e653f58f800c","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":91,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"1b9ae0cf-0158-44f7-bcf1-3e6e44f0bfba","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":91,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"74e3e4a3-490a-4b61-b9b3-f8ba93b766d0","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":91,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"74fc2732-4546-42b9-9e32-e690689279e8","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":91,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"61455e12-ee33-4424-95ee-4734090415ca","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":91,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"3cf6aee2-35ba-476f-b48e-ad1f62727b2c","block_type":"box","text":"in the partnership’s operations and management.","page_number":91,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"95641a5b-ddfe-4dc7-9dde-d856fdb9430b","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":91,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"4fe628ac-4d6a-4d65-a3b2-bececb3baaf0","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":91,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"891f8fef-7f69-4d82-8958-7690d543ad0f","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":91,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"560d09b9-3557-4916-bd35-b0da507c5af7","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":91,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"bc0a5eb7-182e-4406-82a8-a886d87c9b5f","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":91,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"c6dc1c44-f2b4-4376-a20e-348a86eca4a0","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":91,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"fd55562d-2245-474a-add7-d0cd028b7e46","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":91,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"55c03645-cdea-4214-8f99-88873f285d72","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":91,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"6a4cd036-a2c8-4ab8-9b38-afca3a47b040","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":91,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"42862ebc-7811-482a-880c-2eddbcd88936","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":91,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"6508e2f1-3b9f-43c2-85c0-bf793150e756","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":91,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"9cd146f9-b8ac-4021-93c5-0bf3edcc2d64","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":91,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"6df13b68-3228-404a-8f64-656d2c16960b","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":91,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"87f0e484-9700-4323-a310-82a91c750d2f","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":91,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"7853b430-57db-4e71-bf91-6e3d28d58754","block_type":"box","text":"II-49","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"04df5fdd-6425-4175-9601-ff310475c6b4","block_type":"box","text":"NM1026U-6032801-91/242","page_number":91,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"254e0e79-dbf4-4f61-8c99-cfe0f6895221","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":92,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"fb463ee2-e973-4335-bc41-0ab9b68e4bae","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":92,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"085affba-cfed-41dc-9b89-17d7c760b82b","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":92,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"ab61826b-0e1c-4bfd-a3f7-a08cf5371df1","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":92,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"67da0d13-d2a0-48d5-be37-b7b44b055ad1","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":92,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"f56d1769-b95d-423a-a0f4-a03f834d821a","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":92,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"4d270dbb-4337-4194-9cd1-8d7b7675532c","block_type":"box","text":"Merger Transaction Risk.","page_number":92,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"1551c6aa-3bd1-4f90-b1e4-afbb7b37db0e","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":92,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"8bb822df-2a26-46ed-a826-7ee0835a0124","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":92,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"1f2e9aaf-a2b4-4fe3-a9e8-c975486f7c5c","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":92,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"ad316bfc-9c1e-4392-9a60-12a1e592a676","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":92,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"bdf29fb3-29b4-4535-b3c1-0ec89b2606da","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":92,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"7e2eca1d-7bf2-4a29-858a-d7c24a2cb91a","block_type":"box","text":"the Fund and may lose significant value.","page_number":92,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"d782a51b-a1ea-4c0a-afd6-3d085a905c5e","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":92,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"c0afbe3a-d425-4ca8-ba04-3e51cf125dc3","block_type":"box","text":"Certain","page_number":92,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"185ea6a7-24d3-4563-bc32-48d6a7e70166","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":92,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"6ad5dae3-e4c2-4eec-8680-a96555a33366","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":92,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"a79d9c66-f6fb-4172-b6cf-a74ab5daca46","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":92,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"b4868b31-4df1-4586-b515-564196b5f4d3","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":92,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"a7c1a763-9642-436b-ac2e-613bd0e53fcd","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":92,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"bd87c226-b97b-4f3e-b646-262b4aec6e0e","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":92,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"ada5dabb-30a2-4f8b-9ae7-44ecde671386","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":92,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"4995e24c-d928-4221-a1ea-d917aaa436e7","block_type":"box","text":"branches of domestic banks.","page_number":92,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"c4839669-2e61-406f-b60e-1dfab4bb9152","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":92,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"51310ec5-274f-4344-9968-f51f8ba90481","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":92,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"1e588c30-f40e-4beb-8ee9-1083e6e42490","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":92,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"7a995aed-ba53-4be1-9a92-28de2f4966ba","block_type":"box","text":"paper of a foreign issuer.","page_number":92,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"d463845c-7ca9-4cb3-bbee-3fbba0b325f8","block_type":"box","text":"Money Market Securities.","page_number":92,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"4742b4d8-25f6-4dfa-831d-f24d3646b2a3","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":92,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"281b230d-0b6c-4965-98aa-de68ec63ce72","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":92,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"e83b13eb-8109-4e1f-8cb4-fb444863db04","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":92,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"88c4620e-e0a9-444f-8fda-de6e9006be4a","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":92,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"accfada5-0fb7-480b-8308-5197c0afb834","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":92,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"5890733f-2287-4bcb-b18a-b693fc521aaa","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":92,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"d1bcb7d7-5c5d-4c6b-8345-6042dca07567","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":92,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"8c66ce73-586a-4746-aab6-b78581794605","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":92,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"07a32372-3ad0-4f7b-b31e-1d88dbb25f4c","block_type":"box","text":"agencies;","page_number":92,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"e5dc47f8-2dc3-4b87-90ea-d1a0f5131bf5","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":92,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"f7d7ecce-e245-43ef-aa1c-6aab8f28ce2e","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":92,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"f94e720a-6857-4680-8e01-8d798812f69a","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":92,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"242d0c4e-ddaf-4c4e-a157-4ccc05b29441","block_type":"box","text":"obligations and credit card receivables);","page_number":92,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"b1779f02-a26c-4412-a804-9bd5958ee479","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":92,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"87f61d15-3ed1-4574-8826-05d3c8fc24af","block_type":"box","text":"authorities and related custodial receipts;","page_number":92,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"69502fef-6a07-4ddc-a751-b1861da3a1e1","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":92,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"46f4b8b8-8f95-4f20-b34b-ad956cf4ba21","block_type":"box","text":"agencies or authorities;","page_number":92,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"10047e63-f9a0-4f80-bcb4-ee9bddcad59e","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":92,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"20fb9909-b7ea-4874-8eeb-fe0136ba2625","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":92,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"eb9349ae-01f6-491d-8a43-3b0f9a05281b","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":92,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"30bcea36-c7df-4c52-9bad-c27176569216","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":92,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"6e711583-98d1-4700-9690-6178b4d6de7e","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":92,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"a450241b-b854-4419-b052-3712713ac6e4","block_type":"box","text":"States;","page_number":92,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"9c87bb63-79e4-4fb0-91ee-7ec7b68fbcbb","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":92,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"b169d014-d284-4d40-ad18-a79e7bc9730a","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":92,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"6d3685b6-901a-417a-9e78-80b60ab09210","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":92,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"c2324708-3492-4aa2-9451-d1fe952bdf3a","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":92,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"5894e4fb-d6fb-4ff5-9f5a-fe73758ed0af","block_type":"box","text":"II-50","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e0e565db-fe1f-4889-8d90-189885dc471c","block_type":"box","text":"NM1026U-6032801-92/242","page_number":92,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"97a44b40-dfa9-47b0-918c-cdfcb9a2c067","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":93,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"9b919a77-4ac9-4726-8e0c-753dcc40f8ad","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":93,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"d709f119-2049-4efc-8cc6-f2c5560db5fd","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":93,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"5b11f041-de1d-481a-aa28-3e46ceaafafc","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":93,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"fad1b864-1746-4bad-9c33-c3f00f614430","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":93,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"448702aa-21e1-42ae-a68f-1cb2be4b5f6a","block_type":"box","text":"States.","page_number":93,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"af079919-24fb-40ca-a708-547d6c5fa1d3","block_type":"box","text":"Mortgage-Related Securities.","page_number":93,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"91d5a7bc-ec5a-45aa-8da8-b00549aa0342","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":93,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"e8042689-0d63-4df6-a30c-f44a5c80927d","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":93,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"ced62103-191b-4476-885c-a2033891a199","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":93,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"7dd9d6a0-f0e6-49c0-8f81-03ee50f144fe","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":93,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"1d68f53d-6891-4d87-a751-43dd2ed353c5","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":93,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"43fcab42-46e5-486c-b40b-bf23d073d828","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":93,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"e8674d24-264f-49bd-bec2-ca0cdca2d5f0","block_type":"box","text":"maturity or specified call dates.","page_number":93,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"8628d355-1b3f-40f0-a40b-7d83af5e370b","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":93,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"ec454971-0071-4797-a8b4-bdde394ecfad","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":93,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"3a47c965-3121-41df-a2b1-5c3e91f730ac","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":93,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"eb3b8b96-c67a-40bd-80a4-850aedf55ce1","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":93,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"908f4445-d97d-4c4e-8eae-9c9e7f48a52d","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":93,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"558dd41a-54de-4e63-ab48-2093a86bdb2e","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":93,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"168d27ee-0a45-4f88-ae26-16e5b50944fc","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":93,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"eb31a304-3f06-4080-bac2-fff6975a6988","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":93,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"8ac78295-76a9-413c-92aa-f3abecdcf2b3","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":93,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"9f0026b3-8b8b-4cda-a85f-172fb21e48c3","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":93,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"ea5dd594-6b30-49c4-9fac-70aef0a326df","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":93,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"9ddbff0f-d4cd-4930-ae5e-b718abf1a73c","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":93,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"c6856bb3-fa63-4fb8-9d12-74fba3443728","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":93,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"a607ccf2-85fc-42a3-beaa-76073b8509cb","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":93,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"d1bfb014-fd37-42f3-a3cd-6a130a9179dc","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":93,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"911b9351-dfec-4bd9-8d85-9709834a9857","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":93,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"bb5f411b-6b71-44a1-86df-f7f83770f62f","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":93,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"5012c122-86a0-4133-aa31-0b2f2e994f6e","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":93,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"21c2bc80-6059-4dce-9adf-6282c948b746","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":93,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"3551721e-52de-4d6c-92fb-31a7994e5c22","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":93,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"46e85f98-0ef9-4cdd-99f8-c7787a33a356","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":93,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"0df0aedf-08bc-4a6e-8814-960f67504ff5","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":93,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"aa60e75d-fe05-47db-9ae8-879dba00c26a","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":93,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"da6b3493-8205-47fa-9ff0-e885f2a2e4ab","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":93,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"d314e65f-4c93-4560-a1ef-58507098cf76","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":93,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"ea5bc80d-fef5-47b2-b94f-aea423f31fcc","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":93,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"60d87dfd-2679-47bb-909f-06a837e34632","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":93,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"326f4300-4896-4518-924d-cdd0ca976cba","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":93,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"0c04827d-7d23-49c3-98c9-08b893bcca1a","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":93,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"77dc71f3-c409-4d1e-aac2-8034d5d5e495","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":93,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"1987c379-9f5a-4a8e-a824-930bc746867a","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":93,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"d72b4551-9dd2-4f5b-ac9f-60076e614d60","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":93,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"f8f52909-740e-467d-a325-16adbdca5fc5","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":93,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"1edd812a-f12e-4bbe-8214-dab21791054b","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":93,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"0e89d7fd-c390-4108-a310-20855cbd057a","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":93,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"0b2b2cbd-fb33-4bf5-b0ed-ff9b430960e7","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":93,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"ab046068-3892-4adf-97d4-3ac1a1bdfb00","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":93,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"8ab2d167-c6ea-433a-a0f0-fdcaa196150d","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":93,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"eec1edd8-34c7-4863-bb69-90c38a525a28","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":93,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"a4dac97e-2777-440c-a205-6007c60ce238","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":93,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"ff4643be-161a-4d0f-b570-b89eaf891ecb","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":93,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"5dec54f4-daf9-4f96-8e0b-eccafbb8ea89","block_type":"box","text":"II-51","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bf194f62-249b-4143-b21c-225c685412e5","block_type":"box","text":"NM1026U-6032801-93/242","page_number":93,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a2f988dc-e2bb-4058-9880-87e46bebffbc","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":94,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"53ddfa91-cf06-4a5e-acae-d9d1ef1527bb","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":94,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"bce083c6-9ee9-450a-a18b-cae1e4b2c79d","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":94,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"664bed8b-3e4a-46c5-803e-298d95717d69","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":94,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"f06e929b-d7a1-443a-8139-7b301e99c668","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":94,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"cae6a20f-848e-4eb1-a7b1-f56f4d93cc61","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":94,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"76f9d2fe-a1e5-4a9c-bdcc-8379761d77ca","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":94,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"be69e63b-a2b9-4849-bdab-8151a1e5fe11","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":94,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"f6a146bd-1204-440e-92f6-eac5627ca017","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":94,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"315a54d4-9118-4889-8f53-ff33b4df057d","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":94,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"2d0ca792-c82f-41e6-b96c-cadcc25f253d","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":94,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"59896c2d-656b-4a07-8546-f3f4070ef7af","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":94,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"1e1f3024-d2fa-4986-b3e2-a42819606e38","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":94,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"9ad9c85f-5354-4a7f-8be7-8c82c188152e","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":94,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"c3736aa7-3a41-4b19-8b97-44f5cc67e379","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":94,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"a0711dc9-5d6c-4ec5-b578-035d4205541f","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":94,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"6d57e136-23da-494b-8f21-cfc69a8a170d","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":94,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"8797307f-81f6-48f0-91d1-a55d7cb87dc6","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":94,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"2850e16b-aceb-4ac5-8d99-a1b3d31d9d6c","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":94,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"81428690-911d-469c-9ff6-d29b71976609","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":94,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"8d8006a6-727d-4c80-853d-95bf9bb56a12","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":94,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"94bdade6-1258-4e47-a4a1-288575f3aacd","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":94,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"85ebba0e-825f-4d39-814d-f081a283e089","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":94,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"56bb3b18-9292-41e3-a963-787d3b301bb8","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":94,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"e4f08399-ea90-4294-aaeb-edcb72650e43","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":94,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"811a7617-160d-496b-b38e-77774e77a405","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":94,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"8f180002-08d4-4478-ba59-a720c7929327","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":94,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"b7a35123-7432-4567-84ae-b7d48c4537d4","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":94,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"3a53b769-484a-496b-9ef1-11e2ddea92bf","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":94,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"8fe80ff1-10df-4fb5-83b2-d972f2f8f2a1","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":94,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"29843404-6063-4b52-bc23-a943d917948a","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":94,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"825c1f50-5368-4324-85ac-a25f906c79fd","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":94,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"16aa67f8-657e-4fb0-87fc-e9210a53dc01","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":94,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"94c63aca-6371-48f4-9078-28fc08925678","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":94,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"10555972-0137-41dc-aa0b-b24b6dd69687","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":94,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"6f070fc0-f7d7-4221-958c-aaecd60cfd7f","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":94,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"866930ff-da45-4c50-a25c-2c2698a6cec2","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":94,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"b602695c-61da-490d-bb28-83ec3b355efd","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":94,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"18dcceff-4148-4aed-aea4-27440a2fce6f","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":94,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"ff69d02d-2c6d-4c86-8ac4-123d42e2964c","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":94,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"16765d58-854b-4f20-bcfd-408b700101be","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":94,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"ff69edda-fb74-4ccf-9d56-2229f6874266","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":94,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"3eb0feee-d749-4019-a228-4703a7ca0f35","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":94,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"8ee46b8f-94d8-4ff6-958a-95c48df2fefa","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":94,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"ec53f828-ebcb-4d34-88fa-f3f826cfc7a4","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":94,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"b424f2fc-b187-44fb-b2cb-c9742ae2ea36","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":94,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"3153096a-d535-4278-887e-b706b42432dd","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":94,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"dfa8e89d-a538-464d-8549-d8dd177e132b","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":94,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"7a248e30-bfc2-4d8d-baa9-4e172326ad4e","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":94,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"135a138d-31a8-4bea-8ccf-ae9210dac553","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":94,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"0a0b3c9c-0402-44e8-9f18-f8ac6041a8bf","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":94,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"ea2adff0-327a-45a3-88a0-df9d31fff0d6","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":94,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"66a3a1c4-2065-4220-8096-e23ac24ccbde","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":94,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"5466a5b2-edda-4ecf-9a91-b69aee53e5b8","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":94,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"eaea26b9-4fa1-4acd-9600-e835de194a08","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":94,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"3ae849cf-3f6f-47e7-8e2f-64464d1b0fa2","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":94,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"0473ef98-edfa-436b-8d11-7fc505aa4445","block_type":"box","text":"II-52","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"176feaa0-7c33-4ce3-9537-843366a876c0","block_type":"box","text":"NM1026U-6032801-94/242","page_number":94,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5f7f1b4b-7be0-451e-a3ee-1e2fa6a052f3","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":95,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"779118a7-abdf-412c-b66a-84609f380cee","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":95,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"568fc350-49cb-4339-aa61-1496a5242e33","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":95,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"3d362e80-5d17-48a9-bf2e-2d9c4dc3f92f","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":95,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"ff3cdc23-3f11-48fa-850d-c3bb9725b5d0","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":95,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"1c428bf9-49dd-4713-ae6a-3a96feec3703","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":95,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"465677b3-3568-4013-af33-f49216c51791","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":95,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"9414ac55-784b-4b89-a9bd-696121b9f9a6","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":95,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"329d6391-4cd6-489a-af2f-3c9b2edb5660","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":95,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"3bc0c6b8-a482-4a99-8c66-c7d225f4fa09","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":95,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"9155da85-5126-4c93-b3e1-ac3f1458077f","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":95,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"80524493-73bf-4e22-a71e-972759d07be9","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":95,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"34510dce-b77f-4410-bb52-21f84157c58f","block_type":"box","text":"of principal because of the sequential payments.","page_number":95,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"122214ee-64c7-420d-8b3f-a484ffbe5664","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":95,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"c3ac00b8-54bf-4f89-98e4-3f19681d3b51","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":95,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"4bd5c36b-f606-4491-8322-1a0101206ae9","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":95,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"324a0785-f9c6-4e63-8cfb-5e042e2d4202","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":95,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"b947a235-d35b-47a7-b45b-9ef2850fe72f","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":95,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"679cd066-71eb-4427-b742-332cfd02259b","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":95,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"888ab328-64fe-4540-b4c3-4c1f2970bcb8","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":95,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"1f052465-7279-4e40-a371-d66d2454567d","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":95,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"e8ebfccc-f1c5-4568-9274-d9ec844915ff","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":95,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"c4ec83c0-671d-4656-b254-68863c2c8e3e","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":95,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"377b83a4-42c9-4563-8a7d-0dadb0b7fb75","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":95,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"64f3850c-3b28-4e5c-bb43-d1ff0c562a35","block_type":"box","text":"securities of any single such entity.","page_number":95,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"7446fed4-32b7-48df-9dee-1c05cc7fb7fe","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":95,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"0693a333-1f45-4d33-b508-b8e2cd196dbb","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":95,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"7f3cb408-2f15-412c-8c35-3c8c8cb0d42f","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":95,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"000962a5-1bd1-4b01-b98a-c3d45c1a78a9","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":95,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"5fe50b57-8ef3-4402-b237-67d2ab38b97d","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":95,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"75e0a52b-9ff5-4336-83f4-4ada64e93e68","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":95,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"7ebbe6f9-6c6d-446e-9432-ae0d85ddc91a","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":95,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"ec6b574a-6d18-4a80-bd00-4c19b9cbb15c","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":95,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"8d169a62-f281-4753-99ec-7f6cf4c729c3","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":95,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"3e11ab98-d23b-4c8c-83e0-e77e480afc80","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":95,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"06f6350e-502d-4b16-ad1c-670461fc80b5","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":95,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"4edb5360-e0fc-4c50-b735-f6524017d552","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":95,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"9960f059-2e7c-4c2a-a31f-0222f38890e5","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":95,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"ac8cd638-fe9c-4f74-948f-ba3a7cef72c9","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":95,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"b2314ce8-3a3b-4063-898e-0b7c69d6459f","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":95,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"1f35bad0-a248-42e7-be7c-f38d65aff297","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":95,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"24ed8333-7756-45ad-a109-d44121cf38a4","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":95,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"33cba143-3afc-4300-93f3-ece1877dcf45","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":95,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"aefdf114-b5b6-4888-995c-84d5feb8e965","block_type":"box","text":"classes.","page_number":95,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"b266a63f-0f3e-488b-9a85-7effdfe9917e","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":95,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"32d614ef-3c50-465c-aef5-321cb4fde9e1","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":95,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"1e4fee3d-79bb-4f5c-b1ff-9ecf61e45e5f","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":95,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"dedeaccd-1ac4-42db-9add-43d352607c34","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":95,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"bf396bd7-b831-4a1b-b78d-ce76bedc4ec3","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":95,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"d2725488-9514-4f6d-b50c-272dcc91d02a","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":95,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"986e5229-1161-4fb7-989b-076c0d398473","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":95,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"7a3e2a4c-dea7-4723-b05f-7d19dc8c4793","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":95,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"afb52170-7940-4d19-bb58-9d6328ed62fc","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":95,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"be1a566c-5e0e-410c-826f-e67410767dec","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":95,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"a9bd2f87-cf5d-44b2-808c-ca07b3884ee8","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":95,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"1d336b28-dc4e-4b42-b5a1-3c2539873a93","block_type":"box","text":"to a designated benchmark index.","page_number":95,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"a3586d5b-24d0-4f80-a54d-dc82079d456a","block_type":"box","text":"II-53","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"41cfb74f-23ba-47b0-99df-7dcc02402ff2","block_type":"box","text":"NM1026U-6032801-95/242","page_number":95,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a42f918a-eb2f-48aa-8451-506217b43e93","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":96,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"8854960c-43ab-4d6f-8a44-3af5adafe8fb","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":96,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"73afb321-87a2-439b-b7e1-2fb72335064a","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":96,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"e0bf8e46-f5a8-4a89-8861-d15b7454afca","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":96,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"b6644fb5-71e5-4b0c-9eae-7a5f8da95703","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":96,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"8a30ea9f-bff5-4a53-b483-d3180f92fb78","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":96,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"882b6e34-3318-4f7e-bcc5-45a005e35a76","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":96,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"43c2cc4a-b378-448b-8c25-b34d255cbcdc","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":96,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"43b0428a-a73c-49af-9843-62a73a049fc6","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":96,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"90714012-d285-4467-ac06-153ffdefb321","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":96,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"43af8ac3-a940-4b3d-bafa-3cb58f65e0e3","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":96,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"94a83351-9541-4909-8ef4-af81ef53c9cd","block_type":"box","text":"CMO Residuals.","page_number":96,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"7418bc6e-075e-47db-8ae1-6c81f835fa31","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":96,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"8b4d5c2b-d351-4a08-9979-a7303c8c17ac","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":96,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"b244d3d4-d3bb-488f-b0a2-faa2823c36f1","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":96,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"fde5873f-a096-432d-a470-4123e4ac8799","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":96,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"f264424f-a7e6-413a-aa96-724629f02084","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":96,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"0be4564f-b7ba-45ca-85a1-a7dac4aced27","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":96,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"b032e1fe-15ec-4be9-8cc8-80405da1f95b","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":96,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"0c6c9f0d-a6da-4c96-81d1-f754f5f0eb0c","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":96,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"18e04971-6384-49b1-bc95-4fbf534b7017","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":96,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"e174e653-551a-4fc9-967c-9513a1977bae","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":96,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"7c843711-86ac-435b-b0b8-c9bfb0486d29","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":96,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"b07d95a6-f2f7-420a-830b-404af651ec5b","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":96,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"9b9767ec-4b85-4598-abf1-6c815123a615","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":96,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"16935634-efd8-488a-9003-2925232035ab","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":96,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"1c36794d-31db-4c4d-8172-1597958822c7","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":96,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"df8ab767-9a71-4277-91f6-eba226475a4d","block_type":"box","text":"a CMO residual.","page_number":96,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"67f57fab-f7bb-486a-b53d-49824ba92bc2","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":96,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"1039897a-6cf5-4f1e-99ff-41450c0fbcad","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":96,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"b7bc2d5e-db9f-45da-bd9a-49cd646f71e7","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":96,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"5aeaa671-2135-4421-883f-b7ab1d4ba9c6","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":96,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"7e698149-b4dd-44c5-8e51-6b1fec6c6669","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":96,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"66c66cd2-8116-4860-8d36-542370c52ba9","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":96,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"79dd967f-cea9-451d-b9a5-d67ab2108345","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":96,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"1b370835-641b-41fa-94d4-d62a1fcaa595","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":96,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"f33e804d-a63d-4f79-8a30-2373a54ce14d","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":96,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"c82b86a9-ee70-44ac-911d-c3b22b32746b","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":96,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"5a7ab494-084b-4cd7-9695-4857c287f32c","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":96,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"5217b0c5-bde6-4701-b863-78bc0cd1531e","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":96,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"1d3df037-ba2f-4e5e-99a8-bbf82479a8c3","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":96,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"3020b327-a152-4ca3-947e-a53b459b52b9","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":96,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"b06e8bfe-e111-4468-9727-fb63f037e5b8","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":96,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"9a0218f3-7dff-4848-8f82-9ff526bcd91a","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":96,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"ac2c478c-8767-4cd5-9054-d88f0654e395","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":96,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"387a8e8e-2cd9-48d9-868e-a6f4f39a544e","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":96,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"48b9871f-c42f-4c52-ad39-db92f09c7d17","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":96,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"27a222aa-7f3f-43b1-b230-f2d8bad79ed1","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":96,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"e632f96e-d453-4e50-ae1a-e4f7ff67a50a","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":96,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"36b22af9-e1db-4e9b-812c-b8b141065faa","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":96,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"632233cf-383c-4877-9e7a-f6aefd270698","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":96,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"14e94224-8b1c-4c36-9e4d-a1c4b77dad94","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":96,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"7bdfc5a0-4386-4010-875a-374edcb52b98","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":96,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"a5f963e9-a369-4954-8439-c226e3b57cc4","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":96,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"a5f9e98c-47f1-4619-bf51-7717784baab9","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":96,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"e069bc55-5091-402b-a7d7-d957c081518e","block_type":"box","text":"Tiered Index Bonds.","page_number":96,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"b2feeed8-12e4-4652-9587-826f8a362564","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":96,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"8004ef8e-9145-44fa-b592-259d23ba7d2d","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":96,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"dacee97c-6b93-44d0-8fb3-9d64fce4caf8","block_type":"box","text":"II-54","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dcd7a896-a73b-46ce-a9bf-3b2fc0b0f064","block_type":"box","text":"NM1026U-6032801-96/242","page_number":96,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b96e3c87-e786-4c86-a224-6585ad117010","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":97,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"b2a051c8-b149-4769-b602-d568104e9fa4","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":97,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"37fcc91f-2223-4b4a-b6f6-96d61c21c118","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":97,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"024035bb-0a9c-465e-a970-f236fbb35494","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":97,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"17c3af9a-2181-47ba-9b80-71288840fcf5","block_type":"box","text":"that of a fixed-rate bond.","page_number":97,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"ba2f8bd6-46b8-461a-82f8-47439179ff0e","block_type":"box","text":"TBA Commitments.","page_number":97,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"2819a1f0-c4c4-4587-94e9-9b9e5a9306fe","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":97,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"79fb43ab-b38d-457a-a364-2db087e579b5","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":97,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"5ffb67d0-fbd8-4db8-b2cf-be2a386e14f6","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":97,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"275b7ea2-6f43-4aad-95ff-acb83dc905e7","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":97,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"8a016d9c-df63-441c-ae4a-1c180a097ef1","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":97,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"d10507a2-d56e-4a27-99ef-1ba9963d2518","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":97,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"352d1bd6-51e2-4a35-aa8b-5399975a1ec9","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":97,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"c6fac128-9e68-407e-a47d-fcac87f50fa3","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":97,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"3f3c92ce-88a1-45c6-bd95-ba9176e0a1b6","block_type":"box","text":"below.","page_number":97,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"071c527b-93d0-43e9-80eb-0d2c8f4171ea","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":97,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"e861278a-7511-428c-bf49-527fcb9013d8","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":97,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"c985f8db-9d42-4b58-846a-5f172e574470","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":97,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"1cb5b19a-18f4-4659-ad74-df3e85460294","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":97,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"353c738b-dd99-4046-b51c-4ebfd414c45c","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":97,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"e2218d93-d46f-42ec-8d43-d914a0e22fb0","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":97,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"7f16dd74-e21d-4a82-96d0-2fede94b4daf","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":97,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"04f83189-a64e-4264-a1bd-8e8176ad63c7","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":97,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"4a5df7d2-8a83-4975-887c-5e9f983a631c","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":97,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"1009d24d-b9cd-424d-834f-65f47c9d4775","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":97,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"f63f510d-2dc1-4a90-9af6-f65123eb261d","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":97,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"fd2db987-711d-4bd3-8d70-49fa17231058","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":97,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"89972e16-0be1-43e3-b6c8-c881affcba69","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":97,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"100782e4-4af1-4f18-af8f-8ef2dd98f118","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":97,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"6ca2325a-6bfc-4890-9150-fa05fc735daf","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":97,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"d630bb7c-8d78-4f1c-8574-50eed5eeaafb","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":97,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"138839e1-a801-4ad2-b23c-ac6ea4fc2d9a","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":97,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"dbfb3b01-8f54-4508-bca7-18faa9e03bb7","block_type":"box","text":"securities in the forward transaction.","page_number":97,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"e5140a15-8b8b-4a35-b972-b4e76922c096","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":97,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"e02758b3-87e5-48da-9b81-d6804d38fe7c","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":97,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"9a1544eb-fbb9-4dea-a166-422a87ffb9d2","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":97,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"c8628eea-3b8e-4331-84cd-b814bf228522","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":97,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"910e992c-2fcd-46dd-bd19-41a5e95c413d","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":97,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"9e6758aa-af27-4dba-baef-1a0f3e73b3e4","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":97,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"52b97e78-912a-4007-aa01-8a8e42f3d8f9","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":97,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"67f6aa29-c6ab-4eef-abd9-ea3924b27fa3","block_type":"box","text":"securities (","page_number":97,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"6df54436-6127-4d79-a102-e9687b257633","block_type":"box","text":"e.g.","page_number":97,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"609c22c4-5056-42cc-9447-c747edb6a4a4","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":97,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"b5c3dd60-fd97-41ee-a9f2-0a747c4460b7","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":97,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"6a2d4f4b-fc85-4c25-a256-2176072726cc","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":97,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"b62f20d3-b2b4-410c-b938-c5afd0dc832d","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":97,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"ce4f577a-ffa0-43ee-b37c-f20d06397740","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":97,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"a9ca1f35-ca67-4a3c-afa1-d868d2a323db","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":97,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"1cfa8736-f909-45f3-be1f-fc1c681c4704","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":97,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"f9f66760-313d-4b0d-a855-8de089e433b3","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":97,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"0f28a6a1-d389-494f-a9dc-161e97d616e2","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":97,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"0f2319c5-bc0e-490f-be29-13a9d3d4410a","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":97,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"5e1b4fe2-693f-4a4d-bbf8-6008585a0a7d","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":97,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"2107fc70-576b-4050-a766-e9f125a14735","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":97,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"f7e88c46-1a2b-4daf-922c-d3cd882dc7ba","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":97,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"53c4a749-913c-42a0-9770-0f2846095f8c","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":97,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"8c6e3dbb-727c-4faa-a4f6-305eb3811f95","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":97,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"cc0d1322-86d4-4e7f-98cd-ab072c69b6e6","block_type":"box","text":"Municipal Investments.","page_number":97,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"31d9b6c2-9589-42e0-b98c-371962ecc107","block_type":"box","text":"II-55","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9f96aab8-9cf8-461f-b693-97e77f805ff7","block_type":"box","text":"NM1026U-6032801-97/242","page_number":97,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c328cd65-a306-4c96-bb9c-a63c8d4ef88b","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":98,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"ff855f70-76be-4304-9232-82431a5bf99d","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":98,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"4eb26d79-29ab-48ea-a918-adc0491697c4","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":98,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"9334531f-8a71-4309-bffc-5e8b50fbe6bb","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":98,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"5874ae06-bd9f-440a-a5f5-854a6c33f7f0","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":98,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"f58608f9-3ae4-4b78-a5ef-7dce7d835d84","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":98,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"99872ad7-1d43-4acb-b5e1-79a5bf057187","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":98,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"2c6aabb2-0cf3-4ec5-8c8b-9bcd3567d762","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":98,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"d532b71c-e8f9-4415-b198-58649281b0e5","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":98,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"b3cda750-898a-4b3d-976b-d6c8d2c5ad14","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":98,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"483aafc0-5102-4bcb-8aca-506f3140d7c4","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":98,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"6f1c3ef0-8610-4f89-9d31-7080982c9814","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":98,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"8a260df4-4bac-4549-9ea8-2ea2a851af28","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":98,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"a70d4ba6-1443-4474-ba55-434bee4eab8e","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":98,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"6cea11e0-ebcf-4631-bff3-e82c754c82b3","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":98,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"1f4a6e20-1b5e-4611-b762-02b0e24d13d2","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":98,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"45a956b3-0cb5-4af5-b23c-5c5be2a3b7d3","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":98,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"eb73d7f0-52b8-4d81-a103-f7abc270472c","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":98,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"4eacd87c-4247-453e-a0b3-36a70f16e5f3","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":98,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"afdebfc6-8c06-4eb8-822f-f51cf6719261","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":98,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"5a9dc7ed-49ad-47f3-a14e-51c824bde1cf","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":98,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"3e52c300-0603-4620-aad9-502bbdf12f45","block_type":"box","text":"The risks and special considerations","page_number":98,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"e01b343d-71c6-4bec-bb72-5a5b479e8dbf","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":98,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"409ac2ae-2584-4e8b-9e38-25940e99953d","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":98,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"cdd0bac3-e0ad-4ba4-8c32-7e7f239b0e42","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":98,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"95ca39cf-d1a9-4dcb-b6b2-2955f604a299","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":98,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"f4885edb-5e8d-4618-861a-e833d6432ed4","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":98,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"fdf4653a-abb5-44d0-8e4e-4d4239a75c7f","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":98,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"c395aaac-c957-436f-8604-cb870248aaea","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":98,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"3fcc3ad3-3510-44f9-b952-21a2c43118ed","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":98,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"31226efc-e534-4008-8949-d01bb4033cc1","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":98,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"51523563-c9f1-4726-8792-3c5b70070980","block_type":"box","text":"II-56","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1252a6b5-414c-48a2-8029-2397a5184dc2","block_type":"box","text":"NM1026U-6032801-98/242","page_number":98,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8ddd3732-19d4-49de-bdb9-8611b9daf2e7","block_type":"box","text":"Description of Municipal Bonds.","page_number":99,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"843f56e5-491d-41c2-bb23-424771146f74","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":99,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"dbf0d042-acfc-44b6-b9ae-04a22495f3a5","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":99,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"a3f555d2-1ce1-42f7-923e-d737b11ea36c","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":99,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"66b19592-c422-4360-ab64-5021e9787e97","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":99,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"253eefb4-cd12-44e3-8b19-412a35e8b305","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":99,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"d5cd9100-4566-4541-9caf-0037400e8117","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":99,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"be7220cd-77cc-4711-a0c8-8c4cd4b76acc","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":99,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"76369a01-521c-417c-a64f-55f03222e662","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":99,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"3df53138-0168-4bf5-988f-0c099320833a","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":99,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"e0b894a2-288d-490b-9791-c6820d29d93c","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":99,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"d921970e-d74f-454e-ac35-d2986d55d574","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":99,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"d382e028-b392-4e5e-8aec-1b758d2f0d4f","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":99,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"7b49caad-a25d-438f-92e3-34f9bd2cfa2e","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":99,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"0cbdc4a7-f89d-44a1-a508-24eb57e496dd","block_type":"box","text":"General Obligation Bonds.","page_number":99,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"6aaddfd7-c51e-4b4b-b9e4-9c0820c81b7e","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":99,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"9f09cfbf-176b-406a-a64b-7315ef84ea6b","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":99,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"c11ac5e3-787c-40df-88a6-b4e96171db36","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":99,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"57a04419-561f-41b7-8bb6-4346676e6e74","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":99,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"5ec748eb-9474-4bcc-9bd7-037b6ce49812","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":99,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"0ac45780-44cc-4f47-9aee-f668175a838e","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":99,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"ceb99c53-195a-4638-9a80-e5ce88ea6c96","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":99,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"43978b86-6604-4233-a362-26599c9a9f7e","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":99,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"32650148-40bc-41dc-b777-eb58970fdd17","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":99,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"ab4b0e83-cd6e-4bdc-979d-c7d979432145","block_type":"box","text":"Revenue Bonds.","page_number":99,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"80a63f3e-71a9-4e43-b19a-a95a388574ba","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":99,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"a452c14e-bcdb-4bbd-ae7a-a425089e4638","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":99,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"815507f6-1d20-4aee-a9c9-cd00e4c3d3eb","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":99,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"4cf7cf45-b2db-42ed-b169-1959ec0841f1","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":99,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"60a26bce-bcfd-49f1-b314-a0dd53aa51fb","block_type":"box","text":"viability of such facility or such revenue source.","page_number":99,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"e0c331e5-775d-43d3-84fb-55ba33315e6f","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":99,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"97070a42-dfff-4b8a-8c00-9fe27ed402cb","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":99,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"09dac572-5841-4822-afa3-0b9e7759b7c6","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":99,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"98aa53ea-5801-409b-b9f2-3381c0963e4f","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":99,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"484612a2-6d69-471a-9726-60413b8377fa","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":99,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"38265d2d-2701-4438-8f49-8344d4ec3cc3","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":99,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"8c49e5be-8734-4d8a-ab77-5b5c64a05b67","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":99,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"788cfd2c-52b0-432a-9c29-d389d1efc094","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":99,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"f4acf60b-12bf-4da1-be4f-b9677f6e003a","block_type":"box","text":"PABs.","page_number":99,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"36857776-4956-41fa-a97e-ba0d8eb4b335","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":99,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"ac53bd02-d3ff-4317-82f4-03d2eeb0a6fb","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":99,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"643aeab2-2189-4435-83dc-f00791649ae6","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":99,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"1112dd84-7b8a-48c8-a0c8-929645d22057","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":99,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"2b73dfb9-8d3c-4313-8248-7ac0005a2381","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":99,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"b0491366-a084-4e38-8145-34c914616059","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":99,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"bd7d68f7-b50b-42b3-b5a2-2647aa7e8a7e","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":99,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"c3b03736-550c-4178-959c-99b1679a067f","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":99,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"b6cc9698-d0bd-4622-94af-efc709f0ea3f","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":99,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"dcfa4612-f5d3-4ce6-9bf8-eca1a45f2c44","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":99,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"814377b3-69eb-453c-87ad-a4969e3664b8","block_type":"box","text":"the particular facility being financed.","page_number":99,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"fc9da74e-2cf6-4a32-a490-c15aebb34537","block_type":"box","text":"Moral Obligation Bonds.","page_number":99,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"2e0f023b-fc3a-4bf4-90c8-930125ba92d6","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":99,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"f1bc3ba2-c154-46f1-a3ec-996014ddbcb6","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":99,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"dbbaa235-2b50-4198-be54-4dcdb38c7d43","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":99,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"2f32d47e-0132-41bd-97d3-6fe59282c64f","block_type":"box","text":"that issued the bonds.","page_number":99,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"e21b1b15-0cc4-4455-aa42-8b4c36f44165","block_type":"box","text":"Municipal Notes.","page_number":99,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"c197d201-98d9-4766-8721-a5eff7088d13","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":99,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"9ae086a7-6747-49cb-8109-4586de6614d9","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":99,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"63b11804-e1cd-4841-8002-570f59408f73","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":99,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"f635eec8-4bd3-4b46-adcb-59a2a522e79a","block_type":"box","text":"II-57","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8f034ed1-7c5c-4839-9bc8-6ed8867a2e9d","block_type":"box","text":"NM1026U-6032801-99/242","page_number":99,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ced11539-19b5-4913-9e7c-a5a9adc80c09","block_type":"box","text":"Municipal Commercial Paper.","page_number":100,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"5c226dfa-380d-4e73-bbd8-7b624debeee9","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":100,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"2d2531f9-cf3a-46ae-b9c3-f116bf292830","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":100,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"7648baee-175a-44ae-a8e1-56d541943e77","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":100,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"a83c17c5-0ca5-47c3-b1ad-d9ac2524671a","block_type":"box","text":"Municipal Lease Obligations.","page_number":100,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"fee70173-c1df-4d60-b71a-ccd0af6a21ab","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":100,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"b3278060-91e7-42f8-b010-1478f5e31f4a","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":100,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"80709661-5c6f-49ba-9b5a-95262b6b09e7","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":100,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"08dc6b57-461d-4604-8305-330bbedae2bb","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":100,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"eba31a1b-bfc1-4edb-8404-f8429db00c2e","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":100,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"da4fa0ba-a96c-41b8-9c9f-e7a533e9a256","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":100,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"bc3252eb-3b8f-45c5-b815-464d1e178cb2","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":100,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"1bd45388-731d-4a0f-a6f4-49f65e842345","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":100,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"660398c9-0946-4cb6-acbd-2f329aa08e36","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":100,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"ad64e32f-3416-4ac7-bba7-6da20f56685e","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":100,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"a865915a-1ba2-42cf-bd75-4888260ebe15","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":100,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"d1c0cf88-c989-4dc8-bb41-c475a9b8d49c","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":100,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"57223dd4-8846-4419-8c5f-5a52b8bf3529","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":100,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"3a1a8816-49cd-42c7-ab02-60d7374f082f","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":100,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"5a55196a-f743-4373-896a-058dda484368","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":100,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"858c6334-ca3d-4253-a7cc-b3c040194593","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":100,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"8bbf84e7-097c-420c-bad8-6292e44f793f","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":100,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"08644872-dfc0-4d70-89de-02d85eb6b00f","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":100,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"8d5304cb-fda6-486b-b9d8-2f958ef1925c","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":100,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"4472b50f-3bdf-4d99-b98e-1a6ba13da54d","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":100,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"e9fc77ee-2d9a-4fdc-a71a-55db5d2eaed2","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":100,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"fcca4a19-69d4-4b72-a30f-31c0f8d9277a","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":100,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"118a0931-5e20-4e2a-b537-a3ecbafa12bd","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":100,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"957d0d18-f4b1-4677-96be-63b85b900d8a","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":100,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"cdffad00-970e-433c-a17d-37b66f2ade7b","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":100,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"67d76a8c-bbcd-4c73-91be-71ab332756ac","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":100,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"30490929-2291-4a87-b474-6eac39e9f8c9","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":100,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"a7aaadd3-ceef-4f5d-8131-10716413502d","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":100,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"54c2defb-f115-437e-b3a2-3a026849cb73","block_type":"box","text":"Tender Option Bonds.","page_number":100,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"835c7d89-3241-4b27-ac0c-00c3a0f7f407","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":100,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"7889b1ea-6f33-42e6-8471-efb3e690e9b3","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":100,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"31f11941-3a50-4c52-8f18-18a8e02e059e","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":100,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"47761660-407b-4f30-a90d-8c94afc9ac0b","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":100,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"689679d7-f69b-42ad-bcf7-1356fa1008f5","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":100,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"29d6a82e-ac58-4220-b964-bb8a675f6ced","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":100,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"008c1faf-6756-4abd-a080-86dfe37ba15f","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":100,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"01292560-f5aa-42a4-b119-19c33f0671f7","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":100,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"c4d1b010-84ae-423c-ae54-7db22825db6e","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":100,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"e2dead3e-3630-48d7-ad97-fc1b569f9a5d","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":100,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"f2d925ba-2c7e-41b2-b7db-ae19fe770f55","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":100,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"1012cfbb-4ff4-479a-9659-44dd67642806","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":100,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"1242609b-d5c1-4c96-b829-95f85df8bad4","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":100,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"6d6c8296-1514-40bf-a140-aae45af4b0b6","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":100,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"6074df17-ddef-41e4-955c-6c177ec365b7","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":100,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"5501725b-e39b-4240-8346-a4053f4d6696","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":100,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"ea803a48-a47b-4407-83e9-7d0cef2aff33","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":100,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"7877ec67-537c-42d4-9d76-1ddc983da907","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":100,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"c01cd897-97b0-4efe-832c-66995b9e4573","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":100,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"5e761b79-9b2e-4a6c-88a0-8e2e1420a1ea","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":100,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"32e3e57f-8f5e-48a2-a49e-3720e7a5a0ed","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":100,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"2f2d3715-a891-4ca0-9554-8ef99cdf09a9","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":100,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"387ab8be-69ef-4e62-8b5d-2be623db2796","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":100,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"10a8bfe0-6ed4-48dc-bdb8-31b50bfe2464","block_type":"box","text":"participation in the TOB Trust.","page_number":100,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"820e9add-fc5d-4596-a8e7-6ba6d09c20f1","block_type":"box","text":"II-58","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dab8a885-20af-49d3-a872-531ea1793fe5","block_type":"box","text":"NM1026U-6032801-100/242","page_number":100,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"109316a2-f6d1-4003-be94-bb72057ef98a","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":101,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"9089ddcf-50a1-4a84-b405-0cf95933c4b5","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":101,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"5a4a0486-7286-487c-8b82-640fefd8df8a","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":101,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"aa4269c9-b33a-4abd-a036-d3b28209525e","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":101,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"c1f913e1-a1c1-4ac2-921a-c7a3d25490ae","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":101,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"a8dc1968-c633-418b-b20b-64d43758522e","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":101,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"2a90274c-1d56-4fb8-b0cb-7205b9d1e20a","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":101,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"1667dc44-080c-4bfa-9286-8e56254339d6","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":101,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"da4d3ea4-fcab-4161-979d-e500c5bb4ed1","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":101,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"871f9045-68d6-40c6-b2ce-8aae977a68d6","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":101,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"5e5aaf16-8675-425d-9ac7-369a5c993cd5","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":101,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"7b8c6f4f-57e8-4cd0-9f88-d318d9413e6d","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":101,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"7b3e447f-22d4-4442-97ad-4834bfe5162f","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":101,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"6533e45f-ede7-4f27-930c-73e942d185e0","block_type":"box","text":"issues.","page_number":101,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"0d7067ad-b8b0-4699-8eac-82484a03f4d1","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":101,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"85a27f34-760a-4743-8deb-d0c92e0ce9ce","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":101,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"118defc4-6683-48b8-b6d9-f1ea3b00e4d1","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":101,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"9f18dbd3-b368-435e-a8f9-0f54aff93f5e","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":101,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"42cb3889-45c8-4ede-ad1b-796d9294c156","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":101,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"5a1cd00a-e049-4b23-81d9-3c6650707cad","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":101,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"bfc31b96-6900-477b-9b64-3c16af4f819b","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":101,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"56fc27b7-4c8d-4354-87d1-020ed9545989","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":101,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"9a6ab283-e436-42a1-be10-b10b507e1a91","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":101,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"f7e46132-4395-4a82-ae05-9ecebcca3702","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":101,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"4308b9a4-568f-4db7-9372-6fb844d83691","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":101,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"b1665c2d-2061-42e1-ae77-a769f364a2e9","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":101,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"2a0296ad-5d15-48ef-b823-e933520cf007","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":101,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"f166684d-51c3-452e-83da-40d30021bdec","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":101,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"2bda4531-4d90-41a6-8fe0-2cda8259f071","block_type":"box","text":"i.e.","page_number":101,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"09eed3f7-02a5-42ad-8913-85987830f4cf","block_type":"box","text":", the Fund). In contrast, in the","page_number":101,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"f2b41a76-0473-4b50-8b32-b95bc72169ba","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":101,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"320fa99f-36a0-4988-9508-4d32cc21e39e","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":101,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"787a451d-503e-44f4-a326-a5873ae6f241","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":101,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"67ada2a6-baa8-4405-8bd0-77d88dbf00dc","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":101,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"532cfc2c-c236-437d-9809-707430991757","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":101,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"3e02e2c0-b747-4ccc-bc7f-e0ab7e07da31","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":101,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"41e97644-183b-44f7-9346-58714b529bb8","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":101,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"e21f55d7-9b19-4c75-b876-5dbda30331c1","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":101,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"0beac881-b80c-437d-ab39-2f81296c321d","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":101,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"e9186fbb-f217-4dcb-8580-dff98b99bb9a","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":101,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"b179bb10-f0af-4ce6-bc13-17411db04710","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":101,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"38e4a652-fce5-4261-b649-f458d2d00707","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":101,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"9dac349a-2ee8-407a-ad3e-1c615f61dcdf","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":101,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"8ab55eaf-629f-4378-aadb-3a4334f554e8","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":101,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"36b35dfe-d897-453e-b1ca-bab087cc4a46","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":101,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"90762800-4e93-407a-aac8-51c5ded5192a","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":101,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"f4849a54-fcc9-4588-9c62-0fadd46f575f","block_type":"box","text":"Trust.","page_number":101,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"a91cfcb1-07de-4544-82b4-b1d49d6985d9","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":101,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"317beba7-0cb6-49fd-af7b-d5013b97b91b","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":101,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"78da5477-e49b-4de8-a63e-6cd6f1cadc82","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":101,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"52ad976f-721b-41d5-860a-917d62ab95c5","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":101,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"d42c244e-7710-4120-a619-34f72e3f21de","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":101,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"88244505-73f0-4bfd-806e-384b00010a85","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":101,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"95bae44a-48ea-4cac-8d41-f605b719de1d","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":101,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"e7a1cc6c-546a-40ef-b091-b5e328c44bcd","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":101,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"9d876e00-a39b-4783-a986-b70084fe23c1","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":101,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"2a0bd299-a094-4585-bc5a-dda7176a9bce","block_type":"box","text":"II-59","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d137d704-6cc5-4d8e-b4b3-ee97f2e680fe","block_type":"box","text":"NM1026U-6032801-101/242","page_number":101,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ed5acdff-37b4-44dd-bc5e-dd422b493a7d","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":102,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"82116412-a3d5-4b56-808f-a9eda4b55498","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":102,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"40a61487-147f-4aaa-9274-26ebec65355f","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":102,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"47a8c4cc-dc40-426b-87c5-009ca1478724","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":102,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"fbb066d4-4b1d-44e9-b669-186796d5d165","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":102,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"91a745ee-4f2c-4151-9457-b42a64a4d54a","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":102,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"f04d26e0-fc86-47a6-a720-15d310ebd409","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":102,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"71059582-6c7d-427d-96df-1ad46d66fa31","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":102,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"3aa310c6-7457-450d-93a2-e7b5188bbfd9","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":102,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"04523a9d-2896-4cda-a433-0200ae5cea33","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":102,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"4f853d23-24f6-4013-b9b2-c91e5cef0676","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":102,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"68f223a0-4dae-400e-92e3-3766f285981c","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":102,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"8b854788-7115-400d-898b-8fa80bb583ba","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":102,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"283f6a69-3a6a-44f9-8afd-f993120ed8c8","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":102,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"612b730e-c6f1-47ed-b3e6-245495fb2ded","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":102,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"55bfa746-55b3-4505-8e63-7849b1a69d38","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":102,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"3c635e71-d8f9-4a8d-bd66-4991b77d5334","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":102,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"28fb1747-9934-415e-871f-787dd386ea18","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":102,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"cc0117fa-e93c-410f-9771-36226594658a","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":102,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"7b467573-e9db-4fd0-886f-c2f28751b5f0","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":102,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"6e47539a-82be-4fa2-863c-f4196498bd44","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":102,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"b1bac4ad-1f55-4892-b93d-e2085da51f75","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":102,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"e3324c0c-211e-44e9-b8d3-c6be86b7f9fa","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":102,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"3919e8a8-83b0-4c14-baf2-c99207c4c9db","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":102,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"cd2dc731-8415-44f8-8754-4681534be127","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":102,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"68f50400-ff98-4cfc-a3ba-99934fcd46ff","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":102,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"82468e41-98d5-4b8a-a8c8-a0f9bbe4a395","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":102,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"d51ce138-8305-4b44-abc2-9f0e26add829","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":102,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"d31caf29-1fb4-4e3b-bbcd-e1a4803a960c","block_type":"box","text":"i.e.","page_number":102,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"093f18e7-5df9-4819-b870-b861c7b2edce","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":102,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"d0887df8-77bc-4f17-aa6d-210ae5e42ee2","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":102,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"e534f681-5795-4af2-8b29-88534dd94d63","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":102,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"4260f98c-f53e-4dc6-a482-a0580f4f283a","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":102,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"0866118c-ca21-439c-83af-5336c47270fd","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":102,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"b03d1519-479d-4ce5-8f99-e5e255965137","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":102,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"7460beaf-9154-4d92-91ec-960a24b514d6","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":102,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"86d3822b-8c9e-4ccf-8b1b-33caa5610827","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":102,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"33a52699-73b1-4689-ba04-ccb716c89522","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":102,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"60306f3b-1d9f-41e4-8d49-923b34569529","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":102,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"850f91d3-a14c-4c9f-b2e1-c28d18748d49","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":102,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"242cbc87-a9f8-4902-8d4d-95da44310eef","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":102,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"b6dd7cfe-8c76-4c42-845e-32625b573559","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":102,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"553c50a2-2b3b-4013-9f27-acfb74b7d887","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":102,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"28b8a13b-c871-4765-a9ea-c6d7fd2fcf01","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":102,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"dcc9e565-6cc8-4109-a395-7f8484e1dce9","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":102,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"594d119f-33a5-4a12-8551-ddfaeb1121f1","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":102,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"77bddd03-9e82-4a89-88c7-29276b68547d","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":102,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"50eeb504-ccd6-48d4-9577-2b529b14ed50","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":102,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"b2fba79e-4e0b-4f40-b54d-cceabb5f25e3","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":102,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"db543838-9976-4108-b87b-5e10c2ef6214","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":102,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"40188df1-9464-4adf-a301-065f4dcf6f38","block_type":"box","text":"market is not yet certain.","page_number":102,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"6e50ffdb-b82e-4203-9f13-a6754769c7fb","block_type":"box","text":"Yields.","page_number":102,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"652e9ad3-1e8d-4ff4-8d51-3b71d5bd9bc0","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":102,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"9fe7bc62-8b3a-4816-8346-bb77a5940bf2","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":102,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"0c4a827a-924d-4e56-b9cb-41461e77798b","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":102,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"f449a9dc-3ce7-4c13-b932-77ee3471ea68","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":102,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"bb752710-9037-45b4-866b-f31192abdcb1","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":102,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"b3080931-0736-4165-b635-2b3d6f29cff0","block_type":"box","text":"II-60","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"126a19ec-455c-4a48-99b2-d3f4f8a71727","block_type":"box","text":"NM1026U-6032801-102/242","page_number":102,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1f0a7ed5-c33d-4949-aa68-c273963bebf8","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":103,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"176d0e0b-7f8e-455a-8b66-7874d352e604","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":103,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"5afdc3a0-7404-40ce-b44d-0cfb333d371f","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":103,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"9d721578-3f2a-47ca-be1a-7f03ffe6d920","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":103,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"066c7cb3-34b3-49c5-8e06-361d62df3bfc","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":103,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"e8b5ef7b-7382-43af-ae38-23e02730335b","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":103,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"49155e2e-9a68-4fb9-82fd-d1702d3ef460","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":103,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"7fe1320b-6a86-4e7f-8c39-f5381c224652","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":103,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"3541026f-4649-4d1b-a8ae-b89509feb3d2","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":103,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"6c01072c-c8a6-4636-babb-98dc82335367","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":103,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"00257e43-7f80-4766-9cfc-2cffe2836428","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":103,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"68e65f58-c4e9-4ca0-95be-61e9a09a023d","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":103,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"827ac8d4-64f2-4331-89a4-85a11ebb7057","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":103,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"0013cbec-7d4f-451e-82ed-9b11c08e9d15","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":103,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"cf9e90da-7afe-4d7a-b350-90d58035f0c9","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":103,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"17d38fac-0166-4b30-a12e-97f84af85219","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":103,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"77b85c5f-abe6-45c1-ab9c-082d60ab8981","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":103,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"b50f7225-860f-476a-abd4-9feba99cc311","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":103,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"6ca36bc0-6791-4be8-85b0-3f1d3a78df37","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":103,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"ff391c41-6634-466d-9cac-42945ef714f1","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":103,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"84c5667d-fdd6-4912-92d7-dbb7e1739edf","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":103,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"07bff557-cf37-44da-92bb-9b8e85b5d1dc","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":103,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"d58676c5-271b-45aa-9932-4ea06e0f482b","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":103,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"ce84d6af-f1a3-4c60-8912-a772ab15d999","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":103,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"76b2eb97-5856-4050-9278-b638b44d1cfc","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":103,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"4430f1ab-42dc-4da1-a951-c668c9e546c7","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":103,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"a8960926-da26-4e4e-8997-36e4467b10a9","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":103,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"6af06014-a99a-4aad-b06f-05dd5450916f","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":103,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"3a5a1150-6437-4efe-add5-c7add394a2e0","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":103,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"e6549be1-9ca9-4758-a6ba-fc40e65ea9f8","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":103,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"a1d73072-6d68-44f2-a628-685ca4fda717","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":103,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"f4182971-1114-4843-a24c-3abedb300b6b","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":103,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"7fc60de9-6a3a-4c7d-b395-530bc4128042","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":103,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"0d962dc9-a0dd-4d63-b15f-0f70c7274429","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":103,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"ba55c158-dbfe-4ee5-a718-3363b72b4168","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":103,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"cf05e03a-8282-4460-9d28-55a6e61e6d54","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":103,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"3ec5bb23-e3d5-48b7-a682-3693b55729f2","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":103,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"e941c7ee-5ddb-433d-a2db-dd859a031a18","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":103,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"f0636952-4547-4690-b5de-9dd64aa7eadd","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":103,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"399e0c57-a350-41c5-bf7e-1dd549805945","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":103,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"62b862f7-fbf7-4da0-ac4a-82c6ed990029","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":103,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"292015f6-68f2-4de3-8096-baba0b77e3e9","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":103,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"68b2762d-b0bc-4477-9934-f50169e15dc8","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":103,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"0938f181-8620-4405-b82a-caac1700f5c0","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":103,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"647af7f8-dc5e-432d-842e-9a9bcbf3ee66","block_type":"box","text":"Call Rights.","page_number":103,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"0768dc0d-741f-4ce7-9aa3-a38b8ddb1d0f","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":103,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"87f0c82d-7653-429c-996c-594852a3d81d","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":103,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"0ab71189-8419-4b78-85f8-80b5e2d9595a","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":103,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"a4c27982-250d-4860-9ba3-fe9b7b220c9d","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":103,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"420a3480-bd96-4bf8-9b81-449720c08922","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":103,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"592fcb9e-71e8-4cbb-8ef5-deff29cb3d87","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":103,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"191d7fa1-e243-4ad3-bae7-03e61bcb4322","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":103,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"c61f7e8c-1d42-4312-a254-1d7b775467a4","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":103,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"5033c566-875b-40cb-8236-1d21dfb1b366","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":103,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"fb593c7d-0c5d-4cef-9dea-930fe43015a5","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":103,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"d6cb7759-1588-4a40-a583-2ed635aee6b4","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":103,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"9daa8bef-3c39-4232-a299-3da328f9ea3a","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":103,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"7afc9fda-4da6-4aae-9431-61232c347c16","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":103,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"87240a12-2018-41ad-bb22-6c5c7a4b2584","block_type":"box","text":"II-61","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"66dcbc44-55d6-482c-b3df-90b3c0fe945c","block_type":"box","text":"NM1026U-6032801-103/242","page_number":103,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b7f6f8df-2ea1-41d5-b980-dbb12431b3b1","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":104,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"8b3e4cf3-74c1-49a8-a0d8-8308d2106440","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":104,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"bd0811a0-2485-45fb-97f2-28e1fbbe5cfb","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":104,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"c2349e44-137e-4ac3-ade3-831440d9d68f","block_type":"box","text":"i.e.","page_number":104,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"53d25146-d99a-4473-be22-583a55027200","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":104,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"e96a476f-283e-4e2b-8e59-d5084f77330e","block_type":"box","text":"rates).","page_number":104,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"fc8d4de0-fae5-43c3-b881-a9228c694a2a","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":104,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"8e87c416-5669-4024-955e-7acaf7d46436","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":104,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"8f636e31-3f74-4360-87b6-cc2b0015c7a2","block_type":"box","text":"e.g.","page_number":104,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"026d5d59-36f2-44fa-b83c-513b63c1a250","block_type":"box","text":", an exchange of fixed rate payments for","page_number":104,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"6b14f34b-0cd7-4b7f-9a20-743a5c3c3766","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":104,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"e64e7874-9001-4e9a-9a46-01c38d78f917","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":104,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"028d2080-889b-411f-9c63-010e81fe44e2","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":104,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"0874931a-e8de-4747-8135-c0d2bc995b3e","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":104,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"bbc5e48d-806f-40e6-b576-4cf7253d8585","block_type":"box","text":"with the same attributes as the swap (","page_number":104,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"383f1f8d-b270-4ae7-9f9a-1c0ed3e41c03","block_type":"box","text":"e.g.","page_number":104,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"19c94b73-fda9-4700-98bb-b5f1d3d1854f","block_type":"box","text":", coupon, maturity, call feature).","page_number":104,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"06cbd787-3a00-4113-9567-835f44f87e72","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":104,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"13dbfc4c-1a72-4fc6-9efd-36c3788db02f","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":104,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"383b7402-25dd-42f8-8223-aa1d3d6772d9","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":104,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"be7ddc50-5cf6-4710-bf45-54b06741fb1c","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":104,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"682be2dc-fc98-438d-8ea6-c77d84d27088","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":104,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"4a1b0549-dabb-4252-9415-dfb16f46af94","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":104,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"37900983-b71d-453c-a1da-af90329cb66c","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":104,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"228b4fce-41d0-4302-8f97-cbdd5a12671c","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":104,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"4e9c87a3-f3c4-4144-ac49-0171c315942d","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":104,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"74db9a20-5f7d-4e23-8f0a-88d036756ffd","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":104,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"e9e27dca-bebc-4ceb-9ffb-ce5aa4b22b92","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":104,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"a48aa960-11a8-424c-abc7-e59ec2df8eb3","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":104,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"fd32e81e-c947-43e6-b1d9-6a1f3e14eb6c","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":104,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"55d3fe57-bba6-4726-bcf6-329841c5f318","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":104,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"b99b4d05-79ce-4f7b-92c8-cb7bcbdfb70b","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":104,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"d7db2f4d-654e-4d21-8a94-375dfff25c2d","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":104,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"1d3b3a81-925d-4a07-b763-385852a8f96e","block_type":"box","text":"Insured Municipal Bonds.","page_number":104,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"cd376581-e3b9-4374-9076-2919f1a6907c","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":104,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"792904dd-1eeb-4e7f-9591-e864101a0f3b","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":104,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"f9a986a6-034d-4ec7-bdc3-9ad872b69705","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":104,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"bc973a65-9aff-4e4f-9fc8-7eddb716fc9a","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":104,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"0531b621-bd74-44c2-b0f9-0c15b7a114a4","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":104,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"dbb924a9-1248-4de8-926b-83dcb1158f4b","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":104,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"d495c5b2-8c28-466a-a139-a600229f18b3","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":104,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"a2b34d23-bd61-4d44-898a-d3b69ac66aff","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":104,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"94668061-797a-493b-b376-954031f8abb9","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":104,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"91d717cb-c229-4dbe-9a1f-df13913b65d0","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":104,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"116b9107-d55f-479a-b7ed-d9a5e1a91a23","block_type":"box","text":"bond could drop.","page_number":104,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"091cb438-cc7d-4ad0-aa8f-26f579c5e30f","block_type":"box","text":"Build America Bonds.","page_number":104,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"af39af99-6494-44d0-ab12-026f66a514a9","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":104,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"34d9151a-8e4f-4205-bd56-b810faf0a2a5","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":104,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"a737aed6-59b9-40af-8e49-e1303c62c773","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":104,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"f1c1a833-e0a2-4d5d-9944-73f06b3654e8","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":104,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"43392385-d5a4-4fb7-b4c7-41594032d834","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":104,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"79284038-b094-4d47-a73d-0169047b832c","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":104,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"90090177-059b-4409-9d1f-16efed034b83","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":104,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"32f946d0-00cb-46b3-b827-e2789514fb4d","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":104,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"8cfd50ef-e8cc-467b-b3e4-3638898c9296","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":104,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"d2e86045-b60f-41fd-8ab2-ca5737aee850","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":104,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"89297b5f-11fe-4db7-a573-219030b1b20c","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":104,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"818ddb53-d986-418b-aa09-a04fe614d6d7","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":104,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"844a631b-3e39-49ed-a476-2f7aad9e5d26","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":104,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"a79ee38d-568b-44c3-a599-0a082a8b99a9","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":104,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"03730de0-ef9a-4403-8774-1db3ed790487","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":104,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"c2d696c9-03ff-4203-9f4c-a5e50d5d584d","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":104,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"727940b0-a3db-41c6-a6c6-4c13c79c0c1b","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":104,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"7c2ad210-8899-4539-8674-1ce671dc76db","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":104,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"98cab1d4-2527-40dd-b5e4-b360183e58c4","block_type":"box","text":"II-62","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"20311dc3-4ce5-4eb8-b4d4-9b97f3e53385","block_type":"box","text":"NM1026U-6032801-104/242","page_number":104,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"44152436-e5f2-4665-b3de-fad577c283d7","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":105,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"e363904b-39e2-4893-9183-18bb14841422","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":105,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"854b1774-832d-495d-a2f1-d808dd7509f9","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":105,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"7d3d2fd6-b38e-4e60-8c0a-6a063b99977a","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":105,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"0df79c34-9d30-4a74-8cf7-b6f082853f3b","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":105,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"a9d50bf8-4f9b-413a-9c62-00f67ed47c81","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":105,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"6f3c568e-68db-4a5c-8077-11f3ed0d3373","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":105,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"71e5cdb2-b915-41ae-baa2-996258ea3a38","block_type":"box","text":"their face value to the sponsor (","page_number":105,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"15629d67-bc93-4d15-8f7f-7a8737a4e6d8","block_type":"box","text":"e.g.","page_number":105,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"d79c44df-5b7f-4c69-a91c-51e153626821","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":105,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"49de037e-b3e8-4d15-9850-32d25453b465","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":105,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"edd10c9b-8846-406d-962f-ac433c5a2c85","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":105,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"ed60a00d-3e43-46ee-8e5d-d41ca7f33b81","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":105,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"e3b4c9a8-cb00-453b-adeb-9ae4e459ab3d","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":105,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"d1706cc1-001a-461a-af42-a99c7f99e80a","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":105,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"23da3b0b-fccb-47d6-ad52-b485f9eb51fe","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":105,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"00387f86-f429-47f0-a8fc-a7a9d867c60f","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":105,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"a35ee1a2-501b-4f8c-9f4e-f8671db85830","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":105,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"9fe6dfc1-4192-4a92-85db-850e3c9793d1","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":105,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"eb55e9c2-34d2-4697-a289-3c4717844c66","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":105,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"f06ab402-d74b-45a8-aacc-7d696bd8b4bd","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":105,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"dca53691-9858-4705-877c-8cbb724d9add","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":105,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"cb931ac9-647e-4823-a1bb-48b78895c8dc","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":105,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"cf82413a-aecf-40e6-9021-0ad835a969ae","block_type":"box","text":"such opinions.","page_number":105,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"1efb5182-d885-449a-b0ed-331d8ce39b2d","block_type":"box","text":"Operational and Technology Risks.","page_number":105,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"249c65f1-ccb0-4a45-be01-43a21a76d226","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":105,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"4c67aee4-888b-4aff-b571-da7dc33e5b29","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":105,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"58d2f1cf-38ac-4121-857d-ecd290094b58","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":105,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"d1263cd2-5b17-4c29-981b-bcc179a3dd95","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":105,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"f2bef95f-36fb-4576-9c6c-c31eb71feaf0","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":105,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"f74f82fc-84fc-4ce5-b7b8-956d510e1a06","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":105,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"047173a1-b09f-4776-bebb-e0a3bae166c3","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":105,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"a90b352e-96ee-4f35-8309-6090935f5fde","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":105,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"87733c5e-4956-4aae-b317-5d2c978c2efa","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":105,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"ff364a6c-1fde-4ef1-9eb1-7a1db09629e0","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":105,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"852090bd-f796-4617-b798-94d40d31e7e5","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":105,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"7ea5c6ba-b0c6-4150-adc8-b2cbeddc7029","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":105,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"0abe5df0-f8b9-4387-92f6-02e2f014286d","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":105,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"7b0c4ab2-f1f5-4038-a874-52ef212df6c4","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":105,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"edbebf9c-591b-484a-9de3-7c6984dc84bf","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":105,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"8bb10ee1-450b-4952-907f-34d6e7ad0402","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":105,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"9bd6f68c-da63-4c82-bf1e-e0ab1c096f02","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":105,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"263eb958-10f8-490a-a4a9-7ec5b0e6ee39","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":105,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"d67c7028-2029-464b-bb26-0d5ebd238c47","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":105,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"a283798e-74b4-4e64-b8d0-9a1a437b85d0","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":105,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"2b83d297-333b-471b-9682-755e3d3b0cc9","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":105,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"1eb9ed54-78bd-4e7c-a1cf-e76c6c751197","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":105,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"a7d00ae5-4f62-475c-9b26-bcec6ccb0bca","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":105,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"d46f68cd-1573-4a12-b590-d06261faca2f","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":105,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"bf4a4ab5-a8f6-45c4-85e2-7d1434f649fe","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":105,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"56524034-f2df-4370-93db-2b96f4d62a9d","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":105,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"6a006547-ba11-4bf3-afd8-7157beb04881","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":105,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"2f2b6653-3f20-47d9-82ef-3164c80e0ebe","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":105,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"43f86ea5-8dfe-40f6-b664-0b3d8f85a7a4","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":105,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"12dbabe1-c6e3-4367-ab48-9a5da0d6a17e","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":105,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"6d3cf7c4-6fbf-4fba-98e8-cd79dd2adf30","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":105,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"ac1b3e79-c2fe-4e6b-9983-d3fde2dd891f","block_type":"box","text":"infrastructure assets.","page_number":105,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"9a200b53-7fbb-468b-87ce-a39a9a4b48a5","block_type":"box","text":"II-63","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"98ead2bd-e9d5-40c4-8977-89c9eecd10ae","block_type":"box","text":"NM1026U-6032801-105/242","page_number":105,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c528dede-6f33-47f3-a45a-efa5d0ea71ab","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":106,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"d6c7d252-0d00-4116-9937-0cb1d45d8a9d","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":106,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"a453387c-ba53-4a32-8ff0-632235b283bb","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":106,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"d40caf47-276f-412d-b846-a93a07ccd289","block_type":"box","text":"or services.","page_number":106,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"0a881723-adbb-42e6-a06c-d28a3e43414a","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":106,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"197013ca-92ca-4d93-a9fe-fade6e5c378d","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":106,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"d2b79de6-4127-4661-b307-1f1f39f99ef8","block_type":"box","text":"other third-party AI technology applications and users.","page_number":106,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"24279a1e-74fb-4185-bbdf-9b98a63d827d","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":106,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"2c3d90f3-da0f-4ead-8e40-86160c17b6ca","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":106,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"11846947-39a0-4fc8-a2a7-794d9f2f6f91","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":106,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"552861ec-0528-4bd3-a54f-21971703bedb","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":106,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"18e1653c-68b6-4299-a7e1-1ed1043d99d1","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":106,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"a315f535-0231-4cda-9f32-85a6127465da","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":106,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"15a70bf4-0fcd-45b6-ae09-cb63237ccd96","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":106,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"1e98dcb4-24fc-4351-90d5-976459d24afb","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":106,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"9033d97c-407b-495d-b227-53e01eb1c030","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":106,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"bd83fd39-1c7c-4d22-b692-793e189073a9","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":106,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"44ffc55a-50f5-41c0-a781-7ff84b4ff197","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":106,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"70021b6c-6ef0-4e1a-b61d-b43b1ffd5336","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":106,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"2ed5a67c-52ca-456f-a2b0-d23cfa254056","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":106,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"1832b49b-dfef-43cb-8932-3e5dcb297270","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":106,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"e87ca957-dc15-4355-88c9-af9ac205b6a2","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":106,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"ff7b5787-6a48-4b96-bd57-d1243730818b","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":106,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"ad046f89-b9b3-4e10-8493-0ed50ea9e661","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":106,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"935e474c-8f5d-4e15-ae30-4977ff277823","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":106,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"d63aae51-dcd3-4025-80aa-0ca72a58e010","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":106,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"c8711672-7e6a-4fd9-9945-cc3eca3e6895","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":106,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"3a43c48e-f9f7-4302-ac74-2cee45f2d56e","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":106,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"23485b4b-4ab0-4842-acfe-a31a51164a74","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":106,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"e699f8cb-7caa-4d42-94e8-0c5f18388b14","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":106,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"3b7352c0-6e62-4fea-acfe-9a6c353f4ca7","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":106,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"cc79c92a-8f7d-4a4a-9443-f9894ae5a16a","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":106,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"5cd5c308-6e55-43cd-be76-35a1e4820b5d","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":106,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"3f9ae971-d7df-4fd2-82a1-4c75fe50af4a","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":106,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"ca7671b3-f240-4116-a597-d1da2e1367fa","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":106,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"7221c02d-aef5-41a6-8e3f-7d88a743018d","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":106,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"22f6e9ea-bd53-4cbc-a7e4-eeb379c0ba30","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":106,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"66c26efb-2e52-4b15-bab3-014bed58c2c5","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":106,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"fe435a27-2999-4885-b31c-33d6559dd698","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":106,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"fc847937-8fd7-404b-8aae-133393fdafd1","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":106,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"2e1f32a8-d6ca-4c0e-bf66-02a3158bcc0f","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":106,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"58718780-9b43-4269-ac17-a11684c05944","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":106,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"5ffb431e-915a-4461-88df-7cfa7ae0cc6a","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":106,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"04c8136b-5326-4ac0-936f-8aa87dcec960","block_type":"box","text":"resources to monitor and implement required changes.","page_number":106,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"764420e5-626a-47b9-b780-18ba2f1a69c8","block_type":"box","text":"Participation Notes.","page_number":106,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"ae76b027-6164-4ac6-8ad2-ca4ad67136d1","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":106,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"f1dd38f6-5c20-45dc-84fd-df89631638e0","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":106,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"5df35482-2e52-46ba-8aff-a6fe28e7dd5a","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":106,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"fd7feb9c-0739-4dec-9cb6-f1d02e5a48d2","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":106,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"4ea410c4-5446-4577-8258-579ca2e1d40e","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":106,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"f04867a2-05ee-4db2-835f-877c46344d66","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":106,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"990b5098-77d0-43a5-b07f-041637012ec4","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":106,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"82fdc4d9-e975-4829-b3d5-d3e9d7e642ac","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":106,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"611dca91-ff13-4f7c-b360-94c7a5d0bef2","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":106,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"4615f5fe-76ee-47f1-be0b-ac5680c62d9e","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":106,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"eb008955-df4d-4eb8-836d-30cb76ab3930","block_type":"box","text":"II-64","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"92a4a58f-2aa0-45a7-b84a-5195edb5f52e","block_type":"box","text":"NM1026U-6032801-106/242","page_number":106,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"57d9fd2b-7414-4f61-80d5-672d35a0b409","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":107,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"643752cf-fae4-4554-878e-3cb4a9d4d7b6","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":107,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"ea86fd18-813a-4215-9f54-6157c656b1c0","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":107,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"413d8011-16a4-4c9a-9548-0a402de6b855","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":107,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"5db6349c-73e8-40f7-a1da-23ff815dcd04","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":107,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"3116dacc-2fcf-44d7-8898-25a8fe42c38f","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":107,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"d7c8e470-fd85-403a-b2c0-79623862e151","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":107,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"351ee70c-74ca-4b06-bc38-96d8ab7dc171","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":107,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"98ce04a4-576c-4e1e-90e6-5cb4d8c15dd4","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":107,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"4dab7cfe-c292-4584-a1ff-5e6b7ef1ce41","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":107,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"56916f29-0762-485b-8f7d-3e6104e85248","block_type":"box","text":"Portfolio Turnover Rates.","page_number":107,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"2af89f50-11d0-4f62-8b74-6e9d3480cf6a","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":107,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"60efb33d-86ff-4880-b48b-4c4e59566104","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":107,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"39b742bc-9851-414b-ac75-53be3cdd9e1a","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":107,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"e1070e64-5269-42fd-bd52-831f407093f3","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":107,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"fd60c4f4-1166-4b2e-a1d0-6898894c684d","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":107,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"bc0ccbb3-06ae-45e5-8526-3c0d9f0e68a4","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":107,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"3e462bf8-75b6-4c9a-a39f-43ee85971645","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":107,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"1dc0eb34-b72c-40ea-b07c-d563d38b3a03","block_type":"box","text":"i.e.","page_number":107,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"2169c7e3-87a7-4aac-b805-3030b9cd72ab","block_type":"box","text":", 100% or more) may result in","page_number":107,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"5e3cb04c-5064-47ca-aebf-20a88a13de04","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":107,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"1bf72dcf-c841-46e8-894b-29ffc78481e0","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":107,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"cd6b1083-8200-481f-92b6-475acaf694a5","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":107,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"73b9e85e-febc-470b-98c7-27c6a43af411","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":107,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"57d2e0da-698e-4250-bdf6-4b971a1a6af9","block_type":"box","text":"Preferred Stock.","page_number":107,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"75a2ce17-4484-4688-8e33-4c16e2b11fa7","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":107,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"008a07c3-f9d2-430d-8181-41767150a959","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":107,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"bb399861-9b51-4bf4-b447-9b245d54ce80","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":107,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"33cb0a3b-8e04-4b0d-a956-c771bcba71c2","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":107,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"8730fae9-1608-4f40-b7a2-ea23d908f8d3","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":107,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"2fff4e4a-dbd1-44cc-8acf-2b14c1f07312","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":107,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"1d95cf28-160b-4801-bf22-dc29febe66ae","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":107,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"63cefeeb-da7e-4dc3-82e4-32a449c9cca3","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":107,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"aa20ab58-7523-4085-bb32-9bb25ebd4cf7","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":107,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"856afe12-5a70-4982-8eec-4fb430991a30","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":107,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"7cc341d8-fefa-4738-b5d4-e7e290c38daf","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":107,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"9c2cd6d7-99f3-4d5a-8186-0678b023c06a","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":107,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"6ee004a8-e515-4f8d-940d-e4d601ce2dee","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":107,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"551fb2c5-25da-467a-a66d-0dce071fdc97","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":107,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"fe3ee73e-1f54-4f5d-9d61-9035bc96b399","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":107,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"fb52d2b2-0d46-4e50-a897-bfc9f7ea106e","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":107,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"200399bf-9f40-4353-acc3-9ecead73d8e1","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":107,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"0f02e3df-4166-4afb-b1e5-3c1ea1a7fd51","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":107,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"be79fcdf-e06e-46da-bf1b-086e3e301da9","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":107,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"7687f010-9eec-4d4f-96dc-3b9e814e24be","block_type":"box","text":"Trust Preferred Securities.","page_number":107,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"2c3dedb1-ac94-4514-9419-0be9b5ce99ad","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":107,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"52ea9208-f831-43f7-96e7-dbf703841b7b","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":107,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"d35f9425-9a1b-4887-82dd-229967afa486","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":107,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"c88664c6-b916-4348-a357-6ceaf6d2557d","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":107,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"ece78770-3ce8-48a1-93f9-cb942e196993","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":107,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"7f4b8450-f282-4ae7-8c18-5f1e369955e4","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":107,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"e611ad6f-e2b1-48a1-bb8c-b3c2f73dac07","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":107,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"62da1cc2-0978-4c88-b2a8-9bfa9547a2ca","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":107,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"fe1d9772-a9a1-44e9-8a53-1069a4d19520","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":107,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"db3e7f40-a1e7-413a-88a2-3b7972686427","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":107,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"85f5f0ce-e194-4b38-8e39-c17ffc6f97ee","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":107,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"c6da88ae-c156-4334-bba7-d3fe493b3e76","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":107,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"714a7894-9b42-43ba-a454-9b6268e64b6c","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":107,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"cb64dc32-f7f8-486f-a72b-4b1c525168b5","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":107,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"c301ae76-4702-4fda-97e4-5f3e11e64855","block_type":"box","text":"®","page_number":107,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"09d53146-1a2a-4392-95bb-acb106f1a43b","block_type":"box","text":"”); monthly","page_number":107,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"02669444-3296-4715-8b4f-303940bdf9d8","block_type":"box","text":"income preferred securities (“MIPS","page_number":107,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"b2f4c0ba-ef54-42ad-9d02-93d3709f7903","block_type":"box","text":"®","page_number":107,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"dcf598a2-d287-4b16-acbf-e95a66233e15","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":107,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"a6cf4776-5636-453d-8a33-091c22a29bdc","block_type":"box","text":"®","page_number":107,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"28063f9e-15c8-4fdf-91f9-afbe541e9626","block_type":"box","text":"” ); quarterly income debt securities","page_number":107,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"5dfb25eb-162f-4b07-9084-3a0764a6206e","block_type":"box","text":"II-65","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"49d397c9-d805-411a-9b31-0cec5c954b86","block_type":"box","text":"NM1026U-6032801-107/242","page_number":107,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"dc2dc205-09c4-4f3a-ac89-65b7925c77b8","block_type":"box","text":"(“QUIDS","page_number":108,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"00c2b2d8-0878-46ed-b34a-3d4fbb11afcd","block_type":"box","text":"®","page_number":108,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"5c458cf5-5340-4335-a135-523548844660","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":108,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"e9beaba3-2c00-4df8-ad01-dc173cffc22d","block_type":"box","text":"SM","page_number":108,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"dac1da23-abd9-444d-b554-31f409008e29","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":108,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"476a5e06-a709-458b-b341-246b73ae0891","block_type":"box","text":"®","page_number":108,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"82b07ddc-1930-4e11-ac23-2a7d8d55e144","block_type":"box","text":"”); public income","page_number":108,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"f7773fe6-2dec-4b32-8b33-3de036649bb4","block_type":"box","text":"notes (“PINES","page_number":108,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"0082da82-8d18-4d49-9f11-b9b758052a4f","block_type":"box","text":"®","page_number":108,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"ff572cd5-efe0-417d-b998-76ff596a0aa0","block_type":"box","text":"”); and other trust preferred securities.","page_number":108,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"88953438-e628-4a3c-b421-fc269f331104","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":108,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"d53412b5-582a-4156-8da5-cf44cfdbc0e8","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":108,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"a2c6bec0-7bef-4923-ac3e-96302c8578f8","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":108,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"b4385e10-9ebb-45c2-bdac-9515a6526977","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":108,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"6be45244-27ca-4f57-9318-b04319d9772b","block_type":"box","text":"regard to whether all payments have been paid.","page_number":108,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"15848387-2480-428e-82e3-0bd70b24e788","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":108,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"48df37b2-8206-4981-9249-0f129ccfb9ae","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":108,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"dcc27af4-3958-46d7-829e-c971008065ea","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":108,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"0efa2ecb-3ed2-4d6a-a47e-072a8e3cf116","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":108,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"91a28cda-b0e0-438c-85ea-c768e992a164","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":108,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"121bd807-6042-4d63-922e-d3cdd947f586","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":108,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"a86d8dbd-7369-4a22-8988-18af4d568669","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":108,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"8e8f5c37-c1ef-4778-b1f9-dbd16cd97521","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":108,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"4b455c24-9664-4f73-9aac-4a7b1a5104f1","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":108,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"7330e5af-405a-423f-b7e9-67e7ac304988","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":108,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"7acac3d6-00a8-49e1-bd52-68d35276f82e","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":108,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"9272d910-2c96-4810-8d4f-bd4ecc87773b","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":108,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"9fe6957b-0802-4fb4-a46f-b05ef0df884d","block_type":"box","text":"debt securities.","page_number":108,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"e0bb2ce2-42c2-4f77-9dcb-c6448e140527","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":108,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"a17fc567-0c92-4014-becd-a11b9c1954e0","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":108,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"4dcc9872-42fb-4b0a-b8ba-cd6195eb1a6e","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":108,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"8a8f6bfd-0f44-4859-b793-45f1cc7c29dc","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":108,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"3eec0ef2-b870-4374-8bc3-0f37eafd4fd3","block_type":"box","text":"geographic areas or in specific property types,","page_number":108,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"4edfbf8f-2dda-48b4-acf3-64a3c8833e91","block_type":"box","text":"i.e.","page_number":108,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"4f7c4cb9-65cc-4d48-8119-55fa877f0c1d","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":108,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"259e128c-8432-4a2b-8498-56d1db8a1d5f","block_type":"box","text":"buildings.","page_number":108,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"28507a78-2491-41e4-a171-0d42d3c6117f","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":108,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"8f5e8416-e4df-4523-80d3-2de4b5e93f7c","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":108,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"692f8a06-0f09-4809-b001-a6fd507ad622","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":108,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"916e0113-eb60-4e02-bc68-d8a7c55a7979","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":108,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"f7b010a2-7309-4765-ac21-74b234a46556","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":108,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"ab4fc6fc-6312-4e41-ae3a-40ce36d4bc6c","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":108,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"1d943120-804d-4dab-b231-0f98f754a661","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":108,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"b3dec2b3-9157-4e71-b562-225196ca7f21","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":108,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"8a4b9ee6-1d45-421a-ad12-bd2770dc847f","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":108,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"54423e7a-a0fc-4454-ad85-5a7f6ebbea7d","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":108,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"9c71d594-e329-421c-8dde-0a6141571075","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":108,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"30fac2da-98fe-4960-99c3-cc0c35282a4e","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":108,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"23c915d2-8959-4108-9779-a570351e04bf","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":108,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"3f0fac30-5ea0-4bef-81e8-1adabe321691","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":108,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"10462dd8-639c-4d1c-845b-f6a0f4abeeab","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":108,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"ece5aa71-b5c1-4c45-a932-9fc40b842927","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":108,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"8feea335-ae3f-4ccb-94d0-844ae65ba30b","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":108,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"b0b3abe2-e1e0-450a-99dd-d9458a5ec675","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":108,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"a2d642cf-4e46-4950-ac22-719d11ea49cb","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":108,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"d9ca354c-0ddb-484a-a15a-0225a2857403","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":108,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"87cd08ec-249d-4f5b-b7ba-33115da31e4d","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":108,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"b3bafc21-ea5a-4bca-bdb9-c2b5ab336d36","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":108,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"06e1104e-9c95-487c-8800-f700bee2c5c5","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":108,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"477088c2-fa63-4e70-9c87-7cc06a2f466a","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":108,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"41129b40-80ce-4418-abfd-cb3cdc9aebc1","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":108,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"a8b477e1-eb41-4e1e-97e9-2fa611d53e94","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":108,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"9ffe7b13-7d08-41e4-bf72-3ec941671039","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":108,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"b84d2209-d38e-400f-80f1-b0eaa13ae0d8","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":108,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"74791c86-03cb-4bcd-87e7-9fdf1a660c72","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":108,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"2daab4a2-1261-4340-abf5-0711853dc0c3","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":108,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"2ff88c2c-fb3b-4503-a7d1-130c9efafe49","block_type":"box","text":"II-66","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e49848a4-4f16-44fb-a941-e6b479a492e2","block_type":"box","text":"NM1026U-6032801-108/242","page_number":108,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3fb4a8da-4138-427e-8e3f-07eeaed1531b","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":109,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"cdb33bd0-def9-40be-9c78-06c72a8f9968","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":109,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"7a375ca0-d2a1-4603-b41e-00e5394cd749","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":109,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"cb1ba8d0-c445-4c24-804e-6c570bf5d5db","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":109,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"d5649fb2-0385-443c-a601-7336cfec20fc","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":109,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"242485b7-e70e-44f1-8b0a-e64b74303220","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":109,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"8272f7b4-720e-4fcb-8588-1e3df3c5a994","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":109,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"3df426cc-7442-40ae-86aa-01d7bf62d045","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":109,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"a5d11e08-24cc-49dd-beff-75a29c58a875","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":109,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"7d3cc76a-56b1-4dc5-9720-1969a609da44","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":109,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"b5dddb95-fabc-4f01-b4a0-349969395773","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":109,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"b348f643-bb29-4222-b7ca-5ecf698030fb","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":109,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"8b63be6c-c706-422e-ae59-fbc3ea1540a1","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":109,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"2e6f515b-5608-4a25-8912-5f52897ff143","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":109,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"fda6e5ff-5c85-4336-93ab-0e78c36a8e37","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":109,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"abe13fd7-56f8-47cc-9189-4f59152b0b3b","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":109,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"8969b8f8-2446-4a85-803b-101168b686c1","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":109,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"6f7738f2-916a-4c01-b442-4a13ae97ea04","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":109,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"fc25aa61-75b9-46af-a7f8-011f47ca8259","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":109,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"d8f901f7-f5ff-4bc5-98f3-d834d3ee6c1b","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":109,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"ee432c4e-476d-4d6e-9c65-3c7aa49bdca8","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":109,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"16d6b61e-07fa-4dab-a6b1-1c6fff5390e4","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":109,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"711f5f5c-82c4-4ed5-a54d-d53a304362cd","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":109,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"f9e73f3a-2031-4b0b-95a1-7c1b3cb2b35b","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":109,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"edd01057-974a-478e-b15a-b03bf1be2817","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":109,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"051ff069-c5f4-4d5a-8f77-9140f61d7d06","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":109,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"06b0ad1b-0dd8-4266-885c-ad55076fb8bb","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":109,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"da8e97b4-6a37-4c4b-8cc9-fbc11bcc22ae","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":109,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"19a04d41-5241-4d4c-af07-0752cd2ea1d6","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":109,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"dde92201-c694-47ce-ba7b-a36f6e1fa737","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":109,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"d3485fcd-be76-4351-8ec7-d047d2326df5","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":109,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"0c8581ac-f455-4099-b461-a2ee2c9c2c65","block_type":"box","text":"conditions.","page_number":109,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"fd4ed8b9-2b43-477f-9eb9-320a7fe52ed3","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":109,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"7a7c6ec7-5a20-48b3-91dd-2968e57f2534","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":109,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"7bc8e340-94ea-4240-bcb6-7f0993dd41a8","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":109,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"b790031f-c72f-49b6-8d00-2a91b9a4784d","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":109,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"71f06ff9-68f7-4e3e-b11b-b1042cc91734","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":109,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"423eaad2-d888-4e58-9fdf-e68f0a480bd5","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":109,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"dd2d12b9-f66e-4bf9-9e12-db37a3117f17","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":109,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"e90ec6a3-8993-4d78-9c93-8ffb5584788f","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":109,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"56f74079-0daf-4f9f-877f-66be76692145","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":109,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"c2690589-3fc2-4119-92a8-9685eca25853","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":109,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"2f3b204a-cb7e-49c9-8c2e-23c1b376a8ca","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":109,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"8b50e4fb-47ec-4d2c-8f91-12530dab96ec","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":109,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"e1e66d6b-c44b-40ac-9f1b-1821e35b8573","block_type":"box","text":"affected by such events.","page_number":109,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"edc95b2e-8e21-45e6-873b-bda53cb4114b","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":109,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"57dd467c-b8f3-4b90-ba8d-8a8170257f6c","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":109,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"b5f65e94-5f3b-46e5-b5eb-efb716317527","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":109,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"649944f1-fdd2-4986-82bd-6274ec93e4c8","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":109,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"e1da2199-c2f0-4e47-814d-c4e2f1954417","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":109,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"dba20658-df56-49b7-be3e-83e1ad45e89e","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":109,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"075aa323-f87f-4768-847e-5941c79de762","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":109,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"762fbe49-2c92-4979-b298-2feaf43acb95","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":109,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"44c3a2c7-7c5f-4927-ada2-0aa1ae9054d0","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":109,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"785cb8d2-30ff-49d0-be26-32b0b0a411b1","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":109,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"e7856d40-70ed-4aae-a8b4-628ac69a4ef5","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":109,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"4da4211b-a170-4738-87d9-b32ee263437c","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":109,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"01e9cdb2-ebf8-4888-ba20-2d8261a18f67","block_type":"box","text":"II-67","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9cd47642-f65e-46ec-92f0-bc8c2bdcfd7b","block_type":"box","text":"NM1026U-6032801-109/242","page_number":109,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0c72bee7-6992-417a-8bbf-fabda072f213","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":110,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"cf702da6-5ff5-4672-ac94-9d99e2969083","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":110,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"5e0c9b7e-417e-478a-a8d3-d04169cc95ce","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":110,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"2119f17d-aa8b-40e6-994f-71fc2e36bab2","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":110,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"d63b4ddb-f140-4a06-88c4-5132b241d7c2","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":110,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"e124a532-3d1c-46c7-9fbe-70775e74534d","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":110,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"e10c3b9d-507a-4fda-8420-691da4aa3bda","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":110,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"e72f6366-fcb5-4c98-afa1-f43f39b6dcd7","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":110,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"309c73ff-c212-405b-905a-a3c6e3c769df","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":110,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"b5a5c133-20c6-4126-93cd-2b43f32eb606","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":110,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"4f2e8689-6d52-43dc-b4c8-3bb9675ca3af","block_type":"box","text":"investments.","page_number":110,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"bb06e9b2-c777-4659-a44e-d4e46df757d0","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":110,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"8d657516-7e83-4278-b7a1-5a7e2f25e214","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":110,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"944d5341-364c-4f72-a856-678a8e0362f2","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":110,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"63fca46a-907d-4c6c-9789-9e481bb28969","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":110,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"1869ad88-a039-49ac-bb46-5e0cf658a3fe","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":110,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"9c732ac2-ba5d-466b-a584-93d89550970a","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":110,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"749603cd-2a42-475e-8201-5a3272bf3d34","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":110,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"d3bbd3e3-d513-41cb-8101-d29c1ff353d4","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":110,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"e7cd7e15-3a9c-4e92-931f-4409c10da3f5","block_type":"box","text":"Legal and Regulatory Risks.","page_number":110,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"83101e5b-758f-4153-89fa-f25bf89c8545","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":110,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"89c8a706-5ad7-47dd-b442-c6a07cdf5e60","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":110,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"1d71c03e-d161-4a30-8d0a-918fc5dfafd3","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":110,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"ae2b9c91-ae3e-4363-9d5a-eecdc1a67458","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":110,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"753d6ee1-1c12-4068-bc33-d8389d6708a3","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":110,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"5202599f-1457-4381-99be-986c33c15233","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":110,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"0a0f5c36-356a-4c26-a736-526d03183fdb","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":110,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"b179c00b-1fb7-4061-8cc5-eacc31ec685f","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":110,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"662d36d4-ea92-4f28-952c-53388a3feb67","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":110,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"849de319-8311-4553-989e-368dbb982007","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":110,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"125296ee-0a75-43db-8c1d-106926fd332d","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":110,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"687ef788-aabe-4d04-b489-059527169d03","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":110,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"5fcdc989-1bd6-4775-b427-5bfe415388c7","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":110,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"246a349f-7c0c-4b8a-9701-221099643b8e","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":110,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"310e51b2-ac8e-4452-b758-e309c0dfa470","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":110,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"be630617-e55d-46fa-8cf2-aa8988d5d3ba","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":110,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"bdd94572-b577-4d44-8671-a500a86ed8f8","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":110,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"8f893b35-4dd8-437a-b779-30884c056371","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":110,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"73badde7-f282-43a4-9ef5-fe7b475fd7d3","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":110,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"c2f0c91c-d313-4268-b95a-4b1f13881f1e","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":110,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"17266e8a-95c9-40fc-a9d6-a39a127a3521","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":110,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"4b9587f0-369e-4463-9ab8-3b074dabba64","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":110,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"4d83693e-56a7-4c1d-95bb-969e398192bf","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":110,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"d77ede1d-8537-4542-99ea-71e83303db1b","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":110,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"e29286aa-469b-40f8-98e5-7df541722ff9","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":110,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"bda372d7-de23-4780-8376-148d1ed608e6","block_type":"box","text":"Geographic Risks","page_number":110,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"f6a2911e-5e61-4e75-9748-d894b62af360","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":110,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"2e1e465f-3105-411c-8d4c-5095c5b523da","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":110,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"a1628df2-16d1-42f7-b00f-69abb0a7d981","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":110,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"d84e209b-e1da-4b1a-a7d6-4ef70af15160","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":110,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"b2d33ff0-3c45-419c-829c-bce1affc2b8e","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":110,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"9b100fdd-2d78-46e2-a649-d035b26fa8f7","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":110,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"d336c5ef-0380-4497-8f4e-501338b6a0ab","block_type":"box","text":"Fund.","page_number":110,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"4cdd639f-ee7e-4dd1-88de-c0f823b018cf","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":110,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"ea16b542-a5d6-4ae3-83d4-738bfac4f885","block_type":"box","text":"The London Interbank Offered Rate (“LIBOR”) had historically been used","page_number":110,"box":{"x":363,"y":846,"width":514,"height":11}},{"id":"304475e9-b71d-4d93-9137-11e1268c65f5","block_type":"box","text":"extensively in the U.S. and globally as a “benchmark” or “reference rate” for various commercial and financial","page_number":110,"box":{"x":69,"y":861,"width":782,"height":11}},{"id":"1d9d7699-ae31-442b-8ee4-9841b74962b5","block_type":"box","text":"contracts, including corporate and municipal bonds, bank loans, asset-backed and mortgage-related securities,","page_number":110,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"b50f73b8-29bc-4a04-b622-30fa59e22658","block_type":"box","text":"interest rate swaps and other derivatives. Instruments in which a Fund may have historically paid interest at floating","page_number":110,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"3d23849c-521a-452d-a746-fc2baa2735a6","block_type":"box","text":"rates based on LIBOR or may have been subject to interest caps or floors based on LIBOR. The Funds and issuers of","page_number":110,"box":{"x":69,"y":906,"width":834,"height":12}},{"id":"b46b9dc7-1ad3-44a1-a14f-81e7ed9b346e","block_type":"box","text":"II-68","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b0a299d6-6aa6-468c-9ba6-3b849e132c6d","block_type":"box","text":"NM1026U-6032801-110/242","page_number":110,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3cd6c034-96d3-4daa-b1da-d4b505270c42","block_type":"box","text":"instruments in which a Fund invests may have also historically obtained financing at floating rates based on LIBOR. In","page_number":111,"box":{"x":70,"y":45,"width":837,"height":11}},{"id":"bd4af1b1-7b14-42db-afcc-947ce865c720","block_type":"box","text":"connection with the global transition away from LIBOR led by regulators and market participants as a result of","page_number":111,"box":{"x":69,"y":60,"width":783,"height":11}},{"id":"f251ab33-801c-4e1a-99f8-fd6b65662442","block_type":"box","text":"benchmark reforms, LIBOR was last published on a representative basis at the end of June 2023. Alternative","page_number":111,"box":{"x":69,"y":75,"width":779,"height":11}},{"id":"4ab1bbdb-509b-4fc3-b848-7df99718f97c","block_type":"box","text":"reference rates to LIBOR have been established in most major currencies and markets in these alternative rates are","page_number":111,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"4c4d5ff1-6b46-4a55-a8ba-23a11d6614c8","block_type":"box","text":"continuing to develop (","page_number":111,"box":{"x":69,"y":105,"width":160,"height":11}},{"id":"bf8f754b-927b-4a95-89a4-9ff9a58b0b3c","block_type":"box","text":"e.g.","page_number":111,"box":{"x":231,"y":107,"width":25,"height":9}},{"id":"f2a7052c-d92e-4066-83a5-f63a8a6778d1","block_type":"box","text":", the Secured Overnight Financing Rate (“SOFR”) for USD-LIBOR). While the transition from","page_number":111,"box":{"x":258,"y":105,"width":641,"height":11}},{"id":"da115836-7225-4019-8a00-6a72b687ff54","block_type":"box","text":"LIBOR has gone relatively smoothly, residual risks associated with the transition may remain that may impact","page_number":111,"box":{"x":70,"y":120,"width":777,"height":12}},{"id":"1be13e95-af7c-4d63-9374-13706d9bc542","block_type":"box","text":"markets or particular investments and, as such, the full impact of the transition on the Funds or the financial","page_number":111,"box":{"x":69,"y":135,"width":776,"height":11}},{"id":"69b34210-94b7-4b73-a282-5e5738b73822","block_type":"box","text":"instruments in which the Funds invest cannot yet be fully determined.","page_number":111,"box":{"x":70,"y":150,"width":493,"height":12}},{"id":"a946cf22-e994-46b4-909f-ff13b84b8828","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":111,"box":{"x":102,"y":173,"width":750,"height":11}},{"id":"a22001e3-eb29-4ee8-ae8b-9736c63e02cb","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":111,"box":{"x":69,"y":188,"width":803,"height":11}},{"id":"c476f372-eeb4-49fc-b564-027a31ed5db2","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":111,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"434ded00-96d1-41df-b736-14d139608334","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":111,"box":{"x":70,"y":218,"width":801,"height":12}},{"id":"b789b059-18e5-4af4-a3a5-b222f361eeed","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":111,"box":{"x":70,"y":234,"width":810,"height":11}},{"id":"7367be70-a529-45d7-b3e1-d8a4cd4dab52","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":111,"box":{"x":69,"y":249,"width":803,"height":11}},{"id":"09b038aa-f3bf-4236-a2a7-7564d40a07d8","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":111,"box":{"x":68,"y":264,"width":825,"height":11}},{"id":"f887dbfc-2080-4bc3-856e-e0e82682f347","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":111,"box":{"x":70,"y":279,"width":828,"height":11}},{"id":"23493c49-54ee-4f4f-bc73-b53a9aec166c","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":111,"box":{"x":70,"y":294,"width":838,"height":11}},{"id":"2c8171e2-641b-44cc-85c2-9dd9a1f6c755","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":111,"box":{"x":69,"y":309,"width":796,"height":11}},{"id":"84b643d3-850d-4a47-9e4d-bfacfc275034","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":111,"box":{"x":70,"y":324,"width":836,"height":12}},{"id":"7e13737a-fdee-43dc-8dd1-844fd350fc59","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":111,"box":{"x":70,"y":339,"width":824,"height":12}},{"id":"cb5c3748-dce8-41a3-b335-c2ef89dfa1e0","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":111,"box":{"x":69,"y":355,"width":830,"height":11}},{"id":"da0c86d1-f685-45f8-84a3-0d0dde6215e3","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based reference rates, cannot be predicted based on SOFR’s","page_number":111,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"e18731a8-2014-4396-b783-c070fbbd8f7f","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":111,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"a87fe7ca-0a0b-454a-abb2-005407d9312b","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":111,"box":{"x":69,"y":400,"width":835,"height":11}},{"id":"8b72a491-7bcf-473f-8ec6-e31af22e6e76","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":111,"box":{"x":68,"y":415,"width":384,"height":11}},{"id":"308f5cbb-b3eb-497c-9900-9c1373800760","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":111,"box":{"x":102,"y":438,"width":782,"height":11}},{"id":"87b3e798-6fd4-473d-90fe-2a40b45f765e","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":111,"box":{"x":68,"y":453,"width":786,"height":11}},{"id":"586fb2a8-93f8-4362-961e-963a0b4131f7","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":111,"box":{"x":69,"y":468,"width":746,"height":11}},{"id":"d619752b-6627-442f-b7d9-aecd813c4a04","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":111,"box":{"x":70,"y":483,"width":822,"height":11}},{"id":"a49170f6-2ae0-453b-875e-340d254dcc0c","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":111,"box":{"x":69,"y":498,"width":821,"height":11}},{"id":"fc51a270-8948-46e6-94be-52c0e96ecd1d","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":111,"box":{"x":68,"y":513,"width":799,"height":12}},{"id":"47d2d890-b33d-4216-96d8-01585749eb49","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":111,"box":{"x":70,"y":528,"width":830,"height":12}},{"id":"293936c9-88f0-4afe-9e50-3324502340e2","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":111,"box":{"x":70,"y":543,"width":757,"height":12}},{"id":"f726e488-14e5-45bd-9c55-89bf8e5ff554","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":111,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"9a2b48e9-5343-424c-a958-3f55ae2ce6ed","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":111,"box":{"x":69,"y":574,"width":840,"height":11}},{"id":"577a7c7e-21a1-4c71-a48d-f11ccb0625a3","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":111,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"0d604f32-54e5-4399-9a99-7d918b628c6a","block_type":"box","text":"consequences which cannot be predicted.","page_number":111,"box":{"x":69,"y":604,"width":298,"height":11}},{"id":"eb8cbb5b-e69f-4007-a194-ec8404154910","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":111,"box":{"x":102,"y":627,"width":432,"height":11}},{"id":"27c2291f-25ee-47bd-a089-9aed7524765b","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":111,"box":{"x":541,"y":627,"width":347,"height":11}},{"id":"9615d0a0-5862-4df5-84b9-ab44ffb285f0","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":111,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"befb528a-d3bb-46d8-be14-17f33178e58c","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":111,"box":{"x":68,"y":657,"width":815,"height":11}},{"id":"c13363d9-1f7c-4709-aa29-153a28c4c8b4","block_type":"box","text":"term of the agreement.","page_number":111,"box":{"x":68,"y":672,"width":164,"height":11}},{"id":"81a324ca-0663-4db0-b42e-10376a1bde15","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":111,"box":{"x":101,"y":695,"width":788,"height":11}},{"id":"931cb2a5-b85b-4f4a-a9a7-a4f9dfbbb231","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":111,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"2e2ed9f2-7667-44e9-883f-4330ce69f32d","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":111,"box":{"x":70,"y":725,"width":821,"height":11}},{"id":"39addbf9-9949-4564-95a9-f86f362e9a11","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":111,"box":{"x":69,"y":740,"width":790,"height":11}},{"id":"8a26e5a1-a3d6-482d-ab7c-e3f07da04009","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":111,"box":{"x":69,"y":755,"width":827,"height":11}},{"id":"b604baed-9782-4aac-90b5-c8c1b9605d49","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":111,"box":{"x":69,"y":770,"width":788,"height":11}},{"id":"c9099e61-ed3d-4745-8f28-f3089d464858","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":111,"box":{"x":68,"y":785,"width":522,"height":12}},{"id":"700bddec-4dfa-44a0-8d18-48a9abf9eef4","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":111,"box":{"x":102,"y":808,"width":792,"height":11}},{"id":"3d5af5bd-7a61-4d62-910e-bfa0804a1e39","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":111,"box":{"x":70,"y":823,"width":784,"height":12}},{"id":"86354aed-9915-4768-b198-4cb90536f42b","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":111,"box":{"x":69,"y":838,"width":837,"height":12}},{"id":"f3c11765-3e4b-4eb1-a45a-bf3d67ae73ad","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":111,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"bc04d359-6ad8-45c5-a82d-aa6487cc8f81","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":111,"box":{"x":68,"y":869,"width":770,"height":11}},{"id":"17af5f13-d7c5-47bb-a329-93e2250ab99e","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":111,"box":{"x":69,"y":884,"width":802,"height":11}},{"id":"0858e86a-19b8-40e1-ba54-356a2788ea53","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":111,"box":{"x":70,"y":899,"width":430,"height":11}},{"id":"08a168ea-bf06-49dd-adc1-33982ce10a6b","block_type":"box","text":"II-69","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7709c5fa-3c28-4608-b7e5-8054d5b999f2","block_type":"box","text":"NM1026U-6032801-111/242","page_number":111,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7ca20244-ac53-4778-b3e3-3e3c191698df","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":112,"box":{"x":102,"y":45,"width":759,"height":11}},{"id":"33e7ac5b-7f75-473f-9a6d-c19c69e168c0","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":112,"box":{"x":70,"y":60,"width":765,"height":11}},{"id":"b6c7d01a-1c69-4046-80ac-c2442983a406","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":112,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"dee1731b-5f44-43fe-9643-c1f0679a9129","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":112,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"9159a1a7-982f-4f30-b06e-590d49200c8c","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":112,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"ba6c2464-6bb9-42c5-b169-23c70fae7b40","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":112,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"9e3b6c79-a011-481e-b93e-11be215c76c7","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":112,"box":{"x":70,"y":135,"width":831,"height":12}},{"id":"85181d3e-9202-49bc-8661-f55c97fa1ac0","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":112,"box":{"x":69,"y":151,"width":810,"height":11}},{"id":"443f4d37-6212-4560-b47b-876233b2174f","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":112,"box":{"x":69,"y":166,"width":829,"height":11}},{"id":"adecc1f8-1653-4276-b578-f3c1ec3ad2d0","block_type":"box","text":"or by another authorized securities depository.","page_number":112,"box":{"x":69,"y":181,"width":329,"height":11}},{"id":"7467f6e9-0810-4f89-84c3-6d101fa9bc7b","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":112,"box":{"x":102,"y":203,"width":770,"height":12}},{"id":"ac9bb36d-4f2f-4bfa-8b09-94cd28fdbb24","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":112,"box":{"x":69,"y":218,"width":805,"height":12}},{"id":"10e4e424-5cde-4ecf-965a-1177df7952fa","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":112,"box":{"x":69,"y":234,"width":819,"height":11}},{"id":"d31dfd19-41b5-418e-959e-ea752c183822","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":112,"box":{"x":69,"y":249,"width":778,"height":11}},{"id":"f30c79f4-78cd-4632-8766-6fac4e878e7a","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":112,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"9451e690-1740-4bb3-8a62-c44f80e70377","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":112,"box":{"x":70,"y":279,"width":810,"height":11}},{"id":"b8429c1f-4046-4202-9b00-e80595c0aade","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":112,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"db92ce63-0e5a-4fdb-a724-3e93533ef08b","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":112,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"e7f52bb0-6082-424c-b036-73fe6e10f44b","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":112,"box":{"x":69,"y":324,"width":817,"height":12}},{"id":"cdce3ab7-ae88-45bc-a6d1-12af1ee913d1","block_type":"box","text":"the repurchase price.","page_number":112,"box":{"x":68,"y":340,"width":151,"height":10}},{"id":"35f151b6-f35f-4c6d-866d-c766301a3737","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":112,"box":{"x":102,"y":362,"width":805,"height":11}},{"id":"c3aee2c1-8cb0-470e-9db1-1e4805fbf207","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":112,"box":{"x":70,"y":377,"width":837,"height":12}},{"id":"077ccc72-6d92-4a11-ac18-84866586f8e9","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":112,"box":{"x":69,"y":392,"width":788,"height":12}},{"id":"d8a15ced-e788-4392-b69a-2e1d703b7900","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":112,"box":{"x":69,"y":408,"width":767,"height":11}},{"id":"edb75f5c-d674-4443-90de-d4cc110e2c88","block_type":"box","text":"strategies without the repurchase obligation.","page_number":112,"box":{"x":69,"y":423,"width":317,"height":11}},{"id":"4576d99d-0ee5-4380-a17f-8d590cb4bb4b","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":112,"box":{"x":101,"y":445,"width":782,"height":12}},{"id":"fe059da5-3444-4c6c-9999-bfadc6dd498c","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":112,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"2a17d144-b051-4d25-9540-43f66642e8a8","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":112,"box":{"x":69,"y":475,"width":799,"height":12}},{"id":"de54d21c-661a-497f-be8e-763273d0ac73","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":112,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"b928534f-8ffc-4dc1-a78f-f6238848d431","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":112,"box":{"x":68,"y":506,"width":825,"height":11}},{"id":"53856b5c-98ee-41ee-a96d-412da27e0738","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":112,"box":{"x":69,"y":521,"width":374,"height":11}},{"id":"95c5c4ee-bfd8-406e-8dac-9f0c5d184f80","block_type":"box","text":"i.e.","page_number":112,"box":{"x":445,"y":521,"width":20,"height":9}},{"id":"522e3e08-23e9-42d7-95bd-f979e39adfea","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":112,"box":{"x":468,"y":521,"width":434,"height":11}},{"id":"a30579b3-f4ff-46af-9424-c886ec28788f","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":112,"box":{"x":70,"y":536,"width":813,"height":11}},{"id":"c69ec652-9035-49d5-9aaa-6e6525b4196c","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":112,"box":{"x":68,"y":551,"width":816,"height":11}},{"id":"b84264a3-b63a-4aa3-8eac-afbbf9860658","block_type":"box","text":"and income involved in the transaction.","page_number":112,"box":{"x":69,"y":566,"width":278,"height":9}},{"id":"b2730901-22bd-40e3-9820-8677387e753b","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":112,"box":{"x":102,"y":589,"width":800,"height":11}},{"id":"6bbce3a8-b488-40f5-ab34-bee2722de33f","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":112,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"b9b66dee-7bdc-44d2-8aa9-dd7d7d0f19be","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":112,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"794a462a-802a-409b-84f1-ba472b093c14","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":112,"box":{"x":68,"y":634,"width":790,"height":12}},{"id":"0901eead-1a3b-40c8-ad74-cc048d0b7c41","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":112,"box":{"x":69,"y":649,"width":818,"height":12}},{"id":"51b42850-eefb-424c-83d8-6ebe333b17a0","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":112,"box":{"x":68,"y":665,"width":783,"height":11}},{"id":"2537fcf5-c0a1-4bba-8914-d0d6d1690557","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":112,"box":{"x":69,"y":680,"width":821,"height":11}},{"id":"e39d4380-6204-43a1-af3a-ddabbd368a15","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":112,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"8dab9efd-1202-4540-8456-5129f0b1075d","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":112,"box":{"x":69,"y":710,"width":796,"height":11}},{"id":"4ca187f6-a9cc-436f-ad30-43449dfae491","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":112,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"9ac53404-657f-4bb2-915d-614a9f55323d","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":112,"box":{"x":68,"y":740,"width":824,"height":11}},{"id":"4aa9e6a5-fa0c-4ce6-a75a-3b4c961a415f","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":112,"box":{"x":69,"y":755,"width":279,"height":11}},{"id":"cae4ed7a-cd1b-4260-a529-2c98fadec1fe","block_type":"box","text":"Restricted Securities.","page_number":112,"box":{"x":102,"y":778,"width":157,"height":9}},{"id":"bfce2466-d2c4-446a-9b48-81aa92b392f6","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":112,"box":{"x":265,"y":778,"width":617,"height":11}},{"id":"d28b380c-cb5c-42a5-8068-f2e25335cfea","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":112,"box":{"x":69,"y":793,"width":801,"height":11}},{"id":"f9702eee-a1a0-47e6-8a97-b201ddeb0b03","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":112,"box":{"x":69,"y":808,"width":808,"height":11}},{"id":"4ccbbb66-d23a-494b-a488-b1e81d358a88","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":112,"box":{"x":70,"y":823,"width":802,"height":12}},{"id":"ef3b8aa0-d709-4185-8974-fa5a68cf8db2","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":112,"box":{"x":70,"y":839,"width":834,"height":11}},{"id":"be268317-7ba6-4612-830f-66da91e893f9","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":112,"box":{"x":68,"y":853,"width":825,"height":12}},{"id":"ca0a5cfb-34b6-459e-ae06-8972678e71a8","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":112,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"0b52d8fa-d107-46ce-82a9-80d1c92396e7","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":112,"box":{"x":69,"y":884,"width":821,"height":11}},{"id":"cc5d238d-e935-4fd2-a066-b758c6ed1623","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":112,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"04da1504-7e89-492b-b759-e43c446b8559","block_type":"box","text":"II-70","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7819c288-e3f2-41c1-a347-dddb588ebe4b","block_type":"box","text":"NM1026U-6032801-112/242","page_number":112,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f24630b0-38e8-4162-b2c6-7cd67a7ad7e9","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":113,"box":{"x":70,"y":45,"width":824,"height":11}},{"id":"211c6e7f-8b09-47f2-baa3-986c69c6b1b9","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":113,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"b50543eb-3586-44c2-a17c-883e63a1c57c","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":113,"box":{"x":69,"y":75,"width":769,"height":11}},{"id":"915b570a-9c3a-4ba7-a46a-4dabe25dec8f","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":113,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"0ae22a8e-fcb9-42d3-85dd-aa6a1fab2dbe","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":113,"box":{"x":68,"y":105,"width":805,"height":11}},{"id":"bb50f5f1-6adf-4c0f-a97e-2ecefbf96a7d","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":113,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"a0b51bb7-eecc-442e-9c85-f35476f018d8","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":113,"box":{"x":70,"y":135,"width":815,"height":12}},{"id":"dc7d6675-eb87-41e8-831d-b761c4704c11","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":113,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"36a22bc7-7724-40fb-b46f-25826b49778a","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":113,"box":{"x":69,"y":166,"width":803,"height":11}},{"id":"c2ac4685-2bc1-4422-8601-b136373457b5","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":113,"box":{"x":70,"y":181,"width":830,"height":11}},{"id":"085cfc84-3784-44e3-9028-ca4fc91abe23","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":113,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"f641215d-7551-4020-ad41-9042402fa302","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":113,"box":{"x":68,"y":211,"width":825,"height":11}},{"id":"b4a72bcf-5c93-4089-8cbc-10dab9f8d586","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":113,"box":{"x":69,"y":226,"width":777,"height":11}},{"id":"9aeee0d5-09ac-4b5c-aab8-322da8a6d977","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":113,"box":{"x":69,"y":241,"width":828,"height":11}},{"id":"fc39e6f7-b2c7-481b-a7bc-3b30ef7132b4","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":113,"box":{"x":69,"y":256,"width":834,"height":12}},{"id":"a963defd-2e71-4a5f-983e-3d42b8444c01","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":113,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"740fff66-cce4-47d2-9534-c853f0369a61","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":113,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"114c2ac0-de56-4d7e-ac0f-4427310a6f38","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":113,"box":{"x":68,"y":302,"width":819,"height":11}},{"id":"75328c47-6222-44d5-a100-c17f6d3d46ba","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":113,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"001d8e5b-6319-4a45-8b3c-a4c3b200b709","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":113,"box":{"x":69,"y":332,"width":798,"height":11}},{"id":"23d7436c-4386-4345-a95c-e6ad78cdc8ef","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":113,"box":{"x":70,"y":347,"width":780,"height":11}},{"id":"2d7d1ee3-1597-42d2-8518-26c53641479e","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":113,"box":{"x":70,"y":362,"width":773,"height":11}},{"id":"4d732d87-3346-4f44-a198-0071b656f0a9","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":113,"box":{"x":69,"y":377,"width":784,"height":12}},{"id":"57dcdbb0-edd2-42fb-9b7b-1c46daabc11b","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":113,"box":{"x":69,"y":392,"width":816,"height":12}},{"id":"9efbb528-87f8-43f6-83fb-1f70a7de0751","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":113,"box":{"x":69,"y":407,"width":828,"height":12}},{"id":"77ef867a-01c1-4934-a642-1226c886dc1f","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":113,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"9e313b06-7acc-4e76-8ed7-2086cec87fa0","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":113,"box":{"x":68,"y":438,"width":804,"height":11}},{"id":"4d8a92e4-32f0-4fa2-96a2-739531cee33d","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":113,"box":{"x":69,"y":453,"width":647,"height":11}},{"id":"8ee0294a-7c91-4b87-bdf1-cbbdec85d97b","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":113,"box":{"x":102,"y":476,"width":714,"height":11}},{"id":"30888ccf-bb6c-4385-9528-9700ccd710a5","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":113,"box":{"x":70,"y":491,"width":823,"height":11}},{"id":"bd0f7f78-dbbc-46d3-ae9f-aee402f7d809","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":113,"box":{"x":70,"y":506,"width":826,"height":11}},{"id":"e3bdb872-983f-4e99-a392-067e9ac38b5c","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":113,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"e22ab795-6955-4804-9e6d-4e481d631054","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":113,"box":{"x":69,"y":536,"width":812,"height":11}},{"id":"7738e9a4-205c-4f47-ba26-2844cca6123c","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":113,"box":{"x":69,"y":551,"width":787,"height":11}},{"id":"26e9b526-1947-4ef1-902b-1aca94fb2448","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":113,"box":{"x":69,"y":566,"width":833,"height":11}},{"id":"3b0b77d5-827f-487e-b482-8590de5c5a60","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":113,"box":{"x":69,"y":581,"width":759,"height":12}},{"id":"a48bd5e2-2907-4d12-97ff-4cb49f06c633","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":113,"box":{"x":70,"y":596,"width":833,"height":12}},{"id":"b9f02d26-30e5-4d06-a0e4-1f57bf67945a","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":113,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"15d7b439-47ef-4ec1-b7ae-c833a43965e5","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":113,"box":{"x":69,"y":627,"width":827,"height":11}},{"id":"71a936c2-814c-49e9-8ecc-b7bc49c979ee","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":113,"box":{"x":70,"y":642,"width":804,"height":11}},{"id":"5d35c922-2948-4d0f-9de2-64a4ba7c89fe","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":113,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"44c084ab-5edf-4f63-881b-3c797e63a114","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":113,"box":{"x":70,"y":672,"width":835,"height":11}},{"id":"20c0c195-7406-4d5f-af2f-0ecac645faa7","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":113,"box":{"x":69,"y":687,"width":768,"height":11}},{"id":"8f7f3957-ad4b-45c9-8de8-f0fd769e4813","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":113,"box":{"x":70,"y":702,"width":815,"height":12}},{"id":"e7ec8a48-f3f7-41ba-99b4-a9e6bc7ea408","block_type":"box","text":"especially as that Fund grows in size.","page_number":113,"box":{"x":69,"y":718,"width":264,"height":11}},{"id":"74ae17f9-f596-4eb3-b188-04e37ed9faa6","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":113,"box":{"x":101,"y":740,"width":762,"height":11}},{"id":"08a5c22a-7158-4b8e-a300-a9390951d941","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":113,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"fa320f96-4b8f-4d2f-8a28-213eec01c62c","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":113,"box":{"x":69,"y":771,"width":751,"height":11}},{"id":"776b1bef-7c97-4129-af76-76c5a934a97c","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":113,"box":{"x":70,"y":785,"width":755,"height":12}},{"id":"a996f836-d31d-40f9-b24f-9553567c290e","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":113,"box":{"x":69,"y":801,"width":830,"height":11}},{"id":"6990941e-9691-4995-9bf4-cf4f3235b4ca","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":113,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"dbdf4533-6f29-4cb0-a922-60d94ba9e946","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":113,"box":{"x":68,"y":831,"width":766,"height":11}},{"id":"935d2738-9504-4a45-a1b8-e17d1e28457f","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":113,"box":{"x":69,"y":846,"width":792,"height":11}},{"id":"8eb5f295-3bfb-40ea-a71b-831e8b8927f7","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":113,"box":{"x":70,"y":861,"width":821,"height":11}},{"id":"0fb1c568-8b21-4dd8-a76d-eaeb116f6983","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":113,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"5051b6f5-fbac-4067-8caf-d6e29a0a9a5f","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":113,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"343da333-c844-431a-9748-374ddc8f0058","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":113,"box":{"x":69,"y":906,"width":790,"height":12}},{"id":"dc877cb5-d38e-4d20-a83c-b9c753e22b48","block_type":"box","text":"II-71","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fe15baf8-a812-4779-b2f2-72933cf34ac6","block_type":"box","text":"NM1026U-6032801-113/242","page_number":113,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fcc0eede-9abd-4715-ae79-add2084e167e","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":114,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"e59cb7c9-382b-492d-9b62-208fb7c82fa5","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":114,"box":{"x":69,"y":60,"width":810,"height":11}},{"id":"67764b50-3c35-4b5a-ae34-b68067bc5aca","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":114,"box":{"x":70,"y":75,"width":818,"height":11}},{"id":"f8573154-b03e-4ce9-8d9d-97b171498cff","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":114,"box":{"x":68,"y":90,"width":839,"height":11}},{"id":"0eb41fae-94eb-4d79-a116-919aa87e7d31","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":114,"box":{"x":68,"y":105,"width":514,"height":11}},{"id":"eaa856f1-82d4-41ce-89bf-b560f59b4d58","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":114,"box":{"x":102,"y":128,"width":385,"height":11}},{"id":"e4961d23-bfc7-4a3f-a2c6-877e65ea72fd","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":114,"box":{"x":102,"y":151,"width":246,"height":11}},{"id":"42da57db-9945-429a-87a8-ca26307b6af5","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":114,"box":{"x":354,"y":151,"width":548,"height":11}},{"id":"98b939a4-0cd4-4958-8f1b-c0f2078048aa","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":114,"box":{"x":68,"y":166,"width":830,"height":11}},{"id":"a6b5e040-50f3-41da-ab18-29d4579984fd","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":114,"box":{"x":68,"y":181,"width":793,"height":11}},{"id":"ec4c86ea-dd46-4ee4-b2d4-85d706cb373d","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":114,"box":{"x":69,"y":196,"width":784,"height":11}},{"id":"202c7e38-b36f-4f91-84a6-b09110321a89","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":114,"box":{"x":70,"y":211,"width":591,"height":11}},{"id":"6da531ab-ec43-4234-9180-0603080f8bfd","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":114,"box":{"x":101,"y":234,"width":730,"height":11}},{"id":"5ae6822b-b297-45a4-be24-9432d485916d","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":114,"box":{"x":70,"y":249,"width":822,"height":11}},{"id":"82425e0a-05c7-4edf-b4ad-5e0419e0af11","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":114,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"c830f9e2-f5b2-417e-9e43-45b943823cd0","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":114,"box":{"x":69,"y":279,"width":801,"height":11}},{"id":"296cd823-7afb-4097-92b8-8939f24ea517","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":114,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"1583095c-9411-472e-9b42-2ae9293da87d","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":114,"box":{"x":69,"y":309,"width":354,"height":11}},{"id":"89d8c470-9a18-451b-9911-f43994f1420a","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":114,"box":{"x":102,"y":332,"width":769,"height":11}},{"id":"20f262b8-34d1-44c6-bce0-000640e7b48e","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":114,"box":{"x":70,"y":347,"width":815,"height":11}},{"id":"4cb2d349-555f-423e-8a1c-2c305e2594ed","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":114,"box":{"x":70,"y":362,"width":782,"height":11}},{"id":"1e0ae961-496d-489d-81ba-565442de4161","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":114,"box":{"x":69,"y":377,"width":449,"height":12}},{"id":"cca7888d-750c-4ec9-893e-cb77eb699ffb","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":114,"box":{"x":102,"y":400,"width":794,"height":11}},{"id":"a8b821eb-4325-414a-9e3f-2fc3f19b2eb4","block_type":"box","text":"similar financing transactions (","page_number":114,"box":{"x":69,"y":415,"width":218,"height":11}},{"id":"462d9275-1688-45f7-8868-dfc611693139","block_type":"box","text":"e.g.","page_number":114,"box":{"x":289,"y":417,"width":24,"height":9}},{"id":"507a3fd6-b053-482f-b48a-52b8c7cda9a3","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":114,"box":{"x":316,"y":415,"width":594,"height":11}},{"id":"ad7b2538-5c28-4ade-9cc4-f0317ffcc933","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":114,"box":{"x":68,"y":430,"width":813,"height":11}},{"id":"3366bb0f-41dd-4978-a8af-e5830baa5f70","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":114,"box":{"x":70,"y":445,"width":789,"height":12}},{"id":"94fdd326-b51a-4e49-bc73-905faf21d9aa","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":114,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"89ac4f36-7e27-4902-9dcb-898994bffe35","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":114,"box":{"x":70,"y":475,"width":824,"height":12}},{"id":"ddcbc47d-9220-423b-8892-241929c7ad2d","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":114,"box":{"x":68,"y":491,"width":758,"height":11}},{"id":"f53b263f-f60c-4436-9458-39438862b7a8","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":114,"box":{"x":69,"y":506,"width":822,"height":11}},{"id":"b3b495ad-b462-4c21-8bca-ff788d884a6b","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":114,"box":{"x":68,"y":521,"width":838,"height":11}},{"id":"a8495f26-44c2-410d-9eb2-06e02212e0ef","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":114,"box":{"x":69,"y":536,"width":538,"height":11}},{"id":"d33a8099-ae98-4b1c-8c3b-5b693b0612a5","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":114,"box":{"x":101,"y":559,"width":780,"height":11}},{"id":"1aad4c76-d361-478b-b5f5-69be4660cf9e","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":114,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"ed480e44-2102-47b0-b01c-8c794b99db46","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":114,"box":{"x":68,"y":589,"width":775,"height":11}},{"id":"0634a1a5-109a-40d8-b2aa-3fded854b0ee","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":114,"box":{"x":68,"y":604,"width":754,"height":11}},{"id":"c918aef9-770e-48d4-bdb8-fab2af7675f9","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":114,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"488fe031-ec22-439a-8767-68f343ca0d6c","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":114,"box":{"x":68,"y":634,"width":783,"height":12}},{"id":"b03b1f57-57f6-45bb-aaa5-f2961ab4d737","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":114,"box":{"x":69,"y":649,"width":800,"height":12}},{"id":"3fb7790c-1f2e-4abf-be2f-ebca6753086d","block_type":"box","text":"amounts to be received under such agreements.","page_number":114,"box":{"x":69,"y":665,"width":345,"height":11}},{"id":"cfe20f66-3399-4509-80f2-31c1d74fd2ba","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":114,"box":{"x":102,"y":687,"width":316,"height":11}},{"id":"ced37760-da52-446c-8d54-f4de9c2b3716","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":114,"box":{"x":424,"y":687,"width":481,"height":11}},{"id":"f0852c1d-8f22-4311-b11d-23ad93606a33","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":114,"box":{"x":68,"y":702,"width":822,"height":12}},{"id":"31fb26c8-be8e-48d5-b618-956b2e3b5efb","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":114,"box":{"x":69,"y":717,"width":776,"height":12}},{"id":"2b3cf549-1299-486c-8f18-57fb6d889c1f","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":114,"box":{"x":69,"y":732,"width":817,"height":12}},{"id":"429b580e-708d-4859-8cce-e8fd69224e02","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":114,"box":{"x":70,"y":748,"width":833,"height":11}},{"id":"6518feff-0db2-4f24-850a-6a729b420887","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":114,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"6e83e3a6-e03a-4522-ac4d-ba1d3d7f24b9","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":114,"box":{"x":70,"y":778,"width":821,"height":11}},{"id":"5ff77efd-ef17-426c-a57e-cf4ec6e42653","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":114,"box":{"x":69,"y":793,"width":830,"height":11}},{"id":"ab50c657-276b-4363-ba5b-18f8fa36ad02","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":114,"box":{"x":69,"y":808,"width":777,"height":11}},{"id":"9eba2ad6-e575-414e-9fe4-d132698e3286","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":114,"box":{"x":69,"y":823,"width":839,"height":12}},{"id":"16dde365-1778-451b-bf4d-a605609a23bb","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":114,"box":{"x":68,"y":839,"width":708,"height":10}},{"id":"013d5f4b-4991-47a4-9143-79eb8797e95c","block_type":"box","text":"Rule 144A Securities.","page_number":114,"box":{"x":102,"y":861,"width":159,"height":9}},{"id":"390172ef-fe41-424a-a76c-fcb732cdfe61","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":114,"box":{"x":266,"y":861,"width":560,"height":11}},{"id":"7c1c17e4-2e35-4c9c-8712-9ec31957178f","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":114,"box":{"x":70,"y":876,"width":741,"height":11}},{"id":"2416adf9-718e-4f7c-900b-c1e61c8e59c6","block_type":"box","text":"II-72","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dc636351-4568-41ee-99f8-3eacf0b3e086","block_type":"box","text":"NM1026U-6032801-114/242","page_number":114,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cd426750-fd23-438b-9c13-24c1f7df886f","block_type":"box","text":"Securities Lending.","page_number":115,"box":{"x":101,"y":45,"width":139,"height":11}},{"id":"1a1570a9-acb3-49f9-b53d-ffe2e6118c35","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":115,"box":{"x":247,"y":45,"width":645,"height":11}},{"id":"be29f6be-cc7a-48b8-97f5-580178803626","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":115,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"036c9e4d-4a7a-463d-86ba-8009f9686cba","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":115,"box":{"x":69,"y":75,"width":817,"height":11}},{"id":"608da48c-f383-4595-b154-c62b2e139a53","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":115,"box":{"x":69,"y":90,"width":831,"height":11}},{"id":"a1a57dec-120c-4c41-a7cc-9234d68f740a","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":115,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"eb033320-b169-4469-b602-e8baafe2ce60","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":115,"box":{"x":69,"y":120,"width":829,"height":11}},{"id":"5ea73a2c-24b4-4f6e-9ad5-13636b43d78d","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":115,"box":{"x":69,"y":135,"width":838,"height":11}},{"id":"f5f5340c-2a40-4323-84ce-04d94d9fe84f","block_type":"box","text":"the securities were not on loan.","page_number":115,"box":{"x":68,"y":151,"width":225,"height":8}},{"id":"0cf7490e-a31f-471e-a82c-7651093527f9","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":115,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"d0fc529c-a784-4be4-95b3-07d5d74690e7","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":115,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"4754ff2f-e80f-49d1-a96c-c245a4159d7a","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":115,"box":{"x":69,"y":203,"width":824,"height":11}},{"id":"98a00de1-2374-4012-af7e-a8bc0e234da9","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":115,"box":{"x":69,"y":218,"width":821,"height":12}},{"id":"73f345a2-8041-4cf1-9555-5cb1ac763790","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":115,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"20b1a2a4-9a68-4f88-86a3-a19e12a970c5","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":115,"box":{"x":70,"y":249,"width":789,"height":11}},{"id":"4634bd73-9d53-48bb-b7f0-84c8a26b60ed","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":115,"box":{"x":70,"y":264,"width":643,"height":11}},{"id":"873a6f37-7c4c-4389-909c-9a7731bd3ac7","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":115,"box":{"x":102,"y":287,"width":568,"height":11}},{"id":"d08f0af2-b146-4ccf-bd2b-45faf80910ea","block_type":"box","text":"i.e.","page_number":115,"box":{"x":672,"y":287,"width":20,"height":9}},{"id":"e25a424a-026e-4a32-823d-21b27129c90f","block_type":"box","text":", the risk of losses resulting","page_number":115,"box":{"x":695,"y":286,"width":198,"height":12}},{"id":"213a0588-f8e2-4650-b735-50745929a449","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":115,"box":{"x":68,"y":302,"width":501,"height":11}},{"id":"9604ee85-9145-4daa-9b33-845640a04ddb","block_type":"box","text":"i.e.","page_number":115,"box":{"x":571,"y":302,"width":20,"height":9}},{"id":"f39646c2-8698-46b8-8187-5197292ece8e","block_type":"box","text":", the risk of a mismatch between the return","page_number":115,"box":{"x":594,"y":302,"width":307,"height":10}},{"id":"b362c96e-379a-4aab-8452-bd9b3771e4e2","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":115,"box":{"x":69,"y":317,"width":794,"height":11}},{"id":"bb3951f9-82a8-4576-b48b-4783d202583f","block_type":"box","text":"i.e.","page_number":115,"box":{"x":865,"y":317,"width":20,"height":9}},{"id":"8e788dbb-2b77-4b4a-87fc-dbbefe997b44","block_type":"box","text":",","page_number":115,"box":{"x":888,"y":324,"width":2,"height":3}},{"id":"65fe38cf-9d9b-46db-8b4c-032424b46556","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":115,"box":{"x":68,"y":332,"width":788,"height":11}},{"id":"ae734a43-094f-44cb-a4f6-a443d21652cd","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":115,"box":{"x":69,"y":347,"width":837,"height":11}},{"id":"a6cc587a-7558-4cb8-8b1d-23c1881e1c6d","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":115,"box":{"x":69,"y":362,"width":822,"height":11}},{"id":"02ab8900-9a14-4395-bc78-65968e3e35d3","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":115,"box":{"x":68,"y":377,"width":811,"height":12}},{"id":"95274e67-d6d3-4774-a2a3-28a3354024e8","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":115,"box":{"x":70,"y":392,"width":820,"height":12}},{"id":"ab630c70-74e1-4a62-b42c-04b8a6bebe64","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":115,"box":{"x":69,"y":408,"width":790,"height":11}},{"id":"ebdd3de5-e09c-4379-8397-fa1a23f75a9d","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":115,"box":{"x":70,"y":423,"width":820,"height":11}},{"id":"731b2790-604e-4d20-aec8-6b293a61481d","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":115,"box":{"x":70,"y":438,"width":805,"height":11}},{"id":"5827bc91-4e08-4058-8668-ffa6a9ea5481","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":115,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"9ed8390e-5b52-402f-9373-c375811e1e20","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":115,"box":{"x":69,"y":468,"width":775,"height":11}},{"id":"61b83150-1381-40a9-8441-2e6697206e19","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":115,"box":{"x":69,"y":483,"width":821,"height":11}},{"id":"51ede672-36b5-4222-b1d5-ae6b3d266463","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":115,"box":{"x":69,"y":498,"width":838,"height":11}},{"id":"c0b915c0-5783-40f1-ab2f-caac39e6a3e5","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":115,"box":{"x":70,"y":513,"width":837,"height":11}},{"id":"b3937cd0-ec40-4b91-a382-caa6bb05ed9b","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":115,"box":{"x":70,"y":528,"width":808,"height":12}},{"id":"7a1769c2-d2f4-406c-b064-181854f8b997","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":115,"box":{"x":69,"y":543,"width":839,"height":12}},{"id":"f1801734-096e-4166-8ad7-c2af1e64da7d","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":115,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"a456870d-d09a-4819-b196-fe3a3e62110c","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":115,"box":{"x":69,"y":574,"width":801,"height":11}},{"id":"c9a41662-5109-467e-8bd2-5fe034333115","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":115,"box":{"x":69,"y":589,"width":823,"height":11}},{"id":"2f7b04e6-833c-4cec-a7c0-e1c67d370b5f","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":115,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"21c15659-74e9-470c-92ab-bd102dafa206","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":115,"box":{"x":69,"y":619,"width":812,"height":11}},{"id":"d0cb3a99-6098-4f7e-aa7c-493ff75f6ab5","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":115,"box":{"x":70,"y":634,"width":814,"height":12}},{"id":"984d23aa-6f58-4342-b1f3-0658306dea72","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":115,"box":{"x":68,"y":649,"width":787,"height":12}},{"id":"6188b776-66ff-4735-88e6-726d085435bb","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":115,"box":{"x":69,"y":665,"width":828,"height":11}},{"id":"4e6331dc-1064-47a3-8d67-0638ef53aae0","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":115,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"c667867d-0b26-418a-a422-0aee872eab60","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":115,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"b54acb14-c8f4-429c-847c-9a9060f19a0e","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":115,"box":{"x":69,"y":710,"width":731,"height":11}},{"id":"a6dfc8c4-4ede-4752-bc8f-29d0940c234e","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":115,"box":{"x":102,"y":732,"width":800,"height":12}},{"id":"1395b5ac-1f48-490c-b47f-70f7264429b1","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":115,"box":{"x":68,"y":748,"width":802,"height":11}},{"id":"72836f6c-a526-40e3-b4e0-79c6683b5f09","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":115,"box":{"x":69,"y":763,"width":783,"height":11}},{"id":"c90e2946-db98-4789-a0a2-b34109581bf7","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":115,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"12a3e87f-0835-4f1d-a5be-6604c08621fe","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":115,"box":{"x":70,"y":793,"width":747,"height":11}},{"id":"87520092-ba45-46a6-813e-370d23bb93f2","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":115,"box":{"x":69,"y":808,"width":806,"height":11}},{"id":"db929c73-1323-44ac-9ec4-7ceca73bd458","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":115,"box":{"x":69,"y":823,"width":808,"height":12}},{"id":"b1de4efd-2c4d-4964-84de-eff43dc2cc5d","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":115,"box":{"x":69,"y":838,"width":839,"height":12}},{"id":"9dd1e0de-a37b-41ea-9e6e-6a6b1e48caef","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":115,"box":{"x":69,"y":853,"width":827,"height":11}},{"id":"61045fca-e091-48af-b7b1-bde24e4cc3b7","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":115,"box":{"x":69,"y":869,"width":794,"height":11}},{"id":"5de99e39-cf6b-4d03-84a5-40123d3b8315","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":115,"box":{"x":69,"y":884,"width":371,"height":11}},{"id":"bf811a73-a280-41a9-9eae-79ed33270076","block_type":"box","text":"II-73","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a82a2937-6312-4590-8678-15f624d37e01","block_type":"box","text":"NM1026U-6032801-115/242","page_number":115,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2fba5ae3-c299-4c01-82d7-02940396bb7f","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":116,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"d5446a62-1bf1-4faa-ae0a-7adaa2004445","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":116,"box":{"x":70,"y":60,"width":808,"height":11}},{"id":"35c426fe-c2ca-4bb0-a97f-ef5619dd0d67","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":116,"box":{"x":69,"y":75,"width":784,"height":11}},{"id":"99edebf3-6d56-404d-8a58-ac4d1c59d277","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":116,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"ae707d6c-8e65-4ae2-9e79-0099bf763eda","block_type":"box","text":"the current expected compliance date.","page_number":116,"box":{"x":68,"y":105,"width":273,"height":11}},{"id":"a238ba84-55d8-4986-8be1-270af275308f","block_type":"box","text":"Short Sales.","page_number":116,"box":{"x":101,"y":128,"width":89,"height":9}},{"id":"f9c85d82-7043-4ffb-979d-a7419c00b8f6","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":116,"box":{"x":196,"y":128,"width":696,"height":11}},{"id":"14c91c5d-4fc8-475c-b0db-7733b86b054e","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":116,"box":{"x":68,"y":143,"width":821,"height":11}},{"id":"465eb947-457b-4ea6-8a34-df9de650503c","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":116,"box":{"x":69,"y":158,"width":778,"height":11}},{"id":"79962a7c-c1ab-43f8-84e2-8ee1cb7bb220","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":116,"box":{"x":70,"y":173,"width":831,"height":11}},{"id":"35db03c9-105e-482e-a2e2-a74d06cb1c36","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":116,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"e9c5849a-0536-4966-9a2e-240a375f896e","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":116,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"76afb6ab-7ff6-49fe-a1a0-95336a92a3b0","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":116,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"c1c25500-0687-4764-b87c-1ce85fe75f97","block_type":"box","text":"securities to the lender of the securities.","page_number":116,"box":{"x":69,"y":234,"width":289,"height":9}},{"id":"1f440696-72f5-4d1c-a671-acf5e55cf7d5","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":116,"box":{"x":101,"y":257,"width":772,"height":11}},{"id":"995e1043-0683-455a-951b-9792ef816d87","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":116,"box":{"x":69,"y":272,"width":795,"height":11}},{"id":"c3de32ff-6700-4aaf-80a6-a5a7b694d38a","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":116,"box":{"x":69,"y":286,"width":801,"height":12}},{"id":"23d3da56-e7c6-44a2-846f-fde235d7328a","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":116,"box":{"x":69,"y":302,"width":830,"height":11}},{"id":"81c9f073-b330-4781-9782-4ba566e52a54","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":116,"box":{"x":69,"y":317,"width":839,"height":11}},{"id":"d3287825-373b-41cd-82d4-00c162789fa2","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":116,"box":{"x":69,"y":332,"width":770,"height":11}},{"id":"4ed91c78-a8f7-4f3c-9431-cecf1a146262","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":116,"box":{"x":70,"y":347,"width":568,"height":11}},{"id":"139e0aa5-5d90-4a23-be5c-7458e3f676a2","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":116,"box":{"x":102,"y":370,"width":806,"height":11}},{"id":"64c7d7fa-e12f-42c2-9c65-2345bffbcb22","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":116,"box":{"x":69,"y":385,"width":817,"height":11}},{"id":"854f3083-a25b-4884-8e21-167482e5081b","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":116,"box":{"x":68,"y":400,"width":819,"height":11}},{"id":"549d58ca-9bd1-4403-af03-e778aba0a77c","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":116,"box":{"x":69,"y":415,"width":758,"height":11}},{"id":"df15d382-3d68-4cea-8372-5efcdea7b871","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":116,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"c937f194-5778-47c3-8065-ce726702c21b","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":116,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"cb87b56f-69e4-4424-a480-c75ade9bf45b","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":116,"box":{"x":69,"y":461,"width":818,"height":11}},{"id":"2f114090-a810-48c7-a544-9b3e9c3874d4","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":116,"box":{"x":68,"y":475,"width":821,"height":12}},{"id":"d3f9b219-c141-4707-959e-c6d7ba63de3d","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":116,"box":{"x":69,"y":491,"width":640,"height":11}},{"id":"0d6194a9-3ca8-4993-851a-9a7e7d5055ca","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":116,"box":{"x":101,"y":514,"width":673,"height":11}},{"id":"dbdc2320-48be-46bf-a169-504770bf9c2b","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":116,"box":{"x":101,"y":536,"width":721,"height":11}},{"id":"8355ac8b-ba62-4c59-89db-39d5b2c93ebd","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":116,"box":{"x":69,"y":551,"width":791,"height":11}},{"id":"b1445f06-f7d1-44a3-800f-bf38ff4d2a52","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":116,"box":{"x":70,"y":566,"width":489,"height":11}},{"id":"3884bacd-422b-44f6-aeb9-723d6883e0ac","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":116,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"fbf19e36-3122-4bc9-b4aa-634609849115","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":116,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"c6c72c33-e723-46cf-91dc-35c8ca468041","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":116,"box":{"x":69,"y":619,"width":796,"height":11}},{"id":"f9adb974-2959-4107-8116-6826ea0dd7ce","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":116,"box":{"x":70,"y":634,"width":766,"height":12}},{"id":"3e913844-0099-468d-9185-f90269533739","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":116,"box":{"x":70,"y":649,"width":754,"height":12}},{"id":"492fcdbf-b128-4e10-9de6-15f166983e06","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":116,"box":{"x":67,"y":664,"width":800,"height":12}},{"id":"0d0e6d93-a802-4628-bbd9-a9e51c842e91","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":116,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"af28a6cb-a17c-4fc1-9df1-39b35abba1e7","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":116,"box":{"x":69,"y":695,"width":782,"height":11}},{"id":"463b0d5f-0636-41d3-99a9-e97c74e290c8","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":116,"box":{"x":69,"y":710,"width":460,"height":11}},{"id":"2761d2fe-8cd2-42d3-8d1f-9c5f4e206662","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":116,"box":{"x":101,"y":733,"width":293,"height":11}},{"id":"3d97ab2a-453a-435e-b1cb-29077fa98a34","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":116,"box":{"x":400,"y":733,"width":504,"height":11}},{"id":"3f3990ba-4205-482b-af60-8ae096597004","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":116,"box":{"x":69,"y":748,"width":791,"height":11}},{"id":"48d33b56-ab2a-4e17-a0c5-fd85c098aeb3","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":116,"box":{"x":70,"y":763,"width":793,"height":11}},{"id":"1d10b81e-49df-42de-9e70-1067ef9a692b","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":116,"box":{"x":70,"y":778,"width":824,"height":11}},{"id":"3797e809-20f6-4503-8285-3da26e745b39","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":116,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"94230714-3d8c-45f5-acff-c955c13d7250","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":116,"box":{"x":69,"y":808,"width":768,"height":11}},{"id":"2859c2bb-4109-4f6d-aaaf-3f60c1cf035e","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":116,"box":{"x":70,"y":823,"width":826,"height":12}},{"id":"7f57ac05-3779-420c-9946-c7e7066002ba","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":116,"box":{"x":69,"y":838,"width":809,"height":12}},{"id":"1b727eca-4515-4411-b04d-dc4e0b387fc2","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":116,"box":{"x":70,"y":854,"width":797,"height":11}},{"id":"ed276218-8c71-4b43-834a-fb10a1825b07","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":116,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"0b6574c3-eb8d-4354-bee7-4cb1b8483182","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":116,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"5c265895-a1b0-4c63-9f9a-01c1c2de8208","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":116,"box":{"x":68,"y":899,"width":794,"height":11}},{"id":"c0f0ba9d-d2f3-4887-bea5-fcdf14a77b91","block_type":"box","text":"II-74","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ae3d655c-2ecc-4167-9423-6ae619abe315","block_type":"box","text":"NM1026U-6032801-116/242","page_number":116,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6e2e2bb2-3911-4491-8a11-e8a554e96ac2","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":117,"box":{"x":69,"y":45,"width":820,"height":11}},{"id":"797dae91-d5b6-4fa6-8618-5c4e27b45b6f","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":117,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"8edd7a99-2f88-4f13-9ad1-b825c9e90aa7","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":117,"box":{"x":70,"y":75,"width":802,"height":11}},{"id":"15f850a1-92a9-47bb-afba-42016c45c056","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":117,"box":{"x":68,"y":90,"width":812,"height":11}},{"id":"f7a32b73-fff5-491d-ae9e-b16625813ed6","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":117,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"5f81fe87-1996-4062-8afd-09c132dd7470","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":117,"box":{"x":69,"y":120,"width":806,"height":12}},{"id":"1b13d92a-b6fa-43ad-b513-8058e2f091af","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":117,"box":{"x":69,"y":135,"width":828,"height":11}},{"id":"5903e3fa-dc89-486c-a05c-f5f0a55392ac","block_type":"box","text":"Standby Commitment Agreements.","page_number":117,"box":{"x":101,"y":158,"width":255,"height":11}},{"id":"2bdfe2e6-fe22-47fb-8c58-d21ff827c4e0","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":117,"box":{"x":362,"y":158,"width":511,"height":11}},{"id":"b4b3e4a5-88b4-469b-a9cf-abf847374e29","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":117,"box":{"x":68,"y":173,"width":834,"height":11}},{"id":"9df38112-8ce1-4da1-83fa-031501fc4fd1","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":117,"box":{"x":68,"y":188,"width":834,"height":12}},{"id":"b954cbc1-48e6-4418-b1e0-91786a48086d","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":117,"box":{"x":70,"y":203,"width":802,"height":12}},{"id":"fd0a4b99-4bbc-4a6a-aaa8-20ed7395d163","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":117,"box":{"x":69,"y":218,"width":793,"height":12}},{"id":"ef7e6073-7870-4c6f-b03e-6ceffa315231","block_type":"box","text":"advantageous to the Fund.","page_number":117,"box":{"x":69,"y":234,"width":188,"height":11}},{"id":"d4897dd7-df94-4cc5-a6ad-fb3b9536ee08","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":117,"box":{"x":101,"y":256,"width":800,"height":11}},{"id":"b1fded41-7657-448b-bd74-ae8871a270ba","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":117,"box":{"x":68,"y":271,"width":816,"height":12}},{"id":"75486608-2edc-4ff6-a1eb-5f81532da07e","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":117,"box":{"x":69,"y":286,"width":835,"height":12}},{"id":"1417956d-016f-4caa-9312-617abd478778","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":117,"box":{"x":69,"y":302,"width":828,"height":11}},{"id":"058df197-e439-4497-b809-e7ced129d5cb","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":117,"box":{"x":101,"y":324,"width":785,"height":12}},{"id":"9f4a739c-ff60-4bc5-a9c1-b5eabc1011b9","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":117,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"33dfd102-dcbe-4802-80e2-4f939fbbe8f4","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":117,"box":{"x":68,"y":355,"width":815,"height":11}},{"id":"64bbeb67-35d5-4d93-91ae-d0b1e292b120","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":117,"box":{"x":69,"y":370,"width":792,"height":11}},{"id":"0351d488-6080-466b-88a5-3885b2bfd6a0","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":117,"box":{"x":70,"y":385,"width":415,"height":11}},{"id":"a3a2cf6a-374c-42d1-b3db-ba00ca83e773","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":117,"box":{"x":102,"y":408,"width":789,"height":11}},{"id":"92ffe0b1-5b8e-4d8a-bfe4-d7180a8bb043","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":117,"box":{"x":69,"y":423,"width":814,"height":11}},{"id":"b997fd54-571a-4795-b644-4799f55e98cc","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":117,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"fb25e814-3779-429e-b411-af791efb2ada","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":117,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"ef53b238-550e-4601-bb72-ecc43fd24744","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":117,"box":{"x":68,"y":468,"width":817,"height":11}},{"id":"654c26b8-36a9-49d8-b200-9e9c47ef0877","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":117,"box":{"x":69,"y":483,"width":578,"height":11}},{"id":"8b7982b6-5531-42f3-bbb5-f7e1f14d7a76","block_type":"box","text":"Stripped Securities.","page_number":117,"box":{"x":101,"y":506,"width":143,"height":11}},{"id":"f3f6d7fb-20f6-45bc-9c1e-84bbaf3a6ab0","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":117,"box":{"x":251,"y":506,"width":596,"height":11}},{"id":"7f1a3712-8ddd-4cc8-af6a-b5424da25bb2","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":117,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"2e1a20cc-5a42-408f-8ed2-6437e79254fa","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":117,"box":{"x":70,"y":536,"width":818,"height":11}},{"id":"7267f52a-76e1-4b9e-a67a-e6282fb3b2cd","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":117,"box":{"x":70,"y":551,"width":813,"height":11}},{"id":"254dedcb-5193-4cf3-a377-c6895a909f8c","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":117,"box":{"x":70,"y":566,"width":777,"height":11}},{"id":"c4748bc8-186d-49bd-a058-e7414741be42","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":117,"box":{"x":70,"y":582,"width":802,"height":11}},{"id":"54655e7a-e694-42e9-88b5-78332f3109e2","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":117,"box":{"x":69,"y":596,"width":794,"height":12}},{"id":"81b4757f-43df-4eee-ad1d-9c85a121c4a3","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":117,"box":{"x":70,"y":612,"width":837,"height":11}},{"id":"0c7f8cd5-2583-4dc4-a618-04dd70320511","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":117,"box":{"x":68,"y":627,"width":823,"height":11}},{"id":"5b71d62c-048a-4615-8462-0533e6eaf064","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":117,"box":{"x":69,"y":642,"width":494,"height":11}},{"id":"e0799fee-cd5d-4555-b9fc-f0f47dde2d1d","block_type":"box","text":"Structured Notes.","page_number":117,"box":{"x":101,"y":665,"width":130,"height":8}},{"id":"42c41cac-6356-4082-b253-1344d04f7198","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":117,"box":{"x":237,"y":665,"width":650,"height":11}},{"id":"cecd1690-6df9-483a-a0ff-c8a42a98ae6c","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":117,"box":{"x":69,"y":680,"width":818,"height":11}},{"id":"a5dc76e1-94cd-4325-a859-5240da3dc616","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":117,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"db3d8c40-75ce-4cbf-ba27-a39fc7a738f5","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":117,"box":{"x":70,"y":710,"width":821,"height":11}},{"id":"84112996-3612-4b19-ab16-18524cd0199a","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":117,"box":{"x":70,"y":725,"width":839,"height":11}},{"id":"9824e4fe-30f5-4d28-a3b5-754b8452a9ad","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":117,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"733b5584-309e-404f-83c7-558ada6dfa7c","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":117,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"8d82e78b-0e91-42bf-a5f2-6fa0ce0949b5","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":117,"box":{"x":68,"y":770,"width":673,"height":12}},{"id":"267ee27d-a8ba-44f5-9b4a-2566185c17e7","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":117,"box":{"x":102,"y":793,"width":768,"height":11}},{"id":"4332d41f-a3ea-4973-b15b-31a866539db6","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":117,"box":{"x":70,"y":808,"width":821,"height":11}},{"id":"fa718435-456b-4a8e-8101-0e4446eff119","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":117,"box":{"x":69,"y":823,"width":787,"height":12}},{"id":"3f8d4b59-f34c-4435-98a3-b48a4f66e718","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":117,"box":{"x":69,"y":838,"width":827,"height":12}},{"id":"cb1cab05-3ee1-4622-b70c-7581d9d4055a","block_type":"box","text":"the risk of loss.","page_number":117,"box":{"x":68,"y":853,"width":110,"height":9}},{"id":"59ae7ffc-7c2f-47cf-8341-5f8c652b8f0f","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":117,"box":{"x":101,"y":876,"width":759,"height":11}},{"id":"405485fe-c829-4322-ae64-004e86743479","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":117,"box":{"x":69,"y":891,"width":795,"height":11}},{"id":"284359fc-2190-4ff3-a285-2c8b61056d14","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":117,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"1410bc68-f482-4052-911e-e0128589f69a","block_type":"box","text":"II-75","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"75f5a9c0-bcfe-4163-95fa-9abacd3bade6","block_type":"box","text":"NM1026U-6032801-117/242","page_number":117,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"be925c25-59bf-4be4-9d2b-260065d28738","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":118,"box":{"x":70,"y":45,"width":821,"height":11}},{"id":"53e2ceba-d779-40a2-b49f-e28b253d69c7","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":118,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"aca68ae5-cfd3-42e6-be67-4d1959910e18","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":118,"box":{"x":70,"y":75,"width":618,"height":11}},{"id":"2bef7687-5f7c-450b-88bd-41bd397accb5","block_type":"box","text":"Taxability Risk.","page_number":118,"box":{"x":103,"y":98,"width":109,"height":11}},{"id":"8cc4ed75-c8fd-4a4c-80d2-d53951e239fb","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":118,"box":{"x":218,"y":98,"width":644,"height":11}},{"id":"6959e906-5034-4178-bc87-518e88d5546d","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":118,"box":{"x":70,"y":113,"width":817,"height":11}},{"id":"64199d2d-bf05-4104-955d-7643e4ae1971","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":118,"box":{"x":68,"y":128,"width":827,"height":11}},{"id":"745de995-2883-47a7-9b16-817cf7496fb6","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":118,"box":{"x":69,"y":143,"width":835,"height":11}},{"id":"0427f7c8-081a-4db5-846d-f125767d2c29","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":118,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"c7c0e7be-c6ee-4a1b-beea-d13f6b6a2316","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":118,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"3f95d692-37f0-4706-9d65-e9756fd0f10a","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":118,"box":{"x":69,"y":188,"width":816,"height":11}},{"id":"1ff03e06-3f9d-43b0-aa53-f7c76c50ace8","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":118,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"c05321ac-6d4c-4e34-a1b4-beee159c3099","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":118,"box":{"x":70,"y":218,"width":818,"height":12}},{"id":"e2ca5110-45c6-482f-8f78-6aa955afa16a","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":118,"box":{"x":70,"y":234,"width":771,"height":11}},{"id":"d7390586-e327-447d-8e0a-6d3b16f24bb7","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":118,"box":{"x":70,"y":249,"width":765,"height":11}},{"id":"146ed1c2-28b7-4e6d-8641-5bc1a017daa4","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":118,"box":{"x":69,"y":264,"width":834,"height":11}},{"id":"692c596e-5dcf-4fdc-a326-f9f58629189d","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":118,"box":{"x":68,"y":279,"width":807,"height":11}},{"id":"8adbfae7-0121-4691-a5fb-a110beda04f0","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":118,"box":{"x":70,"y":294,"width":830,"height":11}},{"id":"8c2e6de1-8192-4018-9d08-c77b9d4c7a06","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":118,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"7b3ffa80-ab7b-4124-829c-ea8105bebfcf","block_type":"box","text":"the value of an investment in the Fund.","page_number":118,"box":{"x":68,"y":324,"width":278,"height":9}},{"id":"74a86ba9-0136-4954-b0a2-61f2b6478b49","block_type":"box","text":"Temporary Defensive Measures.","page_number":118,"box":{"x":103,"y":347,"width":230,"height":11}},{"id":"dd422f8f-25b2-4635-833d-2ddabc776abe","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":118,"box":{"x":339,"y":347,"width":542,"height":11}},{"id":"833ce3ed-66f2-47e7-85f3-88e18c8c313c","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":118,"box":{"x":69,"y":362,"width":811,"height":11}},{"id":"e338d093-4896-4dc0-ade5-d91e13d50be7","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":118,"box":{"x":68,"y":377,"width":813,"height":12}},{"id":"585e4d4c-cfd7-4211-abee-0e42257e2cb5","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":118,"box":{"x":69,"y":393,"width":833,"height":11}},{"id":"5c5896f5-18c0-4f32-8289-5b1d7c0ae36b","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":118,"box":{"x":70,"y":408,"width":813,"height":11}},{"id":"844e59be-4a37-4bed-b4f5-b40d1bdfe10a","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":118,"box":{"x":69,"y":423,"width":795,"height":11}},{"id":"b4df2053-04af-40b9-8144-6ffd72131440","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":118,"box":{"x":68,"y":438,"width":806,"height":11}},{"id":"71046298-4028-42ca-a027-528da4557677","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":118,"box":{"x":69,"y":453,"width":808,"height":11}},{"id":"60d23542-0ed1-449a-89d8-a70d2595c349","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":118,"box":{"x":68,"y":468,"width":820,"height":11}},{"id":"992f3aaf-aecd-4cf3-b60f-cd46510d2b66","block_type":"box","text":"its investment objective.","page_number":118,"box":{"x":70,"y":483,"width":171,"height":11}},{"id":"51e8540e-c5aa-4bd9-80d6-4b9381d4f371","block_type":"box","text":"U.S. Government Obligations.","page_number":118,"box":{"x":102,"y":506,"width":213,"height":11}},{"id":"17bd5217-57a4-4758-ae1c-f56a6c9f9f31","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":118,"box":{"x":321,"y":506,"width":566,"height":11}},{"id":"2b63c974-32ef-4b23-9e5b-07ffe976caf7","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":118,"box":{"x":69,"y":521,"width":810,"height":11}},{"id":"679a4818-db34-4c1c-92ec-6ac5704e607f","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":118,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"3211b63a-f465-411d-a3d9-d017dcd29129","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":118,"box":{"x":68,"y":551,"width":779,"height":11}},{"id":"211c73e9-d07a-4bdc-a4dd-0d58b9e2832b","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":118,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"d6d70489-c1f6-4b65-bfff-c81bb5ed183b","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":118,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"71cd7f3b-320e-46bf-be5c-677a9fb18c7f","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":118,"box":{"x":69,"y":596,"width":809,"height":12}},{"id":"87781d2c-1c35-42f3-843b-5b6b2f7ec3d7","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":118,"box":{"x":69,"y":612,"width":805,"height":11}},{"id":"6b117324-a18a-4893-a2ef-65b2ae84bc17","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":118,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"196ffbc6-3e52-40fb-8538-2dd9ef520496","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":118,"box":{"x":70,"y":642,"width":832,"height":11}},{"id":"ff8a5f3d-3261-4155-b9d7-c7d002d33f88","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":118,"box":{"x":69,"y":657,"width":829,"height":11}},{"id":"31b63178-12fe-49bb-99dc-23fc75b7921f","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":118,"box":{"x":69,"y":672,"width":716,"height":11}},{"id":"892bbec6-49c6-4f26-9e0d-9d6e32445533","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":118,"box":{"x":102,"y":695,"width":800,"height":11}},{"id":"f3f5afa5-df5a-4bad-a8f6-f90dbc4c3837","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":118,"box":{"x":68,"y":710,"width":785,"height":11}},{"id":"35da2c1b-7246-46b3-9815-c9c4a541e5ed","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":118,"box":{"x":68,"y":725,"width":813,"height":11}},{"id":"7d34f9db-4ba7-4196-86a6-faa3f40288fe","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":118,"box":{"x":70,"y":740,"width":794,"height":11}},{"id":"bdf0cdf3-9c6c-4933-88b4-ebd6792af8d7","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":118,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"8d6c6432-e52a-42e6-8318-f655ff89ba6e","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":118,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"cfe25ecf-53ff-498d-b7c7-a5796b97efe1","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":118,"box":{"x":70,"y":786,"width":777,"height":11}},{"id":"c3aecd39-b79c-417e-a345-f2d6e5b2066d","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":118,"box":{"x":70,"y":801,"width":749,"height":11}},{"id":"dae77f22-5aaf-4aac-8d0a-a01a13737562","block_type":"box","text":"U.S. Treasury Obligations.","page_number":118,"box":{"x":103,"y":823,"width":183,"height":12}},{"id":"091550f3-5da8-4f62-bf48-c9c24741bec6","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":118,"box":{"x":292,"y":823,"width":593,"height":12}},{"id":"8eea4f74-245b-4568-943d-b3a4428da225","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":118,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"6b00ecd3-0b17-48be-b1fc-fb517b7a0fa2","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":118,"box":{"x":69,"y":853,"width":827,"height":12}},{"id":"b296ef6a-0bb9-4768-bac6-9de117947584","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":118,"box":{"x":68,"y":869,"width":823,"height":11}},{"id":"6042f82a-0c81-4d10-9fef-17072e6844b9","block_type":"box","text":"do so.","page_number":118,"box":{"x":69,"y":884,"width":42,"height":9}},{"id":"e822ac52-2cbf-40f1-aec7-358a2ed2badf","block_type":"box","text":"II-76","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5c8f110c-f771-44e8-add0-38064cc35275","block_type":"box","text":"NM1026U-6032801-118/242","page_number":118,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"77e9c0cc-740e-40e2-a4a7-4f6fece6e352","block_type":"box","text":"U.S. Treasury Rolls","page_number":119,"box":{"x":102,"y":45,"width":139,"height":11}},{"id":"f66456ee-cd10-41ab-bf19-64d5321ae2b3","block_type":"box","text":".","page_number":119,"box":{"x":241,"y":52,"width":3,"height":2}},{"id":"8776b4bf-e15e-433a-b2fc-52cb323a8096","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":119,"box":{"x":250,"y":45,"width":656,"height":11}},{"id":"a1481b91-fb0b-4ea1-a3cd-73556338621c","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":119,"box":{"x":69,"y":60,"width":804,"height":11}},{"id":"8935e60b-c763-4306-adaa-24bbc96b7895","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":119,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"8f498272-45dc-4f57-b686-94bbea51394e","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":119,"box":{"x":69,"y":90,"width":840,"height":11}},{"id":"df0344c7-878a-41a4-beba-3bf282b1c78f","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":119,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"5cfb48ee-55a9-4cfe-9de5-bce3be0293cb","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":119,"box":{"x":69,"y":120,"width":775,"height":12}},{"id":"fb34f742-6334-4d84-beb5-b3f3bcb4ecb1","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":119,"box":{"x":69,"y":135,"width":829,"height":12}},{"id":"2d4f8824-a440-44f2-beaf-7c03577c3dee","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":119,"box":{"x":68,"y":150,"width":657,"height":12}},{"id":"77be7b22-5acd-4632-b29d-8c61ea5ab434","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":119,"box":{"x":101,"y":173,"width":756,"height":11}},{"id":"6642574d-bf30-4904-ba7f-8e9e10a17cf5","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":119,"box":{"x":70,"y":188,"width":800,"height":11}},{"id":"3236c506-e044-46d4-b782-8b9f305bff65","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":119,"box":{"x":70,"y":203,"width":617,"height":12}},{"id":"8a2e6109-f3eb-46d2-839a-1b0ce0f9afa8","block_type":"box","text":"Utility Industries.","page_number":119,"box":{"x":102,"y":226,"width":124,"height":11}},{"id":"ec4623fa-e729-402a-85cc-179316d96b1f","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":119,"box":{"x":233,"y":226,"width":674,"height":11}},{"id":"18ee44eb-7825-4648-8b9d-10bd4c48602d","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":119,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"22378bbb-f777-4329-83c1-5d8c6490fa06","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":119,"box":{"x":69,"y":256,"width":812,"height":12}},{"id":"ca3e6e9d-4354-434f-a327-73bb50c5e178","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":119,"box":{"x":69,"y":271,"width":821,"height":12}},{"id":"3c0dd5c8-24f1-4449-8107-edae14d459cb","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":119,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"35464afa-64fb-448a-85e6-e3edea54cf9a","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":119,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"cbe189d1-823b-4124-a27e-4ac212f25848","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":119,"box":{"x":69,"y":317,"width":795,"height":11}},{"id":"4f9af038-8473-46b2-837f-ff2e39b4e77b","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":119,"box":{"x":69,"y":332,"width":774,"height":11}},{"id":"222bd975-abfd-4b37-b36d-30befb1ed530","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":119,"box":{"x":69,"y":347,"width":817,"height":11}},{"id":"e8efefbb-0b89-477e-ac4c-fffb861f97f8","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":119,"box":{"x":69,"y":362,"width":839,"height":11}},{"id":"e4c2d52c-908d-4869-88dd-9aaf6e3f0342","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":119,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"e279911c-64ad-4e73-8ed5-dcbb344ad24e","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":119,"box":{"x":69,"y":392,"width":761,"height":12}},{"id":"14108e34-de59-470a-9565-a1256a30a768","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":119,"box":{"x":69,"y":407,"width":821,"height":12}},{"id":"cc028671-32de-4129-a101-7a2929914983","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":119,"box":{"x":69,"y":423,"width":777,"height":11}},{"id":"7e252f74-790b-4f5d-ad9d-0091a9b4a207","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":119,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"678b63ad-15b0-402f-9c8c-b86a1f43cdf8","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":119,"box":{"x":69,"y":453,"width":835,"height":11}},{"id":"815c496d-7300-4775-a1a5-34840c2b57f0","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":119,"box":{"x":68,"y":468,"width":778,"height":11}},{"id":"60dfb06a-9537-4d0c-8eef-37c780214895","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":119,"box":{"x":69,"y":483,"width":808,"height":11}},{"id":"bda70561-4597-4fa7-8248-70b89d9ecfef","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":119,"box":{"x":69,"y":498,"width":831,"height":11}},{"id":"c81c140c-c9b4-448e-95ca-cf006a908ea5","block_type":"box","text":"utility.","page_number":119,"box":{"x":69,"y":514,"width":39,"height":10}},{"id":"0d16f2e9-e1a5-4e37-b4fd-ccc596764c4b","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":119,"box":{"x":102,"y":536,"width":744,"height":11}},{"id":"62de4fad-50df-469a-acd4-e75560ce2015","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":119,"box":{"x":70,"y":551,"width":828,"height":11}},{"id":"54fd8d5b-5a83-45f7-a380-d6ae3368b7cd","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":119,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"697f5939-92eb-46f6-ab13-11102e65ad79","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":119,"box":{"x":70,"y":581,"width":464,"height":11}},{"id":"4383481e-b6e9-4207-920d-f5f948526e2f","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":119,"box":{"x":102,"y":604,"width":789,"height":11}},{"id":"51b0f810-f205-4f76-b06f-cb5af69a38c0","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":119,"box":{"x":69,"y":619,"width":790,"height":11}},{"id":"c32db95c-a423-46dc-aaa3-027167683fc5","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":119,"box":{"x":69,"y":634,"width":811,"height":11}},{"id":"d1a6b77d-0e3d-4ed8-91f8-e0398d18e73d","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":119,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"f94198b0-6807-4a5f-8499-79a317d9a961","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":119,"box":{"x":68,"y":664,"width":781,"height":12}},{"id":"2bf03317-dce0-4a26-a579-5f3b1323cea3","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":119,"box":{"x":69,"y":680,"width":826,"height":11}},{"id":"7bb6c42d-3f09-4fbf-9fbb-54eed38cd336","block_type":"box","text":"continue in the future.","page_number":119,"box":{"x":69,"y":695,"width":156,"height":9}},{"id":"14f2b629-19c1-4c3c-9bf5-87a05076992c","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":119,"box":{"x":101,"y":717,"width":763,"height":12}},{"id":"c3e40c6a-64ce-4dd7-a626-3b1eb72d199e","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":119,"box":{"x":69,"y":733,"width":820,"height":11}},{"id":"2735fb6e-199f-4232-a41d-fb01c7378b88","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":119,"box":{"x":70,"y":748,"width":834,"height":11}},{"id":"502b7121-c439-494f-a3f1-83c547d9cfd0","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":119,"box":{"x":69,"y":763,"width":784,"height":11}},{"id":"7a50fd2e-9ec9-4464-86a0-06ec57ee3dc2","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":119,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"3351aeb8-d0b5-4a50-9252-00cf3a089bbc","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":119,"box":{"x":68,"y":793,"width":809,"height":11}},{"id":"04dfbfed-dabd-40eb-9631-bd076d8ec7cd","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":119,"box":{"x":69,"y":808,"width":834,"height":11}},{"id":"0d24ca18-0e83-43c8-996d-2f9a8a5d7597","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":119,"box":{"x":69,"y":823,"width":825,"height":12}},{"id":"c7ea305e-860e-4bd7-be9a-c6ad621210d6","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":119,"box":{"x":68,"y":838,"width":840,"height":11}},{"id":"a5776dc3-7f39-4e4a-8154-c6f845453a28","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":119,"box":{"x":69,"y":853,"width":796,"height":12}},{"id":"2b8cefec-09de-45f8-8125-bcaac60776c5","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":119,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"ef788256-4b38-41c9-ac0d-87e924313a23","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":119,"box":{"x":68,"y":884,"width":831,"height":11}},{"id":"26dc07bb-3cec-4b2b-8bab-08516cb9ecda","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":119,"box":{"x":69,"y":899,"width":812,"height":11}},{"id":"d016d285-93bd-47e0-a9a6-47427585c8b4","block_type":"box","text":"II-77","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9be417dc-6b85-46fe-aa5f-0347917aaea0","block_type":"box","text":"NM1026U-6032801-119/242","page_number":119,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a7fea994-8c94-4037-b0fa-c8994e453d89","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":120,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"84dd13df-ee5a-4412-8199-bf9a4eb1a945","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":120,"box":{"x":68,"y":60,"width":831,"height":11}},{"id":"b8babd53-8eb3-4633-904c-0cd0eaf75adf","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":120,"box":{"x":102,"y":83,"width":720,"height":11}},{"id":"3a5d43e8-8d45-41d1-b79f-802db7853b95","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":120,"box":{"x":69,"y":98,"width":838,"height":11}},{"id":"947fe2b1-5d35-48b0-bfd7-82d1cd5fb388","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":120,"box":{"x":68,"y":113,"width":762,"height":11}},{"id":"0de3d89f-afd4-4b74-a3b2-1a3e9c00e62b","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":120,"box":{"x":68,"y":128,"width":815,"height":11}},{"id":"e9b058c6-f79c-4ebb-bdf0-c6c0804d7f12","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":120,"box":{"x":68,"y":143,"width":801,"height":11}},{"id":"6cb8c6bc-c2ca-46e4-b335-1534c51ac026","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":120,"box":{"x":69,"y":158,"width":828,"height":11}},{"id":"21589bb0-0d24-40ff-87fa-cfac09a3f345","block_type":"box","text":"ways different from regulation in the United States.","page_number":120,"box":{"x":68,"y":173,"width":365,"height":11}},{"id":"7929c0fc-0a8b-4cee-9a20-2241de0dc2a8","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":120,"box":{"x":101,"y":196,"width":745,"height":11}},{"id":"a0b4fc1f-c8ad-4bbc-b371-4d67cb2d1d98","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":120,"box":{"x":68,"y":211,"width":790,"height":11}},{"id":"17d41e82-985c-4074-8c15-531e1de393cd","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":120,"box":{"x":69,"y":226,"width":833,"height":11}},{"id":"6164ad60-3b12-4d24-b147-5844ee0d6da0","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":120,"box":{"x":69,"y":241,"width":810,"height":11}},{"id":"38a2c419-de45-4d48-921a-cdf298d665fa","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":120,"box":{"x":69,"y":256,"width":831,"height":12}},{"id":"8fc87486-20fd-4759-9573-7d1823e27d71","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":120,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"f21523c2-e16b-40d6-915b-e48ae378a232","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":120,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"ac648476-d793-4583-b5af-0740a34745ac","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":120,"box":{"x":69,"y":302,"width":786,"height":11}},{"id":"c44d3b51-529f-4aab-9e78-717cbe12be9c","block_type":"box","text":"increase.","page_number":120,"box":{"x":70,"y":317,"width":63,"height":9}},{"id":"52a523aa-f6bc-42df-8db2-23e6a7b40a22","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":120,"box":{"x":101,"y":339,"width":793,"height":12}},{"id":"bca0748b-a622-4bd1-bb09-ec6957616105","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":120,"box":{"x":70,"y":355,"width":821,"height":11}},{"id":"6d6d93c5-9ab5-404d-b208-6c0892cfb375","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":120,"box":{"x":69,"y":370,"width":619,"height":11}},{"id":"1c56fce1-1ae7-497c-906d-fc80b56b046f","block_type":"box","text":"Electric.","page_number":120,"box":{"x":102,"y":393,"width":54,"height":8}},{"id":"ff59554b-40a5-41c0-b8f3-ee2c6033c19e","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":120,"box":{"x":163,"y":392,"width":684,"height":12}},{"id":"227f9bbc-ed54-4d52-932e-b2a800ca14fe","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":120,"box":{"x":68,"y":407,"width":793,"height":12}},{"id":"5d85de39-eb5c-427b-b34b-129232833765","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":120,"box":{"x":69,"y":423,"width":814,"height":11}},{"id":"c91bf73b-9265-4730-8d8f-e7c778a865ed","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":120,"box":{"x":69,"y":438,"width":833,"height":11}},{"id":"b747a175-2f7c-41df-a44f-aa0f2a726c9b","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":120,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"3e4a1cc4-1b82-426c-ba61-48e852434aeb","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":120,"box":{"x":69,"y":468,"width":823,"height":11}},{"id":"fd72e394-faf6-4f36-a2f8-159169e9e243","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":120,"box":{"x":68,"y":483,"width":803,"height":11}},{"id":"281db327-d72a-4d8e-acd4-a79d910eee07","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":120,"box":{"x":70,"y":498,"width":778,"height":11}},{"id":"8649afbd-438d-47a1-aef0-24a5c3c78956","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":120,"box":{"x":70,"y":513,"width":836,"height":12}},{"id":"089049fb-4b05-4a9c-9cd4-5dec3e13c62c","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":120,"box":{"x":69,"y":528,"width":793,"height":12}},{"id":"125a91c8-9b48-4032-82d6-a64fa25e57f7","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":120,"box":{"x":69,"y":543,"width":786,"height":12}},{"id":"5693f3a2-d240-45db-91e5-ca10e86a4582","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":120,"box":{"x":69,"y":559,"width":819,"height":11}},{"id":"8b3940e0-fe99-4a37-b1a3-36fe832a12f0","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":120,"box":{"x":69,"y":574,"width":775,"height":11}},{"id":"0c4ed1ed-d213-4723-b56d-630f71385386","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":120,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"034d65dd-d05d-4304-8ea5-a165b2a092ef","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":120,"box":{"x":70,"y":604,"width":826,"height":11}},{"id":"3a71fb6e-c8c9-4ef8-ab9e-f15d2cb1825a","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":120,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"2ecc1016-eec8-431e-882e-80fbd5182892","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":120,"box":{"x":69,"y":634,"width":836,"height":11}},{"id":"d2521d92-4c45-4257-a39f-289a70677a26","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":120,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"5bcaab67-a6c2-4dee-a393-83a5f1016121","block_type":"box","text":"and for decommissioning such plants.","page_number":120,"box":{"x":69,"y":664,"width":270,"height":12}},{"id":"97e90534-ea93-4b67-8c0d-2b120cda7a0b","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":120,"box":{"x":101,"y":687,"width":776,"height":11}},{"id":"233928c5-8a37-463c-8ea6-58c420d38e3b","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":120,"box":{"x":70,"y":702,"width":802,"height":12}},{"id":"276339c1-3943-4d3e-9c3d-aabe04fe0156","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":120,"box":{"x":69,"y":717,"width":791,"height":12}},{"id":"b94562f2-77f8-4388-871a-be1c6c44fbc5","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":120,"box":{"x":69,"y":732,"width":839,"height":12}},{"id":"a9adbe43-c7fc-45df-b442-b5705f2f3ffe","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":120,"box":{"x":70,"y":748,"width":838,"height":11}},{"id":"91541f64-ebc7-423a-8f7a-1705ab09e3c2","block_type":"box","text":"greater predictability of cash flow.","page_number":120,"box":{"x":68,"y":763,"width":239,"height":11}},{"id":"d9fe024d-0d10-489e-b2cc-557f3cb02fc3","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":120,"box":{"x":101,"y":785,"width":801,"height":12}},{"id":"049213ab-4df4-4260-8f76-44736f4cb501","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":120,"box":{"x":68,"y":801,"width":821,"height":11}},{"id":"18d12544-bb1c-44c4-90f2-c338d63b9933","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":120,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"19376e06-49ab-4a0f-b89b-7b0fa543a29e","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":120,"box":{"x":68,"y":831,"width":815,"height":11}},{"id":"aed19c1d-28b4-46f4-bc99-1c8bef525ba1","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":120,"box":{"x":68,"y":846,"width":803,"height":11}},{"id":"24e95768-7eb1-4302-961f-d92b92e0aee2","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":120,"box":{"x":69,"y":861,"width":777,"height":11}},{"id":"36aa8b63-2daa-4b8c-9e4b-c9b2f7cebb04","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":120,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"baa75eff-5e2b-4a1c-802d-61b7d7e82765","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":120,"box":{"x":68,"y":891,"width":835,"height":12}},{"id":"ff6d358a-831b-4a1d-a1fd-ddf05c2d1851","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":120,"box":{"x":69,"y":906,"width":700,"height":12}},{"id":"0c2e8b6d-d233-4154-a397-b42d4d74e4ff","block_type":"box","text":"II-78","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c163cae1-c77c-4313-9d80-31df5396e90d","block_type":"box","text":"NM1026U-6032801-120/242","page_number":120,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"95f83d04-69ba-493c-8886-f6edf04a137e","block_type":"box","text":"Telecommunications.","page_number":121,"box":{"x":103,"y":45,"width":147,"height":9}},{"id":"9a99018e-1edb-4b29-9704-f658d6fc8098","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":121,"box":{"x":256,"y":45,"width":652,"height":11}},{"id":"6d2cdef5-fed9-4fd7-961a-d1e707d16748","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":121,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"fcfc336a-457e-42b1-8ba4-670087d209c2","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":121,"box":{"x":70,"y":75,"width":782,"height":11}},{"id":"0dc072e2-6294-4b5e-9e32-56e51a247f98","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":121,"box":{"x":69,"y":90,"width":786,"height":11}},{"id":"eba954a7-2405-4592-b18f-b5532f4ea3ab","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":121,"box":{"x":69,"y":105,"width":784,"height":11}},{"id":"4a9587e5-1008-4413-8514-8245d39b170d","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":121,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"d3884fd2-3590-49de-b040-d807586911c8","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":121,"box":{"x":69,"y":135,"width":790,"height":12}},{"id":"719f9d83-7374-4f2e-bd46-ac3d10c202a5","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":121,"box":{"x":70,"y":150,"width":788,"height":12}},{"id":"d14a3ff7-962a-496b-8390-5017ceff7153","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":121,"box":{"x":68,"y":166,"width":825,"height":11}},{"id":"77d7369b-957b-4db8-a8e0-19d44716dc05","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":121,"box":{"x":69,"y":181,"width":823,"height":11}},{"id":"9d54e9ea-7ff5-4dab-a035-e16f9649aa1d","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":121,"box":{"x":69,"y":196,"width":821,"height":11}},{"id":"77e77ffb-b89a-4c20-af4a-e87bcaf915f8","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":121,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"5abe5a06-0460-4e3b-853d-48d01b954667","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":121,"box":{"x":70,"y":226,"width":821,"height":11}},{"id":"00649973-5ea4-4b87-8dad-6ef8dda6b1ad","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":121,"box":{"x":69,"y":241,"width":827,"height":11}},{"id":"10a10b62-8b71-4b30-9426-8d4224cc9737","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":121,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"2e57b0a6-d5cf-49e2-a0fe-40abc60e4d61","block_type":"box","text":"residential, corporate and governmental customers.","page_number":121,"box":{"x":69,"y":272,"width":367,"height":11}},{"id":"21aabbe0-73fa-47bb-afac-a25bff1270f8","block_type":"box","text":"Gas.","page_number":121,"box":{"x":102,"y":294,"width":31,"height":9}},{"id":"20be8cf5-9aad-4721-b141-bcebb7d3b129","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":121,"box":{"x":139,"y":294,"width":740,"height":11}},{"id":"1b9b0d86-aae3-43f7-9a7e-330883c56246","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":121,"box":{"x":70,"y":309,"width":834,"height":11}},{"id":"8a1510bc-bea3-4935-8915-45c0d57586c5","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":121,"box":{"x":70,"y":324,"width":756,"height":12}},{"id":"c7d5e064-e86c-4501-8366-f1d86f66690c","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":121,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"b54cddfa-c33f-42e9-b3fc-a14239d7a783","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":121,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"ac4269fe-2133-41d6-af65-af81fb0c0174","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":121,"box":{"x":69,"y":370,"width":815,"height":11}},{"id":"af8a301b-d1cf-4f36-a579-4baea5ed26c0","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":121,"box":{"x":69,"y":385,"width":782,"height":11}},{"id":"ddc07064-58d9-4828-903d-f93d8f789179","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":121,"box":{"x":70,"y":400,"width":829,"height":11}},{"id":"76378c1a-b13d-4279-8ab5-0d3dda2d8cde","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":121,"box":{"x":70,"y":415,"width":691,"height":11}},{"id":"e7d15855-0130-4f86-b19e-6a5feb1798b6","block_type":"box","text":"Water.","page_number":121,"box":{"x":103,"y":438,"width":42,"height":9}},{"id":"32e9a6b1-21a0-40a6-b7bc-119353ff696c","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":121,"box":{"x":151,"y":438,"width":754,"height":11}},{"id":"a0ea5f3b-1b4e-4430-b8f3-657897e0f854","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":121,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"456583aa-e2c1-4c43-8053-23e489b8ed8b","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":121,"box":{"x":69,"y":468,"width":806,"height":11}},{"id":"0dbd4d5e-9f66-4f14-b857-68cbfae10fe9","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":121,"box":{"x":69,"y":483,"width":814,"height":11}},{"id":"beb4b7d7-6ea8-4b85-a151-93ce7fe2e443","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":121,"box":{"x":69,"y":498,"width":808,"height":11}},{"id":"231dd934-7add-41f1-94cf-df15709ec2f5","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":121,"box":{"x":69,"y":513,"width":832,"height":12}},{"id":"1288a335-81a5-4102-948a-ff163b8255d8","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":121,"box":{"x":69,"y":528,"width":662,"height":12}},{"id":"7408ef02-f092-4d19-ab64-f772a33d2a47","block_type":"box","text":"Utility Industries Generally.","page_number":121,"box":{"x":103,"y":551,"width":186,"height":11}},{"id":"00a562d3-6c7a-4c35-b56e-d45b0f1fa21b","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":121,"box":{"x":296,"y":551,"width":584,"height":11}},{"id":"0cf14650-0cfc-4e1f-90b1-227a76513a8b","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":121,"box":{"x":68,"y":566,"width":837,"height":11}},{"id":"bd5c0be9-e2f2-4eea-8b7d-1b1bb5822c4c","block_type":"box","text":"not develop in the future.","page_number":121,"box":{"x":69,"y":581,"width":178,"height":11}},{"id":"9799b78e-8cf8-43b0-9dc0-fa44653d734f","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":121,"box":{"x":103,"y":604,"width":585,"height":11}},{"id":"4f35b5a9-2a08-427a-b96f-441e13749f32","block_type":"box","text":"A Fund may purchase or sell","page_number":121,"box":{"x":694,"y":604,"width":200,"height":11}},{"id":"08eca096-2452-4771-848f-2be2c838d4b4","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":121,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"ab412d28-0081-48d5-9397-a162fe0f6e81","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":121,"box":{"x":69,"y":634,"width":777,"height":12}},{"id":"c849d751-cda5-43c7-9218-1a965a4cf8e9","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":121,"box":{"x":68,"y":649,"width":820,"height":12}},{"id":"203c49ea-bd03-4750-ac78-9fef72b7557f","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":121,"box":{"x":68,"y":664,"width":807,"height":12}},{"id":"495ced5c-67f0-4e7e-8834-d75820826213","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":121,"box":{"x":70,"y":680,"width":430,"height":11}},{"id":"0c158e3d-630c-4733-b443-5f2c3286ef13","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":121,"box":{"x":102,"y":702,"width":750,"height":11}},{"id":"da0da7ea-1fd3-43c6-a011-7a30fde4418c","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":121,"box":{"x":70,"y":717,"width":823,"height":12}},{"id":"be4b019b-c9ba-44b5-ac9c-a1afdf14da9b","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":121,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"a9555399-7b01-4a61-8519-eb9ad004d13d","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":121,"box":{"x":70,"y":748,"width":755,"height":11}},{"id":"cfdb7a9b-ecfd-4dc4-bc33-930047749c7f","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":121,"box":{"x":69,"y":763,"width":799,"height":11}},{"id":"5fd2156f-c358-4cb3-a901-b12429b8b0ce","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":121,"box":{"x":69,"y":778,"width":614,"height":11}},{"id":"5e77bf07-e6cb-4c58-8999-23949f3a2cdc","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":121,"box":{"x":101,"y":801,"width":780,"height":11}},{"id":"e315b98c-5440-497a-b152-7ea69f748491","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":121,"box":{"x":70,"y":816,"width":823,"height":11}},{"id":"4c0f8970-f458-4f21-99bb-e26349aa4c5e","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":121,"box":{"x":69,"y":831,"width":838,"height":11}},{"id":"b13f6948-1314-451a-8c68-837b77b50615","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":121,"box":{"x":68,"y":846,"width":839,"height":11}},{"id":"bb0599c2-0dac-47e4-b2eb-c3cba61c9241","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":121,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"2bb4f1bb-39b2-4943-8792-d0c632887e46","block_type":"box","text":"II-79","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"47fcb3c9-1b23-41a8-bbf2-c68a6e7b7a65","block_type":"box","text":"NM1026U-6032801-121/242","page_number":121,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"721352dc-776b-488b-939a-dd4920abbed0","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":122,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"48cc43cb-26f9-46f3-ab65-8bec05720608","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":122,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"20fd06eb-a6cb-412e-9a45-db5e1f1c8e2d","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":122,"box":{"x":69,"y":75,"width":799,"height":11}},{"id":"04ae13c4-fb09-4699-aa87-7da1b51b20ce","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":122,"box":{"x":101,"y":98,"width":784,"height":11}},{"id":"1bead6bb-747a-49bd-a414-2712d190e0ae","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":122,"box":{"x":69,"y":113,"width":772,"height":11}},{"id":"e1c54353-c752-4335-aff8-2e3d63b4ec1e","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":122,"box":{"x":69,"y":128,"width":434,"height":11}},{"id":"48900aaa-ab1f-413b-9ea1-31d74439d633","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":122,"box":{"x":101,"y":150,"width":745,"height":12}},{"id":"ebba8377-8848-4095-a2e5-f9b807cdeb82","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":122,"box":{"x":68,"y":166,"width":831,"height":11}},{"id":"0a6961cf-0159-4588-8642-f8ca5124b6af","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":122,"box":{"x":69,"y":181,"width":823,"height":11}},{"id":"7daf446b-0b99-425b-920a-94fb688a3a5f","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":122,"box":{"x":68,"y":196,"width":514,"height":11}},{"id":"1f6b92c5-9434-4bfe-b151-35bf403fb932","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":122,"box":{"x":102,"y":218,"width":759,"height":12}},{"id":"82487f34-f72c-4e0b-a514-273508930991","block_type":"box","text":"securities (","page_number":122,"box":{"x":69,"y":234,"width":78,"height":11}},{"id":"7265fd76-390f-48e5-8939-f15299e3bf00","block_type":"box","text":"e.g.","page_number":122,"box":{"x":148,"y":235,"width":25,"height":10}},{"id":"4fdcb587-2660-4434-80e3-505b7c4a0e56","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":122,"box":{"x":176,"y":234,"width":686,"height":11}},{"id":"6f84abd1-e3da-4d49-adcb-5ac8388bd64c","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":122,"box":{"x":69,"y":249,"width":813,"height":11}},{"id":"4ba5b997-c616-4f84-80cf-cc38b9a2b580","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":122,"box":{"x":70,"y":264,"width":822,"height":11}},{"id":"4ec98789-31b3-4fa5-a277-a28ef492a283","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":122,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"a0cf6807-4408-43cb-b131-33970cb89182","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":122,"box":{"x":69,"y":294,"width":826,"height":11}},{"id":"32428c89-34c1-491c-b9e7-71fe76a8ad52","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":122,"box":{"x":70,"y":309,"width":816,"height":11}},{"id":"208f1b81-d0c6-400c-986a-d50187493da5","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":122,"box":{"x":70,"y":324,"width":349,"height":11}},{"id":"d30eba21-d137-49f4-bdeb-e4cef6e213fc","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":122,"box":{"x":102,"y":347,"width":800,"height":11}},{"id":"d477b5dc-e658-405f-a0e2-fb4838b29928","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":122,"box":{"x":68,"y":362,"width":829,"height":11}},{"id":"5b037aba-f194-4b08-b5f8-e9dccf9a8b5e","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":122,"box":{"x":69,"y":377,"width":814,"height":12}},{"id":"ce98736e-46b1-4977-9c9a-6cf5c854b0e8","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":122,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"453f1312-a4d9-4cd9-8a60-d554583c3900","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":122,"box":{"x":69,"y":407,"width":836,"height":12}},{"id":"4d3c529b-b814-497c-b6f3-d89791165e57","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":122,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"0d736f39-851f-4221-b92e-75e8b23bd902","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":122,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"11b33103-6172-49b9-abbd-5446439ab325","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":122,"box":{"x":68,"y":453,"width":573,"height":11}},{"id":"6999d4ff-e30e-42ae-b823-660bc0ea8541","block_type":"box","text":"Yields and Ratings.","page_number":122,"box":{"x":103,"y":476,"width":139,"height":11}},{"id":"13333383-8c45-44b4-9e45-3d37bb209ad2","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":122,"box":{"x":247,"y":475,"width":628,"height":12}},{"id":"144ea1bc-15c3-464e-a258-4bd38e3c0f2c","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":122,"box":{"x":69,"y":491,"width":834,"height":11}},{"id":"b3e1e5ef-20f7-464a-b651-8b8399aaf70b","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":122,"box":{"x":69,"y":506,"width":799,"height":11}},{"id":"8128d92f-d1a0-449a-8f8e-f2d344edfe68","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":122,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"e6d3195a-e44f-4d7f-ab96-9b28ab227edc","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":122,"box":{"x":68,"y":536,"width":792,"height":11}},{"id":"421eff64-5a56-4917-aab7-eee18bee4a79","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":122,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"9c9daf1d-d3a9-41f9-92db-870a4f440eb1","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":122,"box":{"x":69,"y":566,"width":786,"height":11}},{"id":"efe46643-9467-4f8f-a85b-0adce8e66c61","block_type":"box","text":"continue to hold the security.","page_number":122,"box":{"x":69,"y":582,"width":204,"height":10}},{"id":"f6d48fb0-6e75-4d18-93f9-7eeca44746b1","block_type":"box","text":"Zero Coupon Securities.","page_number":122,"box":{"x":102,"y":604,"width":175,"height":11}},{"id":"518585bf-8660-4d23-9e69-39798ecba67d","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":122,"box":{"x":283,"y":604,"width":601,"height":11}},{"id":"6bb6e9a8-8883-45cc-aa2a-fb9c79a032d9","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":122,"box":{"x":69,"y":619,"width":837,"height":11}},{"id":"a9e7712e-80eb-4a09-b250-070462443a29","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":122,"box":{"x":69,"y":634,"width":822,"height":12}},{"id":"33992549-7827-458b-a1cc-0634d23be612","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":122,"box":{"x":68,"y":649,"width":814,"height":12}},{"id":"46049566-144b-4dc5-8a67-5f76019da307","block_type":"box","text":"security.","page_number":122,"box":{"x":69,"y":665,"width":57,"height":11}},{"id":"18aae9be-e0c5-4a7c-98ae-91aee9be5f80","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":122,"box":{"x":101,"y":687,"width":749,"height":11}},{"id":"fc91adaf-49ca-456b-98cf-4e4f9e09af3a","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":122,"box":{"x":69,"y":702,"width":835,"height":12}},{"id":"ced3635d-eeb2-4642-9a62-914b70e786ca","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":122,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"dc123c4b-3c4f-45cd-9b6c-af6d73fed611","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":122,"box":{"x":70,"y":732,"width":836,"height":12}},{"id":"014c85e7-01e6-4695-9ff6-f75d142fa45b","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":122,"box":{"x":69,"y":748,"width":804,"height":11}},{"id":"fbe6b7a1-a428-4754-9b85-e72e933f3e72","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":122,"box":{"x":68,"y":763,"width":824,"height":11}},{"id":"c88272a0-dfd0-43b2-9b15-951df2ac1929","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":122,"box":{"x":68,"y":778,"width":805,"height":11}},{"id":"01b36166-6986-4f96-8e9a-fd6fb22651d7","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":122,"box":{"x":70,"y":793,"width":837,"height":11}},{"id":"aab8399c-4d63-496a-acf0-c9b2ea9dc581","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":122,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"d4af81cf-ee99-4eae-a33b-1ca4a1a89233","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":122,"box":{"x":69,"y":823,"width":800,"height":12}},{"id":"fb695b98-d190-4230-b9de-37f56db510e5","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":122,"box":{"x":69,"y":838,"width":400,"height":12}},{"id":"313db064-238d-43ed-b362-9875bb9cd987","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":122,"box":{"x":101,"y":861,"width":775,"height":11}},{"id":"5c95fe17-8ad4-4e88-a53f-22853731837f","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":122,"box":{"x":70,"y":876,"width":827,"height":11}},{"id":"d318b434-921a-4205-a870-fff82dff5689","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":122,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"1ed86517-95d7-4c1e-b19e-85be82b57d36","block_type":"box","text":"intervals.","page_number":122,"box":{"x":70,"y":907,"width":64,"height":8}},{"id":"33222041-c2ed-4b27-aefe-9e7c4b2d456b","block_type":"box","text":"II-80","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"65d99291-bdfa-43d5-98a7-33aa590797eb","block_type":"box","text":"NM1026U-6032801-122/242","page_number":122,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3ae77758-e8e9-4515-a63e-957abf77ce00","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":123,"box":{"x":102,"y":45,"width":749,"height":11}},{"id":"db01935e-128b-4ccc-a050-2448111ee3e7","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":123,"box":{"x":69,"y":60,"width":784,"height":11}},{"id":"e54d51ac-8bed-4684-81ce-1d1729d2862f","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":123,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"1d733f2c-f00d-475c-8cfa-ea23edd69db0","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":123,"box":{"x":68,"y":90,"width":799,"height":11}},{"id":"9cb412c2-b030-4443-89aa-2d4276b61792","block_type":"box","text":"exposure to zero coupon securities.","page_number":123,"box":{"x":69,"y":105,"width":253,"height":11}},{"id":"0ee3e171-09e7-4068-8ef4-720866c33f99","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":123,"box":{"x":102,"y":128,"width":740,"height":11}},{"id":"f68fdf00-b005-498b-a5c9-08d6cc861c7f","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":123,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"531899a7-102e-4df5-9bb0-e667e399741c","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":123,"box":{"x":70,"y":158,"width":829,"height":11}},{"id":"ea63fabd-4344-4306-b732-5fbc9c9dad13","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":123,"box":{"x":69,"y":173,"width":741,"height":11}},{"id":"ee2eb453-ea27-4722-8c51-08394054d935","block_type":"box","text":"Suitability. (All Funds)","page_number":123,"box":{"x":101,"y":196,"width":161,"height":11}},{"id":"1f72f458-cc50-4c53-8c7d-2c22cf04a091","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":123,"box":{"x":101,"y":218,"width":793,"height":12}},{"id":"efa3fd5f-c226-464e-a98b-30a7a24794ff","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":123,"box":{"x":68,"y":234,"width":811,"height":11}},{"id":"d3373007-532c-44b2-ac99-b8833e4b8120","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":123,"box":{"x":70,"y":249,"width":810,"height":11}},{"id":"0abd2b6a-abed-4fc6-83e3-375a4eb64452","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":123,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"8757131d-04e4-479f-9dee-96e1c7a505f8","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":123,"box":{"x":68,"y":279,"width":460,"height":11}},{"id":"983978d7-0f5d-46fe-9271-0a4806929c0d","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":123,"box":{"x":102,"y":302,"width":264,"height":11}},{"id":"b4f88892-8603-44b7-a248-a569748208ea","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":123,"box":{"x":102,"y":324,"width":745,"height":11}},{"id":"05a410fb-0f52-4491-b86f-2f41531a39d3","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":123,"box":{"x":68,"y":339,"width":807,"height":12}},{"id":"60fa8156-dddd-4c33-94ac-6e289cdf23b6","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":123,"box":{"x":69,"y":355,"width":528,"height":11}},{"id":"31300edf-7ef7-44a5-9942-784cd462f34b","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":123,"box":{"x":102,"y":377,"width":735,"height":12}},{"id":"9a91a136-f331-4b68-a6a2-54959a9801d5","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":123,"box":{"x":69,"y":392,"width":775,"height":12}},{"id":"d8a73f35-f176-43f8-abcb-b0021d0dd56e","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":123,"box":{"x":69,"y":407,"width":837,"height":12}},{"id":"89285f73-9ebe-4299-ba9d-3c2f20712977","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":123,"box":{"x":69,"y":423,"width":799,"height":11}},{"id":"5db6b23f-6be8-44a6-929e-ecb7fa3457ae","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":123,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"d344b682-0794-4aaf-b5a7-0584ce8ca917","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":123,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"43b7104f-0262-4928-bc44-608c01048533","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":123,"box":{"x":68,"y":468,"width":802,"height":11}},{"id":"3e974046-1206-40c4-9908-76b28af24059","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":123,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"5bd8bdf7-2883-4e5d-b092-11740b910e99","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":123,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"ca193018-898e-449f-82f7-c288d2305e71","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":123,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"b2f6a302-e9f5-4926-804c-ee209532fc51","block_type":"box","text":"(","page_number":123,"box":{"x":69,"y":529,"width":3,"height":10}},{"id":"def8745f-a127-47b4-b57b-dd23b13c331b","block_type":"box","text":"i.e.","page_number":123,"box":{"x":74,"y":529,"width":21,"height":8}},{"id":"a0e8292f-bd49-463e-9350-6ae744034b94","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":123,"box":{"x":97,"y":529,"width":806,"height":11}},{"id":"86be3244-050e-481e-bbdf-87096db293f4","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":123,"box":{"x":70,"y":543,"width":824,"height":12}},{"id":"8f765864-b914-4278-b41a-500bc8f87c8b","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":123,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"40b806ac-68f4-4546-9b3b-d3589670a2a5","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":123,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"b4d8e801-ee92-492e-86fe-1edf814c1a58","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":123,"box":{"x":69,"y":589,"width":815,"height":11}},{"id":"9b86c81c-abb8-4019-9f56-eb4ffcf25826","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":123,"box":{"x":69,"y":604,"width":781,"height":11}},{"id":"0c6680e3-90ea-4745-886b-13dcd637f689","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":123,"box":{"x":68,"y":619,"width":810,"height":11}},{"id":"4461ab2f-647c-4cc2-8862-537471599597","block_type":"box","text":"regarded as the sole issuer.","page_number":123,"box":{"x":69,"y":634,"width":198,"height":12}},{"id":"97e63a01-54b5-45dd-9384-3bf3c092f2a4","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":123,"box":{"x":102,"y":657,"width":784,"height":11}},{"id":"aaebf096-a65d-4602-a247-c5a4c676a771","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":123,"box":{"x":69,"y":672,"width":819,"height":11}},{"id":"7e8eeb03-dac9-4290-98b7-cef3e8f6023a","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":123,"box":{"x":69,"y":687,"width":811,"height":11}},{"id":"7f63eb64-7619-4ca1-aa06-040f4d20ec37","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. A Fund that is","page_number":123,"box":{"x":70,"y":702,"width":747,"height":12}},{"id":"56b9a73d-a837-462a-a37f-aff9a356e7e6","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":123,"box":{"x":70,"y":717,"width":834,"height":12}},{"id":"f86f75c8-c28d-448f-9665-50b2979f9166","block_type":"box","text":"75% of its total assets.","page_number":123,"box":{"x":69,"y":732,"width":165,"height":10}},{"id":"fd0f5f25-537a-47b0-8b00-7aa64e7a980d","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":123,"box":{"x":268,"y":762,"width":442,"height":10}},{"id":"3c42448e-cd98-4014-8cb4-00fe538eb65c","block_type":"box","text":"Directors and Officers","page_number":123,"box":{"x":69,"y":792,"width":159,"height":9}},{"id":"c4a2023b-0a9e-446c-b2bb-441dc92f633a","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":123,"box":{"x":102,"y":815,"width":733,"height":11}},{"id":"979150e0-c7f8-4ff7-9d19-e7f72b8b0bcd","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":123,"box":{"x":69,"y":830,"width":783,"height":11}},{"id":"e7733e7a-de32-4f01-aefa-8242e1fa5fab","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI for biographical and","page_number":123,"box":{"x":69,"y":845,"width":795,"height":12}},{"id":"f165a1e8-5c52-4479-b6d5-c1ba167c8bf1","block_type":"box","text":"certain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":123,"box":{"x":69,"y":860,"width":789,"height":12}},{"id":"12cf21fa-cff9-4b03-bdd3-49fb601f76a2","block_type":"box","text":"II-81","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"46b3a502-2e64-43f4-a89e-63ce0805f104","block_type":"box","text":"NM1026U-6032801-123/242","page_number":123,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"502ec1cc-a049-45ee-9a3d-85a419e5ea0d","block_type":"box","text":"Management Arrangements","page_number":124,"box":{"x":69,"y":45,"width":202,"height":11}},{"id":"4673dd69-3247-45f3-8204-859361fcf8b7","block_type":"box","text":"Management Services.","page_number":124,"box":{"x":102,"y":67,"width":162,"height":12}},{"id":"8e78bddb-391d-4377-a223-a6fccf27145a","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":124,"box":{"x":270,"y":68,"width":615,"height":11}},{"id":"dc5c3e5f-b590-4423-8520-4f41dab10c55","block_type":"box","text":"Subject to the oversight of the Board of Directors, the Manager is responsible for the actual management of a Fund’s","page_number":124,"box":{"x":69,"y":82,"width":836,"height":12}},{"id":"8264e2dd-3baa-408f-a979-2cb442fb4a8e","block_type":"box","text":"portfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":124,"box":{"x":70,"y":98,"width":820,"height":11}},{"id":"8f6ae058-d453-482e-a75c-7698de685ee3","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a particular security rests with the Manager. The Manager","page_number":124,"box":{"x":68,"y":113,"width":832,"height":11}},{"id":"f13efaef-78d4-43ac-92fa-aa068b03301b","block_type":"box","text":"performs certain of the other administrative services and provides all the office space, facilities, equipment and","page_number":124,"box":{"x":70,"y":128,"width":801,"height":11}},{"id":"101b8632-80bb-4fe2-8e56-39684a271b09","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":124,"box":{"x":69,"y":143,"width":370,"height":11}},{"id":"367c17de-737e-4750-ba40-f526664fc577","block_type":"box","text":"Each Feeder Fund invests all or a portion of its assets in shares of a Master Portfolio. To the extent a Feeder","page_number":124,"box":{"x":102,"y":166,"width":778,"height":11}},{"id":"d6c26b08-6288-45fa-8025-56f7d9561919","block_type":"box","text":"Fund invests all of its assets in a Master Portfolio, it does not invest directly in portfolio securities and does not","page_number":124,"box":{"x":70,"y":181,"width":800,"height":11}},{"id":"333264e2-6eb8-472d-9cff-9fa6abc099ac","block_type":"box","text":"require management services. For such Feeder Funds, portfolio management occurs at the Master Portfolio level.","page_number":124,"box":{"x":69,"y":196,"width":810,"height":11}},{"id":"fbbca6f2-bf2a-41ee-a35c-d18b6992cf1d","block_type":"box","text":"Management Fee.","page_number":124,"box":{"x":102,"y":219,"width":126,"height":11}},{"id":"fada058e-dcc5-4034-93b1-f70e1feeea8c","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":124,"box":{"x":235,"y":219,"width":646,"height":11}},{"id":"e260b3f1-5112-45f1-ab45-6cd6a497ca37","block_type":"box","text":"the Manager receives for its services to the Fund monthly compensation at an annual rate based on the average daily","page_number":124,"box":{"x":68,"y":234,"width":841,"height":11}},{"id":"6b188301-c33a-4f66-8db1-164e6d11b5f2","block_type":"box","text":"net assets of the Fund. For information regarding the fees paid by your Fund to the Manager for the Fund’s last three","page_number":124,"box":{"x":69,"y":249,"width":833,"height":11}},{"id":"6cd0cd27-3535-4cdb-bc72-853e08c8d4a7","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":124,"box":{"x":68,"y":264,"width":746,"height":11}},{"id":"bc60f136-d684-4c55-b5c8-3e976f43b82c","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Part I of each Fund’s SAI.","page_number":124,"box":{"x":70,"y":279,"width":825,"height":11}},{"id":"4dafbc33-3c37-4f80-a9e7-3f9b144c1a61","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":124,"box":{"x":102,"y":302,"width":774,"height":11}},{"id":"28a88a1b-06a0-462a-b2fe-3771f8d39c54","block_type":"box","text":"management services and to pay all compensation of and furnish office space for officers and employees of a Fund","page_number":124,"box":{"x":69,"y":317,"width":826,"height":11}},{"id":"6459018c-824f-4c07-b3c6-33cb2b240e28","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":124,"box":{"x":70,"y":332,"width":820,"height":11}},{"id":"b2894f1b-4cc1-4573-bf78-749b6f128ca1","block_type":"box","text":"the fees of all Directors of the Fund who are interested persons of the Fund. Each Fund pays all other expenses","page_number":124,"box":{"x":68,"y":347,"width":797,"height":11}},{"id":"b5b1aa63-ee5e-4243-9221-092a46c39ded","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":124,"box":{"x":70,"y":362,"width":830,"height":11}},{"id":"2528fe7f-4af7-4deb-a1bf-7ef272c71a78","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder reports, prospectuses and statements of additional","page_number":124,"box":{"x":69,"y":377,"width":802,"height":12}},{"id":"2b6a13e0-bb9e-4b28-b3ae-57fb965ec0f6","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":124,"box":{"x":70,"y":392,"width":809,"height":12}},{"id":"9c7bb153-268e-4079-816f-0acc258570f1","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":124,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"7cb5facc-1dd5-4565-bcb9-a8e07d8a8d19","block_type":"box","text":"of registering the shares under Federal, state or foreign laws; fees and expenses of Directors who are not interested","page_number":124,"box":{"x":69,"y":423,"width":830,"height":11}},{"id":"85c598bd-b20d-4fba-800e-832c733268a0","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":124,"box":{"x":70,"y":438,"width":784,"height":11}},{"id":"2dbbd05f-8514-4a80-91cd-d50dbe52594e","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":124,"box":{"x":69,"y":453,"width":767,"height":11}},{"id":"b0f762f0-6c2c-4707-87e2-e00086aba182","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Certain accounting services are provided to each Fund","page_number":124,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"c93b27b1-95fd-4295-88cb-5b6ef2e8f5d5","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”)","page_number":124,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"39109c7d-b320-4e47-9322-8bbae009c2dd","block_type":"box","text":"or JPMorgan Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as","page_number":124,"box":{"x":69,"y":498,"width":794,"height":11}},{"id":"3580d479-cb9c-4f1d-8420-3fb9042d81f0","block_type":"box","text":"applicable, and each Fund. Each Fund pays a fee for these services. In addition, the Manager provides certain","page_number":124,"box":{"x":69,"y":513,"width":786,"height":12}},{"id":"e66b1c73-c759-422d-8000-13e1cd36c93c","block_type":"box","text":"accounting services to each Fund and the Fund pays the Manager a fee for such services. The Distributor pays","page_number":124,"box":{"x":69,"y":528,"width":790,"height":12}},{"id":"7f696190-9d55-4d8c-829e-4d13bea73211","block_type":"box","text":"certain promotional expenses of the Funds incurred in connection with the offering of shares of the Funds. Certain","page_number":124,"box":{"x":69,"y":543,"width":817,"height":12}},{"id":"9bafcba1-91ac-4a14-afef-99edc2667822","block_type":"box","text":"expenses are financed by each Fund pursuant to distribution plans in compliance with Rule 12b-1 under the","page_number":124,"box":{"x":69,"y":559,"width":767,"height":11}},{"id":"950f1f09-8d0c-4df1-bd47-ff66b89aba41","block_type":"box","text":"Investment Company Act. See “Purchase of Shares — Distribution and/or Shareholder Servicing Plans.”","page_number":124,"box":{"x":70,"y":574,"width":743,"height":11}},{"id":"f78925fe-9242-4a63-9e30-ba3e114fa0b7","block_type":"box","text":"Sub-Advisory Fee.","page_number":124,"box":{"x":102,"y":597,"width":124,"height":11}},{"id":"e823acf4-4c6c-444d-aafb-68728c0f3b8a","block_type":"box","text":"The Manager of certain Funds has entered into one or more sub-advisory agreements (the","page_number":124,"box":{"x":232,"y":596,"width":643,"height":12}},{"id":"e6617257-4309-4196-9c30-521bd97dfe03","block_type":"box","text":"“Sub-Advisory Agreements”) with the sub-adviser or sub-advisers identified in each such Fund’s Prospectus (the “Sub","page_number":124,"box":{"x":70,"y":612,"width":839,"height":11}},{"id":"248891a0-7702-4a38-ba3f-6fd6f4338954","block_type":"box","text":"Adviser”) pursuant to which the Sub-Adviser provides sub-advisory services to the Manager with respect to the Fund.","page_number":124,"box":{"x":68,"y":627,"width":830,"height":11}},{"id":"751801e4-0a99-40f5-b95f-6c2276d85e39","block_type":"box","text":"Organization of the Manager.","page_number":124,"box":{"x":102,"y":649,"width":204,"height":12}},{"id":"c30922d6-84bf-4346-8879-c919b24326a1","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":124,"box":{"x":313,"y":649,"width":560,"height":12}},{"id":"a536c40d-6c7b-4134-8213-568fb0047343","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":124,"box":{"x":70,"y":664,"width":819,"height":12}},{"id":"6e3cc9ea-f013-43ff-b7cb-a4115da675cc","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":124,"box":{"x":70,"y":680,"width":817,"height":11}},{"id":"093fa8aa-ab09-485c-9321-8bf5fb79c17a","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":124,"box":{"x":69,"y":695,"width":768,"height":11}},{"id":"3f5b1320-14c9-4da7-97cc-011e31811cbc","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":124,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"72fb1a43-7aec-4483-ac02-981d45fa8d01","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":124,"box":{"x":69,"y":725,"width":517,"height":11}},{"id":"f111000b-6b7b-40de-a66a-121dcaeaa4a7","block_type":"box","text":"Duration and Termination.","page_number":124,"box":{"x":102,"y":748,"width":182,"height":9}},{"id":"7f38a3b6-3e39-4e00-a2b3-80495699c47d","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":124,"box":{"x":292,"y":748,"width":613,"height":11}},{"id":"6e326415-fee5-46a8-89a7-9ddc781af528","block_type":"box","text":"Sub-Advisory Agreement will remain in effect for an initial two year period and from year to year thereafter if approved","page_number":124,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"1c043ad1-abfd-4d3a-b2b9-71ee79b3fd8e","block_type":"box","text":"annually (a) by the Board of Directors or by a vote of a majority of the outstanding voting securities of a Fund and","page_number":124,"box":{"x":69,"y":778,"width":803,"height":11}},{"id":"fd8a409d-76a7-40c9-807b-72a909398e26","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not parties to such agreement or interested persons (as defined","page_number":124,"box":{"x":69,"y":793,"width":839,"height":11}},{"id":"2afc5d89-31cb-44e1-a6c9-75d9acbe171c","block_type":"box","text":"in the Investment Company Act) of any such party. Each Management Agreement automatically terminates on","page_number":124,"box":{"x":70,"y":808,"width":778,"height":11}},{"id":"feb6171a-8ac0-4b28-8c90-4a6df9d7c810","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either party thereto or","page_number":124,"box":{"x":69,"y":823,"width":832,"height":12}},{"id":"cf3c1217-2ef4-4b31-be36-290cb2f8a0f7","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":124,"box":{"x":69,"y":838,"width":388,"height":11}},{"id":"c4b30092-ec5a-4879-beca-8931e4536d0a","block_type":"box","text":"II-82","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b0e7b4e6-ae20-45b2-9e3c-17bffb9a0be3","block_type":"box","text":"NM1026U-6032801-124/242","page_number":124,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ea0e3136-7839-42e9-8428-c2fccfb61687","block_type":"box","text":"Other Service Arrangements","page_number":125,"box":{"x":69,"y":45,"width":205,"height":11}},{"id":"d3777662-f603-4404-9bbd-2f643b2eb86c","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":125,"box":{"x":101,"y":67,"width":338,"height":9}},{"id":"25b5ab1d-0f14-4ae1-847d-0a14a3e1ba55","block_type":"box","text":"Certain Funds have entered into an administration agreement","page_number":125,"box":{"x":446,"y":67,"width":439,"height":12}},{"id":"52310f20-87e9-4255-9e69-19aa62ce8250","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Part I of the Fund’s","page_number":125,"box":{"x":69,"y":82,"width":818,"height":12}},{"id":"7ff53ab5-f6a0-46f8-af79-cb52e576b811","block_type":"box","text":"SAI (each an “Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the","page_number":125,"box":{"x":69,"y":98,"width":808,"height":11}},{"id":"79dae918-b156-4534-8038-14e88f2c0ca4","block_type":"box","text":"annual rate set forth in each applicable Fund’s Prospectus. For information regarding any administrative fees paid by","page_number":125,"box":{"x":69,"y":113,"width":833,"height":11}},{"id":"bfe72c23-347d-48d7-a9bf-f5a529917a00","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":125,"box":{"x":68,"y":128,"width":738,"height":11}},{"id":"f5606f48-26d8-46ab-b6ce-11d78524ea6d","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Part I of","page_number":125,"box":{"x":68,"y":143,"width":839,"height":11}},{"id":"3d7e6081-71e9-44be-8938-64c4313db9fb","block_type":"box","text":"that Fund’s SAI.","page_number":125,"box":{"x":68,"y":158,"width":113,"height":9}},{"id":"056355ae-22a8-4b20-8338-1119fd6fd57b","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":125,"box":{"x":102,"y":181,"width":755,"height":11}},{"id":"d49bba53-041b-4302-93fe-094ac5a1c4c6","block_type":"box","text":"certain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":125,"box":{"x":69,"y":196,"width":800,"height":11}},{"id":"2e646781-3353-4140-9f10-4358f4afb16a","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":125,"box":{"x":70,"y":211,"width":809,"height":11}},{"id":"a29b7533-d7bb-43bc-86f2-3217f01267b8","block_type":"box","text":"obligated to pay, or cause its affiliates to pay, the fees of those officers and Directors of the Fund who are affiliated","page_number":125,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"dd51e6f4-1b5a-49ba-8eec-e948ae599a65","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":125,"box":{"x":70,"y":241,"width":362,"height":11}},{"id":"7d5d7082-cfd1-4acb-a14b-0f03127222f3","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":125,"box":{"x":102,"y":264,"width":390,"height":11}},{"id":"046f588d-03de-41b1-ac30-5acefaf4be1e","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":125,"box":{"x":499,"y":264,"width":364,"height":10}},{"id":"1d374807-0aa6-417f-9047-c6319cee552c","block_type":"box","text":"Administration Agreement with BlackRock will continue for an initial two year period and from year to year if approved","page_number":125,"box":{"x":68,"y":279,"width":832,"height":11}},{"id":"57721122-8b5e-42dd-ba1c-ec67bcfefe8a","block_type":"box","text":"annually (a) by the Board of Directors of each applicable Fund or by a vote of a majority of the outstanding voting","page_number":125,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"02463426-fdce-4871-8bf4-588e4acb8c82","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not parties to such contract or","page_number":125,"box":{"x":69,"y":309,"width":800,"height":11}},{"id":"bd0e971c-27af-4977-962f-39f7e2f9596d","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such party. Such contract is not assignable","page_number":125,"box":{"x":70,"y":324,"width":810,"height":12}},{"id":"73f890ea-50f8-4048-ae42-c3df3d8a01c9","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either party thereto or by the vote of the","page_number":125,"box":{"x":69,"y":339,"width":805,"height":12}},{"id":"63ed50ce-1002-4d07-b8ba-8be8fc3231d5","block_type":"box","text":"shareholders of the Fund.","page_number":125,"box":{"x":69,"y":355,"width":181,"height":9}},{"id":"8a3a56fa-45d4-4b8e-ae6d-31ccae3395ad","block_type":"box","text":"Transfer Agency Services.","page_number":125,"box":{"x":103,"y":377,"width":180,"height":12}},{"id":"08d9eea7-5644-4926-842f-aaed8192ed11","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":125,"box":{"x":291,"y":377,"width":595,"height":12}},{"id":"e6825403-e5fa-4fc8-9575-846da0c45a61","block_type":"box","text":"subsidiary of The Bank of New York Mellon Corporation, acts as each Fund’s Transfer Agent pursuant to a Transfer","page_number":125,"box":{"x":69,"y":392,"width":816,"height":12}},{"id":"9b0c3f3e-c51a-427c-a42c-fb3f0cd49bb6","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":125,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"f29120e2-7bf5-4e73-a4da-09f2ed1b0dda","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":125,"box":{"x":68,"y":423,"width":792,"height":11}},{"id":"11770dc5-ef12-4c0a-b2db-f86229fe161a","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":125,"box":{"x":68,"y":438,"width":819,"height":11}},{"id":"e85539aa-c576-45cc-8f79-49212b578f03","block_type":"box","text":"Transfer Agent a fee for the services it receives based on the type of account and the level of services required. Each","page_number":125,"box":{"x":68,"y":453,"width":839,"height":11}},{"id":"b7d28965-08c0-4a97-9bd6-f01899790de0","block_type":"box","text":"Fund reimburses the Transfer Agent’s reasonable out-of-pocket expenses and pays a fee of 0.10% of account assets","page_number":125,"box":{"x":70,"y":468,"width":831,"height":11}},{"id":"9b497edd-ea3d-475a-8d9b-60afc41b95eb","block_type":"box","text":"for certain accounts that participate in certain fee-based programs sponsored by the Manager or its affiliates. For","page_number":125,"box":{"x":68,"y":483,"width":813,"height":11}},{"id":"d3af2e62-730f-4030-8188-2e1e1bda2d5a","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":125,"box":{"x":70,"y":498,"width":836,"height":11}},{"id":"6989660c-48e3-43af-a31b-8a8a2a2a5b5d","block_type":"box","text":"by the Transfer Agent and any other account representing the beneficial interest of a person in the relevant share","page_number":125,"box":{"x":69,"y":513,"width":806,"height":12}},{"id":"1b527572-c472-4671-864f-0fada178e026","block_type":"box","text":"class on a recordkeeping system.","page_number":125,"box":{"x":69,"y":529,"width":238,"height":11}},{"id":"fffaf0f3-5bcd-47d5-a8d6-1c52b64db144","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":125,"box":{"x":102,"y":551,"width":338,"height":11}},{"id":"dd9ef52d-9599-4d05-a524-165be34655d0","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":125,"box":{"x":446,"y":551,"width":441,"height":11}},{"id":"9a7aa0dd-4b28-46f3-acd3-0fd6e988f2ff","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":125,"box":{"x":69,"y":566,"width":840,"height":11}},{"id":"7e7456d1-4ac6-4b37-94fb-f70fcd0b689d","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Part I","page_number":125,"box":{"x":69,"y":581,"width":823,"height":12}},{"id":"d44f3d86-94d7-4d76-b4e6-980e6d3e93b4","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":125,"box":{"x":69,"y":596,"width":627,"height":12}},{"id":"feba8a71-2799-4a87-8f40-0b5ebade518a","block_type":"box","text":"Custodian Services.","page_number":125,"box":{"x":102,"y":619,"width":141,"height":9}},{"id":"757ecf4c-d57a-4ef3-aecd-9af8e7a0ecfc","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":125,"box":{"x":249,"y":619,"width":654,"height":11}},{"id":"807db2ef-0ac0-4d37-bad2-169e2989d834","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":125,"box":{"x":70,"y":634,"width":820,"height":12}},{"id":"507bf54b-89ba-456e-85e9-f81ed3f61ca4","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":125,"box":{"x":70,"y":649,"width":814,"height":12}},{"id":"1328e294-d1ce-4aec-b2b4-979ce498c826","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":125,"box":{"x":68,"y":664,"width":802,"height":12}},{"id":"88e7e1d6-160f-4e0b-b718-857b7ba33a5a","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with certain foreign","page_number":125,"box":{"x":69,"y":680,"width":839,"height":11}},{"id":"79efec06-7d08-43fc-9e34-e1d3b19c8d74","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":125,"box":{"x":69,"y":695,"width":792,"height":11}},{"id":"864b11ce-1bd1-40b1-b424-f3d0c8bf3110","block_type":"box","text":"certain assets.","page_number":125,"box":{"x":69,"y":710,"width":106,"height":9}},{"id":"bbe24b6f-b30d-4425-9812-dbe71052728d","block_type":"box","text":"For certain Feeder Funds, the Custodian also acts as the custodian of the Master Portfolio’s assets.","page_number":125,"box":{"x":102,"y":732,"width":716,"height":11}},{"id":"0498b8b6-f044-4106-ac37-48d983b47915","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. 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BlackRock, its subsidiaries and their","page_number":131,"box":{"x":102,"y":339,"width":731,"height":12}},{"id":"cbbdd936-6f55-40bc-8b70-126d395f9fb2","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel who may be","page_number":131,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"926f6c3d-fde0-4108-a790-271316186cd3","block_type":"box","text":"involved in the investment activities and business operations of a Fund, are engaged worldwide in businesses,","page_number":131,"box":{"x":70,"y":370,"width":786,"height":11}},{"id":"559d781f-21d7-4c33-9ec4-e3af629bc794","block_type":"box","text":"including managing equities, fixed income securities, cash and alternative investments, and other financial services,","page_number":131,"box":{"x":70,"y":385,"width":829,"height":11}},{"id":"6d5da0bf-120c-45a9-89ff-45fc6940e53e","block_type":"box","text":"and have interests other than that of managing the Funds. These are considerations of which investors in a Fund","page_number":131,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"caa02936-1bfc-41a0-afdb-933609a7ef91","block_type":"box","text":"should be aware, and which may cause conflicts of interest that could disadvantage a Fund and its shareholders.","page_number":131,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"95c80911-2db7-4351-b481-c23626099bbe","block_type":"box","text":"These businesses and interests include potential multiple advisory, transactional, financial and other","page_number":131,"box":{"x":101,"y":438,"width":722,"height":11}},{"id":"80fb697e-e4a2-4778-b53e-a22d0b0c2f89","block_type":"box","text":"relationships with, or interests in companies and interests in securities or other instruments that may be purchased","page_number":131,"box":{"x":69,"y":453,"width":827,"height":11}},{"id":"9de78526-89ad-4318-9a3d-b90b88795ede","block_type":"box","text":"or sold by a Fund.","page_number":131,"box":{"x":69,"y":468,"width":125,"height":11}},{"id":"5b6dddff-97f4-42b2-a092-6a0cd49e3d61","block_type":"box","text":"BlackRock may have proprietary interests in, and may manage or advise with respect to, accounts or funds","page_number":131,"box":{"x":102,"y":491,"width":762,"height":11}},{"id":"23b27e66-8916-4b4b-a7e9-fc6fe0e54575","block_type":"box","text":"(including separate accounts and other funds and collective investment vehicles) that have investment objectives","page_number":131,"box":{"x":69,"y":506,"width":806,"height":11}},{"id":"39139b48-eb65-4e43-a475-3680426b837a","block_type":"box","text":"identical or similar to those of a Fund and/or that engage in transactions in the same types of securities, currencies","page_number":131,"box":{"x":70,"y":521,"width":828,"height":11}},{"id":"82bac001-28ff-41e9-981e-8651484b137b","block_type":"box","text":"and instruments as the Fund. Such other funds or accounts may offer exposure to strategies that are identical or","page_number":131,"box":{"x":69,"y":536,"width":808,"height":11}},{"id":"fca18659-3e14-4b81-9b01-926191b0e18e","block_type":"box","text":"substantially similar to those of a Fund but with different fees and expenses, governance and structures, and/or","page_number":131,"box":{"x":69,"y":551,"width":803,"height":11}},{"id":"2e51b754-66c8-41f0-90ac-64863ccd3944","block_type":"box","text":"services provided by BlackRock","page_number":131,"box":{"x":69,"y":566,"width":224,"height":11}},{"id":"900c7d16-a0fb-4248-b6bc-a8ff74aa0710","block_type":"box","text":".","page_number":131,"box":{"x":295,"y":574,"width":2,"height":1}},{"id":"7ad80048-2217-4162-9d86-2e6e1f618249","block_type":"box","text":"BlackRock is also a major participant in the global currency, equities, swap and fixed","page_number":131,"box":{"x":304,"y":566,"width":603,"height":11}},{"id":"dbcb6396-2558-4f30-ba17-bd47de93669e","block_type":"box","text":"income markets, in each case, for the accounts of clients and, in some cases, on a proprietary basis. As such,","page_number":131,"box":{"x":70,"y":581,"width":791,"height":11}},{"id":"531d09b2-ac52-4710-a9e8-340979d8b708","block_type":"box","text":"BlackRock is or may be actively engaged in transactions in the same securities, currencies, and instruments in which","page_number":131,"box":{"x":70,"y":597,"width":835,"height":11}},{"id":"efe115e1-3608-445d-9df1-3397b194c6c3","block_type":"box","text":"a Fund invests.","page_number":131,"box":{"x":69,"y":612,"width":106,"height":9}},{"id":"de770276-a66e-4035-a7ad-0e4c82d9ab40","block_type":"box","text":"Such activities could affect the prices and availability of the securities, currencies, and instruments in which a","page_number":131,"box":{"x":102,"y":634,"width":785,"height":11}},{"id":"e3608636-57e7-432c-b891-1916535270c5","block_type":"box","text":"Fund invests, which could have an adverse impact on a Fund’s performance. Such transactions, particularly in","page_number":131,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"1d2e40fc-dd44-49c2-835e-b64e506536c9","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":131,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"a193672c-1d5f-4e18-a226-8dca0c365367","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":131,"box":{"x":68,"y":680,"width":652,"height":11}},{"id":"b76272bc-9b64-40f2-9fa3-cc97cefd116a","block_type":"box","text":"In addition, the portfolio holdings of certain BlackRock-advised investment vehicles managed in an identical or","page_number":131,"box":{"x":102,"y":702,"width":787,"height":12}},{"id":"664f6d0b-ba08-4a20-9dce-fbb2c136677a","block_type":"box","text":"substantially similar manner as certain Funds are made publicly available on a more timely basis than the applicable","page_number":131,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"fd1dc5e7-ca23-44ba-9a56-9c12b7a7535d","block_type":"box","text":"Fund. In some cases, such portfolio holdings are made publicly available on a daily basis. While not expected, it is","page_number":131,"box":{"x":70,"y":732,"width":816,"height":12}},{"id":"008b5c1a-8676-4d03-a8dc-4638d4aad50b","block_type":"box","text":"possible that a recipient of portfolio holdings information for such an investment vehicle could cause harm to a Fund","page_number":131,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"d46393bb-6f13-4ef0-aeba-caefd38592a7","block_type":"box","text":"that is managed in an identical or substantially similar manner, including by trading ahead of or against such Fund","page_number":131,"box":{"x":68,"y":763,"width":813,"height":11}},{"id":"a96d7101-76d9-4359-a1c5-8e4cbc29906d","block_type":"box","text":"based on the information received.","page_number":131,"box":{"x":69,"y":778,"width":247,"height":9}},{"id":"fe2822af-7035-4262-8f0c-4ab6ba2abad0","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the assets","page_number":131,"box":{"x":101,"y":801,"width":777,"height":11}},{"id":"20753ff4-3e23-40ea-b97d-f9f9fc74f6b4","block_type":"box","text":"actually purchased or sold may be allocated among the accounts on a basis determined in its good faith discretion to","page_number":131,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"618191bf-9fa5-4ed0-abc6-dcd5d66c6e0d","block_type":"box","text":"be equitable. In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":131,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"9f59faaa-7007-42b0-adfd-0d0dfdfaa31f","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":131,"box":{"x":70,"y":846,"width":817,"height":11}},{"id":"82eec810-20e9-4ddb-af34-1deafa1973c4","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, particularly, but","page_number":131,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"74fb6660-312d-4d0c-87d6-3d6e972749bb","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":131,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"8df4107f-4b96-49ee-839a-0fa009b3bb5f","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":131,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"889528e0-db43-4eab-8f24-fb929c85b45c","block_type":"box","text":"information that is also used to support decisions for other accounts. When BlackRock implements a portfolio","page_number":131,"box":{"x":70,"y":906,"width":785,"height":11}},{"id":"180ca942-5724-4992-9905-8497bff786cb","block_type":"box","text":"II-89","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cee8dd27-b36c-49f5-8213-5b13830bf150","block_type":"box","text":"NM1026U-6032801-131/242","page_number":131,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d3c5156b-4af6-4e2f-8302-11d13caacb8a","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":132,"box":{"x":69,"y":45,"width":767,"height":11}},{"id":"8c0e257a-7cca-42a1-984f-0ae5634d98f5","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":132,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"508de6b1-fa90-4210-95b3-4caeecf6aad8","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":132,"box":{"x":68,"y":75,"width":827,"height":11}},{"id":"038affaf-cebc-4afb-83f6-d8bd8da4bdee","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in certain cases, elect to implement internal policies and","page_number":132,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"28a74544-1db6-4c68-bb20-762e04125036","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in certain","page_number":132,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"7241cf4c-4302-4385-94aa-7c6f1ff12ce2","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":132,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"ba96e8f0-1180-4c09-93f9-f7f1385eaab5","block_type":"box","text":"Conflicts may also arise because portfolio decisions regarding a Fund may benefit other accounts managed by","page_number":132,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"268c798d-b82b-4625-ba37-2ac284fa985c","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a short position by a Fund may impair the","page_number":132,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"d7bd27cb-cd47-43e0-a7b1-f48f7bf6ef97","block_type":"box","text":"price of the same security sold short by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":132,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"4562dd0d-9e37-43f9-8355-03268d6adf3b","block_type":"box","text":"purchase of a security or covering of a short position in a security by a Fund may increase the price of the same","page_number":132,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"cf6646ed-60e0-443e-979a-f403471b6a0b","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":132,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"e99aba81-cc64-42a8-9f5a-ab96518d37b2","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may invest in or","page_number":132,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"b7ec0c23-6822-4b33-bcf9-ab7823dec6a1","block_type":"box","text":"extend credit to different parts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":132,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"286cfcf9-e21e-4554-a595-a4e5cf768d6f","block_type":"box","text":"advice or engage in other activities, or refrain from pursuing rights, providing advice or engaging in other activities, on","page_number":132,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"eb0d84b2-9bfd-4ef9-8719-c381ee36f3be","block_type":"box","text":"behalf of other clients with respect to an issuer in which a Fund has invested, and such actions (or refraining from","page_number":132,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"c1a53d96-c01d-48c3-b6e3-57c6b1625b51","block_type":"box","text":"action) may have a material adverse effect on the Fund. In situations in which clients of BlackRock (including the","page_number":132,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"1d5ab68d-71a0-4ff0-a28b-ae5648e9a7bc","block_type":"box","text":"Funds) hold positions in multiple parts of the capital structure of an issuer, BlackRock may not pursue certain","page_number":132,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"3f7e66c0-e4e2-4c02-9544-f096ca3303c9","block_type":"box","text":"actions or remedies that may be available to a Fund, as a result of legal and regulatory requirements or otherwise.","page_number":132,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"2b53e12a-b2ea-40b0-98c4-d6976c771884","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":132,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"ce1b778a-eee7-4c92-87ae-07e8b086833f","block_type":"box","text":"particular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":132,"box":{"x":70,"y":339,"width":780,"height":12}},{"id":"cbec163d-598c-47a6-99e8-1c89848ceca5","block_type":"box","text":"business units or portfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":132,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"8c79dbfa-363f-458d-817d-53fd82ab126b","block_type":"box","text":"situated holders of loans or securities rather than, or in connection with, taking such actions itself on behalf of the","page_number":132,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"7dd1c583-7c97-46c3-8fed-25636ca67350","block_type":"box","text":"Funds.","page_number":132,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"0e282ed9-9176-4085-8ccb-04b3afc9fc29","block_type":"box","text":"In addition, to the extent permitted by applicable law, certain Funds may invest their assets in other funds","page_number":132,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"29f1b7c3-ce20-4978-8db0-164c680eefc3","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same portfolio managers, which could","page_number":132,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"fb3a5fa9-428f-4e25-a889-907a861e1607","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":132,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"85e7c2bc-a856-4eae-9de9-feec07e8b9cf","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including portfolio managers.","page_number":132,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"8427ee60-8fc6-4410-9d53-c10a908d4d12","block_type":"box","text":"Third parties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":132,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"81c5a3ce-1a7c-40ab-b4b4-baca056c85ab","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":132,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"81072c86-c6bd-48e5-9ad0-a387c80dc1a8","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":132,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"d9ae0111-3f13-4f6b-9fdb-244b83b3f27d","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":132,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"cc1058ac-4e56-4e0f-b9e8-c5a27449e023","block_type":"box","text":"to retain such third parties to provide services to the Fund.","page_number":132,"box":{"x":68,"y":536,"width":421,"height":11}},{"id":"de5e1fc3-d2e5-4661-b76a-0f155d6f7385","block_type":"box","text":"In certain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":132,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"1d51c3db-6113-4731-98f2-bf0937c16ec1","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":132,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"12d18aae-e271-4879-8aad-29d61dd3249c","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":132,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"9a8afc4a-e66d-451b-8d9c-9c463554b9c3","block_type":"box","text":"based on each party’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":132,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"59cb1020-ab6f-4c86-8cc8-58b388132a7c","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":132,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"d7929fb4-1ca6-426c-93b6-9426fa46967e","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":132,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"1b0e002e-9c0b-4bb4-bef1-5b683efce27e","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":132,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"61f2e0a8-9e92-4029-b724-c1aca8d327a0","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":132,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"b60b051b-549d-488d-b2fd-e2f588707d78","block_type":"box","text":"and those activities may have an adverse effect on the Fund. As a result, prices, availability, liquidity and terms of the","page_number":132,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"980f2ddd-f0b4-4d9f-ac8c-a0b4f0a5410d","block_type":"box","text":"Fund’s investments may be negatively impacted by the activities of BlackRock or its clients, and transactions for the","page_number":132,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"d8693ada-3835-480e-adea-049d82236f85","block_type":"box","text":"Fund may be impaired or effected at prices or terms that may be less favorable than would otherwise have been the","page_number":132,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"5102db70-8cd4-49f1-8d4e-f5fe315ecf93","block_type":"box","text":"case.","page_number":132,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"2c7ba849-98b6-41c4-a0cb-34dba0ae1412","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":132,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"8cf3080f-5782-4df1-918d-e4738f7612d8","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":132,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"36750ae5-fdb4-4319-90ec-9906e5eb2893","block_type":"box","text":"manages or advises. It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":132,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"69ecc06c-ea5e-4451-88c7-e5e57b167a58","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":132,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"a67d4d58-1d95-4af3-bb90-012cfb47a3ac","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":132,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"d5095224-c9ef-4d9e-99e6-e39a64669877","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":132,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"fa51710a-b2c6-4f52-87b8-f6ecb65af94d","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":132,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"974fdc10-609f-45ca-b4a6-4824c6517d02","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":132,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"0cc063ee-7105-4c61-b7ed-88d576e79ecf","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":132,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"3fa6b72e-94f8-40a4-b3a0-d13e4643b839","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":132,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"c973fa3c-31b6-499b-a384-bfee40b0cfab","block_type":"box","text":"II-90","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ff897d18-1157-428e-b6c2-2ae508379d5a","block_type":"box","text":"NM1026U-6032801-132/242","page_number":132,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5b3aeef3-df4b-4047-9226-7d0f1c5bb4ee","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":133,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"ba1361ce-5fbf-4622-b269-c90c9b35172c","block_type":"box","text":"when position limits have been reached. 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BlackRock will not be under any obligation, however, to effect","page_number":133,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"7b15a004-4e6c-47e7-8e89-ae1bed3afd78","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":133,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"4acc75fb-c55a-4d67-88a7-8c9d11bde0c2","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":133,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"495dbc9d-0281-41c9-9caf-ef963e01d82b","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":133,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"65c49884-c425-4e71-ba2e-22f557789424","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":133,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"2e1545e4-4149-4af2-9219-9988fe810cc0","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":133,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"40dc7187-206e-44a6-a55b-f4c00b7c7b22","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":133,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"bd4c046c-1e10-4a06-9770-8ff9d93b5275","block_type":"box","text":"managing a Fund.","page_number":133,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"f8dd9a31-4d20-4b39-a981-a14958785da7","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":133,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"6b077c7e-9d2e-4d9e-ada0-f2b86b99c8ad","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":133,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"b1ae6483-3ebb-4122-9a21-5a582473ecd5","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":133,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"74c6ad98-8a9f-4409-b6b3-0572d84527bc","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":133,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"72d01c03-bb1e-4c3d-b00f-c1e15c73b8ef","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":133,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"8675566b-535b-487d-a137-e5201128a6ca","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":133,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"4e12012b-6685-48cc-a2da-4bc7325e67e0","block_type":"box","text":"employees of other business units or entities within BlackRock. 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In such cases, such party’s interests in the transaction will be adverse to the","page_number":133,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"d34de6ea-18b6-4a9d-b5f5-d24be77ee13c","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":133,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"ba1526b0-7733-4808-a50a-f94da35f6887","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":133,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"9ed50fcd-5baf-4819-85af-e60bc7704d22","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":133,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"af478561-e23a-46d5-be3b-22cd88244334","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":133,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"e894623c-2d5c-4e10-8b99-fa81dbdfc83a","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":133,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"b806019b-1912-40fb-9ccd-86c2482a808f","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":133,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"77bf8b3c-8bbc-4db7-9449-7770544d78f0","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":133,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"ff1446be-7ebd-4a89-ab43-57ceb18fc563","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":133,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"765a1f95-43f9-42d5-84d7-60dac7d1fd4d","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":133,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"256d5f1b-139b-4265-b6fc-19f499320d8d","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":133,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"243e9c81-cea6-4ef8-82ea-5940b533ae83","block_type":"box","text":"under management for BlackRock.","page_number":133,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"f2cb2b6e-7070-4bbf-a686-ef4d4f21c255","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":133,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"80100e08-8d20-41f7-913b-4814533dc1d7","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":133,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"b9ae8db2-dc4a-47b8-88fb-fa81ba982045","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":133,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"e49aad1d-90a9-4446-b7f1-e61a48d49314","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":133,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"ff023a43-3e15-41e6-b841-5ff777c1ba71","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":133,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"396f2e5d-4d51-4450-ac8e-6de691dad0a2","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":133,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"9b92cc00-2960-47e9-b902-2a73d589ca0f","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":133,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"8c4c57fc-a157-429c-a33d-2a805d4fca2f","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":133,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"e6ab97d8-1319-4184-b6ea-fc87349e3e83","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":133,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"83002dcd-007b-4a3d-a82e-f59c0da54c98","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":133,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"9d5e166e-10fc-4679-ad92-4ea916bb81c6","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":133,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"a569e798-e00c-47bf-af53-23116e5950c4","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":133,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"08bff7b8-0e31-417b-847e-d82ee616f728","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":133,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"632fb67f-3300-4178-9488-bf309197981a","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":133,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"0e8d05f7-277c-4e71-a5b1-7a96d8f41ce3","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":133,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"1c4ab755-8440-458d-8869-2f57b0217d30","block_type":"box","text":"or in other commercial capacities. 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BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":134,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"f99f33f6-7348-424b-9e30-860e9eb4db8b","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":134,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"5c6c4c89-4ff0-4fd3-a2f3-3a233cd0565b","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":134,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"65fadb48-fa6b-484a-aa84-7c1612ce3095","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. 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As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":134,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"4d1a7546-c255-4b04-9e39-ab6854d84280","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":134,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"33666287-f7e0-47dd-9058-732d9a032d3a","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":134,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"8edb5b36-60fb-4b67-b5e0-4d5140f89273","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. 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In","page_number":134,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"472d7804-ddbc-4410-b833-fa903641de4a","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":134,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"77145b97-4e59-4616-aa8a-5e2e89323f19","block_type":"box","text":"various program limits (","page_number":134,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"8de4f9a8-6be4-46cf-8322-f113558c045e","block_type":"box","text":"i.e.","page_number":134,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"41fed900-88f3-4af6-a222-c59e4e854d0d","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":134,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"5da5e206-6b4d-47b5-80ac-46d82dde77cb","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":134,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"4f8c736c-5c40-472c-bee3-4dd042e481ef","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":134,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"45e21afe-4045-4ece-afb5-89993b90f5fb","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":134,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"5d54f626-d54e-4d49-9246-4094799e3114","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":134,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"c9813d44-5149-4f9d-b48b-101a67c51ebe","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":134,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"de6a5f95-a1e0-42b2-ab19-57cdfbdc4b4b","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":134,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"c7ab9056-325b-480e-aebf-475228cf8244","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":134,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"281ce18c-2dc7-4516-a158-d429b831e68e","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":134,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"3134d489-ad72-4851-874c-6169d94b2133","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":134,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"d2e0aa4f-8ea3-4d8a-b0aa-69d92e4809cb","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":134,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"94baf1dc-fb23-453a-bad4-26d30569317a","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":134,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"9cffd650-f59d-4c1d-be75-62138f496eec","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":134,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"44c0e4f6-722f-4636-ba34-4bbe65d276a9","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":134,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"c4a62a60-0272-4be2-83ff-7d4ed0ab5ed8","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":134,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"6681de02-02f6-40a8-9647-f44db977ff3c","block_type":"box","text":"II-92","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"57b27710-43ba-4bcb-a7ae-b559ba30beb0","block_type":"box","text":"NM1026U-6032801-134/242","page_number":134,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"27c982c6-6771-4f21-8055-0563edafef89","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":135,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"b292a399-1137-4121-b961-99b20ddf3485","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":135,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"a9aef5ea-083e-4b2d-a927-a3308a7f4f4c","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":135,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"4032c6f4-0753-46f1-bdac-92e55213cfef","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":135,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"c231a0b6-a816-492c-bf8b-3fae7a653075","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":135,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"fc6a76e0-b712-4368-a9ca-219731ad88d8","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":135,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"704e1dfc-cc70-485c-adc9-56dffcda61cd","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":135,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"c38f18b7-ad71-465e-8126-d80ebc19fc43","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":135,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"4a3c1187-4448-4342-a674-d8c38e937c48","block_type":"box","text":"than through client commissions.","page_number":135,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"377af0ec-1e47-4233-bb10-fcddbcba8a98","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":135,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"6350af70-2c00-40be-b5aa-9aee5feaaa1c","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":135,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"8422e395-ecd6-41b6-8d64-e8b0f57c8f09","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":135,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"b240abc1-15d6-4e90-b9f1-95c30cba1a75","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":135,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"6873f274-22d2-48c1-b625-fc6de110504c","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":135,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"6195723e-65ff-4025-92c2-d2e30dbf7bb7","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":135,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"c8b0b842-5a3b-4bfc-b432-93c5c58f623f","block_type":"box","text":"research-oriented software and other services and products.","page_number":135,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"88812a5a-7a6c-47a9-bc7a-fe28747a7b3f","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":135,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"7382a54a-4d39-49c9-8020-bb0e8b98b3e3","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":135,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"9d6456c6-cb4d-4ccf-bac6-b39db6957e46","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":135,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"bad5590d-2d42-4d75-abed-3d198301dde2","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":135,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"01825c2c-6635-4ad4-abaa-5a9ee727d331","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":135,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"c1d95a1a-901a-4123-a1c0-c56b2f75984e","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":135,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"4c2a4581-ab6d-433b-ae15-d4ca9c411035","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":135,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"2ede9f54-a833-4666-8ee6-ee63ead2e8dc","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":135,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"54d5d337-12f1-45cc-bc3e-b9cc299ba555","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":135,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"7475c703-5c0b-46fa-9260-16485663e606","block_type":"box","text":"and services itself.","page_number":135,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"2a35bfe5-db61-4478-aca1-b65cb1868a2c","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":135,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"82b8f3fe-d9af-4586-be24-cc0e029a4343","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":135,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"ef7c704a-4bb1-4c52-bf1f-2dc292dc800b","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":135,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"515cf561-c37b-4f7d-91d5-7d3f1fa5cbf1","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":135,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"d8309f11-e69a-4ae7-801e-c5221ee88a9d","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":135,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"251fc30a-c25c-456d-9350-f8a0431ae513","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":135,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"c0ec691a-1afa-4ab7-aa5e-f00d5777ac30","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":135,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"b7cc3ad6-27bd-4d86-ba83-537bd97d6343","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":135,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"53128fbc-1b89-4417-a7b6-cf357ddb899f","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":135,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"74bd4ab2-0315-4a62-8584-7a1c3b2185ed","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":135,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"88d1efa4-ce94-4f1f-93af-dc71f0ef25c6","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":135,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"e3dc2ad9-a805-47bd-b9e5-a43ddaca8120","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":135,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"a4987910-b51b-4e1a-b8ab-2454660feeae","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":135,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"43179f02-eacf-45e5-86ef-bf833605a7b3","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":135,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"38a272b9-6925-4a1c-81bb-631bedb4c7d4","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":135,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"b9a064a0-40da-4a2a-a34c-1dd0ba6445e6","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":135,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"41e83b17-eb5d-4753-a6aa-5a115e389493","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":135,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"5b340df7-ba29-4225-9026-5af1922b9d5c","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":135,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"dd2e35b9-5f95-41c1-b0ce-fec10dd01e2b","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":135,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"dbcbcae8-b0ea-4971-8519-7db9cf721522","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":135,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"1c133c20-04fd-4559-91e0-d8b2dc38b376","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":135,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"cf33ed93-181e-4534-920b-8f84c8c9c82f","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":135,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"5d764ff6-49a4-42e0-8fe0-793a7196a52b","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":135,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"6fd1fe14-9093-4726-b23f-fae100be9fc2","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":135,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"90b4f060-4b01-46fc-b263-6abdf3e339c0","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":135,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"9bbcaabf-7f61-4b34-8ba0-8ed7e009c00f","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":135,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"8e70a000-9127-4bad-a8d3-533f6ce40c4a","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":135,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"54c75144-29b4-4ea5-812d-200a4d166510","block_type":"box","text":"II-93","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a4e70acc-1b54-41df-8051-05d6a3115f42","block_type":"box","text":"NM1026U-6032801-135/242","page_number":135,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"85fe26f9-1add-4850-9af8-e133ba8bc421","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":136,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"bcef0381-b898-437f-96d5-08d93aeedd24","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":136,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"7e52f7fa-3f20-4180-91e5-768a648d32ce","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":136,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"c3fc0bc5-85bb-4737-b2ca-b783685754f4","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":136,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"15ecdbaf-17a5-4c56-b67d-71f97b32c653","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":136,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"0974774c-78ea-4c33-8ad0-530428a0d7a2","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":136,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"2c5e6095-1615-46a0-a384-4bae2dab28d0","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. 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BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":136,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"afdf8727-c17a-47c5-b238-e273ba5e2e06","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":136,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"e91fe263-2efb-47ee-9774-3430df3350ae","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":136,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"a68dd512-a145-47f1-bdcc-a5f2dcb5d4ec","block_type":"box","text":"(the “Valuation Procedures”). 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The fair value of one or more assets or","page_number":136,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"15fb8374-70ec-4d31-a757-78b3c5d20dd1","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":136,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"26ebe4c7-4d7e-4652-9733-22944ebbabd9","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. 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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":137,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"cd7dea8b-7331-4961-9906-1280ebb459fd","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":137,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"454995a4-eeb3-40bd-8b91-d633491af374","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":137,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"240058ca-fa34-42be-9200-0b0fdfd72625","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":137,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"e1f4d335-c356-4d42-9012-cabcb9e0ea7a","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":137,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"69d093ee-c95a-479e-a4eb-73def13be30f","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":137,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"d96894f4-9be6-41b6-945c-c1491438a365","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":137,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"ad2355c1-96de-47e3-8787-beda08221c4f","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":137,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"539c4ef3-f60b-417f-b459-1c0103de199f","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":137,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"ea9ffa50-1e34-4f2a-a10d-2c74b6460aa6","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":137,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"73b5d911-a003-4a0f-8f45-f3edff49568b","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":137,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"6390f6f6-536a-45f9-aec4-33eb7aaed44a","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":137,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"8d61b840-d13c-4f16-90eb-255ab561cae7","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":137,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"bdad505e-84e1-4a33-b427-16f545085d63","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":137,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"b60fc42f-5faf-4cb9-8b09-cd3a829a7e8e","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":137,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"1067a74e-570e-4e5a-8713-19fcc2db27cc","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":137,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"c6b12592-4800-40d0-b574-f0b9aefc1b0b","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":137,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"f217a69f-79d5-4197-8ebf-a755872623a2","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":137,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"726cf07e-9810-4aa3-9d11-155dc70b79e9","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":137,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"bd1b7429-2a08-42e5-8a5e-3e09b618fc69","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":137,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"66fce9ac-abbd-4367-b40c-9bef575effae","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":137,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"f0e624bb-927a-436c-9930-12aa68154928","block_type":"box","text":"public information about the company (","page_number":137,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"473e2aa9-6161-4dea-a7bd-e5a1940bd74d","block_type":"box","text":"e.g.","page_number":137,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"d1f2b4fe-dd91-452d-8c61-a6e8b73e6f1e","block_type":"box","text":", in connection with participation in a creditors’ committee). 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Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":137,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"f2c093cc-6a39-446e-b569-d53a65813a99","block_type":"box","text":"securities of which the Funds wish to purchase or sell. 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Certain portfolio management teams within BlackRock may","page_number":137,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"449fa3eb-f8a7-499f-b9d8-cb5093c34274","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":137,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"92167904-1df6-442f-ac34-85d1f94bad82","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":137,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"f2a137bc-e575-425e-b73e-e14f2b11a3be","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":137,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"98684328-f6bd-4ffb-aebd-0d3dc937200c","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":137,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"8867d1c9-1acd-4020-a3ea-156b9cb11443","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":137,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"84ec000a-7baa-4ae5-834f-04f3ccaf9a93","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":137,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"7a7e5741-2916-4517-9cbc-5fbdf52f8270","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":137,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"ae6357a9-7a1e-4780-ac78-0b5ab620a2cb","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":137,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"2144a3b5-2d89-48fc-ab52-6ddd9dddabd1","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to certain information and personnel, including","page_number":137,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"efdacd49-2994-4657-9497-afcb33612bbc","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":137,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"d868c7ef-aa0a-472a-b37d-af8738b6d31e","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":137,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"cc8442f8-cf72-4bc8-b98f-070dbce54c93","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":137,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"0288a978-744a-4e10-ae6d-a7c3082b9f43","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":137,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"d7f12ac9-306d-4a6b-a567-bf6de9671351","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":137,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"c425f74d-2654-4e88-b36e-59ad3bd655a1","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":137,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"dbdb5661-39e3-4a03-8ecd-ca8f2a0da80b","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":137,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"030acaaa-c86f-405b-a030-eeb0e2ba656e","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":137,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"8d1b4464-7c29-4d1e-b597-4c0f30825ec8","block_type":"box","text":"II-95","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d03dab28-62fc-465e-ab06-762d145cb418","block_type":"box","text":"NM1026U-6032801-137/242","page_number":137,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"aec2f348-586c-4c42-9f56-466e00cdbe77","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":138,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"7d7f0da8-6169-4a83-be86-132f6921a189","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":138,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"de6f8d07-913e-4f5c-b8aa-01eef134882f","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":138,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"b122f793-64ba-4006-9482-7bf58ee455e8","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":138,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"1bd60f88-f4e6-4f3d-bddf-b87ee6055455","block_type":"box","text":"a barrier.","page_number":138,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"0191ea28-578c-40e3-b9b4-6118e8670394","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":138,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"1fc5a123-2ee5-423a-8365-a70110cf6bbb","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":138,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"5d9114af-aa24-4881-9e0a-5fae809b5272","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":138,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"3bfe67a3-c0db-4177-9e4c-ccba5735faa2","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":138,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"e12bca23-c5dd-4afc-ab30-e17bdf7eda2b","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":138,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"a00d88a4-eadd-48de-b61c-fe936ed0f14d","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":138,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"bf65644d-4ec4-467d-b675-04044d53e7b3","block_type":"box","text":"that operate in certain industries (","page_number":138,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"53ab571e-df46-4c07-aa35-397a2f06ea6e","block_type":"box","text":"e.g.","page_number":138,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"9bed7d44-a68f-4810-8877-8b77ddfed208","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":138,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"e3245d53-15e4-4253-b237-67ca49fd66f4","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":138,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"a0872306-9ec6-466b-b885-d90b8048f0de","block_type":"box","text":"e.g.","page_number":138,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"4c256945-d743-4d9f-a31c-f27d49686265","block_type":"box","text":", with mechanisms such as poison pills","page_number":138,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"6bacfe7c-969e-49da-85c1-a78847dc6203","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":138,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"38c4e71c-601a-434c-86da-c7164c96c49f","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":138,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"3ad42850-9e75-43d6-baf6-da1ed863e0ff","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":138,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"212f340e-1b7c-4a9d-9c3c-53771a73ac7b","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":138,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"8563a82b-d21f-42ac-adf2-97eddc0f20ed","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":138,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"ed160790-c01d-4548-abe2-d0fe6428ec6d","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":138,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"6108a180-d37c-4057-b5cc-a488df1e7d8e","block_type":"box","text":"seek to make indirect investments (","page_number":138,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"ec633917-50b4-4c83-a0e1-7e122e00fc9e","block_type":"box","text":"e.g.","page_number":138,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"83b10558-9a4c-417f-ac28-de2720995adc","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":138,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"8813629d-f3a0-497e-9f52-32cfe417a4e1","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":138,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"8fbdd6c5-baf3-4cf0-a174-6dc3afae89a4","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":138,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"1f071c09-41b5-42f1-979b-f9bc6d9351b1","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":138,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"976ac777-d430-4743-aaf2-7c502e5cd269","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":138,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"4bfcaa25-8c94-4d3e-a7c1-92c8abeb788b","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":138,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"69fdf873-74c4-40c8-bec7-17ec7353201f","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":138,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"bf9e60c0-c9d0-4fa0-a1b2-8bd63fc96ce6","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":138,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"5b3867f2-f682-41c5-a5da-25d11ba952ea","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":138,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"9b6f7f77-cf7f-4800-9e2b-e68473491f75","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":138,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"8468ca97-645c-4856-a8ef-c24f0567862b","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":138,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"b8c9b2d3-1152-446d-b418-0ed45ad88e3c","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":138,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"cd9681a8-a834-4083-a7a4-dccb74435b50","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":138,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"3af703db-84ac-44cb-b514-2d4b01ac6d06","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":138,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"b824b91b-eac4-4171-9c3d-d8832c5c91cc","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":138,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"9266b701-7fc8-4bb7-8bd8-b7a3e9215a39","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":138,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"95250ddb-7084-4740-891a-279ed92c95b1","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":138,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"1c37c4c3-fea5-4f43-808a-bbe2587fcdff","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":138,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"58afb9f4-2500-4749-b62b-d2e7a8963941","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":138,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"42b3c671-d9c7-4b7a-a0a5-649f4c52355d","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":138,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"fbe1b828-5a79-47d1-bdd1-84fb207e5c30","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":138,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"d1b019fa-ce71-464f-8a22-ec3544bc0a1f","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":138,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"c301a940-7f7d-45a5-8aab-87797955eaa3","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":138,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"45cf372a-634c-4638-9517-b7f7c58b88e6","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":138,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"6610649d-65d4-4218-8d2f-5a187d1096dd","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":138,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"cc947ca3-f46b-4704-9405-35b5788dd1d9","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":138,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"65eb077c-9d0c-4f0b-bc26-fb515fde9be2","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":138,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"5b814c62-2dca-4a01-ace4-2583c90deafe","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":138,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"0f603520-5087-4c87-b217-1e511a2d78d8","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":138,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"be913310-1474-4032-bfba-3ba789157c1e","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":138,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"7d790ccf-e776-42a2-a7eb-a6ae85773d81","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":138,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"13a61962-ae4a-46db-90d5-8c65a8fca3a8","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":138,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"079f7d39-e682-4d85-827d-499bd78a4157","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":138,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"0caa6f59-694d-414f-8039-8acd2f68398e","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":138,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"0e0dd5b0-2b3e-4b6d-a7d1-25ac8155ce6d","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":138,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"13cb734a-e6a7-4847-8eb2-11281c3becf0","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":138,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"d79738b4-46ca-4f3b-8b5f-b2d4a0560f41","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":138,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"4efb417a-6ac1-447c-aacd-e73097d6ee1c","block_type":"box","text":"II-96","page_number":138,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3f460bd2-0e64-4b20-b2df-c4d92959960b","block_type":"box","text":"NM1026U-6032801-138/242","page_number":138,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2072067b-db1a-49f5-aa08-e107ca2df8e6","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":139,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"c3ad565a-dc05-4f14-87fc-eea462c198d9","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":139,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"7a928479-539a-4171-8aef-e85f8bd16519","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":139,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"17d062b9-97c0-4e49-8a5f-a6ef94cddaed","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":139,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"cd463a20-f7e9-4d0e-a176-c4a22b28bdcb","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":139,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"348e0035-ba7b-4dd1-919b-dc85aafa3d22","block_type":"box","text":"strategy with respect to such security or asset.","page_number":139,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"28da0e8d-0ac3-4457-b2ae-48173d16b14d","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":139,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"20c32cb9-c1e7-4c47-a456-9ac9f7a5299b","block_type":"box","text":"license and use such indices as part of their investment strategy. Index based funds that seek to track the","page_number":139,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"f84b2c12-121b-4840-8551-39870a47f336","block_type":"box","text":"performance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":139,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"05976dba-b871-4787-83f0-eb6253b193e8","block_type":"box","text":"providers, including BlackRock (to the extent permitted by applicable law), may be paid licensing fees for use of their","page_number":139,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"4f3f5e93-2499-4cdb-8957-2b7b3d18039c","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":139,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"c42075ca-2684-4d9a-bd9c-e2c75cd55406","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":139,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"9310ab0a-0f7e-4141-a106-024146a94324","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":139,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"8e9fe40c-9eb8-448e-a2f3-31963a5a2baa","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":139,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"e1e8d330-2776-47a5-9c36-6583b17db44a","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":139,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"2f24741c-9338-4b3e-99e6-f64a5608ec40","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":139,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"ffde0bb8-181a-42a2-9677-5267383f187a","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":139,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"22c81550-158d-4b23-9a54-2b6f2da06ef2","block_type":"box","text":"e.g.","page_number":139,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"eb79a424-915d-4f76-b135-22480fbd8c6a","block_type":"box","text":", custodians,","page_number":139,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"1dfcaab3-1fb7-46de-b87b-92d620860435","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":139,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"beca6454-df47-4771-9655-97b39ccf821c","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":139,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"9d42a335-61dd-479e-b9e1-48e8b273d9e9","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":139,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"5c103917-68bd-4feb-af69-c14691e42ed7","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":139,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"7d3de765-6e10-4475-a27e-01bec5d30e71","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":139,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"f11ebfa0-652d-4883-910f-4e35422a4a13","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":139,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"3d7ed109-f2bb-4546-85db-d7bd72c4b7d8","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":139,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"174f0a67-b4f7-42d9-bf39-dc353d21906d","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":139,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"d26368d0-9f8d-4c8a-8ec1-08886b3f106e","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":139,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"8e44492c-99f5-4c72-b4b8-2e48e5310122","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":139,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"e371b1aa-099a-4e48-bf8c-38c092281bcb","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":139,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"2901626b-a27d-4ed6-9d92-1f7dd25a8c6d","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":139,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"2e413aa0-a924-4367-b21c-8e0dd7b6fd76","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":139,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"a0f3605a-8b91-4d1c-87e5-985e2aaaa1fa","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":139,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"ded6261b-5a88-406b-9a6e-d37711881811","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":139,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"cda09985-fb30-4853-97d5-90466105139d","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":139,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"2fca58b6-f5f4-4a42-b681-a7c19ba5b70e","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":139,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"24870dac-706b-4cce-b6ad-592f645f9ad9","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":139,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"c2a47cb5-6cf2-4c60-bdc4-9905a57fd82b","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":139,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"e4ceb450-ae34-4013-8e8f-83fc37949696","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":139,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"e1e2d9be-d865-48da-8481-f1efb8ff0c9c","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":139,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"39662207-be02-4f51-ad18-f4f6e03669a7","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":139,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"88bfbda7-22e3-4bf0-8872-85a38988cf77","block_type":"box","text":"provider.","page_number":139,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"7d4c2fbd-3277-4427-bfa8-d22c52b44f46","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":139,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"7a0f25ae-d5ff-482d-9eec-5e2fac1daf52","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":139,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"00c613d4-57b7-49b3-bb8e-dd5a6dde2ece","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":139,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"7d7bf547-800b-4ad5-b701-8ce4b9272400","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":139,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"f940b450-df4c-447f-982b-ca495a7e7ea5","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":139,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"60da4231-9d0a-4566-b86f-7133c77b9db7","block_type":"box","text":"PURCHASE OF SHARES","page_number":139,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"87f8c6f0-dd94-4572-aece-f1e53aeee4ee","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":139,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"bdee979e-f056-498e-ab4d-133c7e9d45c6","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":139,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"11951a81-6ed6-41bd-b936-469129fed254","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":139,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"2d3c516d-0ae3-4e7b-b63e-1c6c51fa6018","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":139,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"d9ba5ad9-05e9-46b2-b1f3-98037b4f60f6","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":139,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"188bebac-4fae-4178-a605-0e5634b9f8e1","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":139,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"31e2505a-587f-4c8b-adaa-6b4d15b84b67","block_type":"box","text":"II-97","page_number":139,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7f7b0cef-d6b0-4b3d-a52f-0f3846bdd37b","block_type":"box","text":"NM1026U-6032801-139/242","page_number":139,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"dd9abdf0-c505-4d40-8210-38ee28638d7a","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":140,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"a03399c8-ff88-4337-aa38-4a8d56f4baef","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":140,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"b39f22ca-fd51-4406-9dba-825f9d8474eb","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":140,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"d8cefbb3-c967-43fb-9e2b-99935d7e371c","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":140,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"c11ee75d-8e72-4e27-a278-3c32d4589ec8","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":140,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"d6506518-da30-4af9-9e4f-1085310c1890","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":140,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"60b53d25-5087-45ae-8148-bd6bb36fd1b7","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":140,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"ecae5909-fb88-43d8-ba4e-6e964126ef48","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":140,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"2facb25e-0ef5-4e68-8256-06e52753678c","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":140,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"eab9f811-9ed8-4e7d-9f3d-d179571d3600","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":140,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"890c03a4-d524-407e-9d51-5a2d8ee6f7d1","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":140,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"155e9a7a-6ca0-4dad-99fc-aa70c85752cc","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":140,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"2f6de3b2-9530-4334-b4f0-11b728f5d9d7","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":140,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"ca5d086a-a125-4258-9213-0da34cd8e1d1","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":140,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"323809b2-dbec-4c13-a8ed-e9ea8e3ec941","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":140,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"4c479aa6-943d-4b37-81e6-bff94d931105","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":140,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"e051fe87-90e7-43ac-adac-9651a4e9c26a","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":140,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"b0eee149-49f7-41a9-b388-787f0f38f19d","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":140,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"7134f165-d53e-400c-979d-8914202d241a","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":140,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"d3c2e30a-9102-4976-8187-ea0559177238","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":140,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"b849bd37-21fe-4ee0-b633-6ec0b55389ac","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":140,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"2f61065d-b8db-43e4-ad6e-755014259889","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":140,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"a9be46c7-9820-4c16-8615-341239d981a3","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":140,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"deef06d6-6374-4f39-97a0-cfc1927b86a9","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":140,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"5b7a9772-4def-4e71-8615-057e78eede09","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":140,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"23b8a5a9-2d01-4f00-9ba2-038612c75a4e","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":140,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"fe700ac2-4198-4654-bf31-f149667d5903","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":140,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"0cf09ba1-6d42-4373-aa94-739b7ce72df1","block_type":"box","text":"investment is $25.","page_number":140,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"9c7cb9c2-af9d-4630-b1f3-26dd08bca299","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":140,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"79435e4e-b439-42c2-94a9-854fe442b99e","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":140,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"d042faec-09f6-4848-8889-b220930a293f","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":140,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"96cf84a3-b078-4225-ae77-58836e52b2e6","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":140,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"e680df53-7824-4279-9e9a-60a459f1f83e","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":140,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"28c27a0b-491f-4230-87db-3aae446d6441","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":140,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"d492e8a2-ef80-44ec-ab2e-278984359ba5","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":140,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"24fe6489-b80c-4275-9bc7-0df3c9e36314","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":140,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"32698cd1-17d4-4930-885d-49f9aab3ddb9","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":140,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"d9d8fd1e-2283-493a-a39a-98fe16cdb82f","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":140,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"30ec21ec-6d5b-4520-affd-2f83dd7cf59a","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":140,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"b9f15242-82d3-4b53-b92e-0eaa0fce30de","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":140,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"f2936dfa-72a6-4d85-adbf-77702f60c1cd","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":140,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"45b8de8d-1925-4f11-a4b5-2f262ecac8fb","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":140,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"4638c566-e0fb-42e9-b9a7-c08424352cf3","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":140,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"a1157dbd-6886-45b0-b921-5cac41075a59","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":140,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"7ce6dd20-a6b8-47f4-a04f-af90d2012432","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":140,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"cfa0362a-8625-4727-8c65-0d966ed3b61b","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":140,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"b33fd927-dd49-4c2e-8c68-70cd75455f80","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":140,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"e6625fb8-0d50-4d3f-a428-fdd246751107","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":140,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"246a2b19-bcd3-4a7b-ae37-f7be2b35435f","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":140,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"ac787dac-7490-45f5-9048-d6a66c1ae247","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":140,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"a408af6e-178b-4ece-ae23-68346f8df45c","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":140,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"7c4bea65-eccb-4f3f-8cda-048d1e624d5c","block_type":"box","text":"adviser.","page_number":140,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"97557915-5cc8-4785-81e0-81d60df73018","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":140,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"b1a79171-e842-4e75-be3f-6fbcc72fe29e","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":140,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"eecf3ec9-e10b-4bc2-8273-f862cc7288a8","block_type":"box","text":"II-98","page_number":140,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a6e29a33-69b0-470e-bebe-d1c218c1809a","block_type":"box","text":"NM1026U-6032801-140/242","page_number":140,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4abacaaa-d319-44f0-bd74-00b9499cbd47","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":141,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"6e528503-fb2f-4987-868e-af2650238cf6","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":141,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"77d33270-f05e-4f17-a67f-f8da9bd6600c","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":141,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"196d05c1-84f1-4d39-8ed6-b83eda273623","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":141,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"dd0c3a4d-c408-46f0-a1de-2ab105f88496","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":141,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"ef0323ae-6f2a-4a5d-8ae2-d4f4640f3a09","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":141,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"9998d730-34f5-4230-b952-7458aa1e6dcf","block_type":"box","text":"also be restricted from making additional investments.","page_number":141,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"323a4283-a398-48ce-9207-868bd4357348","block_type":"box","text":"In-Kind Purchases","page_number":141,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"22da6ec4-4b01-49de-b4f1-882ab10b007f","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":141,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"2278adef-2efd-40a3-b192-bd987ba19360","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":141,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"da702c33-8b64-4641-bf92-e41d1ce32c80","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":141,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"1a7fda29-e40e-4176-9e98-d6a9601b0ef0","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":141,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"c099231f-5be0-4540-b9bc-120fda8408b0","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":141,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"c3596f9b-55e5-4999-b3da-5ba5c9a70818","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":141,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"c57fd6c0-7ea5-4ca1-a40a-0b2e41e11dcd","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":141,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"370503eb-dd2f-4708-8996-d18cc310b50c","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":141,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"39850f0b-4740-44dd-8fd6-eaac2fb0d783","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":141,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"9117b1da-5179-4678-b8ec-582765598853","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":141,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"1c51b680-ca49-4d2b-aafa-0dd4be19a752","block_type":"box","text":"has settled.","page_number":141,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"29ec3880-572b-470b-ab56-ea5721caf2a7","block_type":"box","text":"Institutional Shares","page_number":141,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"f171a0f1-e960-4c21-b26a-89ff575ca456","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":141,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"98849e24-e898-4bb6-bff5-9648c6675ce6","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":141,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"e4deb96f-48e5-47ca-986a-1bee2bdac966","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":141,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"645c4fe6-7b81-4394-b37d-c79b57102ef2","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":141,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"e05ca7fe-6dcf-4b22-b0d3-73ceaa39b864","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":141,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"ad919754-0490-437a-b0a8-77baea94e243","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":141,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"3dc88485-45e0-4664-b9b2-2538064958a5","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":141,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"1b754279-1359-48c6-89a2-9ba7ccddc748","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":141,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"653c820e-f0ea-44fd-8d4e-aa2ceedf112b","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":141,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"75671adf-6889-4447-b222-e07605e951b5","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":141,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"907f002a-9dbc-4773-b596-fc777ee8d11e","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":141,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"57c88609-73fe-4b4a-a165-1d9744c0472f","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":141,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"f7a1bb8d-630f-4526-95c6-29e9e27fbdb5","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":141,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"08330112-31cc-4970-ae11-03b14c0937b9","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":141,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"bad489c0-29a6-45eb-986f-37b450779581","block_type":"box","text":"these fees and conditions.","page_number":141,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"302f0708-255e-4ebe-bd47-ae6b9ae55623","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":141,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"00f92176-641a-4feb-9faa-652291e9d624","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":141,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"85c1f577-8b97-42da-8657-2d3021d3e76b","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":141,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"21e8773b-f7e1-4040-b601-38ca5b403746","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":141,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"4cdb4e37-2e58-4280-84e2-4067b316d616","block_type":"box","text":"incurred by the Fund.","page_number":141,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"d8523a12-ff16-4c7a-a807-0aa211ea1caa","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":141,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"794d0887-2b6b-45b1-bee6-4a117bc6e043","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":141,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"85a02e43-5901-41e1-920b-a638cf961b70","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":141,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"bdea9582-872e-44da-be3a-eb26e74da50e","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":141,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"0b9f182c-a972-4f6f-be64-fbdfd6061aaf","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":141,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"b1799f1c-628a-4a4c-bdf8-9db5eb5a89fc","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":141,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"3b279d55-60c2-49d3-b9c0-d6f18b093b4a","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":141,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"53d02a6e-f8b0-45c4-ba6e-67e8a08f19b9","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":141,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"8fe14df4-3fbe-40d2-9dc0-34a1bb0c22ff","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":141,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"74184c3a-41f2-4a2e-8eaf-4f8162ca04f8","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":141,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"0ec5c0d1-3853-4b4f-a320-66768554ce89","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":141,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"f4d52377-1851-4688-872a-bf6acf93e001","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":141,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"8fffccf7-c2c7-4cfe-8798-a03879a4c7aa","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":141,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"2b417332-d9eb-46e5-bd6f-3f0672e873ef","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":141,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"63104e06-905f-490a-b0cf-7321aed64ece","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":141,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"c06a439b-f7b7-437e-9202-fe4ed0b88fde","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":141,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"7b54e6ee-ebae-409e-b0f2-86450d759e27","block_type":"box","text":"II-99","page_number":141,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2d6753d1-2f5c-48fa-b23c-d2556fd6499a","block_type":"box","text":"NM1026U-6032801-141/242","page_number":141,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e3164fc2-282c-4a04-8673-6f60175124df","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":142,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"ddb2d40f-0def-46dd-a581-a5f4dd323325","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":142,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"247c6be4-7406-47f8-a217-ddf98f842d4f","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":142,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"1a1b3f4d-78a7-4183-8b56-47919cc4818a","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":142,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"1c44d629-8893-4cf7-87c6-335613644ced","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":142,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"54bed86c-cec4-4f94-9b02-7f6fc2f84232","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":142,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"5b11db19-8322-4a31-9e5f-2fc14d452c02","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":142,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"bc52dd75-948b-44a2-b9e3-479ca270a0c3","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":142,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"1f09bed5-2759-4dc0-b1ee-7891fb574a63","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":142,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"b29e6c41-970d-4cef-a851-90e2863a0245","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":142,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"781d5fea-1839-4118-a1f8-6df878d94928","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":142,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"c75541ef-0522-46e6-abfb-c5849236ff73","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":142,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"e85a014e-e3dc-469d-9dcf-8f1636b66944","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":142,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"9cc0868b-bbbb-48e8-91e2-10c4583e6f9f","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":142,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"edab28d2-6370-4511-a338-e36d0985a46e","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":142,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"26386561-f221-47e5-982c-50bddbafe03f","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":142,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"d0143647-d785-45c5-9ac6-362268ac28b2","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":142,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"ac462579-83bd-4cdd-aab7-72313dd5684f","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":142,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"ab0ea440-c6cc-40c9-aaa3-6f46310536a4","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":142,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"c21f0af8-f434-4e83-8fa6-e5bb1a543917","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":142,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"77da882c-ae2f-4ffb-9657-35884b4f6fce","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":142,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"50442392-0cf2-449a-bfc3-e3640b0a8590","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":142,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"28300386-8dee-4dd7-97b1-57b16f0294d3","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":142,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"1791de81-85a3-4b75-a336-4266d4559eda","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":142,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"cdad25b9-2821-4207-b309-4b4e8d749b8c","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":142,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"c2440e44-d38b-41a7-acf4-cdef18d7674b","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":142,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"7d129cac-c01e-4c11-ae07-6b58bdefdf6d","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":142,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"3928c211-4528-4a3e-b84b-5dfe982e8b58","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":142,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"500cceb0-9a0d-47e0-8a9d-6871ec2537d4","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":142,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"97d7f05c-89d1-4a28-b8ef-95b09e846943","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":142,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"800dc64a-f5f4-4fde-95a9-329b7ef27890","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":142,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"501fcf32-fe66-4335-8c4a-36f5998af15d","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":142,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"bea57822-cf6f-434f-94de-06a84b59624c","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":142,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"19210710-2950-4ff4-939e-659957eaad72","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":142,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"6cf357d5-1d82-4b4f-9610-07aa6671cec4","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":142,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"533a9e72-d622-446e-af75-082a0a218167","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":142,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"aceac53c-739a-4821-9545-9b908169b566","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":142,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"71479b04-bb5b-4f89-8796-ae0fbe36739a","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":142,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"42b77136-7959-48fe-8613-cb278fb95ee6","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":649,"width":734,"height":12}},{"id":"8b29e30c-4567-401a-bfd3-e7c6a73bd0e8","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":142,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"910e6cce-da8b-4e6e-b81f-04f25778345d","block_type":"box","text":"periods indicated.","page_number":142,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"52ece605-8df4-4f4f-a7fe-caaf0c4a5f69","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":142,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"300cc0f2-5247-4018-b9bc-4372c8e86799","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":142,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"c1736fd1-1a6b-4e3e-9030-6f7b35fb9ebe","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":142,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"6e98cdae-f8bd-4939-aa5d-910cbf9b3843","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":142,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"ecdf5c5f-cd96-4bbb-b442-5d8f4926041f","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":142,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"214262ee-c097-4fce-a7ee-452fbe728cea","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":142,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"8cbc93b1-9e5e-4bb2-adb3-b3334b32b023","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":142,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"9a843319-a95c-47b7-b6ed-5e86bc725bef","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":142,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"e7a95a8e-03c3-4c63-a411-6bbc16a7a13b","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":142,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"a671550d-2815-4dc6-a0dc-5e24aec1b47e","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":142,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"6395c822-a257-41af-a7f3-39fd5f02f048","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":884,"width":734,"height":11}},{"id":"95d270f5-ff2c-4d94-973b-15310121ef4f","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":142,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"883027a5-6180-4f2f-994e-40f9387090ec","block_type":"box","text":"II-100","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e6c17cb6-7517-4db3-ac39-2b788ca8011b","block_type":"box","text":"NM1026U-6032801-142/242","page_number":142,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f4397ffe-9ffa-4cd9-9682-f9836f56adf4","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":143,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"1a6279cd-a5b8-4ca6-a335-b9dac7e6e0e1","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":143,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"4822a47e-ab3a-4eb7-8269-455bd96a03d1","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":143,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"1e820079-9ae5-4599-b3fb-1b57e28a5bdc","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":143,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"e651185b-5917-443c-9764-bb89c3dc15a8","block_type":"box","text":"Reduced Initial Sales Charges","page_number":143,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"7d9f1779-f186-40ef-9e60-31cc22ffc4c3","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":143,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"cdc922a1-4f74-4ed5-a983-8fd65f3d4c29","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":143,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"fb8516a0-ef3c-4b66-895d-0cd4d3071571","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":143,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"9e9b5f21-dbed-4930-8a45-0a2177f50ee1","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":143,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"99d17b6e-699f-46f9-8c33-9268f4197a78","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":143,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"4889ff73-b038-473b-a7ef-676587ffe092","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":143,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"ecb44bc9-87c5-4e1d-a61a-afd11fb1f896","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":143,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"05ef21e3-a0c1-4571-a782-4028beb85b60","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":143,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"34724232-a119-498d-bdd2-ca4c99a05656","block_type":"box","text":"Reinvested Dividends.","page_number":143,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"ca3b3699-885d-40ad-8bf7-5c426fc3db07","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":143,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"f2fe1df0-cd1d-4e32-8b38-1fd4edf87279","block_type":"box","text":"reinvestment of dividends.","page_number":143,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"2a10835f-18a2-4c05-87b7-9c5d652f2cc7","block_type":"box","text":"Right of Accumulation.","page_number":143,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"c76063f2-1faf-4e00-922a-f95c4c24c629","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":143,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"50978f64-d947-4a1e-bfce-82cfce1cbc62","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":143,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"3c90b26e-0b6b-4922-9861-227eecca6328","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":143,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"5db7f96e-a0f2-47b0-973f-eabf673d950c","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":143,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"dc55917d-254f-4622-aa22-ab255828fbf5","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":143,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"e89f922b-375e-4b3b-84b9-8d69c583d01b","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":143,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"452e6a0e-700d-4f41-b3b6-40cf1cc9fe8c","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":143,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"de3c8360-1cfe-43f1-bd6a-eadb9f05b1a9","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":143,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"1e54c600-bf3e-4b3d-85bd-b0653cecc366","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":143,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"27ad89d3-a8b9-4e34-b1af-1cf3b0054e9e","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":143,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"299b6575-d5fe-4ddf-9317-5a58d7156d1e","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":143,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"439aceaf-a389-4920-b402-7e4509e620d9","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":143,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"7ba0ad6b-df47-4244-aabd-a1412b0b4937","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":143,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"947d041d-afef-42bf-9e38-5cc0dec4d74f","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":143,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"fcce7061-39fc-4c94-94bd-00df61133762","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":143,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"8744217c-ac19-4570-9f60-c076505666be","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":143,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"18c6121b-41d2-4430-a553-18031c0f49d9","block_type":"box","text":"Letter of Intent.","page_number":143,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"68a7bbf5-3ef6-4658-98e3-2722b4bfb2a0","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":143,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"6e70641f-8071-4e4b-a7cd-4d2e58ac8c5f","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":143,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"de12fda4-52f8-4eba-b040-8564750efba2","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":143,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"450ec65a-edf3-4720-ad45-a95e492babf7","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":143,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"5fc89b3a-9a84-41dc-8fac-471df05ccf91","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":143,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"d57e21e2-de3c-4394-a914-9c1a8cf82071","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":143,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"b41063f8-bd12-4a33-8ee2-5da632846d9d","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":143,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"befd6290-54b4-4290-9c1d-6f17a2ea6729","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":143,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"cff11ef9-7c10-4efa-b108-fbbcb8b8357d","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":143,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"fc6d891a-b66e-4b95-a65b-b4d5f7174fc3","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":143,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"f7121d18-5030-4111-9010-f40020079247","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":143,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"70fce294-c00e-425f-ad22-8a6fe95cab57","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":143,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"20e17265-8a55-441c-b738-5dfddac77877","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":143,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"bb0442b3-e2b1-4065-b8a8-fb824d7a47de","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":143,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"154d2fc3-ff84-45d7-95af-3771bc0e6d14","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":143,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"14247828-7c7e-4ad5-8e79-41ec7b437e0b","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":143,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"e8fe92a0-0d34-4f61-9aa5-162c9912ffc3","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":143,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"7e300ef1-91d9-4ffa-8950-609bc54efc26","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":143,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"5af20ff4-b803-4e6e-b603-7b953e9e4c46","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":143,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"12240e8f-a78d-4726-ae09-bd97988c9024","block_type":"box","text":"Placement Fees.","page_number":143,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"80389b89-ee77-4c34-be7e-cd36dde1e94c","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":143,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"cf1b8e8f-9df9-4dcb-bfbb-cf42582a2cb0","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":143,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"17840480-e73a-496b-8080-64b3b08fc0ff","block_type":"box","text":"II-101","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"089bf644-278c-438c-9378-4cd065f0600e","block_type":"box","text":"NM1026U-6032801-143/242","page_number":143,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a503b378-a4a6-48c4-80d2-010b4189d070","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":144,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"5019cf45-a764-4ab2-9ad2-3dbc3745e417","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"0394daff-0814-49a5-9943-e0b3a889cb5b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":144,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"da1d2496-4ede-4115-810f-37119cb2aa3f","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"9fd5b7f7-c1b4-4d69-9bfd-9b5fe2a454cc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"6238159c-40bb-48ff-8360-814490f32ee4","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"6bb3face-8a7d-43d8-b601-202d9587398b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"4b653558-a6d4-434d-953f-dd269bd62d44","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":144,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"277bcd58-0d82-4a8d-94f3-0591875bba82","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":144,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"11ddfec9-3250-4b79-b7cd-77079b21912f","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":144,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"43418528-54cc-476e-aaab-a15485b7196a","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":144,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"069befa2-4559-445e-9802-d56f19eb4c22","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"c326082b-c824-49b0-822b-04e5d58da10b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":144,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"3ef9ef15-3dea-4ca9-af7b-da17baeaf93c","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"2f704ca6-76b7-47bb-b278-7d46e68c2b02","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"bab957f8-b309-4e09-81bd-d0035b4a9399","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"96a7e2aa-f292-4e66-a087-df24e7b2f31a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"8832d0d7-0b4a-4317-a57e-04e34e991706","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":144,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"e45d291d-f928-4dde-8591-a65d9886f9e1","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":144,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"2a4f490a-0e75-485e-9c1c-112944bd91aa","block_type":"box","text":"SM","page_number":144,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"39b5abbd-c624-48bf-97ef-a57c008e737e","block_type":"box","text":",","page_number":144,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"fab43bda-76d2-4840-b4ab-78124efc8d66","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":144,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"9aa9c2c7-df28-4139-b77c-ff293766329b","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":144,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"0d4dfb99-2683-4c7f-84dc-3a414b458d06","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":144,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"8185642f-d3ff-4932-82ff-32bedff4372d","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"309cc207-cc78-4458-987f-878682af7534","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":144,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"114ba3c8-daca-40ca-bce6-90799aff459e","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"0ad84e2c-0fb3-4c23-a69f-87dd301ff9d3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"96b11b5d-4d15-47b9-9dab-c7b7bfc1613d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"eef90506-368e-4770-bae9-8d48d9cf4063","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"9e2cf839-afde-4d55-a4eb-0c740a718f64","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":144,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"ac305bca-f7bd-48ec-b2a6-50e8aa439ca6","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":144,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"aa60840c-dd7e-4975-ac0a-097f8a71d825","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"3e334974-0d75-476a-a1f6-31c4c838b216","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"48e21627-7c7d-49a8-876e-b939e1f8004e","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"83c6ed02-8d1b-499d-865c-57fa7764482a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"6c269178-56c3-4118-82c6-2b99b74b5246","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"f75e4913-e9a9-4e8e-a7e3-e0a879e4b87a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":144,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"52f32916-8654-4e17-9973-557a416c404a","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":144,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"5cdd6b76-eada-4e89-b3f0-490aaa5116f3","block_type":"box","text":"may be up to the following amounts:","page_number":144,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"7a19d2fe-3096-4d7d-b875-1c99504024af","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"9ca99c35-9720-41c2-9dc3-e2460078bcc7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"305ba38d-35b5-41f5-b45a-df79538bc486","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"54719123-0dc5-46e1-b8a2-12876afe9e02","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"c4ac53d9-a35a-4aa4-afc1-6e2305311563","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"267fd280-7a50-4045-91ff-5534f33a113d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":144,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"2f31597e-aef1-4527-878d-38d3ba2214e0","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":144,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"11667ca3-787d-4b7a-ba2e-fa2d7679aab3","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":144,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"5e482e1c-4aed-4f7d-9351-dbf2f1d3a92e","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"5921a2eb-1180-463c-a548-72e9858a4287","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":144,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"f7e521b5-4d3c-4156-b8f8-6513bf502d40","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"f1ba1b1a-e1ba-4e8c-82a4-c55749a2ef8c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":144,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"7293f3fa-aec7-40bc-a5a5-5f27c7380679","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"85377538-811f-49af-98c4-8fa06cf0a974","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":144,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"2cc25661-260e-4b26-a00c-3a76a251ec4e","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":144,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"f9746b72-1f09-4556-9f2f-039e815b325b","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":144,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"79145990-3e08-41c7-b643-3ec2b36e55ee","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":144,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"7292cec0-beba-4960-8bd6-32cb634647f0","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"81535c4e-f41a-495f-9f22-22df69c9b682","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":144,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"d1a48a1f-44b1-4aae-b3ee-f86fd9c1f70f","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"0ea6dd38-50b8-4e61-be08-eb9a4403023b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"4ab2a7a6-7d92-4ad4-9207-bc759a74b5bd","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"e7dfa27b-45dc-4991-8f6d-f3fe48317c7f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"cc9b037e-13af-4b1a-b23e-1eb4ed641718","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":144,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"d07584ad-50fc-437d-bdfe-e6e3b45c5ccf","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":144,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"905a0ad5-80dc-4439-a90a-c7319fb045d5","block_type":"box","text":"$250,000 and above . . . .","page_number":144,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"1871b4dd-4c12-4c42-b5e4-41313c380571","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"a80e1f36-cfce-45e2-b597-5e44db72e15a","block_type":"box","text":"II-102","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"db95abd4-840f-4c01-9fd6-ab043b90a7ca","block_type":"box","text":"NM1026U-6032801-144/242","page_number":144,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"569e6e57-a42f-4f09-831e-4fcbbd64e7a8","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":145,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"aab6dd3a-f74f-4b1e-9406-beb4e3303eb1","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":145,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"eee37969-a214-45e6-a70c-ede78e0cf63b","block_type":"box","text":"the following amounts:","page_number":145,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"f9eccefd-d30f-412f-aa55-603ba4408826","block_type":"box","text":"$100,000 and above . . . .","page_number":145,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"2905f0d5-3dda-4c0f-a64e-a83e51af158f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"6b2a44b8-cc4c-4be5-8b5d-9a5777c78691","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":145,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"e255a60c-cd4a-4d5b-a89a-b45db7cccf75","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":145,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"dd1d2e9d-f048-4c21-831b-8f9ce9c20623","block_type":"box","text":"$250,000 and above . . . .","page_number":145,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"60df4c1b-4061-46e8-b702-0de38298b694","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"aab460f1-6a82-4752-812c-97cd4ad074fc","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":145,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"b0d0892e-99e7-41a8-b86e-0da962269ba4","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":145,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"1c760ab0-b66a-4130-8bdc-c95e2296e770","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":145,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"13e0bab7-fa64-40b9-8f06-6b323a5e7dbf","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":145,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"80342a18-a50b-40ed-95b4-09d37542c14b","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"3581a761-be3f-4d80-b244-065fd53c2b9b","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"d87dcf10-4ac3-4132-b175-f6ca3124e6bd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":145,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"5d0787d3-b1d4-49a2-b8b1-56ac7879f2c3","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"3fdce9b0-4160-4489-9ca2-b384f5292824","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"7937a51d-0fe4-4e2d-9dfe-2d3c3030ee19","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"1d9bdd00-6d79-4d74-8509-4efa77c9749d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"75eccf51-286b-445b-af97-54787b4887dd","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":145,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"ebb4664c-54cb-419d-897c-5513ede2b192","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":145,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"cb74e970-726d-4ca8-acc3-ade867ddb9cb","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":145,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"39b83233-296a-4c10-895c-f10a001fd591","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":145,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"cc760cde-9afd-4971-a226-6d701e631991","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"80f7f015-1ae9-42d0-a5d7-8f17956bddab","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":145,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"4ab6aac9-a5c1-4625-b6f6-ab745cd75dfd","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"30a9288e-261e-45aa-b14b-680f9bc9c61e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"eaae06a9-5101-45bf-bb04-f244fbb8e036","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"904200dd-5f5f-4a90-901c-4a601d5a343b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"bbad2c09-2a9c-4e14-9ffe-8af576a81f99","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":145,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"f83e720d-878b-4b37-b104-e28d5e79fa6d","block_type":"box","text":"®","page_number":145,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"1c7db074-bc8b-48db-be1e-041a2e335d6e","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":145,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"94536874-6708-47f9-bd54-134cbb37b090","block_type":"box","text":"®","page_number":145,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"8404810e-174c-4bed-aea5-c4f2df293225","block_type":"box","text":"Index 2035","page_number":145,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"c06909af-85fb-4fca-9119-6351df4e9c90","block_type":"box","text":"Fund, BlackRock LifePath","page_number":145,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"1f348964-3a9f-4d3a-93ec-6e1ea2652d95","block_type":"box","text":"®","page_number":145,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"9ec6fff7-7440-4e28-85b0-2f1498168e53","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":145,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"e74d8a99-ea2c-4f71-906c-1088e874038a","block_type":"box","text":"®","page_number":145,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"8f0f0ee7-994a-48e0-bca3-be2a75000658","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":145,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"848ad906-6629-4c79-b8b4-c013c953e8f2","block_type":"box","text":"®","page_number":145,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"47d189d6-2e0f-4e81-82ed-b48629ab0322","block_type":"box","text":"Index 2050","page_number":145,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"68addf01-4815-44bb-9431-ed83b09ba35c","block_type":"box","text":"Fund, BlackRock LifePath","page_number":145,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"5b4399ff-6c2b-48d8-be26-117718119d19","block_type":"box","text":"®","page_number":145,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"71d319ba-61fc-42bf-b3e9-2674292a078b","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":145,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"c6f9d566-0a44-4a4f-9838-13dfa0eb7905","block_type":"box","text":"®","page_number":145,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"2f99dfd0-8654-48e3-8b03-fae71862f7dc","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":145,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"b1cac65e-0ea3-4c27-aba8-8a820fbfe17c","block_type":"box","text":"®","page_number":145,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"ae49252b-068c-40c3-b82a-a81484e1b4b2","block_type":"box","text":"Index 2065","page_number":145,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"a116bb9c-754a-482a-abc2-3c8926cc09f3","block_type":"box","text":"Fund, BlackRock LifePath","page_number":145,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"74635a32-21f2-4e37-b2b7-d0b37aff3e9c","block_type":"box","text":"®","page_number":145,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"e51bd161-a871-43be-8726-4857d5c9bbac","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":145,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"61c795e7-409d-4e34-b154-deb3894da6a3","block_type":"box","text":"®","page_number":145,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"cf0ef4a3-8634-42b9-8baf-367f358eb4f6","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":145,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"77693460-f6af-4c22-ba6b-3a82323d76c0","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":145,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"8a23d182-ee78-4296-af98-a426e7c4f0de","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":145,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"d23ceab4-da3f-4d7c-92da-a48afd62bb6a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":145,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"30811b96-aff0-42f9-884c-4ac20e23e68d","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":145,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"b038da51-49a0-4ce9-8b47-1ae16596a838","block_type":"box","text":"SM","page_number":145,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"0be1b1be-cb1e-443e-bd08-11a18525765a","block_type":"box","text":", the placement","page_number":145,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"c042b272-0dfb-49fc-af44-06b5a78ad981","block_type":"box","text":"fees may be up to the following amounts:","page_number":145,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"70e9955b-b485-447e-a0c8-4eb6acf820a3","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":145,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"3710b73a-e275-4d4d-ba11-04196c1743bc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":145,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"7df1e7ed-b6cc-41e8-a623-d768c450b12b","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":145,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"bc47e966-6750-4a0e-8919-955f7ef28d3b","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":145,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"1887c23e-ebf2-43e0-bb51-9cfba31cb8a2","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":145,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"68f00dd6-dbbf-4fef-bc60-28d5d75f22ef","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":145,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"883c10b4-eef5-4df8-8415-3d685852e7aa","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":145,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"21cfa105-a2d9-47b3-b04d-f12c7cdb97c2","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":145,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"fb377a43-a469-4a73-9553-61344ce654ce","block_type":"box","text":"$1 million).","page_number":145,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"460b67bf-0c39-4fca-b04e-28501c826a9c","block_type":"box","text":"Other.","page_number":145,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"8549a5fd-12d6-4457-8ba6-4450a5fabb63","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":145,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"390f1a99-d26e-40ce-b307-b1e5eda02b88","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":145,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"cc122bf8-5161-4bdf-9a8a-2bcc1eea9114","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":145,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"760130b7-cdce-47b8-8e6d-db9d211798ba","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":145,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"00ae6fe8-b141-4f7a-8937-c835ddabf980","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":145,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"7c4b1861-7ea6-4219-9324-146570df0bb8","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":145,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"e809c4f6-b2b2-4d1e-8010-b92182a5f366","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":145,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"7d8a0dba-d6b6-44b7-a132-b28fde46ca2c","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":145,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"a7863996-663e-4d3f-82c3-001204605b9f","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":145,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"9b36c2ef-9e50-4e20-bfbb-0be07a8c565e","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":145,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"6d061098-88d4-4a8d-8cb6-648baebb1d26","block_type":"box","text":"II-103","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d181a0b0-c3a6-46b9-92cc-88f085776387","block_type":"box","text":"NM1026U-6032801-145/242","page_number":145,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b81b4181-8e71-4751-b5f2-f26aa63e431e","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":146,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"f9905082-a721-4523-97dc-69006bbd354a","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":146,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"fb5528e2-ed39-4646-8640-378760a27203","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":146,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"83620420-c995-4d8e-8a00-a4f6d463ab78","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":146,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"e10ba1ba-d282-4ba6-b5f8-9bf1d163fa3a","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":146,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"a34706e7-b40e-4435-be1e-3a60cb616489","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":146,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"130a1d02-ecb6-4878-a5ca-df37077843c5","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":146,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"f801fff5-2428-428b-b7ed-228baa76042d","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":146,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"4e445945-5bd2-415c-87d8-09c729baf9e5","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":146,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"5d88176f-559e-4348-851d-f4c0346a2cda","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":146,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"f9ad2f7a-7c73-46c6-85ff-49c6271c7a15","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":146,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"d4cbb69d-9742-4a6a-b228-bf0d76ccf6dd","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":146,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"59acb9d1-5f14-4505-996e-0a4c43113969","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":146,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"11224e21-60f3-4372-acf8-6c870dccc321","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":146,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"2756980c-7df1-4b01-aa0a-0a31e23dc5ba","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":146,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"163c511d-fc94-4009-a27a-1ad3a4ec9d39","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":146,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"7090f147-1e3e-4dfd-a40c-5e8119fea3a7","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":146,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"e0b915f8-0db3-4300-9cbc-4669b9491126","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":146,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"b228608c-9a8b-4f5b-9f58-7e28d7d22d49","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":146,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"d2325689-e38e-48b5-bb50-929bbc36c315","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":146,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"743b84c6-4042-4b94-86a4-080d9b420468","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":146,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"8870bcb6-c58b-495b-bb4a-73573377d645","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":146,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"68dd5ff0-9e41-49fe-9e75-dc2078f10e87","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":146,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"54b05887-f70e-43a4-a2e8-84a1e357a0df","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":146,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"86d539f3-a0f0-48b7-bcb3-346b7105c4c4","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":146,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"136c73e9-a364-4218-871b-6ffc56e2b4e8","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":146,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"6dda61d2-9a78-4236-b653-0614db56f36a","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":146,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"614c0e20-3a22-4b8f-b141-e927fc5bc799","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":146,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"a76dc7ed-9f98-4812-b4af-4884c1fae7f3","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":146,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"e2edddd9-2e5b-4181-88b4-34cf15374b12","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":146,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"06e6b8a0-198e-47d6-bcd8-229d0199466b","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":146,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"221ec2b0-b9a1-400b-bce0-8264158dd522","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":146,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"bed481a3-d5ce-4efc-9ed0-27177a0e1eb2","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":146,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"c8e07af3-c3dc-43d6-abe8-105a5aa14c4a","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":146,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"e42c62d1-a122-4300-b819-f31499667f72","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":146,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"b4495099-85bd-4b95-ad41-fda21e0bf026","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":146,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"8591eaa8-6a1b-48d6-8c8c-38d5e19934b3","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":146,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"d4765b1d-6785-47b6-bc58-cb633c51b13f","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":146,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"9177d00a-236b-46b5-926e-bb6739cf6a5e","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":146,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"93cb0742-d44d-4213-99c6-999dba23af94","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":146,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"2d45af11-6cd1-440c-8761-3fc96e8d66e8","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":146,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"d0270f2f-b2ee-49a5-9edf-2b3865ca9a2a","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":146,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"70da63e4-d156-4278-b3ed-da6b15f2cb73","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":146,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"53797f55-9afa-4e03-8de3-c3a72200fe15","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":146,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"f33ea065-8f3c-4a09-ac85-be9170644f25","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":146,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"daec6af4-30fd-4318-a3f4-1aa7eb8587b7","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":146,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"3936eceb-0418-4d08-a0fd-10576243f1aa","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":146,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"babb08fb-f9ef-4856-81e9-26bfd16214da","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":146,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"8c87ebd7-4963-47e1-a7eb-09abd19d7ec7","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":146,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"8718bc9d-c0af-4add-bc5a-6572de37734e","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":146,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"23bf602b-55b2-436d-98f1-521c3b8d7c6f","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":146,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"b2f2d1e1-2d9b-4498-9bd3-6a41cad2d7c7","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":146,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"7db2fa28-573e-47de-b37e-53f348b9aa03","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":146,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"fdbf072b-25e5-4af8-98fb-e3aa585bb7aa","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":146,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"d0f14606-4020-41fa-9143-b5f3bad8ba18","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":146,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"475e8787-72f2-464e-8427-a145def8fa37","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":146,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"a08d52ad-db21-4ac1-a04e-46423117b645","block_type":"box","text":"II-104","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"176d78fe-073a-47e2-9308-f1aca1f6226b","block_type":"box","text":"NM1026U-6032801-146/242","page_number":146,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0520fef5-3007-4340-a6a5-8d9e7aefb3db","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":147,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"63bd1675-af1e-4f73-8016-8c097fa6a1bf","block_type":"box","text":"the absolute discretion of a Fund.","page_number":147,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"5af61a68-76eb-4999-99bf-ac8758e368cb","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":147,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"9ab8719f-7f90-4479-9f11-3985049b7d64","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":147,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"21d78f0d-7941-429f-b06d-e6911c6ef9d9","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":147,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"6139821b-a7fa-41ce-8bd1-75e07fbd83ab","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":147,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"370d4eef-22d3-4d62-9d95-887be4004188","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":147,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"2c9afc26-128b-40bd-b608-3e269466f8d0","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":147,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"ffa0d826-38ac-476d-b38a-dd7a7865f63c","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":147,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"41717c56-80bb-440b-aeab-338ed1e36828","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":147,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"5c467602-307b-4e92-84cd-fbe456a1647f","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":147,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"b56113b9-adfb-44a8-b16a-2f4bd4af5ae8","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":147,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"8ebdbb8f-4a07-424a-8bd1-75b0bcf1e6df","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":147,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"a746b5fc-5e9e-40c6-8ec8-c6f607842674","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":147,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"9855232e-fe74-48b4-9f1c-10ef1a77bb27","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":147,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"27a3f277-3447-488d-83eb-e7a83235244b","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":147,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"ed3ba76b-89ab-4851-865a-7bfded61e867","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":147,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"fa25920f-aa98-42ac-828f-5e3fb202bd94","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":147,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"9f84d5a9-5fca-4f95-b859-162818cfa253","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":147,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"9b93ad0d-1210-4a61-be8e-b37385eb73ae","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":147,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"f70cb704-6719-4128-b205-5b176a5fcede","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":147,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"cd4cb275-f912-44a9-baad-1ce9ecd3f707","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":147,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"3dbe83ec-f081-4133-ac9a-d19a3d34d156","block_type":"box","text":"public or private investment company.","page_number":147,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"28c309e4-fbc6-444b-a8ec-61db76d6fba1","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":147,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"4958e6db-3480-4470-a6f0-e4ac14524183","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":147,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"c094691f-939d-4a6f-a10e-19172f447a14","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":147,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"8a376695-74b9-4f5f-a570-521c16da87ef","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":147,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"375e6e68-a187-4dc1-a730-34a563d1687c","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":147,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"f4c3cecd-4584-4d1c-8e3c-71b949fa5f89","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":147,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"6e45ea6e-4033-473c-93d7-cfb3ce56bf06","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":147,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"b34f7827-3ef2-4eb6-9e95-507677fd6186","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":147,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"091d2bd1-f2af-4e58-a440-fe59db3cef80","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":147,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"e0ba3faa-2801-4db2-8ec7-22a111427247","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":147,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"e115150e-3391-4b87-97ab-07e2e3b53189","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":147,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"a1452aa9-494e-4aae-842e-bd55e2796917","block_type":"box","text":"intermediary associated with the account.","page_number":147,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"acb8d568-ab34-4876-91b3-f18e9dac3194","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":147,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"fb92b54a-c800-44b7-ab6d-8c51a75c1b1f","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":147,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"e2408f6f-b1d0-4e7e-bd32-f8148fc4e547","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":147,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"7cdee031-2625-495e-aebb-9d4bf4cad66c","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":147,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"f57f5cc3-fbfe-47cf-8f57-e1552245c39c","block_type":"box","text":"CDSC shares.","page_number":147,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"266e35e1-381b-49e7-8e47-c2021e94d3d6","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":147,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"b6a9dca5-d993-4d9b-b4a3-136a58f926db","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":147,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"3f9b9ef5-5371-4324-8b40-4c679e63ff96","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":147,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"1d5a45a1-eaba-4a87-9eba-d8de3f0f4c6c","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":147,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"274761c1-679c-4ea4-bf72-6e667e31180f","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":147,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"bb97815a-aebd-464a-a38c-93801425409c","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":147,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"1f6ecd85-926c-4401-8c13-68976e62550e","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":147,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"af3c4dcb-39bd-4206-b549-ce0a956a0a24","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":147,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"9c04bb24-64f9-4a33-b3e4-fcabd7365073","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":147,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"4baec352-7595-4aaa-a5e2-a57590caefc1","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":147,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"9271d739-ce4c-4085-824c-6ee0dd55bed5","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":147,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"daeb5126-dbd9-4fa9-9cc4-e090b11e4c8a","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":147,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"876802c7-9748-46a0-9bfc-6ef3b0cb15d8","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":147,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"643b9f96-978f-4d4b-95ac-c5e5372bd565","block_type":"box","text":"II-105","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8aaea677-f217-4c69-992a-7da343938c50","block_type":"box","text":"NM1026U-6032801-147/242","page_number":147,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d108bbdc-d967-4abc-84a6-0a5c4994ee48","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":148,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"c7a8ff3a-d1e9-461c-b2c6-75b9d1730316","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":148,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"f39df63a-18eb-425f-9d2a-c21a9a2f2e5e","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":148,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"ed4e26c6-db68-46c6-8a41-34f20a725a44","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":148,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"f56fb1fc-ceac-4650-9ce2-c15e2cf94370","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":148,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"8b9badec-7690-4c74-88fa-c2a6399c039d","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":148,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"0350466a-c8f2-47d2-a109-e2f0767669f4","block_type":"box","text":"Investor A Shares.","page_number":148,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"05575832-a60b-450b-94c9-3c29fa551b67","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":148,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"673180ec-0fd5-4cae-bf9b-ea9cfb9b48de","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":148,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"84e047c3-8b9d-4770-b251-6dc254c66556","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":148,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"c4dbb20e-1aca-495f-9d18-9b9c34d12780","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":148,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"4ef2ed70-9b33-4762-aa74-ccb2925c8313","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":148,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"b4d43790-ffdd-46ee-a049-c97e15b8f1f0","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":148,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"6a7527d8-5550-4bde-b115-db56cf802b6e","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":148,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"b7715a4f-714f-416e-84a7-9b284f726556","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":148,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"5d3ea98d-1389-4950-96a6-86b01272ac6d","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":148,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"98a2090b-ca87-429f-865a-6c61245e088f","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":148,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"98a74fb9-eaa1-4678-986e-e75cd4b88c8d","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":148,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"404e2f9e-da63-4d5d-b414-b7eff3885c82","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":148,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"21c15ded-29c3-4bfc-938a-f8060fd75b27","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":148,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"8e7ab87c-e39c-4ca2-87f0-16251fdf85bc","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":148,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"d8019687-c2e7-4574-a955-197f9bb9a26c","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":148,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"3b04116b-a788-4052-876c-4b66957f11be","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":148,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"f354863f-79be-4d12-bcf8-94b907f20a8c","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":148,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"8abd13fb-3c60-47c3-8d29-cd6230230ae3","block_type":"box","text":"“Investor C Conversions”).","page_number":148,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"cc1a592d-f2c3-48ae-8013-07656da2d00a","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":148,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"31e4e48c-adc5-46d4-b9d9-56ae17ae30f2","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":148,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"afd8fd3b-4ce5-4608-843c-c040b6e2bc9d","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":148,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"86821452-50f1-4570-b3a8-163ebd9057d0","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":148,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"16d1573f-1cd9-43df-9f10-76f4d2fe2f8d","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":148,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"c8737683-405b-4a68-8efc-140c8b119c13","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":148,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"f570dccc-14d3-44ab-b8fd-b5c375e03272","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":148,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"487e5367-bb5d-44de-87da-77fb378cd831","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":148,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"53872f2c-39df-4bbd-a2a1-4899659f8f63","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":148,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"d284e083-a3ae-435e-a8c0-04300ce9c848","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":148,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"3713fb1e-a5e9-47fa-932f-191aa3e9f305","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":148,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"cf58db6b-c798-430f-bdf6-6ef2085b5317","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":148,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"01d5bce9-45f8-4c0c-8d27-ca5efffe904e","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":148,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"fbb3d066-2686-4e55-9507-c71cba49a0e5","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":148,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"5128f5ce-272f-4833-990b-f3d26f51771e","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":148,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"b0e28b45-2c28-4cd1-b5e4-5fc7201cb513","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":148,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"a2281ba9-9b68-43dc-9945-2640398745c6","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":148,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"04e879ba-3d29-41f4-8bdb-7a546c18f775","block_type":"box","text":"redemption.","page_number":148,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"7873b7dc-5992-4a70-9b58-7dcd14ea9f20","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":148,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"fcab1d5e-2669-4bb0-9824-8f8aad83fc8a","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":148,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"4182735b-cbf1-42f7-8eb6-ec83d08665e3","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":148,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"759e2505-1a88-445e-9263-e469713b590b","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":148,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"4660cd77-40e3-41c6-92bd-2c5e5e347471","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":148,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"3ef10698-309e-444b-8df3-0e462adfa4cb","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":148,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"fcf716dc-f2fd-4aa0-9f06-2cbb71657e54","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":148,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"9c1d5bdc-0a39-44f3-a027-2913be9fe782","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":148,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"ab4172a2-7f45-4a66-b26b-15a446067048","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":148,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"3ae9ef90-04cb-4fe7-84ac-ad7ddb843cfc","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":148,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"93dac93b-5d8c-4428-aaa8-60c878b17fa6","block_type":"box","text":"II-106","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"89cf7e93-d260-4ed1-9e77-2586c10eaf59","block_type":"box","text":"NM1026U-6032801-148/242","page_number":148,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d4a20998-dde2-4b6a-b242-4edc860bb9ff","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":149,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"2082afc7-a7e9-485c-9251-18585a410f15","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":149,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"498a73f2-c26f-4594-a178-8fd1a2ee131d","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":149,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"7a566a21-3edb-4f0a-ac55-291d5bacd83c","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":149,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"274e6938-c575-448a-a5ec-35f0a90986bd","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":149,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"b376c4b5-a755-4ba7-870f-e1e2fcff10cd","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":149,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"78acaa4c-1d3f-44e1-908d-668719f6a5d2","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":149,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"259cdb11-6ade-4f63-967f-eb778771a3f9","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":149,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"dddb7134-23b4-42bd-8753-e779c369dd9f","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":149,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"c2f57a14-3754-4c4e-8dff-8e5bf98b7f29","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":149,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"8b0c90de-7eab-41b0-aecf-3d1aca64b933","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":149,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"98a34b44-ddc5-4cf9-ac82-d6be8092f059","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":149,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"e35aaaf9-5c3c-475a-adc1-d1bfc00e56fb","block_type":"box","text":"Class R Shares","page_number":149,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"7eca82ba-812b-4a98-9780-40f10ade381d","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":149,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"441a0b6e-236c-4799-add3-e67598a9d0a4","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":149,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"a68814fb-cde5-46a1-a9e1-c62fa7205a64","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":149,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"3cebe611-4e12-4d00-ad99-c8e4bf8b05fe","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":149,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"0343b5f9-d9e5-40bc-a9c3-7185dd1d75f6","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":149,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"8636d652-10d5-4cf3-8d74-33009dad3b57","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":149,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"a19938de-d0e5-448a-ab84-24b3c1058548","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":149,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"9d08153a-f2bd-463b-beea-e3b07f3a7eec","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":149,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"9b424e55-fe07-445a-b476-d486975790fa","block_type":"box","text":"Class K Shares","page_number":149,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"2f922ab7-7f4b-41f2-998c-1bbe582b27ee","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":149,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"c0931777-6076-48a7-b421-6191fb4bfd62","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":149,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"559d2676-e996-4451-b5f6-72db844ee6d6","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":149,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"a14a816d-d3fb-423e-9cf9-1d5e38b8bf3c","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":149,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"91b3b6ec-0e5a-483f-95f5-08a591f39225","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":149,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"9ec86fa6-57a3-4016-8516-32f573236cec","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":149,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"5c83b97b-ca66-4822-8bbc-76a0272440c0","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":149,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"1464cfdb-1e72-447f-8c1f-74917772889e","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":149,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"f6575799-e18e-43f9-928c-6380b3cca35a","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":149,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"27b15607-107c-46f8-89a2-2a04489b2f54","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":149,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"54ae0c4c-56a9-423a-8ae9-48e2e3afbce3","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":149,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"01d7faea-b8fa-4aa0-a6db-82da0ffa9cdc","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":149,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"4767e9b8-8b3d-4751-9a3e-b68ce07e89b6","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":149,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"d753bcc2-3d57-42cf-b6dd-1ffb837d79e5","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":149,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"85fda26f-2055-44bd-91f6-9f65cc236e69","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":149,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"dba55419-d5c6-4b0c-9e48-cb9bd92b704f","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":149,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"9ce47d03-4b08-47f7-85cb-2ba5a36b105f","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":149,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"2390bbe2-8f57-4272-a2f0-d0351299a0d3","block_type":"box","text":"distribution and marketing agreement.","page_number":149,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"a5025eeb-f7f6-47e4-a984-d1d1b81e47cb","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":149,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"30dac09c-1572-42c4-a3f8-e4b927d565c7","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":149,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"fb3edd88-4d1e-4183-8195-61c331f09a90","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":149,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"37033a93-2c77-4832-97fb-005a953033d6","block_type":"box","text":"Class G Shares","page_number":149,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"a72730af-ab40-4fef-8160-d8dc2d2dfb9c","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":149,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"db015f4d-2ef2-43f9-8567-5df01c4575a2","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":149,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"164406ad-3d91-4a23-8dc7-1353a30f2be7","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":149,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"016a78ec-7fc3-4833-9d41-f02d3fa10209","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":149,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"a04dff62-e459-43dd-8337-f6b35da8b31c","block_type":"box","text":"eligibility requirements.","page_number":149,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"305f2557-6345-4df8-ba6b-bc311199cbac","block_type":"box","text":"II-107","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2501cd0e-4fb2-4599-affb-b44a2a891998","block_type":"box","text":"NM1026U-6032801-149/242","page_number":149,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"24fe3796-d848-4543-8012-2644a60dc211","block_type":"box","text":"Service Shares","page_number":150,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"682458fe-547d-4a91-aa8c-0a2a40c85e1d","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":150,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"93917857-2761-4026-8fd7-2b229fddfdcf","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":150,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"9c9917ad-d02a-45a3-a76a-41887a483265","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":150,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"88e3c6e9-dede-451f-b869-9759c772b60a","block_type":"box","text":"®","page_number":150,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"bf4423e8-a2f6-4d7f-97ee-2637a3f0164b","block_type":"box","text":"Fund in 1996; and","page_number":150,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"4e737fda-0e47-44cc-8375-8b83cf963e52","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":150,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"b3049092-bc23-4b2a-b484-3d712b20b85f","block_type":"box","text":"SM","page_number":150,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"fcae91a2-68ad-4de0-a43a-73b8017e9b1c","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":150,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"501e5c98-b2bf-4fcb-8bb6-26123186021c","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":150,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"f7b87114-2332-461f-bc8b-246c164d5362","block_type":"box","text":"BlackRock Shares","page_number":150,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"8c958f17-8430-45e2-ae7a-30aaeeba0c7a","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":150,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"4d6f8620-91bf-4d5d-95cd-527301f284fe","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":150,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"69ad1ab1-a51f-497a-a381-e4c68f416b84","block_type":"box","text":"fee-based programs.","page_number":150,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"d338d660-dd55-4f11-84bc-4c47996355db","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":150,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"51b147e1-c1d1-43c4-bfd2-125e0d65cbaa","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":150,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"ff8d64cb-a9eb-4184-ae43-415fb69e955f","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":150,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"39afeb8a-e947-43c9-aea6-66b260f3e00f","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":150,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"312b66a3-0dc1-4916-b7f0-cb5d71c455fd","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":150,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"00455c3f-df03-4009-8d5d-4e49df4cf6a1","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":150,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"69cea735-1d4e-48ba-9714-e36948a9f083","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":150,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"784b0939-4cc5-4737-8fff-4edc5f131e5c","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":150,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"7a324cf3-a0d5-40c6-aab6-621900cd2265","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":150,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"376bd87d-82d4-4d91-9bd7-c7fee99c63cf","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":150,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"21a7036b-90a0-44a7-80db-a600d386ef5e","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":150,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"958a0a9d-9c8d-4a21-a115-898384fe5cc5","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":150,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"e7879896-3c2d-4a5c-846a-bfbe5db45352","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":150,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"11512af8-e690-4606-9238-6af578115c49","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":150,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"915ec9c3-e3bd-42ca-b568-32d3e39db4a4","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":150,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"6ac54aab-b037-411c-8247-4b64ccadf5b9","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":150,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"330c1d8c-46de-4641-b7a6-9f2b4efeba98","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":150,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"9d62698f-37f6-4e0a-8895-9cfb4478eae6","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":150,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"b7672c50-763e-40c3-b62e-78490951308f","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":150,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"e82d8d67-1d69-4668-95e8-de144718b5f6","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":150,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"c3ad9b3e-fbbc-496e-b911-3850a5d0bcc8","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":150,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"c89ef27e-b7f2-4e91-82cd-821ab86fd7c4","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":150,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"147d5ad1-9dd3-44fa-a2a8-7567eca5f67e","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":150,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"f6850668-04ef-4562-b986-1215dad2a7e9","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":150,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"41df63bf-e5b2-4a42-987b-7beb573b9355","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":150,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"e723fcab-e75f-4b06-b216-3358289e5b9c","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":150,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"4ecccbb2-4cf0-4d8c-8d1f-9a4df2613449","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":150,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"324a8e61-cf74-4c3a-93ea-aad777543f1b","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":150,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"218d1e00-d771-404f-9e89-97d879da4551","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":150,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"732cb015-67b1-4557-922c-08f58c009acc","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":150,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"8772e72c-7937-4eba-9a2e-4459966ad07d","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":150,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"2cf91171-5bef-4288-ac1d-4f87441d200a","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":150,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"b8fcaeee-491b-469e-8665-39d52663e5ee","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":150,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"fef1cfa1-86c7-4719-ba5f-bf1564797d25","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":150,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"f9c5bd48-978d-4d38-9c21-356784ff5aa4","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":150,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"4f29bf5e-cc75-4482-b522-4fdb9b537c24","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":150,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"a6893760-2537-49ab-bb30-588fcd1ff1f3","block_type":"box","text":"compensation for selling different classes of shares.","page_number":150,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"39bda90d-2c89-4239-8dd8-d5dea1c6026b","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":150,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"07c04005-1827-4232-8cf0-aa63dc90217c","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":150,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"6ae3cda5-bb67-4478-ad57-a7c13ec7ceff","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":150,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"27e04e54-4aaf-4458-9d1e-9dedf9f30bdf","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":150,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"021412ed-3848-4473-a91a-e8d1f934277a","block_type":"box","text":"II-108","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a3db0bfc-4557-4b82-85d7-719b6ce55e65","block_type":"box","text":"NM1026U-6032801-150/242","page_number":150,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"750804f2-eb28-4569-80ef-471d18a89bfa","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":151,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"bd12dbbd-4485-4769-8d35-1752308c3617","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":151,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"b8437301-e38c-436b-a8ad-29cde57f9539","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":151,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"6639fe00-c80e-4dc6-8bef-d0a1682f9e88","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":151,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"65d04e5b-4bd2-441b-93fc-d10356fa274a","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":151,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"e52ace17-0c7b-4ea6-aeee-a157fb42dc8c","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":151,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"51aaa5f2-b8ec-4ab3-9cb2-ba70a0fe28cd","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":151,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"cc833789-f83a-4729-ba6c-f6124c8e474f","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":151,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"95cba6a7-d7a2-488c-942a-db53cc744050","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":151,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"c0f8d69b-6ff4-48f4-a654-64e1d1d156f9","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":151,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"7c2cac35-4aa5-4283-a2ff-5ab89ef8f92a","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":151,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"90bc499f-fda0-4a10-beb4-b5c82263c81f","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":151,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"4b96b2d5-3f92-4557-959f-28f1515569ba","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":151,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"c847ec68-bf6d-4148-85c9-2703afb168f8","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":151,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"c45cac17-cfc8-41c0-aefb-0ad5fdeedd86","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":151,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"e8c20e40-32d6-4dfe-9cca-e8291637de06","block_type":"box","text":"easily accessible place.","page_number":151,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"6cafc454-0bc8-4914-be3c-abd664063fbe","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":151,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"73837fc8-af43-4b9b-96a3-81da31cddde6","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":151,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"bd12d8c5-d961-452e-823e-12bc1f86513c","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":151,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"d773e90d-6006-4b05-8845-da22bf65a98a","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":151,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"0d03d76a-e31e-4a62-bac9-0d67b637c009","block_type":"box","text":"fiscal year.","page_number":151,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"d6c477c5-3143-4a51-bd75-c736c231faef","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":151,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"69d33c95-1f77-4098-b912-54b23362063e","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":151,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"f5bd5c22-c7e3-4181-8c7d-ee54f9003d0c","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":151,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"fc1e94a4-0e9f-4bc0-be52-40a435870ec4","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":151,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"3146e2f2-4509-4fd2-bc7c-7f17086db223","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":151,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"d56b1726-ca86-4cb5-8032-c1ac625e8af8","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":151,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"6a40fe4a-2ef4-4527-940c-862edcb0a016","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":151,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"c65ad424-6f85-4459-99eb-fb1881130ad4","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":151,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"110c8165-0eb5-4bc7-9654-39657c59488c","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":151,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"c8d61614-5038-4aa6-82d3-7fbc85e48cf0","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":151,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"389283f4-786c-4dd1-b6c8-9e3aa3d1fc1d","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":151,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"c6ac0e93-4b4b-4a57-899c-cedaade32e2e","block_type":"box","text":"and Class R Shares of your Fund.","page_number":151,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"bb54ddb4-39cd-4523-9830-fb702846a227","block_type":"box","text":"Other Payments by the Fund","page_number":151,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"76e8103e-9780-49b6-957a-1c02b8f28296","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":151,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"40844eb9-0fcf-451c-8f5d-db71df17ee0d","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":151,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"86e99bfa-2882-419d-aa8b-7787318a4f1d","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":151,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"f4901e22-e196-4462-b481-bcff66871cb9","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":151,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"323bfe12-8d62-4126-aa54-1e5736f41ce4","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":151,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"e81817a6-6f41-4568-8dc6-465aad36502d","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":151,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"76d9c47e-8226-4b51-89a2-5e13ef2a95c4","block_type":"box","text":"of these payments may be substantial.","page_number":151,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"52e5db5d-4c5e-4570-b1f1-4883dc1ca92b","block_type":"box","text":"Additional Payments by BlackRock","page_number":151,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"a9b1e0b1-6761-4f96-8538-0d4e93039377","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":151,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"a62c5d6f-c96e-4ead-8b08-9808b3f50a99","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":151,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"de5cdf6c-b7b9-4f86-b7ef-1e380ccecdc1","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":151,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"0a2e9705-ebaa-4950-8e64-98e42bf4611c","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":151,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"7150b498-f516-43c2-bdab-ea8b7c59f9f3","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":151,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"e3f1ffdb-0f0f-45bf-ad29-c7144bbd103e","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":151,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"6ea4bbba-2538-424f-a7a9-0bf5817f2f54","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":151,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"48665b8a-61ca-44a7-b794-4db86b15d6b9","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":151,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"61f14dda-a101-4270-9d72-02bd494bba7f","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":151,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"7276b2fd-63c6-435a-bdca-c7e63cc3ead8","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":151,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"205940ff-de02-4aac-b32b-1ab42d19ea7b","block_type":"box","text":"II-109","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0a873f4e-1e91-4398-890f-5abc5932e0ef","block_type":"box","text":"NM1026U-6032801-151/242","page_number":151,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"64c4d52f-3fd5-4ecc-b9f2-3302397048ed","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":152,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"3dd95c47-05c4-46a2-be76-7a8fd5433bc3","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":152,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"87e3de96-3800-481f-8657-1f2e1f3dbe51","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":152,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"fcdbbeba-e7e9-4034-b7f8-75930c7af871","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":152,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"f858cde7-ae44-45ef-ab50-f9eff175d27a","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":152,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"1c21de73-c3fa-4a97-86bc-60dd52ca4b51","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":152,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"fb5d8754-7bf8-42c8-9147-adc6676fffa0","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":152,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"cda94d6e-2712-491c-b06f-b2ef95353ccc","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":152,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"ae281eaf-588c-40bf-80c2-00adae8b6084","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":152,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"3dcb7046-a6d3-4053-8784-95c00b784e56","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":152,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"895983be-5c53-4f75-87fc-79948b429fc7","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":152,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"fb868b7b-c9d9-4ba5-97f3-f2d091b91319","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":152,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"5b9b3518-c003-4348-8be8-537e33450353","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":152,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"d8ceb97c-8c98-4b0f-b028-782a2269a422","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":152,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"cdc8f686-97cd-45c4-9240-11e782ff7989","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":152,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"91d25c5b-5b3e-4a96-a844-799f0c329d63","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":152,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"2cb29ee7-4758-4b20-8dad-44931ee124b9","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":152,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"906ce7c9-4e81-4e65-9bea-61c3d663f73d","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":152,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"40d30d63-43f0-4f03-88c0-830a3335fb60","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":152,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"979daf5f-497d-4ef8-bf9d-97144f73e2c8","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":152,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"4912faef-b92a-4798-a7ba-3b4537112121","block_type":"box","text":"Funds.","page_number":152,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"545cabb4-9c85-4cc2-87f3-bd1cad7050f5","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":152,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"a8e86b1d-62df-425b-8082-bde89daf1de3","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":152,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"9dc7a923-b01c-49cb-9321-8ecdb4878aa3","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":152,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"b449640c-ba9a-4467-8fbc-5f4ca8e385c3","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":152,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"cf4a9ac6-d441-4262-bf26-1928027992e8","block_type":"box","text":"B. Shareholder Services","page_number":152,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"fa26ed39-e945-45b9-bc94-8f205823e234","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":152,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"728ead31-07e8-4172-b162-f78a4ed4e09e","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":152,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"09d3f912-dd83-4584-a74a-48c39dd60dcb","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":152,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"0bcc48a0-555f-42b0-946d-b437620895e4","block_type":"box","text":"II-110","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bf0dd681-58a2-4cec-8ada-e15e057dafed","block_type":"box","text":"NM1026U-6032801-152/242","page_number":152,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ab85f068-f570-4d69-beb6-c5a1a1fa5545","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":153,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"14af4331-d4d6-4f83-b6be-1f8c26f94c63","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":153,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"c56b534f-8010-4061-a75e-abff5d23fe7a","block_type":"box","text":"payments and 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BlackRock","page_number":156,"box":{"x":70,"y":341,"width":833,"height":11}},{"id":"88219b3d-60fa-4a9e-82db-06af39d28a01","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as part of its customary","page_number":156,"box":{"x":69,"y":356,"width":817,"height":11}},{"id":"e61ac78e-a04e-4a28-bc45-26c543ceb628","block_type":"box","text":"digital marketing support and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":156,"box":{"x":69,"y":371,"width":815,"height":11}},{"id":"04fdfdb4-45d5-4a13-8882-1a3dd60f9d2e","block_type":"box","text":"traded products.","page_number":156,"box":{"x":68,"y":386,"width":116,"height":11}},{"id":"7db1612a-dce3-41a0-91db-83ec04dc9877","block_type":"box","text":"F. Conflicts","page_number":156,"box":{"x":102,"y":409,"width":78,"height":9}},{"id":"b08ece02-9202-4a57-903e-4740796a7174","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":156,"box":{"x":101,"y":431,"width":710,"height":12}},{"id":"636c76f8-7942-40ce-803b-68813d2b368e","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":156,"box":{"x":69,"y":446,"width":803,"height":12}},{"id":"fce3b55a-5d96-4bbc-9155-4b228d456d8d","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":156,"box":{"x":69,"y":462,"width":788,"height":11}},{"id":"ecdb0365-50f7-48bc-b329-d234da9b6771","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":156,"box":{"x":68,"y":477,"width":819,"height":11}},{"id":"8c287bb5-8319-4a9f-8eea-b5ec95f49f62","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":156,"box":{"x":68,"y":492,"width":473,"height":11}},{"id":"2103ed70-887f-407a-99b8-b5af13ddfbcf","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":156,"box":{"x":102,"y":515,"width":793,"height":11}},{"id":"aa91e865-43f8-425d-822c-da9a8dbb8849","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":156,"box":{"x":69,"y":530,"width":835,"height":11}},{"id":"70cba48e-2fd0-49e5-8f61-19feb6bc3bf3","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":156,"box":{"x":68,"y":545,"width":833,"height":11}},{"id":"225172ac-375a-4144-86ba-38457bbc5e8a","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":156,"box":{"x":70,"y":560,"width":830,"height":11}},{"id":"3013df01-6ab7-45c9-94b1-bd619ee03de7","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":156,"box":{"x":102,"y":583,"width":774,"height":11}},{"id":"31835632-d0d2-4818-959a-b05b508a87ff","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":156,"box":{"x":69,"y":598,"width":794,"height":11}},{"id":"50e786f0-1fb3-46ad-a410-6acd217986f2","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":156,"box":{"x":70,"y":613,"width":818,"height":11}},{"id":"66d96228-a79d-4eb0-a04d-794fe4560613","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":156,"box":{"x":69,"y":628,"width":836,"height":11}},{"id":"0d6a9acf-4350-46b9-a6fa-bc28485e2e5f","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":156,"box":{"x":69,"y":643,"width":723,"height":11}},{"id":"c606836b-e0ee-411a-ac3c-abb403fd7a19","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":156,"box":{"x":102,"y":666,"width":759,"height":11}},{"id":"413b8ec2-f77a-4691-a986-a168edf4f45e","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":156,"box":{"x":69,"y":681,"width":760,"height":11}},{"id":"e19d7e32-5101-427c-8f7e-c1a7f98cfaca","block_type":"box","text":"appropriate.","page_number":156,"box":{"x":69,"y":696,"width":84,"height":11}},{"id":"a005e25e-4f3c-4341-9ae0-9df14dacfcbe","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":156,"box":{"x":160,"y":696,"width":738,"height":11}},{"id":"b41bf2fb-1b9e-4954-8e6e-a27406f6b80e","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":156,"box":{"x":69,"y":711,"width":795,"height":11}},{"id":"5b8f276b-2f4f-4e4f-8c9c-67122a2e8285","block_type":"box","text":"described above.","page_number":156,"box":{"x":69,"y":726,"width":122,"height":9}},{"id":"95ded96f-3f18-4e41-b28e-9f7ccc1a6cf3","block_type":"box","text":"REDEMPTION OF SHARES","page_number":156,"box":{"x":385,"y":756,"width":208,"height":9}},{"id":"b5857b1a-f931-4921-992b-fb6199f09861","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":156,"box":{"x":102,"y":778,"width":798,"height":12}},{"id":"cbad0b0a-54dc-4e3d-ac77-5771ffdb1730","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":156,"box":{"x":68,"y":794,"width":836,"height":11}},{"id":"845ca793-37e2-4668-a707-d674cb8b55d7","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":156,"box":{"x":69,"y":809,"width":840,"height":11}},{"id":"458a85a0-dbc9-468e-ae95-a891bd95e231","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":156,"box":{"x":70,"y":824,"width":814,"height":11}},{"id":"b1572705-75e7-434e-a246-353bc8fb7223","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":156,"box":{"x":68,"y":839,"width":809,"height":11}},{"id":"027752ec-3789-4e26-93b6-d86b2506c3c0","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":156,"box":{"x":69,"y":854,"width":827,"height":11}},{"id":"fa83c80e-ee10-4a0e-a82a-6a0683a21fb8","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":156,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"bc48e808-732a-4c30-83fc-0a0a8f4984cf","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":156,"box":{"x":70,"y":884,"width":797,"height":12}},{"id":"ae4ebecf-6528-4233-af15-1969b990425a","block_type":"box","text":"II-114","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"59639a53-817c-4747-b5aa-706bab91b2fc","block_type":"box","text":"NM1026U-6032801-156/242","page_number":156,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"770a6a9d-5366-403e-b374-38346542b844","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":157,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"82d980c6-ae9c-452c-a960-a910b1cd363d","block_type":"box","text":"for any shareholder of the Fund.","page_number":157,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"efaac98e-24b9-4c44-b507-f4b141c9fde4","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":157,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"b99daf84-0cd7-49be-9504-d085400165fd","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":157,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"2a3c728f-f55b-4383-a9e3-53dad2bcd99c","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":157,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"5042895b-3f3e-463d-a78c-5ba361254c3f","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":157,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"7a34e0ec-26f6-4dfe-8d1d-462e95952212","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":157,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"ca2bd7a0-24d8-4987-96d8-69771e12661d","block_type":"box","text":"redemption.","page_number":157,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"9712cdcd-254c-4196-8959-813b5575b1a2","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":157,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"fb768d51-8df0-4ac7-baeb-cef63b2f66c4","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":157,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"62b7e9c1-bf30-43ac-98fb-9c1e002c3506","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":157,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"c4c24b25-0ab0-4a06-8f1a-0c6620fa37d0","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":157,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"4eb38308-64de-4afc-9007-4450a3ccce1e","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":157,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"fed5fd12-ad8b-4e3f-b95c-e4bb70d27043","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":157,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"c3fde248-cf13-4614-8d78-7fb9fb2a5505","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":157,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"184f2082-6a2c-454f-97be-896036701791","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":157,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"48223c8e-c3d4-44bf-826c-0c1b83b47f63","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":157,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"75a7cf1f-a157-451b-9446-412e2b4f8347","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":157,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"e4ca84cc-8ad8-4ab7-becc-34e873225a39","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":157,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"f178354b-207f-444f-b9a4-6a524742298c","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":157,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"5b4b9e7a-be8f-4da1-9cd8-060e3af266c2","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":157,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"955177f2-fc3b-43db-8299-23f35e467202","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":157,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"40a43590-1af7-48c0-8240-824cb06b66a3","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":157,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"85b9242e-0e85-4e09-95bd-aa3db393f15b","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":157,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"c08fd642-e836-460a-97c0-0635742a45c4","block_type":"box","text":"Redemption","page_number":157,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"16512db6-74e4-4d0a-9140-1c62b29421f6","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":157,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"93423192-7581-4e20-85f3-03c9f3010a2f","block_type":"box","text":"Redeem by Telephone:","page_number":157,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"30c29cb6-1f48-4ca4-8be0-cf8f77d7d76e","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":157,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"7fd01320-a9d0-4963-adb5-260451f1c0cc","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":157,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"b8d813f2-5167-4c7a-baea-4c0305ba7b7d","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":157,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"cae137ef-01be-4636-baf7-da1d94bafd22","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":157,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"b5211b34-49a4-4f19-a8e4-aa51cde7fde2","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":157,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"d576840a-00dd-4da6-9fb2-fa8e14d4304e","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":157,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"411a0756-529d-42f5-9bea-fc37927bd9bb","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":157,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"962da872-0ad3-415f-8cc9-90b694b0d210","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":157,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"6030af45-3b76-4c31-855e-0a79e5bbf64a","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":157,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"75c4b43d-b57a-41a4-b865-6287fc1cb11d","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":157,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"b3a2d7b0-a5fc-4df5-b211-b9738fd51113","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":157,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"b94e8da9-59e3-4fe9-a03b-103498315b38","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":157,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"f1333755-d174-46d2-89fb-1f5efbe428f0","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":157,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"d934581d-d495-41df-ba61-73295707f801","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":157,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"2a638bbf-2872-4a9d-8e11-c0023e6133d9","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":157,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"c043d1a0-e353-4f9f-81aa-06f7fd000c30","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":157,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"3653a043-5d7c-4123-b0d5-b202f6e03f58","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":157,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"8cb17c40-9597-485a-bfc8-a360b99931c1","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":157,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"406d03b8-6f3a-4baa-a0b1-85e280232ae6","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":157,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"4f4bd0f1-3fc4-4b5f-a5a4-af406bfc9056","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":157,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"20ac7e38-5d93-40a5-b996-16e907ef8413","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":157,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"f730dd2b-3ccf-4db9-abf7-cbcdf08e5b85","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":157,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"5223d880-e051-4cad-b346-5ec224ae0254","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":157,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"4ad97588-e5d0-40f7-852e-527f6e5ebca8","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":157,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"cd4178ea-4c2a-4e57-b0d6-5eff287e2aa6","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":157,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"4c4d3262-0d3c-4c82-ac4a-f4dec96a651a","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":157,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"392d988d-60f0-4085-9c02-e47b3bc31dc6","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":157,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"739c7aca-add7-4528-9680-2570e4fd55f3","block_type":"box","text":"II-115","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9bd3a9f8-dbb8-41ec-9e1d-dd13e0fa33f1","block_type":"box","text":"NM1026U-6032801-157/242","page_number":157,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c7f48e61-62de-48eb-9ae9-e93aeb605077","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":158,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"af34f192-8c30-48a3-9516-3edeccb79706","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":158,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"8354aea9-a66f-48f4-a55d-1728f6475f97","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":158,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"af50b1c9-d790-4522-99cc-5adb5a9a8c65","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":158,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"ad6bc18a-89d1-4280-97c5-3d52509accad","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":158,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"979b8836-e478-4708-b012-7d4b80b70288","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":158,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"582640db-9ef3-4066-9e15-339fd4915b05","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":158,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"7da14508-7326-4269-bf6e-51ec8213aab5","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":158,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"8164eae2-2b7c-4c6c-92a9-7a243c0c8568","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":158,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"729fc91a-e3a3-46ad-b92d-354988962ea2","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":158,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"27fd9ff5-f95c-4729-8683-3d6a8e2017c1","block_type":"box","text":"Redeem by VRU:","page_number":158,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"8b0000dc-ba36-48e1-9886-558b218746c2","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":158,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"7f88eafa-1269-4c83-8a45-1c4106ea9431","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":158,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"dd86c082-2be7-43fc-a16c-6c4382de5fc0","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":158,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"91b4e00c-3e0f-4ea1-9606-d72610a1f39e","block_type":"box","text":"Redeem by Internet:","page_number":158,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"bfea4794-5b58-4471-9130-521f6914eb31","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":158,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"40d2e1f2-d71e-4d56-b4be-b897aab7eb6a","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":158,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"64e40024-5c4e-4059-851f-499dcab88c2e","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":158,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"8733dd9e-c69a-4162-b6f6-46d75b7f5816","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":158,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"fdf21af1-29fd-4b11-b278-5c9512214bc6","block_type":"box","text":"institutional investors.","page_number":158,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"30d9fc62-f5ca-4c3b-9441-b671a0738b79","block_type":"box","text":"Redeem in Writing:","page_number":158,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"70be38c4-3521-456d-b205-83438612a918","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":158,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"e5bdb5d7-a4fc-4d3c-af70-18865f4465b8","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":158,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"95edb9dd-e7eb-4584-9c25-f06d30afec50","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":158,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"57279004-476f-4b9c-95d7-019d5df860a7","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":158,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"16a33920-adc9-4ff5-97d2-3bfb2a8ea16a","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":158,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"fa9dafcb-651d-471d-967a-c9de27c6fbb6","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":158,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"4d7b3c91-25c6-4cef-b03b-7c7e08449d8b","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":158,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"994bbf89-9a83-4857-944a-193f98e65040","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":158,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"31146c49-d25b-43c3-9ed2-9f615779615a","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":158,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"f4cab9df-e0b7-4496-8d88-cfece6e9bac5","block_type":"box","text":"or wire to the bank account of record.","page_number":158,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"29043d74-502f-4daf-a429-fb1185b6cabe","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":158,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"4d90d66d-a063-4cc4-b9d8-074e9530dcc8","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":158,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"4de729a4-7b7e-43d5-95a7-2233ccf86750","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":158,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"2b549e4d-b8c8-42cd-8dde-7b81ba5899fe","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":158,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"803f1a0e-577a-44ed-a932-514abeff8564","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":158,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"7d305fe2-047f-40de-968a-566a370405bc","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":158,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"30f8ccf9-7e66-4037-abe7-643305f70ba1","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":158,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"af58729a-799b-4d24-b0e9-0f6406221908","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":158,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"3c321a6b-c150-4a4b-bf45-4d782dad2523","block_type":"box","text":"redeemed by the Fund.","page_number":158,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"35c5e5ce-b371-4cfa-8581-2c25ebfaf447","block_type":"box","text":"Note on Low Balance Accounts.","page_number":158,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"ce7bbb1f-4aa4-4387-877a-04b9fb611f6a","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":158,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"ef709c6f-5ec2-4d51-8f25-ed83c660cc33","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":158,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"63ff5188-5d71-4728-8fe5-6ca61a04e913","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":158,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"9042c623-9274-4279-b0bd-231806d29542","block_type":"box","text":"for any reason, including market fluctuation.","page_number":158,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"acf4a9aa-14ac-45b7-b7ae-94794f37ac69","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":158,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"7f7b0cff-3f7f-4ba2-b576-b6104c3e3bcb","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":158,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"280424f0-dd0b-46d0-93d1-efade627d6b7","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":158,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"0f342683-b0b7-4a4c-b1ba-07736f8f8ae9","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":158,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"663624fc-5d4e-481c-9a26-7b63e7d34065","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":158,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"171f7434-4ff9-43a4-a15d-082adafb2a1b","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":158,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"679c8072-dd41-4962-b8b8-2275abfa8b98","block_type":"box","text":"Redemptions in Kind:","page_number":158,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"f27e843d-356c-4cd2-8a7c-006cc392376a","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":158,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"610ea6c9-2dea-48c5-b56d-f9b802e4b38a","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":158,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"ff0f0a13-56c1-49ed-90a8-e45eb584f2c7","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":158,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"316e062a-813f-4cf4-8187-beccf2228b0c","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":158,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"2df7a741-f153-4609-9d40-fb955e019875","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":158,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"7268d231-419b-4dfa-85a6-3348edc941a4","block_type":"box","text":"II-116","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"237ea00e-8a8c-4ae1-83a1-d6e5f8d78b80","block_type":"box","text":"NM1026U-6032801-158/242","page_number":158,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6fce86c1-b713-47da-bb7f-02f9d60b921a","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":159,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"49055dbf-dd12-4ec6-9f11-4b40c58d7617","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":159,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"e6b4a034-a207-4b3e-8f53-1d05a5721d62","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":159,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"925bf785-bf44-4e4b-b75c-9c40522a54de","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":159,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"10e1027c-29b3-4e44-89eb-c52800b621c2","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":159,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"e9e1b1df-067c-4062-adfd-b119a28f4d0a","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":159,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"165f80cb-2f3f-4063-958e-01d430dea614","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":159,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"1ded8641-918c-47d7-8fc8-ffa87e2b2cd5","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":159,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"a3ee41fa-1607-4f13-996c-131d014a83f3","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":159,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"83d24a10-c8d6-4a3d-871e-981fcb106b66","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":159,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"5d6864eb-1138-4c9e-baae-66db23a2e4e3","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":159,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"003072ab-44a8-486b-b9ab-74a3340372c6","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":159,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"0c4f4dcb-3597-42ac-ac46-c3ecc43fa964","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":159,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"d68cb7bb-e6de-464a-b199-5777522583f4","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":159,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"20d7f198-38ff-4ecb-8898-3bbf4bfbf3f3","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":159,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"40d43b0d-4050-4c58-a006-799abe42379e","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":159,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"5bcdb7c3-cc27-4379-8bc2-1dd618c2d5f7","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":159,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"83f71fb3-a974-4927-9471-11d36f2698e1","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":159,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"61d462ce-40fd-4b19-9f5d-9b47e6502c07","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":159,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"a7038e0a-4fa2-4bfc-9745-2cac0161c1b5","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":159,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"ba16771c-d5c9-4bfc-bed6-2cd9035375c3","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":159,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"3f699ba6-0524-4583-968c-1345ca95126e","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":159,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"535ffc87-5bae-4220-9990-0982e499d878","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":159,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"9e203544-c31a-4059-b5ee-f644b8af66f6","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":159,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"f7972025-7888-4c51-af28-97d9d49325cd","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":159,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"2e27c0a2-2838-4aca-98ec-4f3c66f67485","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":159,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"da4bbd95-0c52-4bad-96aa-f0bf1075f17e","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":159,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"17b79083-eb02-45e7-a60f-443b2e9a2ca6","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":159,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"77683381-dd42-4cd8-9f10-f9a319ce92c4","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":159,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"a831889a-6b14-4d37-9fae-84b293fcbc21","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":159,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"de054039-1f92-4142-82d5-bd314296e4a2","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":159,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"4d4c2c3e-9d94-44f5-ac40-cfabcf2e3baf","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":159,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"bf98a65e-148f-4e82-bff2-f5ca8fef7ae1","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":159,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"56041dbb-404b-44e1-8692-96a58dc87214","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":159,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"1374bec3-49a6-409d-be8f-53bf61b838bf","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":159,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"546390a6-0896-41ac-b2fa-b61126416eb3","block_type":"box","text":"Repurchase","page_number":159,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"cf633fc8-69e7-42ef-b64f-74bbd931fce4","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":159,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"ddfc022b-aa2c-4327-9c57-ebf073b56480","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":159,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"37016be5-d60b-4631-b3f1-99e3bf8e402d","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":159,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"4d6b3d80-76f4-479f-8518-658c533dffdf","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":159,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"8214f274-4a23-400d-94d5-cf527039b6c5","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":159,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"59ae4fc3-69a9-4a91-a558-4c14e72f0f8a","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":159,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"652da8f8-24d2-4d35-a9b8-cb294bdfecf5","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":159,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"b0ee9aaa-92b3-4e11-80fa-db7a48275cfb","block_type":"box","text":"next business day.","page_number":159,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"3b080342-cc03-4fea-ab90-3b4c527788ed","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":159,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"4db36aee-72cc-4f7e-8ce1-4c4051432f46","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":159,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"f2bf6a21-fc9f-494d-bd24-7b4c467f0432","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":159,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"0483e135-7cec-4dbd-a831-538bc49a4994","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":159,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"d99bdee3-ff5d-4b72-b4ca-07a995451a02","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":159,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"00b0bf30-f224-4e9c-8a08-6a1682301ce0","block_type":"box","text":"redeem shares as set out above.","page_number":159,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"47a44830-1dba-4ded-bd47-569d8814f137","block_type":"box","text":"II-117","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c26bf702-2e31-4127-8114-0eec6c70c176","block_type":"box","text":"NM1026U-6032801-159/242","page_number":159,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"25d684db-9814-4295-86b5-70e1916ce0c2","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":160,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"7f6e4f4c-3ad8-474c-a80c-2eaa4248c77f","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":160,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"decd11f7-e1b4-45cf-b44f-e802d391596d","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":160,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"dad7ac57-de3d-4f39-93cb-d9542926d148","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":160,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"9d0849ed-447d-4807-ae31-e559dfe7fa98","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":160,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"a463a013-e844-4edf-bfe2-203435db47fc","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":160,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"e154fee9-c89c-46c6-9d4e-6d8175b5ff2a","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":160,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"a52105d3-2bf6-4de4-9542-d52f636c8b65","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":160,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"473c6db5-4efc-4f75-bd60-530ea05d291c","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":160,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"68e7011e-d6af-4a42-97f7-2099c7810e10","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":160,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"96002b00-1ad7-4b7d-8b0e-61e3e943f4f1","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":160,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"f8fd8ae4-5440-4820-b835-33909009ba59","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":160,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"7231549a-2e42-4019-9821-cc2bc85a6327","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":160,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"f4834265-8197-459e-9381-5cfccc3ed6a6","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":160,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"f1d332d4-ef9e-4395-b64e-5af4caee07e2","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":160,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"944123c9-59ba-4f1e-98c9-ee3af6166de4","block_type":"box","text":"Investment Account","page_number":160,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"7b71584c-f7df-4935-9b87-063764ddb233","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":160,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"e88fb81b-50a7-4416-87df-d62e581f3cf7","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":160,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"1c68504a-b9e2-4439-b0ef-49e30313b407","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":160,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"8dd3e793-920e-455f-9b2a-affcf89bdce5","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":160,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"90bc73d5-e27b-4c84-9bae-e6d87cccbae5","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":160,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"7b3673d3-d470-4a7f-81ab-e29d1928d77b","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":160,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"694257ee-b867-474e-8555-6140c53e24dd","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":160,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"f3c06cc0-79a2-4166-8560-d9fe3ebf3def","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":160,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"0191d2c1-2cce-4411-a2c4-fa71eb22bbf1","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":160,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"282c7852-c7e5-40f0-b4ef-60322e5d70f4","block_type":"box","text":"automatically at the Transfer Agent.","page_number":160,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"73a7dea1-501b-476d-b3bb-80a1986b8aae","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":160,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"a48f5883-5499-4fa1-958c-a238ed9ccc41","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":160,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"a920bdef-77d8-4053-8769-be0f7339160f","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":160,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"0a3c5a0f-383a-40c8-9add-a8ff15037606","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":160,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"2b5cd4f7-f968-4864-983b-dc24bb5d6e31","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":160,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"b64fab90-b181-46b0-be9a-0447645188a0","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":160,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"9f99f682-d28b-429a-94a6-7d0ea09ca9d9","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":160,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"65f5999c-ae04-4d07-bab5-38d1f1cb4420","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":160,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"bf015a26-503d-4f1c-9d1f-176f679d23ae","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":160,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"161f5e1b-b912-4f8c-9d58-653a38c8dd22","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":160,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"546ef5a7-3816-4237-ae82-6f85a3bd8d65","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":160,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"ac868fed-78fa-46bc-89f6-140d901ef567","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":160,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"ddaa7a1c-c684-4cd4-8670-a38cc3e0a124","block_type":"box","text":"issued.","page_number":160,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"6a8aaf99-a14c-4104-a617-5ca6ab108c1d","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":160,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"246eef57-043c-4610-8f78-db6ccf78d408","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":160,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"09c4af79-baea-4942-9c58-36e90aada8ad","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":160,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"69f6fd5c-313d-403d-ba5a-eb684a5c81d3","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":160,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"f9df8286-b86c-41bd-a862-54bf3d822e06","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":160,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"32adbdff-3a48-403d-9f19-0b50f58f9800","block_type":"box","text":"Exchange Privilege","page_number":160,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"eb838e4d-93bd-400f-be0f-87e617d07f61","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":160,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"444cd1c8-b61b-4e4c-9b53-d9fed6c3e9a0","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":160,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"79f0f82c-ff7e-4915-9b70-3d583479151f","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":160,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"f9b39978-c7e6-487a-94d3-78fa16775425","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":160,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"3f1ff9ef-eb3d-4718-bf85-7640999216b3","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":160,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"8f7d8b14-9288-4726-9e0f-191e86afc543","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":160,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"7cd5689f-a07b-44fe-9b0e-976db6043c6b","block_type":"box","text":"II-118","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b0ca1c97-0c5b-4f83-9294-3ca0d7c7c9dd","block_type":"box","text":"NM1026U-6032801-160/242","page_number":160,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"35afaf86-b22a-4fc8-9404-71ba68e35215","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":161,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"a393af8d-17db-4331-94be-0e5a1b5c0e2a","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":161,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"4d1ea3bc-dee5-49a1-bd8f-bddaddb76bf2","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":161,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"bc17abb0-430e-40d0-8922-ac4641860cad","block_type":"box","text":"Institutional Shares","page_number":161,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"900d1c1f-9de5-4dc3-a543-450eb40e7307","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":161,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"e7f283bb-ef89-4b5b-89d5-47b5a2aaa921","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":161,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"eda985e4-c63a-4980-8769-978db554c80b","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":161,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"c30e299c-e2d8-4e85-ace1-b3830f6db55d","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":161,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"3e1c7cb8-91c5-49d9-85a1-ae22ddaa675f","block_type":"box","text":"for Class G Shares of other Funds.","page_number":161,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"f65370a4-721f-44cd-8144-632818f1bf90","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":161,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"345d0314-bdb4-4414-a9c7-7fc49334eaed","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":161,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"fd36a5c7-1f38-4868-b4bc-24fcecbc2cab","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":161,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"d827cfd3-5389-4f34-a1a0-99b6990d6a72","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":161,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"b467b80e-8fa8-420a-bc8a-ef8d7662e961","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":161,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"14f4137d-4945-4928-8e11-a942c70ae5f3","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":161,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"457bd3bf-6361-4fc7-887f-345a3b1cf4fd","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":161,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"d470ec4e-d13c-4e2f-96c0-0d91fad9c96a","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":161,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"2bcc183f-3f73-49bd-8429-902bb634c042","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":161,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"7e01c285-9aeb-4bca-adec-f1634ac4534a","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":161,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"fa5ac229-f723-40ad-835a-71f817fb5d08","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":161,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"e2634e06-af92-49c7-9458-f1bd42fa2f5b","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":161,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"239b98bf-e1b6-476f-bc52-6d49f1ae638b","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":161,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"652cc9ee-d733-426c-82c4-ca6aab65257d","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":161,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"273115c3-c8c2-457d-8347-c65e7f4c184a","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":161,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"c686e32d-d370-4b39-898c-966e95f26cd0","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":161,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"5a648143-b619-4a02-8f2c-7c2c2d6a967e","block_type":"box","text":"Exchanges of Service Shares.","page_number":161,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"c4dbe6bc-3639-4cb1-a8fa-87e7571a9611","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":161,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"a53108b6-2392-44a9-aec1-e62d3cdc9b63","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":161,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"8e6f01a8-9af1-49a8-8bac-df04c70212a1","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":161,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"e02bbb8d-2a6e-4e26-95f7-bc2198930de3","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":161,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"cb3d5da2-2cf5-44aa-aa75-cafa7803b500","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":161,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"51953276-977f-4abb-bc24-2505207af6f9","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":161,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"f59fa4b3-e52d-444b-800a-1621db174af0","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":161,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"4b328532-14d5-4e61-8143-a16464c360f2","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":161,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"613f90a4-fb81-41b2-90db-f7b89e65ae6e","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":161,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"40c19015-c398-41ff-88be-31e7d536f127","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":161,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"5a6ad5df-71d4-4c7c-aeda-4530174290ef","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":161,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"03ec5e50-8346-4c87-a039-923a888031b6","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":161,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"b3dd7320-5487-4056-96cf-75df7c9e5c2c","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":161,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"ffa598cf-9cb4-47c8-a8a4-60d2b12cba40","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":161,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"bd4488b3-7275-41a5-ae79-cbd5f2360b62","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":161,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"c3a3c024-049e-45a0-ba65-62d4105a9352","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":161,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"c3970624-6a06-4bd5-952d-c0d2b25ec16d","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":161,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"7abc891a-e5e5-442d-9590-e5b4f631b2e5","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":161,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"6db1c07d-92fc-4fe1-8eb5-f2ee280ec73b","block_type":"box","text":"exchange.","page_number":161,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"3ccc592d-bc6e-4dc5-8036-52cad8fac8cd","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":161,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"796f74d3-be7d-48d2-9c2d-7f88486f9986","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":161,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"71cda97a-27d1-4809-9682-1c01f4e4d6b8","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":161,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"80aff2c6-196b-4325-b757-d6068bee1a76","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":161,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"5c20723b-37bb-4bff-a52e-161326e720ef","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":161,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"cac6c52c-36e1-4449-b178-6ee5c9c0a2e0","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":161,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"20c25011-fd41-4009-9e00-9c24f697b471","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":161,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"ec6a111d-b5f3-4525-bef3-74fbd3bd8b15","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":161,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"be5d19e4-46f9-439e-947a-f60f64d4193d","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":161,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"3d78e859-08ce-4345-8540-0d9561bf6452","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":161,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"d6ff08ca-4d80-491c-b300-facd739c6722","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":161,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"80f7e0ee-6e6b-4e45-aaba-b686c0b26233","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":161,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"cb7a8ef0-b6b8-4650-8188-b644624219a8","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":161,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"13ecd7af-6dd3-46f2-ab25-7e1d5b890b0e","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":161,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"08bdae64-4a82-4f4d-8d39-dbab504e0c73","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":161,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"13489090-8945-42b3-9ed7-7adc8e037b01","block_type":"box","text":"II-119","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b5ebc1d9-4277-49ec-b015-8bc1baff8504","block_type":"box","text":"NM1026U-6032801-161/242","page_number":161,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"12df4ac8-c77d-47ed-9656-a999155c3bb8","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":162,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"6ed2e48a-3009-49ca-be05-655a78bf1f4c","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":162,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"e62572d9-2b83-49b3-908b-b7f7a50061cf","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":162,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"ddb9ca2f-8446-47de-aae6-ab7315bc2985","block_type":"box","text":"Transfer Agent in writing.","page_number":162,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"5d8e8d8e-b8c0-4ea6-8ab1-0c3818b694d6","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":162,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"8c944c2d-81df-429e-b527-2f63c303bdbf","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":162,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"51affdcb-35ab-42f7-8eae-b76d445a7228","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":162,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"79e501ef-9cc6-4648-a9bf-78934b2d2d1b","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":162,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"f4f41d1e-f1e0-4fd7-9aea-fda17941aef9","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":162,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"b2b4592a-abb8-4e36-ad88-0ca048c42c72","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":162,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"705b4e70-b392-455d-83d7-507846695209","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":162,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"3f533295-b164-4baa-b91a-3e513e80a688","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":162,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"9b1aeac5-d56a-4c67-87ee-a32356ccc307","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":162,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"748f22fa-d61a-4353-9dc7-d221f1cbb300","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":162,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"734e7a7c-72bf-4bfe-9020-d05429267a53","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":162,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"c70423cf-07f5-4a32-b190-733d8b63be33","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":162,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"fd503f98-8061-4b1f-b7e1-354bdeb85e45","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":162,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"8762e151-7e25-4fe7-afc8-7ec4d4c6ba85","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":162,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"d3a1b809-b436-4be8-a285-cc8bc99b73d3","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":162,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"ab0881b8-dd51-4452-88a1-cb65e703a0f6","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":162,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"3004c14c-b293-406f-a9b8-eae0bbd1acfe","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":162,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"d58575d8-a244-4d40-b7ab-f70e25739494","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":162,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"d6685280-3e88-4ee7-b917-544b83e3334c","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":162,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"5a9acbcf-9784-4b58-9c32-b8664204e63c","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":162,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"7544baf5-00c7-40d4-b78a-6a603bc4e91d","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":162,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"89b4b26b-2b41-4930-b30f-54e96b41101e","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":162,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"a1b1af3c-a63a-451e-9854-b7931fa2145c","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":162,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"57d00a80-b4e3-4b6c-8b5c-62463b4946dd","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":162,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"d191ff73-c368-4b7e-9d49-f87ce8cdb10e","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":162,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"28c007b2-6f22-4e30-9c5f-2a16938cd433","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":162,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"181b2817-fed3-4067-b9fa-1e61c1c7da13","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":162,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"a45207de-4a10-44ab-b46e-5b7ff5899a9e","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":162,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"347ea802-2afc-43ae-b5c8-7609d41f4f90","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":162,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"316f592b-08e8-416d-8a0d-c253e5e82c21","block_type":"box","text":"may be distributed by the Distributor.","page_number":162,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"3ff669b1-7f32-49dc-9d6f-5ec1569d705a","block_type":"box","text":"Participation in Fee-Based Programs","page_number":162,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"f574812e-fa46-4404-9bcd-a361149f155b","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":162,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"4d73af11-8148-4647-a71d-d3ed20be54d7","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":162,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"76bc4b4f-c4e5-426f-b212-aeb3b812a0d6","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":162,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"e19caf49-21fe-48c9-975d-17b83c2d1ab6","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":162,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"8f9456a7-e707-43ec-8765-1abbe0d62daa","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":162,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"7af1bb93-a24a-4a52-a8db-3855d4190d0d","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":162,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"d58626c2-3cde-4083-abe6-d8cd9d6c75f0","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":162,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"933a8b02-8153-4240-9c79-93eea1cf9c6e","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":162,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"13596ce7-aa65-4ba7-8a39-62c829085cd2","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":162,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"dff98117-d042-4413-91f9-f48ca5649e29","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":162,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"c109b370-ebeb-4e34-ba01-ff5d2ad1040e","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":162,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"b8ad7fc5-36f2-4996-8b8f-86d07aac7cdf","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":162,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"d4dc1579-7a5b-40e4-b6bd-e6d214e5ff4d","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":162,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"a570fc60-ff0f-45e8-976b-16b5c252441b","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":162,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"34b41ca2-cbdb-4d17-a937-966c43b56958","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":162,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"fc4965cf-36a3-4fdb-8114-c888cdcdd536","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":162,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"aeebce65-ecac-4d93-beb4-0a5663ab68e7","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":162,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"c1d1d203-9925-44e6-911a-5a71c819524f","block_type":"box","text":"II-120","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a73d2744-047a-4a38-983a-fe6f890af519","block_type":"box","text":"NM1026U-6032801-162/242","page_number":162,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"99679b40-0129-412e-9bb5-c7a13252cd7c","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":163,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"b8cf47e9-d369-4490-a196-1aae038ac59a","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":163,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"10be63d3-a2f6-4918-b386-aec37378bbef","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":163,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"67b570ba-174e-4dd7-9d21-3a1f381dc282","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":163,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"e55fb4ce-23d6-42d3-a242-542d7b4f8dbf","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":163,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"30761f5a-bd4d-4354-813f-590a3b186902","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":163,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"6f940d72-a048-4001-99fe-d7c43c3ade96","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":163,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"2a94bd6e-5e3c-4ea3-b3d1-649d2b1a60af","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":163,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"fba37a3f-3193-485b-b2cf-4e0d8c2be630","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":163,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"3f4de5a7-9911-4add-9cba-0bfe5b918b6e","block_type":"box","text":"information.","page_number":163,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"4bd4a2eb-9360-47c1-a7a2-e190803ab480","block_type":"box","text":"Retirement and Education Savings Plans","page_number":163,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"c1295e26-f37b-405e-ac18-68d75f609e86","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":163,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"4f61ab12-cf9a-4d45-900b-0b12d802046c","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":163,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"ef05c32c-44fd-49e4-8f94-9af2abd35bd8","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":163,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"f986224a-b9fa-4191-8aec-8ddeb9b19863","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":163,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"29f60bca-29a7-4253-8d12-11eb572db220","block_type":"box","text":"your financial intermediary.","page_number":163,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"618d5ba0-45a6-4f52-9d60-4760c158e5bf","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":163,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"29c3642d-15c5-4340-b7aa-396f4ddeabca","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":163,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"b6326785-0f59-4c72-a59d-ff9545db09c7","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":163,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"1896d415-f5e9-4034-b331-a0855e0dffef","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":163,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"7b3cf53a-3df0-4c84-926e-1f1b25a50b17","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":163,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"e3c16818-dc60-407e-a351-28b87f93602c","block_type":"box","text":"Automatic Investment Plans","page_number":163,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"ff2b9061-8ab2-44cf-83bb-81ef56ad28ca","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":163,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"c4af5d0f-df78-40f6-85d8-ce04de0da74e","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":163,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"b3715820-2205-4fbb-ad0e-2fc841edb9bc","block_type":"box","text":"®","page_number":163,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"d7f3e8ec-5f1c-4fd7-aa91-5fc37b573318","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":163,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"56cb7c0f-5a5e-4ec5-9ba9-1ee8e2ff9f41","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":163,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"aded2c25-0462-46de-b8b0-f3753f5855f0","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":163,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"d970972d-dc59-4b8a-9680-229bb7b77469","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":163,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"23b46648-146e-416a-a05a-5a8f28ac321b","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":163,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"fd8e9e2a-af66-43a7-95c1-13f2b6e820ff","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":163,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"0d2990c5-9f08-45fd-a180-08462e448067","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":163,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"a7308f59-4fbc-4fc3-9d77-8f631ced19d5","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":163,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"4f3a265a-c3f1-42f0-846f-030e3dc98f51","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":163,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"e5ef70f5-b5ac-4fc1-8351-e0da452c1cd9","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":163,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"be17c7cf-0a8c-412d-8165-221a7b248765","block_type":"box","text":"Systematic Withdrawal Plans","page_number":163,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"5f51bd01-8bea-42d2-9c5e-b7d4756f08aa","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":163,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"eaf74a3f-21c7-4a6c-9592-45155268fd1c","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":163,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"e605a461-c7fc-4385-8893-deea503848ef","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":163,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"796ed7cd-1955-447e-ab7a-9fd282b8c741","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":163,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"968a1961-de23-4b4b-aeaa-f4838d4f50b3","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":163,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"8ac7827b-89a3-4045-812e-d35de41e802a","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":163,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"0f0cabf6-7dba-425d-8437-711e448d89ad","block_type":"box","text":"www.blackrock.com.","page_number":163,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"5ea746c0-3f52-4593-8650-34a38ef840e7","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":163,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"244ee976-7826-4201-b8fe-eae0c7e5e622","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":163,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"561e90b9-8a00-46ca-963d-0bb97de695b6","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":163,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"941159b9-00bb-40ce-ac20-f4853d1f4552","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":163,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"f3812ef3-7265-4b30-abc8-2bdab56360d4","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":163,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"f3d010ad-7a81-4687-90ea-7b70d5d69a66","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":163,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"7bab0dd9-0041-441b-94f4-92a216b74ced","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":163,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"65d3774c-d89d-4ce3-a5d3-9511787e7cdb","block_type":"box","text":"II-121","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5859f95f-970f-41b5-8d26-c0acced07b0d","block_type":"box","text":"NM1026U-6032801-163/242","page_number":163,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"50130676-487c-4adf-bda3-179d21568f54","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":164,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"c0b2d189-ff6e-4328-919e-70a5f3611110","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":164,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"183a6be5-8c21-4c18-b293-563689390181","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":164,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"91482de4-0cfd-4d82-8dc6-5cad6b222641","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":164,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"9be2b8ae-0ee4-40c6-915b-ce03681efe44","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":164,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"08c14188-380f-4dff-8fd9-1d1f5d75a1da","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":164,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"bcf5b1b6-fd5f-487b-85ec-236870dc993b","block_type":"box","text":"Dividend Allocation Plan","page_number":164,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"df51f93d-a107-454d-b143-55ae6098d5b0","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":164,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"8d9a0949-efe6-4b59-bd38-93b0458933c1","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":164,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"e77ce05b-ad87-4d76-ab84-082e44e94a46","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":164,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"2c570dcb-df6a-46b3-a184-8c0aad43ee05","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":164,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"2b262969-2fc0-4d6c-a003-5e5d9960b6fc","block_type":"box","text":"PRICING OF SHARES","page_number":164,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"ae0bda60-b4e5-434c-a3b4-8449a3b9e6d9","block_type":"box","text":"Determination of Net Asset Value","page_number":164,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"66944106-305a-4b01-81a0-4cce1e702ad7","block_type":"box","text":"Valuation of Shares.","page_number":164,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"45c95909-dfc7-4064-9740-618e8702661e","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":164,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"d2c3ec71-7686-43cb-adbb-89f4418f8987","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":164,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"9635ee3d-3650-461d-8ae0-c6c4330d5537","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":164,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"f9eae2df-1bbd-4675-a976-22172213d379","block_type":"box","text":"Equity Investments.","page_number":164,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"8e317a7c-9cc3-412a-b1e0-ff05e807acda","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":164,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"cc65bd32-033f-4cf9-b56d-103c6ee37dc7","block_type":"box","text":"e.g.","page_number":164,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"bb80c902-9948-4076-9fbc-1c753f5af413","block_type":"box","text":", NYSE), on separate","page_number":164,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"75b82603-f000-4a1d-9977-f6bffed25a53","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":164,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"747a36a9-11c9-405a-9355-2213fa02a35c","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":164,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"8da3ee36-5767-4f90-a334-bac9a4ea670c","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":164,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"cca7944c-12de-4325-8d58-99a7e7ea24a4","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":164,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"b1950878-e0d2-4fd1-8f8f-bd4369d43598","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":164,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"80a6cae8-e322-4685-9e02-43e12e470847","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":164,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"11ebb01a-3624-409b-8e39-711d7e062df1","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":164,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"4d410db7-5f22-410e-91a5-80dcc2e703fe","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":164,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"eeebb6f6-bef3-410f-885d-52a91ba519f8","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":164,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"26d02eac-e899-4226-947c-6ac8199841f1","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":164,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"6c0d01fe-693a-4c40-b5d2-bbe3b578eef1","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":164,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"432c0143-5cf7-4769-8ccf-f3c05131144f","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":164,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"373bd5b2-13e2-4a58-afe7-cc36cf6b3cab","block_type":"box","text":"defined below).","page_number":164,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"b848dc29-f798-4515-b88d-fa18e7f2ac57","block_type":"box","text":"Fixed-Income Investments.","page_number":164,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"cdf365d6-c218-4f3d-9fdc-a31132425dda","block_type":"box","text":"Fixed-income securities are generally valued using bid prices provided by dealers or","page_number":164,"box":{"x":304,"y":581,"width":592,"height":11}},{"id":"74f7826b-6008-4d69-b536-fbfbf5991bf0","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":164,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"51e2719e-3e1d-4de5-bff5-0c6faba2fc90","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":164,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"45620d05-84ab-4aff-9384-91f666a9c7a2","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":164,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"8ee0e374-8c01-4870-baa2-6ef5a741a61e","block_type":"box","text":"e.g.","page_number":164,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"a56de120-1804-46d3-80a9-53182ee71be3","block_type":"box","text":", recent representative bids and offers), credit","page_number":164,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"50726767-aaec-42c8-8296-906caa8dde51","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":164,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"03218617-50bc-4207-9498-63dcb2ee2c73","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":164,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"3ac7d5a8-28b9-404c-882d-3de6a904e39e","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":164,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"525ce315-a2e4-450e-99f2-80b39197f8f5","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":164,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"09d0c21f-3451-4f42-a9e5-5b66db3913e9","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":164,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"f353d244-7396-4235-a7c9-7a4946e68998","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":164,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"ff7a16a5-2ed4-4764-8b61-13a64756945e","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":164,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"71cde892-63c7-46df-adb3-78c0939fd429","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":164,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"126f5bb0-b8c9-48d6-b65a-4a18da9a2e64","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":164,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"7dcccbee-cb0f-4c3c-b5a2-6afc619d8384","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":164,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"98c7fe01-48eb-492f-9d12-f5f24ef0b3ff","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":164,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"e4672418-42cf-4db0-8839-b82e5006d403","block_type":"box","text":"attributes of the tranche.","page_number":164,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"08c23924-63d8-4bec-8695-4b6550d610a2","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":164,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"e737f7ec-e112-41f7-b777-b345abb76897","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":164,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"49c2c33c-b91d-46ee-88f7-367db50b9831","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":164,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"bd51eddd-5499-4dca-b777-03fd0211560f","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":164,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"de2ef4fc-2670-411d-806e-e035a21262d7","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":164,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"c4c9290a-f8d1-446c-bea7-96196bd80688","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":164,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"bacf2f27-7481-489c-bae8-3ee2b1bc1295","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":164,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"8f9e1deb-7169-41c7-b8e2-9b5c0f38fde2","block_type":"box","text":"II-122","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0358dff8-609d-40e2-b72b-24c0b10b48b4","block_type":"box","text":"NM1026U-6032801-164/242","page_number":164,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8db29bc1-b2fb-4c90-ae68-247ea4e91a6d","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":165,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"011a78f8-a6c6-4ad6-b49e-e0ff5bf3d720","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":165,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"770ed505-ec06-461c-8ee2-5fa4cb4473a7","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":165,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"85e6f1ad-af24-43ad-92f1-0e39a313cc89","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":165,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"a5ef13e4-a820-4d51-8edd-6f09a9f58b75","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":165,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"5d3ed965-a6fa-46e2-93db-f6607c7539d1","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":165,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"92c9df35-1d23-43b9-912b-5b3899e33f4f","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":165,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"52ff1e63-1f79-4764-948c-e2dbf44ecfea","block_type":"box","text":"Underlying Funds.","page_number":165,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"fe3fff64-cd18-4fd5-be91-b34228e55ee9","block_type":"box","text":"Shares of underlying open-end funds (including money market funds) are valued at NAV.","page_number":165,"box":{"x":237,"y":158,"width":621,"height":11}},{"id":"764a9b65-f86e-4a41-8edd-e5391f23277c","block_type":"box","text":"Shares of underlying exchange-traded closed-end funds or other ETFs will be valued at their most recent closing price.","page_number":165,"box":{"x":69,"y":173,"width":837,"height":11}},{"id":"0efbbc69-dccc-4eab-be39-8c2f57c8a9b0","block_type":"box","text":"General Valuation Information.","page_number":165,"box":{"x":101,"y":196,"width":220,"height":9}},{"id":"c2b9b3d8-a92e-46dd-840f-a01907fd8aed","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":165,"box":{"x":328,"y":196,"width":564,"height":11}},{"id":"123f88ff-7cb0-4393-93c0-6e055a50f4ad","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":165,"box":{"x":69,"y":211,"width":831,"height":9}},{"id":"1f7b924e-a5a6-4146-aada-181fc5cdfbf2","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":165,"box":{"x":68,"y":226,"width":828,"height":11}},{"id":"d8780098-e958-496b-b447-727f7ab81f3b","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":165,"box":{"x":69,"y":241,"width":829,"height":11}},{"id":"d74fe879-7be5-4375-8b6e-d5b17e276bef","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":165,"box":{"x":69,"y":256,"width":817,"height":12}},{"id":"fa167166-c403-49d8-976b-c0ce9a71c474","block_type":"box","text":"the revision.","page_number":165,"box":{"x":68,"y":272,"width":87,"height":8}},{"id":"01fc1f97-095a-4976-8e8f-d4d32e87c12e","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":165,"box":{"x":102,"y":294,"width":784,"height":11}},{"id":"c56f5312-ccef-4238-bf0b-a7f26ca34fcd","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":165,"box":{"x":69,"y":309,"width":823,"height":11}},{"id":"28d1aafa-d541-4e07-8b22-f0811b79b8cb","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":165,"box":{"x":69,"y":324,"width":818,"height":12}},{"id":"f540991e-d23e-4c20-9652-53a958405826","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":165,"box":{"x":70,"y":339,"width":832,"height":12}},{"id":"2efb2b35-c133-4ef8-9028-1109978c5406","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":165,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"32b2e825-e61b-4b92-a030-e8a905c1fd66","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":165,"box":{"x":69,"y":370,"width":834,"height":11}},{"id":"e6013583-d513-4220-9404-f1f7ae7461c3","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":165,"box":{"x":69,"y":385,"width":837,"height":11}},{"id":"4ecd9b06-23c3-41dc-9b3c-91911792278f","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":165,"box":{"x":70,"y":400,"width":833,"height":11}},{"id":"7c0043eb-513f-4e14-b447-28fd304bcfef","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":165,"box":{"x":69,"y":415,"width":827,"height":11}},{"id":"134086d9-4edc-42d6-b75a-066d1189600b","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":165,"box":{"x":70,"y":430,"width":741,"height":11}},{"id":"148b02ef-a3cf-44c7-b187-d1bb137e969c","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":165,"box":{"x":102,"y":453,"width":800,"height":11}},{"id":"c6e7bc42-f6fa-4a14-a032-7ce9a3b0fd60","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":165,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"02e7b26c-1e2e-4e34-8cac-0d2ac4e67936","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":165,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"40d5e004-7e31-45a9-9ddc-6feadd775126","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":165,"box":{"x":68,"y":498,"width":824,"height":11}},{"id":"8f02a9b9-e860-4444-9798-c85a99735f0f","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":165,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"de4c8ef6-6cdb-4f25-a3ce-86a2f29bd1a4","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":165,"box":{"x":69,"y":528,"width":802,"height":12}},{"id":"3ecc70c0-b89b-4852-b1e5-c644ea1ea785","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":165,"box":{"x":69,"y":543,"width":685,"height":12}},{"id":"cf741a00-8847-4270-bc0a-e5518094df15","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":165,"box":{"x":102,"y":566,"width":795,"height":11}},{"id":"1bca2f47-d26f-4961-a083-50f5782e8701","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":165,"box":{"x":68,"y":581,"width":805,"height":12}},{"id":"777c1128-7101-452f-87ff-1033ded438cc","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":165,"box":{"x":69,"y":596,"width":529,"height":12}},{"id":"dbf5aa4c-a86e-4f99-9ce9-1f3a1ebf7165","block_type":"box","text":"Fair Value.","page_number":165,"box":{"x":102,"y":619,"width":74,"height":9}},{"id":"7f580b9a-6ba0-4d48-91af-5d7b738e0ed0","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":165,"box":{"x":183,"y":619,"width":693,"height":11}},{"id":"7d291aa1-0782-43db-b6d4-24aa53833653","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":165,"box":{"x":70,"y":634,"width":785,"height":11}},{"id":"371ee56d-ae6a-4ad2-a849-37764c03b8d5","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":165,"box":{"x":69,"y":649,"width":816,"height":12}},{"id":"e3bc89ae-10f5-448c-a9b6-3c117c89ddd4","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":165,"box":{"x":70,"y":664,"width":779,"height":12}},{"id":"6a5d8d90-9681-4845-a508-82ecf4e60a4d","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":165,"box":{"x":70,"y":680,"width":773,"height":11}},{"id":"8aba3dec-dfba-4c76-ab06-150572318d7f","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":165,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"5b34e480-511f-40a2-803e-c87db4227b61","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":165,"box":{"x":69,"y":710,"width":826,"height":11}},{"id":"2f7d69f3-d50c-46b3-b2e0-f341a3d658ab","block_type":"box","text":"(","page_number":165,"box":{"x":69,"y":725,"width":3,"height":11}},{"id":"baaa9df3-8923-4280-b5e1-c7ddd4c070c2","block_type":"box","text":"e.g.","page_number":165,"box":{"x":74,"y":726,"width":25,"height":10}},{"id":"efc0e829-5dbb-48c5-97b0-e46d957be423","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":165,"box":{"x":101,"y":725,"width":806,"height":11}},{"id":"9164a800-3c2a-4534-b981-8793233d9e25","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":165,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"0260376f-37c5-4c83-bd96-30ba9570d632","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":165,"box":{"x":68,"y":755,"width":837,"height":11}},{"id":"298e9ec2-f73c-4f15-835b-585d0e276842","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":165,"box":{"x":70,"y":770,"width":838,"height":12}},{"id":"7c578797-c777-4a0b-ad2b-208ed573e877","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":165,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"3dd6b2f0-4263-4a6b-af9e-2e7370cfd15b","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":165,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"9d46db0a-84ba-41f9-9049-ed15be72b52f","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":165,"box":{"x":69,"y":816,"width":793,"height":11}},{"id":"a60cbfd3-fc64-4136-a6ab-96eb79d104e4","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":165,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"1e7604c2-8abe-41ad-bdf8-b470cdb81348","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":165,"box":{"x":68,"y":846,"width":810,"height":11}},{"id":"3b7184ad-2743-4917-b00a-fd9c2ec222ae","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":165,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"443fc2cc-512a-4763-918a-c1b5fcb030f5","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":165,"box":{"x":69,"y":876,"width":822,"height":11}},{"id":"130d099e-aab0-44d5-937b-572a842439d9","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":165,"box":{"x":68,"y":891,"width":814,"height":12}},{"id":"916fa56c-0077-41e2-b465-15cecc7c9aea","block_type":"box","text":"II-123","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6d3e2b4d-593a-4b05-ad87-8a5f64521d44","block_type":"box","text":"NM1026U-6032801-165/242","page_number":165,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"236ee39f-bc20-4b4c-9d97-4cfe6b5118a6","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":166,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"d2f2ad1b-3232-4a50-b307-4a142a08f06e","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":166,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"10a0be45-0b95-461a-a3d2-8527b7fdd6b2","block_type":"box","text":"pricing time.","page_number":166,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"f0328f02-14e0-4af8-a210-4b7b1d2454f0","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":166,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"0bf831ff-d58d-4d63-8930-7dc442d0dbf6","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":166,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"f910540d-7061-496c-82e0-5e69ff4ab27b","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":166,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"1b31a22c-68d2-4675-a393-d40e6203e33a","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":166,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"bb724751-5f62-4cbd-b6cf-94e1dc64ffde","block_type":"box","text":"assets and liabilities of the Funds.","page_number":166,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"0f27e29c-e4fd-4518-972e-1dd066007f0a","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":166,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"be3368a2-730f-4bf7-8621-a522542c19fe","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":166,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"c2cf504e-6e31-4eee-99d6-e1bce770f442","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":166,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"f40095b4-fa0e-44f2-8a9c-fe9d2d56dacf","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":166,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"09134ff2-77c7-422a-b68c-e6d24117eb9f","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":166,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"2c9c5b13-4ad7-43aa-a1c5-a682f82001f3","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":166,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"4ad42081-bc29-484b-8fc6-6aec2043e387","block_type":"box","text":"valuation models.","page_number":166,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"d951f3f4-8582-4e46-8955-8f076a2a7995","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":166,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"3d23b5ca-bd89-4e44-8ea3-8280fe5242cd","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":166,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"8d322d17-fea5-44ad-acfd-db9077905ab6","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":166,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"4b5fe086-c699-4d2b-819c-0d32414af9ae","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":166,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"504d530c-6813-4705-8420-9c66ff9ec605","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":166,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"34050d53-6dcc-4021-ad4d-f2884fde6238","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":166,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"f3fc02db-dea2-429d-8144-c8d8118edcec","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":166,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"974dff83-86bc-42b3-8391-d3d9ce2a58cb","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":166,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"76b6d5da-16fd-4367-be94-5f76a3ef9cbb","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":166,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"17084ca2-8120-4a47-9501-bfd9feeffb5f","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":166,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"fa9b3b83-4f4c-4dff-bff2-d33a392d4a87","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":166,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"0963f759-6d4f-4058-9fbb-f01702bb9a2b","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":166,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"1f6f82a4-cce3-429f-b560-29db252f1fd1","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":166,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"873a6771-357d-45ee-a279-cd21693acb10","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":166,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"369eb5c5-180b-4e2d-87ba-72b356c70506","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":166,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"691239e3-ebce-49a2-aacc-f314b1984e48","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":166,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"efa139c2-69a7-47d1-9773-67232a8e705f","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":166,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"bdf297b5-ab50-4272-af77-8b408311cf44","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":166,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"4009d10d-39b4-497f-b54d-551a7b6dcdfd","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":166,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"3c2c6cc2-67d5-41da-8bd3-b5e282af60a6","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":166,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"14342e30-2cf8-4563-a1bb-e5866906dcfa","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":166,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"37244747-81c5-4ef8-a4e5-633d492890a7","block_type":"box","text":"party determination of fair market value.","page_number":166,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"6c7d62d2-c7c5-4d57-984b-a2002393fe6c","block_type":"box","text":"Computation of Offering Price Per Share","page_number":166,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"4d87ae40-8070-44da-8bd2-d920bf1bff45","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":166,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"29015aff-7648-471b-9fe8-c2682b12d184","block_type":"box","text":"the offering price for shares of your Fund.","page_number":166,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"d6beacc1-fd3b-4ed7-8cd7-9e6300ca69bf","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":166,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"51245d47-ef35-428a-9147-b5f4f47ea81b","block_type":"box","text":"Transactions in Portfolio Securities","page_number":166,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"c25e313e-4288-4064-882e-c7d052c8cab2","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":166,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"e57a2bca-30f1-4c66-9f15-d513f80f3340","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":166,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"63d9b664-a3bb-434f-a5a7-da028ded0c46","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":166,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"9c2a8cb5-00aa-498d-881e-dd1d91cc67f8","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":166,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"050f555d-7ab2-4577-bcb5-60cc03f91b08","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":166,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"7838dae3-ec59-4908-8995-63a1ffa880bb","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":166,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"b6b894b5-1b5c-4673-9efc-c83d4061ad79","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":166,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"e4040e13-5ad7-4ddc-af46-129732d73872","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":166,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"d404c9a3-f220-4bb7-9ae0-e72c63b32973","block_type":"box","text":"II-124","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9e0fc8d6-4451-41b8-a843-827ed62a46ab","block_type":"box","text":"NM1026U-6032801-166/242","page_number":166,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8e3a653f-aedc-46df-98e2-22b5507b3561","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":167,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"66d2bacd-8c9f-4cff-bfd9-a4e93d96d072","block_type":"box","text":"reasonable in relation to the services provided.","page_number":167,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"8c5dc5a1-9f2d-42ab-9edf-8a97a34a082f","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":167,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"6447b032-fdc8-4fc3-aa09-c940124d206c","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":167,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"38c83508-e463-492e-9a7a-1ee24a3f7b68","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":167,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"6a8fc68d-e31d-49f1-b1e5-160b24e64e92","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":167,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"99710629-9137-45c4-8d6a-7355a837f70c","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":167,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"68a65169-f8d8-4ffe-8203-1394adbd8816","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":167,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"fb301b02-f86a-438d-b936-128bfb1a40d3","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":167,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"d42c16d2-95ad-4a4f-a71b-fe7d7008ea55","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":167,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"fc9482c8-253d-4055-bd12-4e687ecb88a0","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":167,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"09aa7ea7-08bd-4453-943b-2af1c07efac0","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":167,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"eeaebce4-d613-4982-bd3e-dbfe3340e1eb","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":167,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"738b7c47-afb9-4374-967e-8486a035c387","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":167,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"8abb860d-d35a-4b48-9f0e-d78289a1d306","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":167,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"06e9392e-ca6c-40c3-8450-17943398c693","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":167,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"934ca378-084b-4113-83ed-af65ad835e4c","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":167,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"0c340a82-9e08-4eae-98b2-cc86d3248f70","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":167,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"02741880-ddf5-4513-9fbb-1b4841763357","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":167,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"53597f3d-9053-4d9b-86aa-5e4fd64c5efd","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":167,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"510643e6-db52-48d6-b452-206f7195d3dc","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":167,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"1ab05eb8-c5c8-4698-afab-ebd8dba09593","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":167,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"0ced016b-fea0-4f3d-96c1-177f322d6b0d","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":167,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"d8bfee57-c5c6-49a0-b7d3-7ef86fbcf61f","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":167,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"07b183d5-265b-4c32-9e0d-bf550cebf5ca","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":167,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"c12672a0-eacc-495e-86d8-f77444a75802","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":167,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"1a53dd42-719e-4223-b9ad-be91fb9ed786","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":167,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"5a912115-3f97-42fc-9a2f-2471a5cf3105","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":167,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"d21f53f9-9336-4b3c-be77-bf5cdc393717","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":167,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"60c3478e-623c-42ee-b752-ab2aaf165dec","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":167,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"9108e2d4-037c-4ecb-952f-39dedfecd1d5","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":167,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"79a9811e-0e35-4f59-b37f-2e8ba1aab770","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":167,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"63e343be-e33b-468e-8251-43615cef1dee","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":167,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"d43a55c6-ec58-48c5-94c1-20c48ab6c1d0","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":167,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"86eecafb-00bd-461e-a07c-13ad0e7b038a","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":167,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"77583c4d-36b7-4b3c-b254-89ebdbc11dc1","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":167,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"3ab052ee-2ef2-420b-9721-bb7c0934e6d0","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":167,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"4ea6b159-d4b2-4c62-9e04-fcaebe1467ca","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":167,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"c942a46b-69cb-41a0-a5da-7b18d67317f9","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":167,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"b56f0dae-e055-4b01-b169-6ac58e7cdf53","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":167,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"730f3f30-af53-4ea7-90fe-5563632d6e70","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":167,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"c482fe48-9fa4-417e-8705-7b6e48af9402","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":167,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"282cae1e-4cee-45c6-bb3c-df1ac23f0474","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":167,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"37a82142-2b2d-4efb-91e5-20c0053a4d44","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":167,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"ffb28f64-f0b8-4d29-b573-8475687cec27","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":167,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"bfca367f-144f-40f4-95b8-c4f91439ebc2","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":167,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"722527e5-5043-4b35-8421-1c837bf16ed1","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":167,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"1d4ac8ca-ad71-440d-a92a-2dd610255f01","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":167,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"f7cca06b-804f-4025-8ca7-588799822fac","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":167,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"f60fdcea-7f90-414c-9e97-cf1bac31b8c1","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":167,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"be106b6e-eab0-4077-baf8-fbe3ae347452","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":167,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"a024cd31-7bad-4c7b-a77a-703e34432530","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":167,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"f4023220-0d9b-4c82-909a-739a64019938","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":167,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"e3e848c3-0239-42ef-b2a9-202df5ef5794","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":167,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"ea419c29-7ca7-45ec-9e9e-17cfc9a4ce76","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":167,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"0261021d-6dac-497a-8395-dc7fea078384","block_type":"box","text":"II-125","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f63b7e99-ceca-4811-93e7-6de980c2a630","block_type":"box","text":"NM1026U-6032801-167/242","page_number":167,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c25836cf-913b-4c87-80be-63127f9a1afa","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":168,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"6df1effc-bf4a-4b64-9f11-f97c79b69c82","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":168,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"20161ce9-803f-47a3-b274-fa235e9777fd","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":168,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"87dcd637-5fef-4fcb-841e-7795046f8ca1","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":168,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"47d745e3-661f-4896-8f10-dffc1aec90f1","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":168,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"ad5642b0-4f71-4c37-aac4-a794178f3f2f","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":168,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"c37b7283-bf22-403f-80b9-0f21b61597d9","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":168,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"6a27e993-9ae7-49fe-9577-1b171246502b","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":168,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"bd2a8550-ef5f-4317-99ab-402d98fd7976","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":168,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"da73ca2e-2bd6-44a6-b7d7-4139bf1fde2d","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":168,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"3f6fd3b7-9bae-42bb-8ac3-a142bf680c70","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":168,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"c4b3a7db-bbc6-4415-8153-a4f67cabbe88","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":168,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"c9d91a20-573d-41f6-891f-ea67fe8cce24","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":168,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"97f4f34b-8c05-4e93-be32-57057be5d2d1","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":168,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"f626453e-d1ae-4860-9860-c9fbd6d2172a","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":168,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"f489b983-9b21-44b2-9160-4927a3d6ea0c","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":168,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"f3a97f79-03ad-4bb0-a8c6-dd6538aee087","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":168,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"0e461a9e-1468-4650-9007-697081c22d40","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":168,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"6186f727-66dc-4a5b-9ad7-01a3927437e1","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":168,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"fda656b9-f0a6-48ae-8fa5-7bce2a25735a","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":168,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"ae33ffee-4c4b-4c81-8650-f73c47311bf9","block_type":"box","text":"brokerage.","page_number":168,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"112c82bc-9653-4baa-b98d-c850e676dc7f","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":168,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"3ff90059-aa8a-4f89-8d95-45deb95fe6aa","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":168,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"9b062479-0750-4528-8f5c-ab3d166c3ebb","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":168,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"31eee034-7924-45c4-9a09-d5a889ea6848","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":168,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"766b4af0-f5ee-4722-bd66-623b1748bd21","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":168,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"c9693f48-865b-4a5e-b0fb-c64e42d211ae","block_type":"box","text":"Section 28(e).","page_number":168,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"47bc09e3-930b-4e5c-bd09-626f5f54ccc8","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":168,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"01f12215-63ee-4173-90d9-7a65a2871d89","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":168,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"204faf77-b2d1-4c11-b4b2-96a6c2c6348e","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":168,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"8d6f681e-85ca-4ec4-9037-415dfaee20a1","block_type":"box","text":"execute transactions for those mutual funds.","page_number":168,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"c4501c18-0edc-4780-997b-3037d787bf38","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":168,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"59568b03-43eb-4d83-b9a4-a61bbf3c29cf","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":168,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"4723111e-3c20-4801-a568-f9807b213f3b","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":168,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"f10a2cf2-5f57-49b8-99e3-bdcc89dcc5ae","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":168,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"f4243231-3525-42f5-b442-70ba6017974e","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":168,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"8724a25b-384a-4229-a155-d12dde62ea2e","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":168,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"bae9bde3-568e-466d-9b92-9803c9eb6d68","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":168,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"1480aa3c-9a74-40fd-9079-68e4cda2518f","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":168,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"afd7c365-bd2d-48cb-8175-009bde8d8a4f","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":168,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"a5d3b99d-1a85-48f4-845a-91b615bd5474","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":168,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"5834a84c-6666-43c0-8539-17909124fcd3","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":168,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"a9e58c18-a431-42b7-9a9f-3e907af8cda7","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":168,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"002f5764-350d-4c55-84fe-f2391cd594e6","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":168,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"76e831f1-2404-4f29-80fd-3215c98f240c","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":168,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"1a1e154d-7ea1-47ba-bcef-48af989e0026","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":168,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"1e301c2b-9bf6-4a8b-bfb9-339dcacb481e","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":168,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"0abad3bf-adec-444a-927b-2c382d45a6f8","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":168,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"605d6b9b-7f90-48b2-a236-c931de636c48","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":168,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"36a4ec71-8457-4c86-a7c1-96b677d8bc33","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":168,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"1367ba81-eaab-47af-bca4-b465a894df90","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":168,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"3e92e3fb-3487-4859-86f6-f35a901667c4","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":168,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"860259fb-1879-40ae-a860-ba3173b9e127","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":168,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"43771000-3331-4f6d-a038-0607bbd44976","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":168,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"8db62834-9afa-4f3a-8533-fa0c5c76cff2","block_type":"box","text":"II-126","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"52038776-7451-474b-be8e-4ee369a6431a","block_type":"box","text":"NM1026U-6032801-168/242","page_number":168,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5bc7a7c6-5ef8-42ac-883b-b63eeceadc93","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":169,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"0683b699-fca7-4e1d-9bc5-9a6847a16383","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":169,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"9ed2670c-8546-4196-afb3-2e38f238b46a","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":169,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"8d6fb0f7-a479-4bff-9c30-05c68d6b9dee","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":169,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"4fa29fba-4ecf-4d97-94d0-23cd67858054","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":169,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"0e7a2687-b8c3-4c88-b0dc-c20d8b90ad10","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":169,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"9db7cca1-ab43-45af-9857-a01a1fece9a7","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":169,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"06b1c1f4-0923-47de-9711-75668b1946d7","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":169,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"cb0b9319-2a76-410f-ab0f-b4afcaa853b2","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":169,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"4b620eb8-0f63-4b6b-a21c-0ba2803766a7","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":169,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"fe9587e2-82c7-4ab8-84c2-26752579a30d","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":169,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"b5516455-5029-42b3-acf9-274e02bedc9e","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":169,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"657de639-2b18-4be5-9c18-34b4dd15d257","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":169,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"d7e03e3a-6bb9-49be-ba36-e0a7f2204d5a","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":169,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"a70927b6-4fb5-466a-a1e6-581d282000fa","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":169,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"27baa7b9-a7a2-44b2-a671-50ff36cc2102","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":169,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"e1634feb-77dd-401e-b461-2f7a910b4389","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":169,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"238e87e6-003c-48d8-9d7b-3fa7f9155c24","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":169,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"fefff392-db77-47bc-ba3f-813445f83ee8","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":169,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"83f8414a-2e3c-47a2-84da-790b3f48c793","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":169,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"587d3ea8-9b58-4a6d-8012-a51cf385828d","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":169,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"9f1d6a0c-81a7-4407-bfa4-d174a7dc7303","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":169,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"ab091c5b-0ade-4282-b756-05d8339af8a9","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":169,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"cf44fe96-1066-4c73-b11a-26bd0b6b4727","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":169,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"4dc743eb-8128-43c5-b3be-4346f8568c39","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":169,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"6644fa7c-62d7-4f92-ace6-474ac0f6aa9c","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":169,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"2ca531ca-4406-4f33-b483-342a6938fca2","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":169,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"85b32539-28db-4ff3-90cd-54e92c33ec59","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":169,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"dd71eb8a-221e-4e4e-85e9-33e64e30694d","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":169,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"89004709-553f-49ce-893d-c5620a1d8392","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":169,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"58123b12-f3da-4629-b97d-c3ef85d7cbbb","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":169,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"83583bff-4058-4b44-9dfb-059fee3e7db7","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":169,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"f7ab33d0-3dfc-46be-a1ad-ccc4edd4ee01","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":169,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"dbb72c74-2bc8-4647-8ead-4bee51a60cce","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":169,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"6644006d-5810-4ae4-950d-69d3a9d334e6","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":169,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"624f9877-fd35-4a46-b186-4536ee81d7c7","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":169,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"ef3f11d3-d84f-448b-9484-6d26acbe56c3","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":169,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"83fd875f-5d7d-4ca7-98b1-478e99ee896a","block_type":"box","text":"accounts and compliance constraints.","page_number":169,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"0eb968cc-33e2-491e-8910-3f7064636a59","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":169,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"a0f2bcff-29fa-4f16-9272-db114629c43b","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":169,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"2b96f84c-5481-49b3-bbf4-a591aee0bf51","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":169,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"8d5a2bf1-b8d2-4795-b05e-83b6def5b72e","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":169,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"e2715df3-639e-499f-a85d-6fdcf257629e","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":169,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"dd2f9730-3b89-497f-9d23-5ab0a9356972","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":169,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"b0e7f231-282a-4bc6-b30a-856fca8b91cb","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":169,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"76ed9231-b007-4702-908d-2d3820d40d1e","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":169,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"a39034dc-1766-4af2-b4e3-1fefa0881a5c","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":169,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"cac77bf6-5b2c-4ee9-933c-33a82867ebb0","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":169,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"8ce1373a-f064-4372-a180-ec51541e20af","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":169,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"9da60d88-e8d9-48b1-b9ec-c3e8024b44ad","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":169,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"a4852c06-a67a-4480-91d6-b43688593efc","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":169,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"2c7bd892-2a9b-4786-8a15-cb0cb7313949","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":169,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"e82d492b-b235-440a-b360-f5919efcb464","block_type":"box","text":"clients may be used as well.","page_number":169,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"787507ee-6fbc-493b-94c8-4007f40a311a","block_type":"box","text":"II-127","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"039e3369-a1fd-4521-b66b-6a6dc8e03cac","block_type":"box","text":"NM1026U-6032801-169/242","page_number":169,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a90bf459-a4ed-4bed-9d18-566fecbf39ed","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":170,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"91608d00-95e0-46d4-bccb-de136cb122b3","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":170,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"a0c4c18a-a3e2-47ef-bb8e-b06f1ba993d2","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":170,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"56a7f254-1398-4d77-a39c-5d7901f68c6b","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":170,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"a8d45fcb-7b1c-4ea4-9b31-54156cc00ff5","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":170,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"25393f95-490c-4df8-ae8e-451612b2720d","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":170,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"d93ec72e-ecf1-47b5-ad1b-10ac37bda034","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":170,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"88195c97-fd67-47d8-b25e-c8c686d1acca","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":170,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"5e1e7456-105c-46a7-920f-e84f3c8e42a7","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":170,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"afd4f881-1825-48cb-91f2-8faabf818bd2","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":170,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"07df878f-339d-4f68-bcd5-5976214b8244","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":170,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"e8da56fd-c1e4-4983-ad11-c6e1c0507d0a","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":170,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"8d998b7b-3905-4fe8-875a-93d11f7828f3","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":170,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"af6ab408-2df0-44ca-b319-41d9df22b2e8","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":170,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"67394ce1-6465-4a7f-ab29-9059481ac083","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":170,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"6bbf6fde-a6ff-4aeb-989a-bc8ea04cd70e","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":170,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"47f86696-376b-4998-9d22-8ff512b50044","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":170,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"e7ebaf35-fd19-456f-ae9a-0c3255b61701","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":170,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"3d3c6e83-aa03-418d-8ded-19c2e3e3b65a","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":170,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"c0f7c54c-916a-40a0-94d0-39ee70c966bf","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":170,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"0ddea322-b962-4d2c-8c1c-2d8f078a5baf","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":170,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"66bd958b-1f39-492a-8964-0e577b05a125","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":170,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"cf087b37-a9bd-4b43-b75a-c678a0a0d600","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":170,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"afba2be8-2a6c-4d4c-98b7-65614bda27de","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":170,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"fb85834b-0b17-4604-b417-f95499cc661c","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":170,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"29547b25-3f81-4a4a-95e1-61f118c18630","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":170,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"b09d48f9-eb0d-4260-b61d-d40a7ef6344b","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":170,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"477918c9-4264-4a89-af5b-63507644ca56","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":170,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"2a7e2b39-90aa-4b3e-a76a-65118550fa25","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":170,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"8d4842b9-f48b-4d66-82a3-cdde7625e1d5","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":170,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"6be464d8-fc3b-44eb-932f-f10cec8537c2","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":170,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"1ef64589-e7da-4190-bc15-32ad93418d14","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":170,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"5d7ce69c-3ef3-48b3-a676-5f96ebb19ae1","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":170,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"011ec293-c5b9-47f5-90ae-36a305b0d73a","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":170,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"67948d0d-313a-4160-b1f6-0dc58e3f2032","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":170,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"57714208-0c6e-4f45-b793-b255b3c0f5c2","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":170,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"c6ba292a-3356-469c-b80d-0bc73b16baa6","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":170,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"409fa146-420e-48df-b8e8-be0912d4b7be","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":170,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"fb5c3fa5-bce1-45bc-8b39-9f6309a75f9a","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":170,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"83ec5233-6b09-41c9-b450-976c8201f9b3","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":170,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"911c0880-d12d-4d0b-98a4-1a2615c1fef0","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":170,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"8d57e142-33eb-4fad-80ba-2639ffd60ffd","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":170,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"3a42b464-ce1e-47bd-8062-e498b90de7d6","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":170,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"0f26f349-4124-49aa-be7a-36fa30d39395","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":170,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"81690896-f73f-4707-9f18-7f93106666a3","block_type":"box","text":"Portfolio Turnover","page_number":170,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"4ae1d6ce-4639-4f2e-83d7-4b5326fa9803","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":170,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"1966d204-2550-4503-a783-7d432e99f412","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":170,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"5a108a3e-21d6-45ea-955d-823b98f97f6b","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":170,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"a3a78e5d-415d-40d5-9e7d-76be82ab494a","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":170,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"0c0a718d-20e7-48bf-83c8-589cbfab4456","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":170,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"7197f976-a30c-406d-8f92-398a33da64dd","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":170,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"b2438d84-5667-4444-bf92-31daa11a0f03","block_type":"box","text":"II-128","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3086dab9-c9a0-4c17-b403-0a0fa7312a27","block_type":"box","text":"NM1026U-6032801-170/242","page_number":170,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f999bb12-8837-41ea-a51b-6728b5b18dcd","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":171,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"7ec29a5a-83a3-4547-9b11-c88e9feef422","block_type":"box","text":"Dividends","page_number":171,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"e503794b-08a8-4bbc-b5f8-8cafafa5d7ac","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":171,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"69766a99-7fa3-442b-9244-e7efdd7b00e3","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":171,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"acff2c17-8b25-4c32-8231-f010f97fd1be","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":171,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"95233cb1-a71b-4592-9d98-41210dcf39e8","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":171,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"e3cc6840-4a90-4c96-a388-a5a3171f50d8","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":171,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"b6249a48-fe9b-44c8-8d50-8aea93adf8a2","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":171,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"b412b54c-d475-456f-96fc-ccee220032a7","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":171,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"6307130e-22fb-4537-99f8-c19f94af91d8","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":171,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"bc42845d-5865-4939-80e2-08053f37fc84","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":171,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"21c435ea-7ba5-47e8-b94b-69f7fa61702a","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":171,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"c3103f64-d61a-4da2-a3d5-ce37a1be26f7","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":171,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"b5891f5d-f44b-4057-a9f6-4becf1a9d883","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":171,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"25fc2236-cebc-460f-a727-7931e36f0e6e","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":171,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"490523b5-a3ec-4146-b1df-2c53ec45c82d","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":171,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"3a93b375-fafa-40d5-88f3-5bce5f9490ab","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":171,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"3f5fecf9-044f-492a-8ee7-c256478aa701","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":171,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"ffa1fb46-b8a8-4a74-93b1-91d38788852d","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":171,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"25c775cd-86d8-47fa-b7b1-6874f618de06","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":171,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"c3f592c9-70ae-42f3-affd-26f6cfd19498","block_type":"box","text":"Taxes","page_number":171,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"d25e0bfb-3921-4791-8bc0-e572e29a1097","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":171,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"14bbd27c-366b-448e-8836-a4da86d84056","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":171,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"5a1d602e-4cae-4fd7-8849-06346908c982","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":171,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"72614f60-de7c-4e8d-8721-856f983bc644","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":171,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"5a6b19db-b433-49f3-8271-53abdac50ea9","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":171,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"4e3d5418-ea95-40a4-8e06-b153c905c9b5","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":171,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"08d7a456-bb1a-4212-bfea-d827b0e60160","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":171,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"79556ef4-9429-4143-8bdc-849898368dbb","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":171,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"a964ca96-dbc7-41db-b54a-2d82fa5dc9e8","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":171,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"76500ae9-c25a-4796-9e82-daab51bc9eef","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":171,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"4cb7f8a3-c790-454d-8b9f-54defb420c8f","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":171,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"53855ee5-b05b-4e7f-ba9c-35a7172b0d84","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":171,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"dda32344-a059-4a8f-bf9e-b856cc02887d","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":171,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"885a6aeb-e3dd-4dd9-889f-5511edc4a51f","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":171,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"59192fae-e277-43fa-aa04-730bb7965aa9","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":171,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"42bbb69b-e5c1-4f38-92a1-9d4bff5574ad","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":171,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"16f54125-d661-4eea-8042-e53c6db760a3","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":171,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"5220444f-df44-4d09-a404-8d7ef4144e24","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":171,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"166692cf-5c17-4f77-aa45-51a72b1eaafb","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":171,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"65bf5f3e-650b-4724-98b6-82bc8b33c62b","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":171,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"160e057f-79eb-4142-a283-6300b2d65057","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":171,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"808bffc6-3c6a-46c6-bba3-dbdab50af18a","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":171,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"1c30b297-1aad-431a-b6d3-66775e32438a","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":171,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"47e1d0a5-967a-4976-ae64-dd5a39bab93e","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":171,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"397163f9-9c9f-4f7f-aa00-ca470851b36d","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":171,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"47e6678f-dae8-4c73-8bfc-f2a08c31a76a","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":171,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"e5fd1070-a737-491e-9b67-ccf53b47da4e","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":171,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"d1efc50e-269e-4ea5-9367-8e9b495412c0","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":171,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"ce2fdcd5-8785-47d2-815e-ee31a13effa8","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":171,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"74c1dbb0-7fa1-48f1-b101-2d8da56a341b","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":171,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"1f10e3a3-7f52-4af4-ace7-90878147d88b","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":171,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"6ccbf07b-c4ca-4c47-b631-6160bbd94a74","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":171,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"a6028469-50ed-48c8-9760-63b6e0bb6d16","block_type":"box","text":"II-129","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"de4a6a0e-6627-42dd-b787-d3872e2d8e3f","block_type":"box","text":"NM1026U-6032801-171/242","page_number":171,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"de6f3920-3803-453a-a3c2-daea8afc6843","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":172,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"38c7639d-2f52-40f5-bc7e-fce767d37b39","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":172,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"f5308ed9-6a89-4827-9435-ef7cdad4db19","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":172,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"513fb2b4-a39e-48a3-86c2-2074b8915350","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":172,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"184a6715-3ce6-459e-82e5-29d825c0862b","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":172,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"a692485a-9f6b-4d6e-b6c7-a0668a22f898","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":172,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"c0129a72-130d-4172-91ae-5da45e50ebd3","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":172,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"d4441423-9c3f-4457-8980-9d7364837e1d","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":172,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"c28e4dfc-1891-47bc-babd-66e5b4643eda","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":172,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"c148739c-8ff4-4472-98e9-9ffdfe71fa76","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":172,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"3fe7e616-4736-4393-b16d-89bc188d9c9a","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":172,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"2c883aa5-ed0e-443a-9033-cf8867fd6e0a","block_type":"box","text":"limitation.","page_number":172,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"b8880e73-9255-44a1-a9d6-5b5ecd78cf35","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":172,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"a5c12a30-f60f-4208-9454-9bf42447f569","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":172,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"49606de9-3756-4971-8132-42f50fb6bc65","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":172,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"7708e4f5-4000-4012-b2bb-fbae3dba5275","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":172,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"252e37fa-8827-4ca9-a66f-1f82b0c40d69","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":172,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"3f235188-dda5-4953-98b9-a4ab1568cda6","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":172,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"4a62e372-2e5f-4b4f-983d-d6fe98fed704","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":172,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"faecfba9-db37-443c-828a-e36a1b4d0437","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":172,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"1b620191-9f39-4425-b21c-3d58c3c4b5fa","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":172,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"76000a8e-70c7-4e5c-a2f0-1a8eff38c381","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":172,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"e1480324-70ce-4a3f-a06a-233e3ae3864c","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":172,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"5edc8474-a06c-40b2-a2ce-ba41daa8273e","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":172,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"6a18a5a4-94bb-4784-8158-657166af863e","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":172,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"4b81e37f-7140-4904-b54f-482a2fc95bb6","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":172,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"8ed80ba3-8eb5-4b7a-9270-9310e4330142","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":172,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"84228120-f63b-4455-85f6-8b1a0024b533","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":172,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"d381856d-8335-4a3a-8c6b-6f55b30f69d8","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":172,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"8f326c65-c5bf-44e3-a7c0-ca2b61ca7f29","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":172,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"1065767d-2fcb-4f7b-81b6-2d3041465468","block_type":"box","text":"constitute “qualified dividend income.”","page_number":172,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"01cd3445-749e-4bf5-bcc7-24f5016ef497","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":172,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"93e895b1-f01e-4c90-bec1-0a0b5eb5abc4","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":172,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"906db691-5da4-4f36-844b-7ad59ab81dc4","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":172,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"d9ef4985-0fef-4c40-a93d-83cfd4ce3e5a","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":172,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"d197649a-cb3a-4108-9ab3-34f59facbb67","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":172,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"62918822-7f77-4b3d-8296-d6c8f887c63b","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":172,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"281b100c-8a6f-47e7-b771-93cb6dae043e","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":172,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"973e4cda-ab41-4aae-a4d5-947d398446eb","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":172,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"01bf2199-0255-45a2-bb67-c947a894137b","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":172,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"d4f5f3b1-8227-45d8-b30e-44e42d79d53f","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":172,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"422172e6-037c-4625-ab96-994cdcf8d5c8","block_type":"box","text":"against their taxes.","page_number":172,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"82625c68-c9d3-4caf-8dc0-f864abfbc2ae","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":172,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"7819e4e9-282b-4565-8f40-59b987a897c1","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":172,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"047d116d-c39c-4876-b253-333dcbf4ae74","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":172,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"486e485a-491c-4e86-97f3-eed0233546a4","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":172,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"e64c5f03-7b95-470b-8461-ab5e0367bac7","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":172,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"24043e96-ff88-4af0-8004-601767801d75","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":172,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"71e41ad3-1bb6-4a48-b569-77a41ee9c097","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":172,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"6a8632c3-e386-4a3b-875c-d6ead1725422","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":172,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"38eefd72-1cac-4a01-bd6e-1218b63b598e","block_type":"box","text":"dividends received by the shareholder.","page_number":172,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"69669d8c-8e0b-4c2d-a9fa-be2627bb8b31","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":172,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"57a73eab-7509-4906-affb-6167e30fb283","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":172,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"f6c28a42-e61e-4724-b1f3-d3d52f6d7665","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":172,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"6f6660e9-b838-4f7b-aedf-b27ed6901f7f","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":172,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"87aed5a5-145f-4ab0-ab50-3ec40ef023c2","block_type":"box","text":"II-130","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"17fed167-792d-48f1-b5e9-692189c9ccf8","block_type":"box","text":"NM1026U-6032801-172/242","page_number":172,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"054d4eb6-ff7b-4cef-8dc1-9eff30c59b86","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":173,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"c1714679-f981-4519-ad20-27e319ea5dc2","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":173,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"2d68e313-d8f3-42c6-a405-5114d5dc125d","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":173,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"3076591b-5ba5-46fd-bef3-ee848345dcc9","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":173,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"3e8a6ada-5834-4695-8666-2f52d3fedf23","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":173,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"42142ea1-fa45-44a6-bbef-0af324b21b99","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":173,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"4830c990-112e-48a2-b5a8-6bacefa8c072","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":173,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"74d8f214-6e5e-4cb0-bf2b-cf8f9cfc9428","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":173,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"1ac9c483-f9ce-44a9-8534-510bcf334331","block_type":"box","text":"taxable year.","page_number":173,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"94603c1d-d60e-4fe6-a2a1-e09f4acfa6ac","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":173,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"634c7f99-6df4-4fc3-a09b-b1de45726897","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":173,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"600b03bb-69af-4a43-9f28-9f66f4bb46dd","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":173,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"4a91c5ec-0b2c-479b-aed8-81eb15f741ec","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":173,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"01740c00-4596-486b-b3a7-7712d0adb8d5","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":173,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"e26b4b13-1593-416f-9528-a1089d3fd214","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":173,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"5aeaee8a-be83-4dff-86e6-11bad290b068","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":173,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"230c4ac2-20ad-4dc3-a7b1-4249b02d732e","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":173,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"6bb10b81-5eea-43fa-9f71-5eaee5a33ee7","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":173,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"2555a133-e048-499c-a3ff-d8ad3f1d956f","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":173,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"a3d46bbc-6c6b-4768-8279-3e84459ace9c","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":173,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"f7201c7b-026a-4473-a695-51c8825a996c","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":173,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"4c876180-14b6-4fbe-a3cb-bdb4c7afa406","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":173,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"20197ba9-345e-40c5-9ee3-bc8e56f70118","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":173,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"6031a4c6-244e-49b0-80e9-6edb9ee6b103","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":173,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"1ec02e31-c034-4818-848a-a5dc95330887","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":173,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"5ea5ae9e-0e74-4ccb-ac46-10efbae2c1e4","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":173,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"ece92499-b18b-4f44-ad76-3d1216c4fac0","block_type":"box","text":"special tax rules that apply to their investments.","page_number":173,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"9a757ea3-aad4-43a4-9efc-5b20cf5769d5","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":173,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"6f258508-acd1-4123-8b54-97ba668956d0","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":173,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"f895b656-c426-463f-a67f-e1df567c4dc8","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":173,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"e013466e-10d3-4496-bcab-b4e0a8185098","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":173,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"46a3afb2-3337-4c89-abb7-253e29648255","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":173,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"9c6dfef0-61a3-45c5-a848-dc4941ab74a6","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":173,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"7bd29707-7d5f-4ebb-a7d6-6c9458096fc6","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":173,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"551fe342-2d25-480a-b529-7d2e4900be2c","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":173,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"4d9dcad5-259d-426a-b3d4-1e594ea7d024","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":173,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"de2c299f-17c6-47a2-88d4-628b413e6405","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":173,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"ac827513-1b94-402c-a96f-98c4a806d761","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":173,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"50f19326-40b9-4617-8bf2-8d5d193f3581","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":173,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"8c906a56-fbbd-452b-9e89-fccc2d9fcb5e","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":173,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"0da44b2b-d989-43fd-bd1a-3975d50c7514","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":173,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"4fd80323-992a-4604-96ca-e36b0e5faf75","block_type":"box","text":"redemption of such shares.","page_number":173,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"81b7ca26-268f-4cd2-863f-c308473808f5","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":173,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"db6e3729-0dfd-4297-9400-1f6051afba82","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":173,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"280f01be-1e94-4c1a-82ed-2a2937a2ea01","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":173,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"a5032790-62b8-47de-8878-d6d636f88197","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":173,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"b9c51acb-7546-4800-8c3f-37cdddd360c5","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":173,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"21af50e7-522f-4a7b-bc30-749a2715f542","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":173,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"ed4e14e3-4f5b-4143-8290-ad927821a656","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":173,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"becf4606-3adf-487f-9dd0-f9c57188750a","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":173,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"7103bb24-7c45-40be-b2fe-2ab2f18b5300","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":173,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"7de8f6b3-1cbd-4186-b631-aa9295375bd5","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":173,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"dadb36b5-05d8-4365-9892-a8abe9a13565","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":173,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"449065a4-3965-41d8-bf1d-cf746aef85af","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":173,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"a7c4a83f-05f1-4d7b-8987-ce620bca402e","block_type":"box","text":"II-131","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5a6e1bc0-9583-487b-b003-392558f40cfd","block_type":"box","text":"NM1026U-6032801-173/242","page_number":173,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3ed89db8-ebbd-4a80-b669-7bcac775f3cf","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":174,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"b67bcc31-bad9-4b01-9957-235378db56bd","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":174,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"f4298256-8e88-4310-86f7-0aa6a6f281e5","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":174,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"5eef2d7d-beb9-4a3a-b6d2-84907a5f580d","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":174,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"d22a52f4-a33b-4b21-a331-30ebcc0766c2","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":174,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"e97d1cce-37f7-4eb9-9ca5-3adbe670050b","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":174,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"4ebdc8dd-2d16-4f96-99ce-44606890b418","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":174,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"ba4c14c0-f2ae-450e-b338-6e925f03de38","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":174,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"2d039ea3-344e-49a7-8cd7-9160bbfb42c7","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":174,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"b6778b41-90b9-45e8-a6e2-0c7ca1574a14","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":174,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"19991dd3-6e2e-4230-be2a-ddd3ad92889a","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":174,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"5e30ee5a-76f5-4231-86f3-a10b517d3f26","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":174,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"198601f6-e928-4eaa-bd5f-d207d1da14c7","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":174,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"bd96c689-e64e-401c-ba83-b0035146ceee","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":174,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"a4145a67-6bf2-4f70-b305-e5acc99e13fc","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":174,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"1fbca0ba-bb89-4ed8-be87-1bc1522fe717","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":174,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"207fdbc6-91ba-4c62-8975-5f5665b18d02","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":174,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"05359629-58ec-4c2e-8bc6-3e68e2216d7d","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":174,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"746323e3-3d0e-4b7d-bded-623ed0ffb168","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":174,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"eb4b1d40-a806-4e09-a975-6151e41b7b83","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":174,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"a97af1f9-4a14-49e6-b146-7e9bb86fc3e0","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":174,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"7ae10b1c-9a4e-4e7b-90ee-e1ebb5f90a8e","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":174,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"81d4e4d8-dec5-448b-9e15-2f5812450ba2","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":174,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"cd444e03-383a-41ec-8c07-f8993107e805","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":174,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"d78f7eb9-0d2f-4e8a-a9dc-530776016a20","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":174,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"47a10648-6dac-4474-86ce-866c1fb78cd1","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":174,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"2d19e860-eb9d-4a9e-a828-72907a7d5615","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":174,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"cba0894b-12dc-4143-a875-77fb2466d6c8","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":174,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"c8c667a4-528a-4526-9741-8466b54d2336","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":174,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"7006bae8-5a06-4f2f-ac11-939374c122e4","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":174,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"ee604425-ad25-49ec-9be6-6b59f21aaaf9","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":174,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"6b07e2a8-b04c-48db-8b26-900583293e17","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":174,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"087d81a9-283d-4881-8733-02dc663a325d","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":174,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"5f6b79ce-1324-477d-9e52-78a605e95d4e","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":174,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"20ab2ed7-a350-4e9f-8441-689a65b9d917","block_type":"box","text":"in subsequent taxable years.","page_number":174,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"8a9996ae-bbbc-42de-9fe8-78da5de95f41","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":174,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"9608c1a5-4ff4-4901-9857-62efb85b1fa9","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":174,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"d7da46df-706c-46ab-a160-816963921f7d","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":174,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"df11400f-6487-4219-9164-558a118bcf2c","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":174,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"0d4b069a-16d9-4688-92bd-454e2e24791d","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":174,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"c12b67d1-6a97-4330-ae70-918fe609d35e","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":174,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"c79b5545-568c-4639-acc3-1a904f1f7fb1","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":174,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"d9c116e2-1fd7-4e6f-ac54-fc6c1026b19c","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":174,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"75f59f47-7d61-4388-8778-c91df088da82","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":174,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"19f3e18b-fdfd-46d0-abaf-168c5e44557d","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":174,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"91600eca-fe28-41ad-b9a7-792a9d6566b4","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":174,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"d391e7a6-75f8-4ac4-9862-83ef1e41af74","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":174,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"cd98d522-fb54-4dbf-86a9-fd4e7705f9e8","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":174,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"e383f64f-0027-4b5e-8810-6ef2346c194a","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":174,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"ace982f3-2163-43cd-8675-4d64b0ca625d","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":174,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"ba484b34-80ae-4782-90d5-b1cb0b1ef904","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":174,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"8c83a6c9-f074-40b1-9154-c738e206b99d","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":174,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"de138e4d-e8c5-4f0f-b49d-a3d09cf25d8c","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":174,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"725a3f72-0d8a-4d9c-816f-d107a1bbceb8","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":174,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"9c87d8a9-a806-4716-9a0e-525eb44bc5a9","block_type":"box","text":"dividends under these rules.","page_number":174,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"81cd058b-f043-4b77-b4fd-b6ecd470e24b","block_type":"box","text":"II-132","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b4a01220-f3f3-4407-ac77-fbc5e6255b0f","block_type":"box","text":"NM1026U-6032801-174/242","page_number":174,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2342f598-93bb-47ae-95fa-721313e220df","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":175,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"1afb0934-0e96-47cc-8cd3-876d3f678742","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":175,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"ed7643f7-b66f-41c7-b138-13e521a047b9","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":175,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"ca23ed1e-cc34-4154-8376-2f4c12f3df7f","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":175,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"4775a047-e7ed-4275-9903-32deae05a243","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":175,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"d3d66e52-0e4e-4854-b855-a381b053848c","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":175,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"417f1ba4-8c95-4d61-a37c-bdb23d2fd6e7","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":175,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"bdda0039-98c4-4be0-a91d-debfa5bcaf5b","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":175,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"fd1a7ad7-a4e4-48fe-bc41-d09ecb2c8000","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":175,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"41b29c44-ef9f-4748-8a56-de5713256a66","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":175,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"bdea8777-1309-48f2-a0c9-c63a160974b0","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":175,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"2b7cc59d-1515-4b09-b3ce-303b4e5074c1","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":175,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"ab7dc319-0243-4fcd-af9a-56ada5706c2e","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":175,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"4fcb9fb3-e354-4d1d-a339-8c9271cab406","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":175,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"dff78510-c99a-4480-8c45-6fda29d21248","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":175,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"3e5c3bc6-dc35-493a-872c-a5654d0a7f50","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":175,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"f2066770-6ad9-4351-86e7-ee5b6e1a6198","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":175,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"98b31027-5d35-4632-8aa4-248b78b647e0","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":175,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"0fd9906e-a8f3-43ce-a47d-7490ed5a379c","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":175,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"a01291a1-fba4-4e36-86e0-ea769b097834","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":175,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"8b536a33-23e6-48f6-8ca8-f7f60e30037a","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":175,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"bcb0b2e4-a631-4a12-a209-47bc3850936b","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":175,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"6f49e7ae-525b-4ccf-89f2-d40fb7fd50d1","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":175,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"e058f626-353d-4a39-a2e1-64b7dc64c6ad","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":175,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"72c3286c-ecb4-4f35-821b-ee9025dd8514","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":175,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"242aa66b-c775-4454-b16e-547821b0335a","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":175,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"1aef608b-49d4-482c-a641-5b1fd0f7ae1a","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":175,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"a06d341d-5cd5-4cdb-a2dc-305e09f30513","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":175,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"7527f287-a047-4f15-b132-d2223200fcba","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":175,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"b70fa46f-5c1a-49f1-8a36-817ef2ce6fbf","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":175,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"fd0cc24d-e766-4529-91ae-aca7ba08d91b","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":175,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"c9b7e0dd-fd42-4fe9-9d94-0717a8183efb","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":175,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"23317d0f-2afa-478c-85df-134478bd59c8","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":175,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"c966480d-fec7-4ddb-9e43-d653ee3dfa35","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":175,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"1e6db14c-111b-42eb-93b9-6429da5e56a5","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":175,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"1161e5f9-4fb3-431f-80b5-3e4a6ba4e935","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":175,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"dc61af35-37c3-4e1a-8e8e-819f457e7a7c","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":175,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"1108d555-0957-44f7-be50-3ba7567d5e5e","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":175,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"89cf0d66-9d4c-4d60-9bf5-f0b438ed4b8a","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":175,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"c5c7e172-f895-4525-a944-ac86b98efa47","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":175,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"581884e3-f1ea-4384-ab42-783d69d068ad","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":175,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"1ee6212f-308f-4c1c-8bc3-20d752138981","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":175,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"23edc264-34f8-496b-b93a-5dca1be87baa","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":175,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"6cbafec2-768f-4508-a3ef-b1c858f4aa76","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":175,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"0198b7ba-c287-4d0b-93b4-92543cf38912","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":175,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"b47bd37e-30aa-4322-a7de-6d6e6908dcb3","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":175,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"b613e287-9bad-4173-a04c-42ebd4142442","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":175,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"e8db507f-64f3-4ce5-be47-97b149a14c71","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":175,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"6ad87b69-1ce6-41e6-b7bf-bf2403230e61","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":175,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"3ba51c77-9a24-4d23-a214-9dd469c1cf86","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":175,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"eedb38bc-5806-4306-9a29-36a3fdf9e5f6","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":175,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"25ac46ae-3921-424e-9bdc-3c329851a5e7","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":175,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"b1932562-d79f-42f2-be16-6059ca443961","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":175,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"ee56cae7-6443-4ae4-a00e-3897e814a2f6","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":175,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"2dcd6c14-9351-4dc1-951e-ce010138008c","block_type":"box","text":"II-133","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b2b2dda3-86d3-4a86-acb7-22a7cb0afe6e","block_type":"box","text":"NM1026U-6032801-175/242","page_number":175,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fe0c4baa-505c-4688-86d6-0acce89c8098","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":176,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"533dcf20-e751-42bd-bfed-9d8f4723eda3","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":176,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"c61ba39b-19b5-4732-90f5-80fc70201a6b","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":176,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"50cb9a8d-94db-467b-853d-913d371aa3ae","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":176,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"72e21896-92c9-4d50-b96e-6424a2313f29","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":176,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"8cf743c0-f46e-41df-86f1-34ce686b63a1","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":176,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"577e88bf-8e2d-49d1-afb2-1dc7f018e8da","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":176,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"3195b3b0-02d9-4df5-bc46-e370f0d2ff13","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":176,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"905409c2-a3ef-4d44-86d6-03e2d48b18da","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":176,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"e937540f-9436-4c4b-8004-52b6c02865d7","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":176,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"f37cbe83-a8fb-40a3-ae2a-66124bf5e61a","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":176,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"f972133f-7024-42d4-a6ea-54d0fab03c53","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":176,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"157431df-f8d8-44eb-bd09-e624aea2a608","block_type":"box","text":"investment opportunities.","page_number":176,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"899b9f0a-24f1-48fc-a951-d9904d43448d","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":176,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"efece701-5259-4804-aa57-3b873b8973a2","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":176,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"9e2fa26f-b204-4742-8f43-5d2bffdf83ec","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":176,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"79b291b1-c436-4b3f-a3a5-23c98a5c7ed2","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":176,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"fb02df89-01ed-48a3-b956-6c46a20e4123","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":176,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"c99e55f2-f274-45f9-a1b0-8d7821d3fb53","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":176,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"e9254cfa-dd8c-4a1d-aff0-20ced69252fd","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":176,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"dd1fb483-f7fa-45bc-8051-3a9ac3376772","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":176,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"d0089cfd-fb12-42fe-9059-887bca8ec8f9","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":176,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"569f6c44-bc1f-480a-b704-39a52d573ecd","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":176,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"6cb5dd8f-8ea7-4a91-bc4f-71904793b326","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":176,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"fc09b538-3555-4bda-85c5-d770239e5a27","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":176,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"37e9e801-ae6a-4421-9411-3840eaa90314","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":176,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"e62e621e-e326-48e2-bf37-bc15da93a4e6","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":176,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"0aeb4166-c7e1-4cde-b778-12f5cfc4d2d4","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":176,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"5413f890-6051-4565-8fb8-43e8d80ac409","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":176,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"27dccc0d-d189-4cd9-a49e-cd3564cac781","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":176,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"b13bb768-80b1-47c7-bf72-0f58bccec116","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":176,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"fbcc97e2-b8c9-48ee-a2af-e2e367a564cb","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":176,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"4d2d0629-dfee-4a20-acfe-7884b1f78ec8","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":176,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"95bd8dc3-cfde-4a82-8c7b-485eae78ea05","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":176,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"dd0d81d0-520f-443b-b248-3d4efb40a195","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":176,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"cd50aaf8-93f1-45bc-b3b3-26d5edf81708","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":176,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"903fe93f-c6bc-4d7d-8f3b-a6400886084a","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":176,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"e8d56388-4ae4-4236-b353-38abff72b5b9","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":176,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"3856d57d-2f30-4913-903e-6266b8e8b8bd","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":176,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"f06264d0-151b-4562-bf67-473b7f571b6f","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":176,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"f18144fb-8467-40c5-9df2-ecfe124093ea","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":176,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"14d14ca0-2f12-4025-8830-cf344d873f05","block_type":"box","text":"positions in its portfolio (","page_number":176,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"edc40b2e-8828-423a-adc2-f36cc81d2fa1","block_type":"box","text":"i.e.","page_number":176,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"745c2020-b13b-4022-8fd5-e40ed55d4056","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":176,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"3d3a2cad-bd1e-4e4e-b1d5-61e6abd34d78","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":176,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"6247c1bb-50e8-47e4-9699-610f7f8110eb","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":176,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"7ac7406c-2630-4d1d-8807-aa70ae301c9e","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":176,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"0b87be70-91a6-41c8-b68b-d7e6a05f3b92","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":176,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"2614b1a9-97a5-4263-8491-3e15db348624","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":176,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"9e29313c-d791-4e0a-9358-6a341b71c232","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":176,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"55d86991-e8e3-4b9f-9099-65e99d67d40e","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":176,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"9253f278-035b-4484-bf9c-d46dc171b403","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":176,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"d92cd607-dbe0-407e-be49-14e81c1a7612","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":176,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"03e0c23f-b5fe-434e-b5c4-e6a594869a38","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":176,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"ae44cac8-1478-4301-b183-f585858be766","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":176,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"5a4805f6-f6c7-46d9-b0df-c67aacac1e59","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":176,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"c5236636-0b3a-4424-b33c-bafcefed0504","block_type":"box","text":"II-134","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cf5bb507-18ef-4f41-8a0b-985bc815f060","block_type":"box","text":"NM1026U-6032801-176/242","page_number":176,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c9544e68-14f9-4a0f-a7c1-5c9c2325afd8","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":177,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"189c50b1-9add-4394-a91f-d81378842fd3","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":177,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"b982d47f-3c48-4820-8aed-768561d73c53","block_type":"box","text":"capital asset.","page_number":177,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"72180a11-ea00-44dd-bef0-70a18c8b488e","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":177,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"a940641d-eb87-4d88-869c-44494ff2e5f2","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":177,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"80f6c3f8-0df3-40ea-bbd5-9051bb04cb1b","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":177,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"103793f8-2777-4ffa-bc13-9237b7644179","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":177,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"11962d46-96ad-4d23-a89c-89b1cfd6c6de","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":177,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"c6902f1c-2d9b-49c2-8098-6686e4b28f3d","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":177,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"60abeb26-8015-47d0-a705-a2e2ea484745","block_type":"box","text":"Fund were to invest otherwise.","page_number":177,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"cdcacb08-1e35-4b84-8110-53220ada6bab","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":177,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"fd359b93-b158-4db7-b766-59826ba3c223","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":177,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"b2481781-7640-4bf6-b113-b8cfb0ad4a58","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":177,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"56e8ab19-b007-4c4b-9d5c-0b4e29fc3b1e","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":177,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"bf9d9ba5-7920-4e44-af18-2f29f77833eb","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":177,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"9f6a86f0-747c-4ed6-8c34-8cafdbe076c8","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":177,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"f85b8f4f-f21f-4159-ab41-af6312a7240e","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":177,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"044c19ad-3deb-4688-a6a1-507a66752d01","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":177,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"b92f272c-dbf3-4fec-a197-9918d92c61ab","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":177,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"b123eb98-d1e7-4cb4-900b-eb9f4bc090ed","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":177,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"5a93229d-da24-4b09-9689-ea0443636b11","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":177,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"71d12f9a-2ed7-4f87-a838-aeb067153e58","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":177,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"5f7b8996-284f-41e6-afa0-49ee1e76e329","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":177,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"1effbc46-b3cc-4221-946a-5ec3cc6c2bd6","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":177,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"3485cfcf-a860-4b56-a086-ae48177db176","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":177,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"ee3c1437-34e7-4a5e-bd22-9c4830b9bc7c","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":177,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"791654f3-7636-4b02-aec6-3e1c3b50c3bd","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":177,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"69276864-edbe-4b6f-a2e7-9509b2cf7e72","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":177,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"c28b7b85-52e8-4d22-a814-35a62010773c","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":177,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"3a2365b8-145e-44b9-bf4c-086bd393af16","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":177,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"529d3d25-48f4-42fd-8d35-9eda0eb73f59","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":177,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"c00233b4-082b-43a1-9e8e-532199f97838","block_type":"box","text":"PFICs.","page_number":177,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"858ea1a7-40e5-435d-a782-fe296bd4dee5","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":177,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"92fe3958-5e75-42c7-bc74-6091d1854573","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":177,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"c298f6a9-cf0c-4414-a03c-b93dd001b65b","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":177,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"5d6eb21b-2824-46ff-8fe7-18e3b15ab57d","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":177,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"e4161578-a783-4e21-909f-5798c18eb979","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":177,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"3b9623ff-3ccc-43e9-9267-3495c5dce8e8","block_type":"box","text":"difficult or impossible to obtain.","page_number":177,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"0bec7077-442f-4f3a-aa10-05fbe3b000b2","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":177,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"d5b39357-5603-44f6-8a67-3320bb59fd2d","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":177,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"c92b8bed-8b42-454d-abd7-c793dc28607b","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":177,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"4b78f6ad-0d8c-448d-9e25-9bdba840a965","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":177,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"e9c8e151-22e2-48f3-914c-0c170c6c0d87","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":177,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"85904a3e-2bec-4bfd-81b9-d2e76c69e21f","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":177,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"7999fb78-099e-4a06-bb25-1b12f8b2b74a","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":177,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"c5f3dd81-2694-4e81-be99-b5e96a6b5cdd","block_type":"box","text":"Municipal Funds","page_number":177,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"389eb613-0b75-4606-9d6a-8b926467f24a","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":177,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"d27d7ac1-a617-4522-9b08-af9a11cd6081","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":177,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"ca997c2c-0f2a-490d-986a-2f29448e474c","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":177,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"f56188e3-d34a-4ed3-b86d-0e6c3ffa8f60","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":177,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"37f51bf3-a24d-4360-ac8d-4fc6ae60aadb","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":177,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"14872e5e-8e94-4f77-9083-bd24c3419524","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":177,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"e749519e-92fb-4dc0-8385-6c51993367a3","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":177,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"8389b6e7-46ef-442e-90fe-ca7432cb53d0","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":177,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"8f876c4d-fa97-41b1-87ab-9d728925e07d","block_type":"box","text":"II-135","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"57968f58-f775-4c98-9955-b9e80f28090e","block_type":"box","text":"NM1026U-6032801-177/242","page_number":177,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b0a93fa7-2b9c-42e8-b492-a00a5941113b","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":178,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"34465cc8-ef2f-465f-bcac-9c4f4c2d4651","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":178,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"ac4ede89-282d-401f-a05c-c330e995635e","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":178,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"d21429e7-aaad-4bf6-8c75-824b70b05e80","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":178,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"35d11c8f-8c1a-4358-9691-1a32bf12311d","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":178,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"6c67c551-b815-4313-be4b-b9a836fb7f2a","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":178,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"dede37c3-ab27-4b7c-bb82-f841561135a6","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":178,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"330fcdfb-565c-4e7f-bfe4-25e70912978d","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":178,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"4cf72005-a587-4d54-b6d0-c0f3d27168dc","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":178,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"2ea677dc-eb8b-4a6c-9325-c824804cd438","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":178,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"c68e8dfe-6d18-493d-82a3-0fa7a273334f","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":178,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"8149f54e-2f95-4045-9c44-4fea85b2e348","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":178,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"cbbd27fd-c312-4ea1-a41e-f6347c0e82c7","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":178,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"f32f968a-5901-4a5e-aa5e-c2de2497fbd0","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":178,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"b56d3ebd-ed18-42da-9c25-78f24778dca5","block_type":"box","text":"constitute exempt-interest dividends.","page_number":178,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"e7541525-13e1-43d1-9310-e830edb2a10f","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":178,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"c42946bc-8a42-4067-b746-5cf61b031b8b","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":178,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"55157c35-3007-4552-a2fb-2a9753a9880f","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":178,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"879338f2-ba84-4dee-997f-1852cb1f2c36","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":178,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"d8c78009-a6ff-4606-be20-456711cc4055","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":178,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"6be4edf4-379e-4496-a47c-437126cc4028","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":178,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"f1cddde8-2e4e-4fa1-b153-ced10bce5c80","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":178,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"0cb30998-212b-47f8-91d3-63b9fef6723f","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":178,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"f008c1aa-b03a-4b84-82b2-4c1208be0585","block_type":"box","text":"income dividends received by shareholders.","page_number":178,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"b57e0217-3167-4e18-98f0-24ddf461ee1c","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":178,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"3a47f58b-2106-4263-96cf-7573b1c8ed2b","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":178,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"884b2a32-fe7f-497c-bd0e-b761524285db","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":178,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"80d66dc5-3d87-4f97-a076-5a4bc32611b2","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":178,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"cd4e8261-8f9c-4980-8d3c-c5c3796d2154","block_type":"box","text":"the accrued market discount.","page_number":178,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"60b54353-4ed8-420b-960b-47737a7a37fc","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":178,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"365bc187-a37c-4aa9-b796-ba962cbc84fe","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":178,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"8be15b32-c47d-419d-90d9-a092050c8ab5","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":178,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"6f87588e-af31-47b5-a0d3-2d963c686378","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":178,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"00d0502f-cf2b-4e19-ad41-ba0cdf5009eb","block_type":"box","text":"e.g.","page_number":178,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"881ccd06-98eb-42e2-b897-5265f94e261f","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":178,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"c4b2580b-9293-4154-94a9-48c4cc5360b3","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":178,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"feac85c8-2a2f-470b-8f16-ed03d5b6480f","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":178,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"485dd502-ecf5-4a93-912f-bac69e02adb6","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":178,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"37faa507-a4cd-4d52-8d40-80acf402b591","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":178,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"36bb6623-23d3-4c48-b224-a1ace8a850b1","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":178,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"562f7abf-5cd8-4c52-abbd-c54fa2b6fb83","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":178,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"ccd899cb-1f42-4878-9f6b-90d7d7feb73b","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":178,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"ea21c982-667b-4a9b-a519-aae1d1723655","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":178,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"5aa648d2-57bc-4019-ac63-8ddfb6dad582","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":178,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"d30d4e0e-0036-4f7a-b353-bd355a970b3b","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":178,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"da1858ff-3980-4ada-a254-81abe50bf2b2","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":178,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"d4aa8f4e-b8e1-4341-8deb-c2c1937bb988","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":178,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"95b75d21-e325-4616-bad1-d5c26ca50d61","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":178,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"4805eb53-6d32-4e0d-bf4a-51423ce9dfe4","block_type":"box","text":"within each applicable state.","page_number":178,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"d78bfd4c-c0af-47d7-a126-779f4c3b635a","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":178,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"70f80082-39e2-4572-954e-2889f298d35a","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":178,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"5096d610-7d12-4f6a-b4b4-1f9bf17b9cd9","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":178,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"8ef33386-b49a-4aa4-b6ac-8f07455f60f1","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":178,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"b85ef4f4-86ac-4e6b-a7bc-9b2be38db93d","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":178,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"f140e651-5be3-4176-86ae-9ff7dc8a2f4c","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":178,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"65937dc6-e913-4e71-ab04-1d21bfacd2cc","block_type":"box","text":"II-136","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b2baa8d4-4f21-4cc6-be32-8fab7bc030cd","block_type":"box","text":"NM1026U-6032801-178/242","page_number":178,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b1346cda-f6f6-45b9-9213-bea0c512cb49","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":179,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"0e80315c-32c0-4a7e-ad8c-25957193eea8","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":179,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"c11c2ab4-398e-44f1-a178-c2a0299ff96a","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":179,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"56a21b20-debb-44da-8f18-c37660b1b6ab","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":179,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"690dbc7f-15ff-4086-8050-59ab9d3cba2e","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":179,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"29359c26-85bc-4d9e-86dc-7f59d4039b80","block_type":"box","text":"exempt from state income tax.","page_number":179,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"da904b1e-f74f-48af-b813-be9d2a906a40","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":179,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"e64255ba-f540-4f0e-ab0a-5ee0a6479e7e","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":179,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"42a57bc9-2947-49c3-b603-0b7b79409748","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":179,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"839c978e-4d45-4809-8447-2529c985f796","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":179,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"7cfcc8db-8ff1-4ee8-b709-5f8e6a3c3c6d","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":179,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"29a9929d-4780-4b6a-961b-e246c4435599","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":179,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"13cba2e6-38a3-4537-b2e0-97dd5e5f1e8c","block_type":"box","text":"decisions may have a retroactive effect.","page_number":179,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"e45d1c24-ddab-42b5-ba4d-68ebbafd8c45","block_type":"box","text":"PERFORMANCE DATA","page_number":179,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"54e73398-b7f6-46af-a738-60535e4ba65d","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":179,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"22334679-91ea-4aae-b943-fd04575b54d0","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":179,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"7a1c377c-0f10-47d7-aa86-376be22ef744","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":179,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"bf7e8476-e4c2-421e-b78c-943f5b0aeb70","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":179,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"50b0ba6a-e974-4533-8eea-0949aab07d62","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":179,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"c2868807-2e46-4d10-9b0c-c5b4427f4e11","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":179,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"98995900-ed5a-4543-80a1-92b46e6e7bbf","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":179,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"f3c43b1b-5535-45fb-8fb6-296dc882434d","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":179,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"35759866-c9c3-4a29-bae3-28b8edefcb2e","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":179,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"0d2efc58-587f-46d2-b916-b3ea6b45ced4","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":179,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"d8280d56-42ef-4993-9136-a035b43b5c00","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":179,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"0e3ddd8f-19c1-423a-b1fb-0ae60b80486e","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":179,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"694b5c2f-3c4a-4853-a2a1-47e93da0630c","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":179,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"ecf3dda1-b967-40b1-b23f-bc64f5409162","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":179,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"c59b24f4-6d5a-40ae-b333-2a91bc959cfa","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":179,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"832d63b7-9fa4-4fca-8733-d77993b6a0f6","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":179,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"12b3d7f4-9206-4912-95fb-c07cdb522ab7","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":179,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"0c3d2b1b-bd2e-489f-8ff4-39f73f694530","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":179,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"f0046f10-0604-498d-b2d0-f2d7c8f1205c","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":179,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"6e210743-97fe-4217-834d-93ee89e86141","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":179,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"c03642b6-da90-49e5-880f-7d9d4fc16356","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":179,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"02657209-dcd3-4292-853d-27ed850dad5c","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":179,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"84e264a4-778d-4d8d-9d96-ab21282d2283","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":179,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"6e18283f-a671-42f7-87e2-1a014ef77e4d","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":179,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"8945dce9-36c4-4444-a75d-e2a2b4a2614a","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":179,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"dadb0e51-1504-4595-8136-2522637510b6","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":179,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"b3fc0f30-01f2-43b4-a19e-1fbd5ec19307","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":179,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"e42b58d7-3801-47d9-a779-7408d8870b43","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":179,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"453daca5-14a4-41f8-8fb2-60c681d2611f","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":179,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"d8b87f8f-a6d0-4b1d-a92f-e23ec1306c9a","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":179,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"c2643184-0a0d-4cf3-bdcb-9288a0f0213e","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":179,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"e426ce61-ebce-44c8-bb1c-0abe02852363","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":179,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"abace2de-9226-4371-ac1f-19a1815967ca","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":179,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"59e0a47c-b4e8-4fe4-8250-21df4c47b266","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":179,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"d581abf8-632e-4bb9-af91-c74d25e043af","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":179,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"ef58448f-d129-45f6-b412-9ca57af9d5f7","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":179,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"ecdb84cf-0c18-4ddc-88db-b1303dee0a83","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":179,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"3c085c50-e865-40db-9339-620ba1e5b1d9","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":179,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"0b72a772-8a6f-4053-8105-16fb944f1a83","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":179,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"6877d170-0a14-41a7-b7ec-402b7ca78c88","block_type":"box","text":"II-137","page_number":179,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e65dbd65-eb17-467e-bd07-d537491383e8","block_type":"box","text":"NM1026U-6032801-179/242","page_number":179,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4d585aee-dc4e-44a1-aa24-cf8f45a78612","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":180,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"73561d4d-e92c-46b1-a894-7ead4a1d5a48","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":180,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"dbfdca1e-8c52-4acb-ae30-cd3f7cd25e00","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":180,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"5273819d-6b3c-4943-b1d6-c905a054cb39","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":180,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"9ee42fa5-e09f-425d-bc08-6a44767f1761","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":180,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"90c9cfd6-c428-44c0-a99f-645efa506aab","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":180,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"83f5d0be-ea3a-4ebd-bb43-e53df7f08619","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":180,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"cba11b7f-d778-4d81-8503-2d357c6870eb","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":180,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"597d0cd3-935e-45d3-a342-c65907f8625b","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":180,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"b279c740-5080-40f6-8075-5e2826b0ccc5","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":180,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"9fbd01aa-788b-42a3-a589-cfe8d1c4d71e","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":180,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"634a456a-9c08-4dec-80a9-0ae44b2e8de9","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":180,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"311d7f8e-21fe-4c81-9879-431fc34364d9","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":180,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"b7484deb-d5a9-4042-ad64-94d927f533ee","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":180,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"e9b82a80-231e-4719-b80b-fc9a57221090","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":180,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"3aa0d250-9b45-48f4-a1a2-7b41b8494a7b","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":180,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"8f3cd753-b834-4e5a-b696-8e0c7f80f252","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":180,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"44e98006-7183-4387-93d6-e188d4f56435","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":180,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"21cc2053-b300-4806-a6e3-a9cf975db3f0","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":180,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"41d15076-ea8c-4fb9-9f4c-9ddc94695e2c","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":180,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"5851d150-3838-458a-af64-fe7835b2dcbe","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":180,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"5cb6bfff-4084-4447-bdfe-aa2370598c05","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":180,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"97a14209-4725-4b8d-9015-cd38ab5c72ea","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":180,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"302f325a-22b6-4eb3-b536-c371d0c08b1a","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":180,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"48abc62a-9deb-4489-9b13-e028d8dd1615","block_type":"box","text":"less than their original cost.","page_number":180,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"d095c61c-8160-4003-9edc-dc0ac833741f","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":180,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"ede7afc8-45d7-4fdf-b842-cde3ab4e6828","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":180,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"3eb151ce-192b-4a37-8e77-c97000275ec0","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":180,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"5d0502c9-b550-4df0-8a4c-fd82d61ebf96","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":180,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"bb0dd18f-7449-4878-8783-011433390e3c","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":180,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"07391e8e-9fe5-4587-9021-971d4cb3aa07","block_type":"box","text":"lower amount of expenses is deducted.","page_number":180,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"89446dd5-e11e-4dfc-8553-4efb217ad147","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":180,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"8427f2b4-ed9c-4ecc-b031-d3b2b92b77a9","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":180,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"d8ee370c-2dd2-4ad1-98b7-3b3a80523cd5","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":180,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"5052022e-7b5c-47e0-9bc0-c48dd2b42c2a","block_type":"box","text":"Money Magazine, U.S.","page_number":180,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"cefcc76c-9da8-4b3b-a069-ef6086fa3dd9","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":180,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"d97ddbd1-7076-465f-a0b5-e437f0d480ad","block_type":"box","text":"or other industry publications. When","page_number":180,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"db069e64-eaa7-4512-9b79-93d81ba9cab1","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":180,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"d42bae67-3537-41d4-b084-faf704d35bab","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":180,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"05abe519-4f4a-414f-b994-16a324263f7f","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":180,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"71026094-37d9-444c-911e-bb92ae5a6d40","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":180,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"9717bd9f-ecd7-4b0f-b416-e5cd46404d29","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":180,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"cb97e994-f86a-4cb1-a37d-bc5e3db7d8da","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":180,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"4767052a-9aac-4192-a4d6-e0086989adda","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":180,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"6a460f85-bcb7-4455-bc95-8dfc75a30ac3","block_type":"box","text":"developed by Fund management.","page_number":180,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"d9ab2c34-e4c5-44b6-ad3e-5488e97ccdf1","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":180,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"7b24e256-36c7-4988-b757-50c46fce8c5c","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":180,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"ef4d096a-7aed-44db-a748-aeee81be27f7","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":180,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"6c7b74e4-6f91-4d2e-be70-874802265d76","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":180,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"85e42af1-0b3b-4bdd-8f4e-d98d4eb0404c","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":180,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"e288df23-67e1-4f40-a4d4-a9c76a21756e","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":180,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"5fe1f6c7-ab8a-4e32-8d25-84cea70cfcfa","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":180,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"ef4b308d-edbf-465e-9e22-bef52f3fd3f6","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":180,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"7d857236-3a59-4cd5-b515-60f933f24b68","block_type":"box","text":"II-138","page_number":180,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6fd1cc95-8f9e-4dba-b14a-9816ffe25711","block_type":"box","text":"NM1026U-6032801-180/242","page_number":180,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"18dbc809-702d-4826-bd54-59bb723f154b","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":181,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"080a86af-50b0-4e35-b5e8-910b66a3586f","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":181,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"28a48c26-5fb9-46cc-91af-0fc0aca2b1b2","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":181,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"cce64222-6f50-4289-83e9-862e9b9185e9","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":181,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"88e768c8-08d4-451a-a908-61a6dcd114d9","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":181,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"4e156364-1270-46b2-b72a-4d2967ddf76f","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":181,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"4ff1e445-6c78-4798-9d2d-cf8d5f68eb27","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":181,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"1a8cd0fb-9f30-412b-8c3f-48145349b5eb","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":181,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"2156750d-5820-4f9a-aa8e-db488f351479","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":181,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"72215bbc-5a18-448a-892e-2a2658d2c535","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":181,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"c73b4ec8-33b3-41db-a285-47692c151fa5","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":181,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"3f5304f4-0a43-4ef9-9f15-5d5275e5cda5","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":181,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"4217330c-722b-4c92-9eab-5596dd92402a","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":181,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"dbe0deb9-6aec-481a-b879-0ff30fc35669","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":181,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"e479b60d-acc5-48e6-b58f-2705ec873758","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":181,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"097b0e5e-f427-40fb-b4d9-070ef321777f","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":181,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"b22ef9d5-b6b1-4b0f-8a72-285b83124a38","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":181,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"8b67761b-059b-4178-8d17-c148164c4b79","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":181,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"52984474-9ec9-47c2-a02c-6124dd3e91b0","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":181,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"7c24cbe3-98bd-4815-923c-64cb33c36e08","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":181,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"f82b63ba-edac-40ae-a068-b20703a4ff14","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":181,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"0d96fb64-ff2f-4b7d-bff1-44dd26c05467","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":181,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"3603a7a3-e7e9-4909-a87b-467be8d1b723","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":181,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"5973878d-6648-487c-aa9e-81a5641b24b5","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":181,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"53f85de5-5a18-4083-a21e-e64787e7f0b7","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":181,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"23a547e3-d9d8-4c29-ae85-7a9efc3e9fde","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":181,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"657e3375-9845-4f23-b759-d1b28282a3ca","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":181,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"6c2f5958-223a-4970-9db0-16def4c03183","block_type":"box","text":"GENERAL INFORMATION","page_number":181,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"be4c12ca-7a90-4786-a173-8b6905794226","block_type":"box","text":"Description of Shares","page_number":181,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"77d40f38-f82c-4051-bdae-a406e143c6a5","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":181,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"e6ea84ee-e278-4ca4-a3c1-0c8563f778e8","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":181,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"efbd6ed2-0f62-4aaf-b56c-41d7bcf8c973","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":181,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"3c76afbd-74da-4391-9baa-3df36ff6330d","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":181,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"48d51873-e152-4e2d-8814-5393c88d66e2","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":181,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"aa95a080-f47d-406b-9934-319883930c32","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":181,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"e61e3386-e098-4170-ba7a-5cb2eb633dbf","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":181,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"2631167f-6834-49d5-aa5c-2ca7b350a2c5","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":181,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"5fa48d45-b28a-40b2-a1b0-06809c3e28e7","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":181,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"98ecfe9e-7890-48ab-ba33-97eabee58e67","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":181,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"c230ad46-ddfe-4289-981b-88a78c6cd532","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. 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The Declaration of Trust also provides that a trust","page_number":182,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"c0dfb0d2-b1fb-4397-89c2-78dff05a57be","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":182,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"045475aa-0f80-451c-beaa-3d89015d9ca6","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":182,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"552837f1-c8e9-48f0-a3aa-360740529f68","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":182,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"5e3896f3-f0d7-41fe-94e6-dae5773e21a0","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":182,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"ea184c5e-f30b-44f8-a70d-956858683310","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":182,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"b08d140e-f12a-410e-8279-f0273c04289f","block_type":"box","text":"Additional Information","page_number":182,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"98760e82-353e-4721-b253-e6181ec7d753","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":182,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"0df59336-94ab-4ae8-8f88-6b0cf4ddd57b","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":182,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"319e3d9a-6719-420e-b3da-a45af4f66878","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":182,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"f1ce1374-a778-4be4-a6aa-1fe1be265b39","block_type":"box","text":"such name to any other company.","page_number":182,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"ed56418a-ff55-4430-86c4-f5e5311c76d7","block_type":"box","text":"II-140","page_number":182,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"96c2f2a5-2dda-4c27-a27a-a20e68b126e7","block_type":"box","text":"NM1026U-6032801-182/242","page_number":182,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"62299362-3b2b-4873-9266-9d41b265ae23","block_type":"box","text":"APPENDIX A","page_number":183,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"4624453a-b6bd-4252-a68c-60b925be0d81","block_type":"box","text":"Description of Bond Ratings","page_number":183,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"df14c434-f684-4a5a-84a2-67fae8f0d896","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":183,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"6991d7c5-df67-4173-893c-5aabd0dd6679","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the SEC. While NRSROs may from","page_number":183,"box":{"x":69,"y":106,"width":827,"height":12}},{"id":"f57626ef-6eb8-41be-b5a2-72fe5d63ae35","block_type":"box","text":"time to time revise such ratings, they undertake no obligation to do so, and the ratings given to securities at","page_number":183,"box":{"x":68,"y":122,"width":775,"height":11}},{"id":"6ab682a3-92eb-4c37-a0cd-710d174e1f75","block_type":"box","text":"issuance do not necessarily represent ratings which would be given to these securities on a particular subsequent","page_number":183,"box":{"x":70,"y":137,"width":815,"height":11}},{"id":"5d000bbd-f553-461d-8a2a-a796fb1f6da4","block_type":"box","text":"date.","page_number":183,"box":{"x":69,"y":152,"width":34,"height":9}},{"id":"ca576b93-844e-48a8-96e6-80e76762de25","block_type":"box","text":"NRSROs may rate specific investments (","page_number":183,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"cad239e3-c9d0-449e-8117-ef595cf08dcc","block_type":"box","text":"e.g.","page_number":183,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"7c5abc78-9573-4165-90d8-f9a4f504d28c","block_type":"box","text":", bonds), issuers (","page_number":183,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"8c069f76-ab2d-4936-86dd-0004682698dc","block_type":"box","text":"e.g.","page_number":183,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"cd0ebbc5-c51b-4a70-beed-8fe93c09d771","block_type":"box","text":", corporations, governments and financial","page_number":183,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"5619c372-1d8f-4cf9-bf53-a17b6474c784","block_type":"box","text":"institutions) and/or programs (","page_number":183,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"ef038cb5-a9cb-4fa1-9539-cdb7befad7a6","block_type":"box","text":"e.g.","page_number":183,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"e8c68c96-0d8a-4347-9f16-433c6577577d","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":183,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"ad09d21a-09be-49bf-82dd-e94903031181","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":183,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"904fec21-f733-4227-aa46-6fd2367b586a","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":183,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"a71d97b6-4c81-4a90-8a6b-a0aa5e35ea5c","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where a NRSRO has not rated the","page_number":183,"box":{"x":70,"y":235,"width":798,"height":11}},{"id":"3331a02a-f12e-4b2e-9f39-763dc0e7b054","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":183,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"71b6ba3a-7d12-4f43-8ef5-518c54bd5acc","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":183,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"be9bf0cb-1552-4973-9acf-9beef162e57e","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":183,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"d7f44952-ccd0-4c0e-986e-a08a2c97a278","block_type":"box","text":"asset, as applicable. 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The credit ratings","page_number":183,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"64e15526-6cae-496b-aa07-cd433187ef37","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":183,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"9dfa3357-c74a-470a-a55b-7af160c07b12","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":183,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"32e0a3a0-e3bd-4409-b32a-6ad6e8d9080c","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":183,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"854eb868-54a8-4c31-9018-b448277d8d26","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":183,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"52a5c21b-c6b5-4c40-aec2-0bb27f632bbe","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":183,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"46a84839-73dc-491c-ae10-f3bfc72fee9c","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":183,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"3d7b4321-6c18-48b1-bd96-b17bea2e0805","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds. Evaluation of these","page_number":183,"box":{"x":70,"y":620,"width":773,"height":12}},{"id":"ba068b4c-a896-4e1a-a31f-3a927657afce","block_type":"box","text":"securities is dependent on BlackRock’s judgment, analysis and experience in the evaluation of such securities.","page_number":183,"box":{"x":69,"y":635,"width":791,"height":12}},{"id":"4fbec8d1-68b8-4e28-8eb1-43057ab4463c","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":183,"box":{"x":102,"y":658,"width":776,"height":11}},{"id":"22978fc2-9261-4dd2-a2be-1a818ca5844b","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":183,"box":{"x":69,"y":673,"width":818,"height":11}},{"id":"0bbb110f-61aa-4c21-adda-4e1e047b819a","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":183,"box":{"x":102,"y":696,"width":799,"height":11}},{"id":"715c5f69-54ce-4120-b4b4-9823a75a973b","block_type":"box","text":"Fitch.","page_number":183,"box":{"x":70,"y":711,"width":35,"height":9}},{"id":"02023059-5dd8-4dc2-9dd5-f042c07be40a","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":183,"box":{"x":101,"y":734,"width":643,"height":11}},{"id":"9b7214f1-68ed-4e7a-9bf2-8a94588fca94","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":183,"box":{"x":68,"y":764,"width":616,"height":11}},{"id":"970b51e9-bc61-4774-8e33-fa51913873ff","block_type":"box","text":"Ratings assigned on Moody’s global long-term and short-term rating scales are forward-looking opinions of the","page_number":183,"box":{"x":102,"y":787,"width":787,"height":11}},{"id":"e34120ab-c575-42cf-bca1-3ab3c3c2af29","block_type":"box","text":"relative credit risks of financial obligations issued by non-financial corporates, financial institutions, structured","page_number":183,"box":{"x":69,"y":802,"width":785,"height":11}},{"id":"40deeb45-dfd6-4c92-ae7b-f4615d58f531","block_type":"box","text":"finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the risk that an","page_number":183,"box":{"x":68,"y":817,"width":820,"height":11}},{"id":"73e81bcb-3dea-4af8-a9bf-57659f324a8b","block_type":"box","text":"entity may not meet its contractual financial obligations as they come due and any estimated financial loss in the","page_number":183,"box":{"x":69,"y":832,"width":807,"height":11}},{"id":"a00929ef-ecc7-48bd-b724-e97c7328c7b2","block_type":"box","text":"event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are those that call","page_number":183,"box":{"x":69,"y":847,"width":835,"height":11}},{"id":"e68a9679-3677-4782-8748-681c9e54abf1","block_type":"box","text":"for, without regard to enforceability, the payment of an ascertainable amount, which may vary based upon standard","page_number":183,"box":{"x":68,"y":862,"width":822,"height":12}},{"id":"f3c515a7-8260-4b0e-9c8e-302d6eb0f8a9","block_type":"box","text":"sources of variation (","page_number":183,"box":{"x":69,"y":877,"width":149,"height":11}},{"id":"5bf58192-8cb7-4a11-a041-ffe673dc1ecc","block_type":"box","text":"e.g.","page_number":183,"box":{"x":220,"y":879,"width":25,"height":10}},{"id":"e4e8cc96-b5cf-4cbb-8a5a-8108d3f6224f","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses the issuer’s","page_number":183,"box":{"x":247,"y":877,"width":637,"height":12}},{"id":"47c056cf-7b1d-4a4e-86af-f2349bf8a73d","block_type":"box","text":"ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do not address","page_number":183,"box":{"x":69,"y":892,"width":820,"height":12}},{"id":"951398e1-0136-4b2a-bd5f-f16611e1d567","block_type":"box","text":"non-standard sources of variation in the amount of the principal obligation (","page_number":183,"box":{"x":69,"y":908,"width":536,"height":11}},{"id":"792b821c-9d3d-4d25-9e10-ea1595529985","block_type":"box","text":"e.g.","page_number":183,"box":{"x":607,"y":909,"width":25,"height":10}},{"id":"9c9758de-e5c1-46dc-99b1-acc1c4800859","block_type":"box","text":", equity indexed), absent an express","page_number":183,"box":{"x":634,"y":908,"width":257,"height":11}},{"id":"ba014203-ca72-41bb-9d7a-573c5356004d","block_type":"box","text":"A-1","page_number":183,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"70da7407-bc89-4610-8c78-4c79358a8a56","block_type":"box","text":"NM1026U-6032801-183/242","page_number":183,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"eee7b184-ad47-4703-bc57-5c31c18bb7d3","block_type":"box","text":"statement to the contrary in a press release accompanying an initial rating. Long-term ratings are assigned to issuers","page_number":184,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"8c5c039e-04de-4b41-9d23-4bf238d9ffa0","block_type":"box","text":"or obligations with an original maturity of one year or more and reflect both on the likelihood of a default or","page_number":184,"box":{"x":69,"y":60,"width":761,"height":11}},{"id":"fab155f9-2a4f-4c81-bef7-9c782c510001","block_type":"box","text":"impairment on contractual financial obligations and the expected financial loss suffered in the event of default or","page_number":184,"box":{"x":70,"y":75,"width":806,"height":11}},{"id":"edc8b872-e6c7-40f9-b360-a30cdf0e98ad","block_type":"box","text":"impairment. Short-term ratings are assigned for obligations with an original maturity of thirteen months or less and","page_number":184,"box":{"x":70,"y":90,"width":818,"height":11}},{"id":"90fc4a19-9fab-40fd-9b0d-063eabe8507f","block_type":"box","text":"reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected","page_number":184,"box":{"x":69,"y":105,"width":775,"height":11}},{"id":"29e21b06-02f8-4c37-bd84-b07354c928af","block_type":"box","text":"financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level and","page_number":184,"box":{"x":68,"y":120,"width":764,"height":12}},{"id":"01e437b2-2b03-48e4-a305-e50d0e35d635","block_type":"box","text":"instrument level on both the long-term scale and the short-term scale. Typically, ratings are made publicly available","page_number":184,"box":{"x":70,"y":136,"width":819,"height":11}},{"id":"3a666bf6-128e-4a36-b33d-0ddbb0a8b4cc","block_type":"box","text":"although private and unpublished ratings may also be assigned.","page_number":184,"box":{"x":69,"y":151,"width":454,"height":11}},{"id":"66b02d55-62b8-4d32-9013-3c29e7d10356","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":184,"box":{"x":102,"y":173,"width":542,"height":11}},{"id":"7f282378-84ea-414f-9247-38b060f0902c","block_type":"box","text":"i.e.","page_number":184,"box":{"x":646,"y":173,"width":20,"height":9}},{"id":"01e41c7e-eb01-48e6-86c0-7f8fdf7b24bb","block_type":"box","text":", ratings on nonfinancial","page_number":184,"box":{"x":669,"y":173,"width":169,"height":11}},{"id":"6405374d-6d7e-436f-8207-cf01309fe2f6","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":184,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"0bf3f9f0-833a-43a9-8686-69e437d8e6f7","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":184,"box":{"x":68,"y":203,"width":828,"height":12}},{"id":"0805f711-d480-48aa-ae51-04f441252e12","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":184,"box":{"x":69,"y":218,"width":832,"height":12}},{"id":"6605cc9d-8600-4150-b7d7-c5a9b5849827","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":184,"box":{"x":69,"y":234,"width":797,"height":11}},{"id":"6be16277-7d62-425b-875a-339bd52a82cf","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":184,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"4d5910e2-de90-43bd-8416-9e03e62d1c52","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":184,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"c558f879-ed9e-427b-a5ea-3148ce372052","block_type":"box","text":"of time.","page_number":184,"box":{"x":69,"y":279,"width":53,"height":9}},{"id":"16f3152b-ede9-467f-b76a-fe8fe2875320","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":184,"box":{"x":69,"y":309,"width":395,"height":11}},{"id":"fbe01f15-217d-4c07-97d0-54fe65c90a43","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":184,"box":{"x":68,"y":337,"width":815,"height":11}},{"id":"914de17c-bbf9-4036-8266-6f442e9ca141","block_type":"box","text":"risk.","page_number":184,"box":{"x":197,"y":352,"width":28,"height":9}},{"id":"555a259e-a6a6-4d68-97a8-20530adcec7e","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":184,"box":{"x":68,"y":372,"width":773,"height":11}},{"id":"4706be01-e852-4556-b704-cf123feda370","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":184,"box":{"x":68,"y":392,"width":776,"height":12}},{"id":"86407b52-ac50-4f0b-a2f1-44c571848519","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":184,"box":{"x":70,"y":413,"width":813,"height":11}},{"id":"70fb3ae0-76d4-46e6-a65c-2d69d13c8d76","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":184,"box":{"x":196,"y":428,"width":385,"height":11}},{"id":"4630c23c-3904-422c-af80-52404de9631a","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":184,"box":{"x":70,"y":448,"width":775,"height":11}},{"id":"996a5d2c-67e6-4e62-8ded-d829687d39f5","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":184,"box":{"x":70,"y":468,"width":707,"height":11}},{"id":"faa20745-941e-4845-8257-d47ad7fe7a51","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":184,"box":{"x":69,"y":488,"width":810,"height":11}},{"id":"2c89095e-ce40-47c2-9040-8a6721c8ca63","block_type":"box","text":"credit risk.","page_number":184,"box":{"x":196,"y":503,"width":74,"height":9}},{"id":"5c583782-d0db-48b7-b85e-700f7e53c778","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":184,"box":{"x":69,"y":523,"width":783,"height":12}},{"id":"595b5bca-bf90-44a0-96d7-9cbeccd37857","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":184,"box":{"x":197,"y":538,"width":322,"height":12}},{"id":"c0b74d82-8461-4763-9200-f24a8257a3c8","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":184,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"f1bf75a2-d245-4c62-b340-ff5740282d8e","block_type":"box","text":"of principal or interest.","page_number":184,"box":{"x":196,"y":574,"width":160,"height":11}},{"id":"e62bd966-2ce1-4679-bf33-d65f59227684","block_type":"box","text":"Note:","page_number":184,"box":{"x":102,"y":594,"width":37,"height":9}},{"id":"497f68f4-aed9-4ab4-96cb-61eeafa876ee","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":184,"box":{"x":146,"y":594,"width":731,"height":11}},{"id":"a453cc26-bf18-40f6-b024-6b53488925e4","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":184,"box":{"x":69,"y":609,"width":831,"height":11}},{"id":"fed0a67f-1cdb-44df-940b-74d41cb26a6a","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":184,"box":{"x":70,"y":624,"width":829,"height":11}},{"id":"667b09aa-ffeb-47f0-9c75-1f3e12014fae","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":184,"box":{"x":68,"y":639,"width":795,"height":12}},{"id":"751e9bd5-e969-4d8c-b90d-27d4767d6f4f","block_type":"box","text":"companies, and securities firms.","page_number":184,"box":{"x":69,"y":654,"width":232,"height":11}},{"id":"882f244e-e737-44fe-8325-d064c2b2f009","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":184,"box":{"x":102,"y":677,"width":787,"height":11}},{"id":"50f275e0-0ae8-4293-afbd-54c721c2463d","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":184,"box":{"x":68,"y":692,"width":788,"height":11}},{"id":"9d2c8119-7be4-4567-8e95-a148784fd78e","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":184,"box":{"x":69,"y":707,"width":833,"height":12}},{"id":"faabad43-240d-48e1-8e10-417a7323a154","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":184,"box":{"x":70,"y":722,"width":809,"height":12}},{"id":"a9f54c5e-9e6a-430b-bce9-4d82af60eabe","block_type":"box","text":"that security.","page_number":184,"box":{"x":68,"y":738,"width":91,"height":11}},{"id":"6e7ce917-a8df-4818-b963-604410d0ecf5","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":184,"box":{"x":69,"y":768,"width":400,"height":11}},{"id":"fc0242d5-f8a4-4607-a764-22fbb942fbcd","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":184,"box":{"x":69,"y":795,"width":658,"height":12}},{"id":"9b48ca65-ddd7-436b-a7bb-8ad61c8e5f70","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":184,"box":{"x":69,"y":816,"width":645,"height":11}},{"id":"3bc597fd-42b1-4e9a-90c6-a90698c8e0c6","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":184,"box":{"x":69,"y":836,"width":686,"height":11}},{"id":"596cbc94-7633-40fc-8562-3cc307771b25","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":184,"box":{"x":70,"y":856,"width":778,"height":11}},{"id":"c6c935d3-71a4-4683-a514-09cd3a7be258","block_type":"box","text":"categories.","page_number":184,"box":{"x":196,"y":871,"width":77,"height":11}},{"id":"060b61e0-eb74-4fcd-b700-20b6997dee4c","block_type":"box","text":"A-2","page_number":184,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"9fe656a4-a771-42f4-9a50-40745b53d46d","block_type":"box","text":"NM1026U-6032801-184/242","page_number":184,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9c4ea869-41af-40ff-b75d-631c4300f452","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":185,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"8dca3df0-fc2e-4598-bbbd-1c139a10495e","block_type":"box","text":"Description of Moody’s Short-Term Obligation Ratings","page_number":185,"box":{"x":69,"y":75,"width":391,"height":11}},{"id":"dfbb2312-7aeb-4cf1-b8f5-1982ffb256d5","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":185,"box":{"x":102,"y":98,"width":784,"height":11}},{"id":"24c2fda2-7a4c-4714-b619-bc045802afa8","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":185,"box":{"x":69,"y":113,"width":824,"height":11}},{"id":"11478765-60d8-4f35-8bb5-942c04c78571","block_type":"box","text":"an issuer’s self-liquidity.","page_number":185,"box":{"x":69,"y":128,"width":170,"height":11}},{"id":"df64d9ec-a9f0-4d76-8230-7116c7ab02a8","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":185,"box":{"x":102,"y":150,"width":736,"height":12}},{"id":"4590a34e-8c93-4451-a23a-647dc94b49ae","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":185,"box":{"x":70,"y":166,"width":796,"height":11}},{"id":"9f94e986-2c26-4b77-a3e6-41efdb426690","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":185,"box":{"x":102,"y":188,"width":803,"height":11}},{"id":"203e67fe-5d2c-4110-ad64-4f3c09ce67c0","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":185,"box":{"x":68,"y":203,"width":823,"height":12}},{"id":"d845556e-dc81-418d-8e97-1dfa7892cb23","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":185,"box":{"x":69,"y":218,"width":480,"height":12}},{"id":"be31f6e2-d707-4f31-a879-93e9f045846b","block_type":"box","text":"MIG Scale","page_number":185,"box":{"x":102,"y":241,"width":71,"height":9}},{"id":"a95b9705-c09f-4ff5-8f70-3c9e081427da","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":185,"box":{"x":70,"y":269,"width":802,"height":11}},{"id":"b361eb3c-004e-44b4-8181-f14995403f1d","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":185,"box":{"x":196,"y":284,"width":703,"height":11}},{"id":"bf7f42b8-9f14-4f33-977c-34f0822ba564","block_type":"box","text":"refinancing.","page_number":185,"box":{"x":197,"y":299,"width":80,"height":11}},{"id":"84c8b0b5-a713-4929-a244-a7ddbe266f6f","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":185,"box":{"x":70,"y":319,"width":809,"height":12}},{"id":"237e3a84-6116-4103-b04c-43f9534e60c3","block_type":"box","text":"large as in the preceding group.","page_number":185,"box":{"x":197,"y":335,"width":224,"height":11}},{"id":"0231b333-04f8-4b8a-824f-d122a8d170e9","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":185,"box":{"x":70,"y":355,"width":785,"height":11}},{"id":"72625a0d-23f4-410c-9563-8ede1fe631cd","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":185,"box":{"x":197,"y":370,"width":554,"height":11}},{"id":"77125a1d-47b2-4f0b-b815-15b57a6473fe","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":185,"box":{"x":69,"y":390,"width":813,"height":11}},{"id":"270233ff-bcf6-4141-9de1-1e20f94a5a2f","block_type":"box","text":"lack sufficient margins of protection.","page_number":185,"box":{"x":197,"y":405,"width":259,"height":11}},{"id":"7f33facc-23bb-4d84-8214-071f8c63cec1","block_type":"box","text":"Description of Moody’s Demand Obligation Ratings","page_number":185,"box":{"x":69,"y":433,"width":371,"height":11}},{"id":"2a71030f-8f0c-493e-8022-4467a31330cd","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":185,"box":{"x":102,"y":455,"width":804,"height":12}},{"id":"e765670b-fc08-42b7-a44a-e1cdf45c775f","block_type":"box","text":"are a long-term rating and a short-term demand obligation rating. The long-term rating addresses the issuer’s ability","page_number":185,"box":{"x":69,"y":471,"width":826,"height":11}},{"id":"ec28ca0a-6d7c-421f-92f2-0e343793291d","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term demand obligation rating addresses the ability of","page_number":185,"box":{"x":68,"y":486,"width":832,"height":11}},{"id":"07b5f9a4-d95b-4fdf-b9c5-54f46532edac","block_type":"box","text":"the issuer or the liquidity provider to make payments associated with the purchase-price-upon-demand feature","page_number":185,"box":{"x":68,"y":501,"width":784,"height":11}},{"id":"aa558cc8-ebb6-42d4-95b3-c05a6a724403","block_type":"box","text":"(“demand feature”) of the VRDO. The short-term demand obligation rating uses the VMIG scale. VMIG ratings with","page_number":185,"box":{"x":69,"y":516,"width":811,"height":11}},{"id":"7661dcc8-339f-49ee-86c9-c713632e2eac","block_type":"box","text":"liquidity support use as an input the short-term Counterparty Risk Assessment of the support provider, or the long","page_number":185,"box":{"x":70,"y":531,"width":819,"height":11}},{"id":"4ce5acc8-ebf5-4624-91eb-fed00c5f8d26","block_type":"box","text":"term rating of the underlying obligor in the absence of third party liquidity support. Transitions of VMIG ratings of","page_number":185,"box":{"x":68,"y":546,"width":802,"height":11}},{"id":"49f08ca1-a6d0-4e75-b76e-efb38a8dfd45","block_type":"box","text":"demand obligations with conditional liquidity support differ from transitions on the Prime scale to reflect the risk that","page_number":185,"box":{"x":69,"y":561,"width":833,"height":11}},{"id":"52e325b1-8690-477c-b019-f77874aab129","block_type":"box","text":"external liquidity support will terminate if the issuer’s long-term rating drops below investment grade.","page_number":185,"box":{"x":69,"y":576,"width":719,"height":12}},{"id":"7700e5ac-6f9b-4d19-b100-f653f2090cf9","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":185,"box":{"x":102,"y":599,"width":807,"height":11}},{"id":"442333c4-17ba-42e3-a4a2-fba339958e26","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":185,"box":{"x":70,"y":614,"width":833,"height":11}},{"id":"4d2e3c1c-7d66-4e77-bbc9-fb0c9b2e0d82","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":185,"box":{"x":70,"y":629,"width":635,"height":11}},{"id":"2f1ae76b-c546-4e75-9497-ee8752e7594b","block_type":"box","text":"VMIG Scale","page_number":185,"box":{"x":101,"y":652,"width":81,"height":9}},{"id":"e5686836-c4a6-4451-bcd8-f253b94adbf7","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":185,"box":{"x":68,"y":680,"width":808,"height":11}},{"id":"a6ec3182-98b9-4a1b-af61-6786a8a460e7","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections that ensure","page_number":185,"box":{"x":196,"y":695,"width":695,"height":11}},{"id":"4c526431-8991-4a29-a815-a4ca05c21b03","block_type":"box","text":"the timely payment of purchase price upon demand.","page_number":185,"box":{"x":195,"y":710,"width":370,"height":11}},{"id":"06b2fd7b-af44-4064-b7e0-b8de29d132c7","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":185,"box":{"x":68,"y":730,"width":834,"height":11}},{"id":"f5feb064-8d50-4c16-9918-79be79035696","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections that ensure the timely","page_number":185,"box":{"x":196,"y":745,"width":691,"height":11}},{"id":"4c8b6278-861f-449a-9ccc-b9eafe0dfb6c","block_type":"box","text":"payment of purchase price upon demand.","page_number":185,"box":{"x":197,"y":760,"width":294,"height":11}},{"id":"c3436c59-d952-4d96-86ab-bfa129431028","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":185,"box":{"x":68,"y":780,"width":768,"height":12}},{"id":"bf3cdfd8-ae81-4bae-bec2-d34bd923f25d","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections","page_number":185,"box":{"x":196,"y":795,"width":697,"height":12}},{"id":"ecb6ee3c-257a-47cc-ad1c-896ef3ef0d99","block_type":"box","text":"that ensure the timely payment of purchase price upon demand.","page_number":185,"box":{"x":195,"y":811,"width":457,"height":11}},{"id":"f9060b25-0137-4e42-8202-9a3107dcbd9b","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":185,"box":{"x":69,"y":831,"width":820,"height":11}},{"id":"f8934d7a-ca51-417d-918d-daee8adea674","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":185,"box":{"x":197,"y":846,"width":711,"height":11}},{"id":"af05741e-1a9f-4dc6-bbf8-80111b74d1c1","block_type":"box","text":"may lack the structural or legal protections necessary to ensure the timely payment of purchase","page_number":185,"box":{"x":197,"y":861,"width":684,"height":11}},{"id":"02449962-39c3-4340-b3c5-e95be38ac99e","block_type":"box","text":"price upon demand.","page_number":185,"box":{"x":197,"y":876,"width":139,"height":11}},{"id":"5d05e6dd-3992-4e96-9f4b-6d0ef1b647b0","block_type":"box","text":"A-3","page_number":185,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"20b13c0c-305a-42c6-be11-1556b2058e8f","block_type":"box","text":"NM1026U-6032801-185/242","page_number":185,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"adb494b6-4fcc-42e8-940b-81e4ef86d9d6","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":186,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"9f360d8e-314a-4ff6-a5bd-766ef74fe16e","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":186,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"a8ed03d5-43c2-4df2-819d-604c1786f281","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":186,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"ee7aa558-20f4-4d41-8f8e-dda3d64553a9","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":186,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"c26efcb6-4de1-4a91-a891-c459f4e08679","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":186,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"52b804d3-d637-48f1-a44a-ea412f5f8574","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":186,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"12007566-7c3a-4ee7-a272-5b91ce5f3065","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":186,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"d5c0b895-1ac1-44ac-a786-13be06bde02f","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":186,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"e8dbd506-7586-4b4b-9bdd-11bdc2216dc7","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":186,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"5cb09146-8c54-4db6-91ea-bbe909b9b9dd","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":186,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"ab5fc6a5-bf88-4b18-98de-dac991ac6d1e","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":186,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"f7be3126-04c4-4b4a-95ee-eb7a26335b86","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":186,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"fe3ea682-9bf2-4ef6-8d7b-495c481ffa0e","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":186,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"16be6b57-621f-4b46-9110-cc45ff5a5c19","block_type":"box","text":"from these guidelines based on market practices. Medium-term notes are assigned long-term ratings.","page_number":186,"box":{"x":68,"y":256,"width":724,"height":12}},{"id":"12d68616-3acc-4ece-9e89-921f8eab5e74","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":186,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"463e40f1-1e88-40e8-80a5-180893e815e8","block_type":"box","text":"•","page_number":186,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"e8605596-ade7-4ac8-ab4e-eca9563b3d34","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":186,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"f02ac9c3-eabd-48b1-b26e-b1e5eb7c45b9","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":186,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"cd7002fe-63fb-4fb0-9541-8f8ec31b7555","block_type":"box","text":"•","page_number":186,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"2b4db4ed-4282-45b3-aef5-37423b40252d","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":186,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"5fe5c3e8-472b-4a36-9302-689a13180d81","block_type":"box","text":"•","page_number":186,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"0a9c3bfa-7560-472e-9079-55cf01071c9a","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":186,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"5d565a87-b1cc-468c-bf3b-2bd79719fbf6","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":186,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"913d4af2-deec-403e-a6ed-c09adeccc889","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":186,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"791c6e13-9174-48a5-af77-d04a81a8689e","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":186,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"f1e756f1-56f8-4a51-ad30-38458c8a8ef3","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":186,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"46dad31b-fec6-4c2d-9abf-af9bbf2866c7","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":186,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"1456db75-dab2-46dd-8e33-74a55cc86601","block_type":"box","text":"obligations.)","page_number":186,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"33c175af-2656-48a4-affb-2bc8828dd971","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":186,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"6be2e3bd-e040-4be1-8228-f70d8c4694cf","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":186,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"7e02c67d-49d9-452e-9ea2-07da9b939cae","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":186,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"1c2f891b-96c0-40c1-ba9c-561e65a231e3","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":186,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"267c2d76-311d-4075-84b5-df680833e11c","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":186,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"8961f11b-b6f9-41bf-b56f-6be8357cb3ed","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":186,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"72bc80ef-2fb7-46e9-b171-54757a2937d9","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":186,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"3b2aa9b0-ac05-4a3f-b923-abfd764a1252","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":186,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"013b0af9-edb7-4ce0-b2fc-9934f611abd8","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":186,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"1f00bcb3-fa5a-4a90-8c32-7d732c7a81d9","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":186,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"5e68175c-d1ac-4bcb-86fc-2e00d2dda00f","block_type":"box","text":"financial commitments on the obligation.","page_number":186,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"596cddf2-2854-4a95-b458-ed6869dc05db","block_type":"box","text":"BB,","page_number":186,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"7bdb8aae-1165-434b-a1b7-e3df1a18eda4","block_type":"box","text":"B,","page_number":186,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"386c2441-672b-4706-a171-82ab9d65fd5f","block_type":"box","text":"CCC,","page_number":186,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"81e00779-295a-4ede-b8c8-d0f14ab7d8fc","block_type":"box","text":"CC,","page_number":186,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"3ae9e6cc-f468-4ffd-afd6-f10e89420269","block_type":"box","text":"and C","page_number":186,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"146b817b-8770-4efb-9133-5c5cc2134b32","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":186,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"84ed74ad-5221-4984-aa01-9451703a52c8","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":186,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"def2cdea-cef7-477f-ada4-7bc35219fe9a","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":186,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"5eef7c03-d9a6-4293-b5c0-59cfc8521155","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":186,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"eb0be301-300d-4d55-a71c-b55e13fee393","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":186,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"d0baeda3-8514-442d-af9e-820f52ed6b94","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":186,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"abefa9c1-8598-4cd7-a26f-a2659cec458a","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":186,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"2eae8a63-2e0e-462d-b1cc-a53b548db142","block_type":"box","text":"on the obligation.","page_number":186,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"cda85baf-419c-4ef2-a681-c93c00b00e3b","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":186,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"640fbf09-022b-4de6-9c14-e47132f20969","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":186,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"adfaa794-fdb6-4f9d-9c1a-6f12e71d8a81","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":186,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"d0d3c841-26c0-4265-9230-30ba63d79a51","block_type":"box","text":"financial commitments on the obligation.","page_number":186,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"dc68f132-3ff7-4511-9434-8fd8dfac01ac","block_type":"box","text":"A-4","page_number":186,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"a937a720-09cf-4e5a-8094-8cdbe3c67b17","block_type":"box","text":"NM1026U-6032801-186/242","page_number":186,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"178c7704-af29-40ef-92b4-d9b5cf3d9ff0","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":187,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"eb1da805-bf15-40e4-967d-c84b5f3f3818","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":187,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"262a6214-3cc5-4a6c-9075-efcc90af7f13","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":187,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"35364dfc-d241-40b6-98d2-71010c57cbe8","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":187,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"a24a58ca-dffb-4a61-bd45-4f4332b98a64","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":187,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"d8e9317d-b603-4316-901f-bd5186eeb208","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":187,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"405e33d9-86e1-45ad-b57b-4705afefd28d","block_type":"box","text":"anticipated time to default.","page_number":187,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"2fe3586b-41d8-4d50-a2cd-a54ba10fe29a","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":187,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"19404ab4-b72e-4c28-b8ae-3fb5117a66b9","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":187,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"661951ef-b606-4104-a0be-24b29a7ce974","block_type":"box","text":"higher.","page_number":187,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"c0682a58-9b02-40ee-b1ef-72c6e49744da","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":187,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"c74369bf-3fe1-4337-93cf-e7ecdf577144","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":187,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"72ee67da-1c45-45e2-b176-54f77c5b5d45","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":187,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"a172916a-acf4-4e33-80f0-bd00bb619433","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":187,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"c03b28dc-05c2-4e87-a1d9-30da4602f899","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":187,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"91874b1d-0d15-48c7-b8d7-55ee69f3f5dd","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":187,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"260f3e0a-ed41-4094-b549-74eb95ff7087","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":187,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"a3ddac9d-eadb-4235-8d67-1414a8069dfe","block_type":"box","text":"restructuring.","page_number":187,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"37ea7efe-5479-4368-983a-5cdf08ef3300","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":187,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"f26e32b9-b402-426b-aabe-1e1ebdf1a946","block_type":"box","text":"standing within the rating categories.","page_number":187,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"79f0a5cb-af1e-4e46-a627-46f825b4bf91","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":187,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"5c087f01-543c-4471-804e-6c8ed4f49b26","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":187,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"f248a211-0fd5-4a82-9e59-1206a96d35ea","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":187,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"b97ef6fc-e336-4498-a34d-50df232a66fd","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":187,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"9828de9a-4ea7-4220-9d98-98ee479587cf","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":187,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"d0f79f1a-fd43-4547-841a-ac057edea4a8","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":187,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"c59f924e-8305-454a-93d6-57273c241cfb","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":187,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"01dc1f79-911c-4390-ab18-9cfdfb3e6132","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":187,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"70fcad6a-338b-4b91-afe8-9856101d04b6","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":187,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"e53487db-ee89-48de-9e45-dad9d852714a","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":187,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"b4515a5c-2312-42c0-8577-1b46953d2ad0","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":187,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"af00308a-8de8-4ebd-aced-6e19ff1c8239","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":187,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"b7de99fe-a786-4820-87da-17ef1b0c8e1b","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":187,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"a993003b-a8a1-44da-a6eb-f8d34734c78e","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":187,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"6789ad1d-1aac-4a41-9739-7c61ab5c1527","block_type":"box","text":"financial commitments.","page_number":187,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"10f9e6ef-4c4c-4514-92a5-f3c6c0267a73","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":187,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"c3377ed0-ca49-410b-93b4-8dbaca22cb43","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":187,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"222a583b-2e06-4308-9194-253927581798","block_type":"box","text":"commitments on the obligation.","page_number":187,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"9997133e-71c4-4e33-86dd-8028906deb68","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":187,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"3295a796-adf6-4273-b61b-7ca460fbec49","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":187,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"4c27f75b-a0c3-445c-a896-fbe2f072d1f5","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":187,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"efdbbbdc-c692-4ce3-a148-985c50c22c90","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":187,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"3d9e58f5-6b42-4aee-83ab-74a97d847090","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":187,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"cc1885c7-f963-4bf2-b373-e373db774346","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":187,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"64bb112b-b544-4048-90cb-5f898ab3164a","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":187,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"023eb530-be58-4bd9-af95-9e4216a8a1ee","block_type":"box","text":"debt restructuring.","page_number":187,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"b9159bc5-3546-41fa-97d7-d805319b8b2b","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":187,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"d49c6b76-b077-4f4d-a00c-4b7a196db0af","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":187,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"7ae2dcfb-824d-4208-9b0d-b13d3a75ca2d","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":187,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"6325d05a-4e5b-4581-8bef-e2efaa0df81c","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":187,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"ec8e9c48-9ab4-49b7-9132-cdc53e70f691","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":187,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"fe5fb979-5bb7-4fbc-97d2-eac485bde7d8","block_type":"box","text":"A-5","page_number":187,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"dc8a8fb9-7d17-4cf9-9403-d2074a1010ba","block_type":"box","text":"NM1026U-6032801-187/242","page_number":187,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"669590d7-6437-4f5a-8022-8baadcbfa3d0","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"be7318c0-f281-471f-a029-823b0d81498e","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":188,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"49a4976b-8d53-481c-b1e8-a3273b4f5815","block_type":"box","text":"as a note; and","page_number":188,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"5a3c4f7d-aa0c-4899-a9ae-1c4669ffeb64","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"0ba9cd0a-f822-41f2-9c0c-bdea6482be0d","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":188,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"06a0167d-d8ec-497f-97c7-69b8418391ec","block_type":"box","text":"treated as a note.","page_number":188,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"0fc7f518-5aa0-4c3c-94da-462a75f04d41","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":188,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"295465d1-cf6e-41c1-bbc1-4c77782d0ec1","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":188,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"55e591b4-604d-4e10-ab54-c174c2312bee","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":188,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"1dcf61e1-1708-4ae4-8b3c-cba3f9a4f44d","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":188,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"f347f362-9489-4448-a13e-d6fd0af6e957","block_type":"box","text":"economic changes over the term of the notes.","page_number":188,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"dc4d6d71-34d3-40de-9c94-7ff77ec23086","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":188,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"2cdf29d0-bd17-46a7-81f0-c3ff7aa02923","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":188,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"8a2ca3dc-7f01-4d78-bd32-13b76785f7ff","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":188,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"ba9d3d5e-2679-480e-b213-c8087269e64c","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":188,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"14c34ac8-ac50-45c7-ba79-eaea2d161275","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch’s”) Credit Ratings Scales","page_number":188,"box":{"x":69,"y":294,"width":455,"height":11}},{"id":"b5f46561-16a6-4be3-80b5-9db6d0214dea","block_type":"box","text":"Fitch Ratings publishes opinions on a variety of scales. The most common of these are credit ratings, but the","page_number":188,"box":{"x":102,"y":317,"width":778,"height":11}},{"id":"a94940a5-bc37-4de8-84f2-d055b72886e4","block_type":"box","text":"agency also publishes ratings, scores and other relative opinions relating to financial or operational strength. For","page_number":188,"box":{"x":69,"y":332,"width":804,"height":11}},{"id":"0c1871e3-fde6-4c2d-81be-15e5d82b3c90","block_type":"box","text":"example, Fitch also provides specialized ratings of servicers of residential and commercial mortgages, asset","page_number":188,"box":{"x":69,"y":347,"width":776,"height":11}},{"id":"4502d0f8-25e6-4644-b109-f82239c4f92b","block_type":"box","text":"managers and funds. In each case, users should refer to the definitions of each individual scale for guidance on the","page_number":188,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"eba24cfb-1941-41b7-95fd-24f028107d06","block_type":"box","text":"dimensions of risk covered in each assessment.","page_number":188,"box":{"x":69,"y":377,"width":344,"height":9}},{"id":"5b241eed-6a5f-44db-8435-f7c227bee1e9","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":188,"box":{"x":102,"y":400,"width":747,"height":11}},{"id":"3182b55f-c859-473e-b8df-e973002c0929","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":188,"box":{"x":69,"y":415,"width":782,"height":11}},{"id":"cf39d0a4-dd6f-4c43-9822-47d2175ae026","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":188,"box":{"x":69,"y":430,"width":793,"height":11}},{"id":"5f4020a2-9760-4e10-9d06-3fdbb8100cb9","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":188,"box":{"x":69,"y":445,"width":761,"height":12}},{"id":"5a404f0f-8154-4de5-a786-728723f8a518","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":188,"box":{"x":69,"y":460,"width":766,"height":12}},{"id":"b836d334-3987-4091-bfb7-2e062fe7d2c6","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":188,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"261a2b7c-a011-48e5-a187-6eb766b12c4e","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":188,"box":{"x":69,"y":491,"width":779,"height":11}},{"id":"682742d6-7098-4c82-a222-a291a1b3a02a","block_type":"box","text":"receivables or other financial assets.","page_number":188,"box":{"x":69,"y":506,"width":262,"height":9}},{"id":"7ef8f696-bd6f-47e9-957d-4efda903e93b","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":188,"box":{"x":101,"y":529,"width":794,"height":11}},{"id":"4de82cdf-07f8-4767-bbe6-1bc8634b9037","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":188,"box":{"x":69,"y":544,"width":826,"height":11}},{"id":"b2949dfd-4105-4524-b289-4495beaef0eb","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":188,"box":{"x":68,"y":559,"width":800,"height":11}},{"id":"470a08ca-c112-4452-bab8-e3441e69f9dd","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":188,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"7a6974d0-9d73-4642-b8dd-81eef9aed19b","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":188,"box":{"x":68,"y":589,"width":793,"height":11}},{"id":"b8cec6ef-b1e2-470a-ab0f-5038f182965a","block_type":"box","text":"occurred.","page_number":188,"box":{"x":69,"y":604,"width":65,"height":9}},{"id":"95ffda94-bb2a-4fee-a002-a1b3389a41ac","block_type":"box","text":"For the convenience of investors, Fitch may also include issues relating to a rated issuer that are not and have","page_number":188,"box":{"x":102,"y":627,"width":788,"height":11}},{"id":"7fb00f5d-5484-4dbe-b061-b9fd3aa746f0","block_type":"box","text":"not been rated on its web page. Such issues are also denoted as ‘NR’.","page_number":188,"box":{"x":69,"y":642,"width":506,"height":11}},{"id":"a058fb9f-7a1b-4277-aa6e-6bdabb872205","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":188,"box":{"x":102,"y":664,"width":797,"height":12}},{"id":"97e57cfe-32ad-4be5-b6f7-8c3848f7bc27","block_type":"box","text":"not predictive of a specific frequency of default or loss. For information about the historical performance of ratings","page_number":188,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"5cb710a2-6970-4bff-8773-2652b5ca273e","block_type":"box","text":"please refer to Fitch’s Ratings Transition and Default studies which detail the historical default rates and their","page_number":188,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"77487bfc-57a1-4f4c-88cd-7f09f2e9d75f","block_type":"box","text":"meaning. The European Securities and Markets Authority also maintains a central repository of historical default","page_number":188,"box":{"x":69,"y":710,"width":801,"height":11}},{"id":"94a0c818-5dc7-4715-a2f3-c39060f1a097","block_type":"box","text":"rates.","page_number":188,"box":{"x":69,"y":726,"width":39,"height":8}},{"id":"08470249-60e5-444c-9d47-4e76746834bb","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":188,"box":{"x":102,"y":748,"width":798,"height":11}},{"id":"52d77a42-dc13-47e7-86c8-dcc0dcb01815","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":188,"box":{"x":68,"y":763,"width":780,"height":11}},{"id":"569431ca-0719-4efa-90c3-bdf0df176d86","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":188,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"90175034-d305-4677-a31f-f470b18fe763","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":188,"box":{"x":69,"y":793,"width":531,"height":11}},{"id":"ceed3365-8a46-4e2f-b8a6-0c4c21f9cd2f","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":188,"box":{"x":102,"y":816,"width":801,"height":11}},{"id":"a02a5066-9868-4aee-8ffe-cc2b3daedcfe","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":188,"box":{"x":68,"y":831,"width":639,"height":11}},{"id":"028c9536-6158-4216-8be2-2a3f7ecbc90b","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":188,"box":{"x":102,"y":853,"width":799,"height":12}},{"id":"f9a5f6b7-c169-4f48-b5c1-e1dac1c1eaa2","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":188,"box":{"x":68,"y":869,"width":794,"height":11}},{"id":"376e4427-57b7-4fda-9191-e9740645858a","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":188,"box":{"x":70,"y":884,"width":420,"height":11}},{"id":"0eef83b5-a3f4-452a-a191-1bbffbe7d55f","block_type":"box","text":"i.e.","page_number":188,"box":{"x":492,"y":884,"width":20,"height":9}},{"id":"a30d603c-d7fa-4b19-86d3-0b2c1ea3cb5b","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":188,"box":{"x":519,"y":884,"width":380,"height":11}},{"id":"e19d37fa-914d-467e-b29a-4cb073957dd5","block_type":"box","text":"the obligation’s documentation).","page_number":188,"box":{"x":68,"y":899,"width":230,"height":11}},{"id":"22c1e4aa-f51d-43c3-b381-3a74bc81962a","block_type":"box","text":"A-6","page_number":188,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"d449d8b6-7fa7-4b9c-93f7-9fbce47ed85b","block_type":"box","text":"NM1026U-6032801-188/242","page_number":188,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"154ca77d-4be1-4418-ac33-f2cee533648b","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":189,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"60eadc33-5458-4716-8a6b-ac86ea230d7f","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":189,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"58ed6b4e-c153-433e-92cb-9671105ad681","block_type":"box","text":"agents in the form of a rating letter.","page_number":189,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"36242166-e214-4282-8dbf-b4709d61b90a","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":189,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"b3ea68f3-ff97-46da-9a22-f3c879c9f552","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":189,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"8c04060e-3874-4c98-a6f4-8313d05110b6","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":189,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"ffb982cb-dbf2-4c75-83d1-013f54bd6e9f","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":189,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"f7e97e9c-fee2-44f0-aae2-a5a56f6657ac","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":189,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"13965fe3-f5bf-453a-a732-c2f62a003f35","block_type":"box","text":"e.g.","page_number":189,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"ec26afc6-d020-4e1e-89b3-598b7d2c4c3c","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":189,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"f1490dbe-8d18-48f3-9846-aa760ed6d158","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":189,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"d85afe2f-5f89-41fa-a769-5744ffcff027","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":189,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"9bd20856-b2d9-4d21-a4fe-0cdb48ceaf90","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":189,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"e38ac6b0-47b4-42a2-b5df-b367a27cba55","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":189,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"343898a3-9217-48eb-94e1-ae8fc0d1e8bb","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":189,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"14f1f9f1-471a-4e8f-83ce-fe392f9c796c","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":189,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"132060ce-be0f-447b-8fa1-0c98dd21903e","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":189,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"b7ffc0f4-6e0e-49ff-a42d-e4c73c797f31","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":189,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"fdf2c6ab-fc86-4ee2-82c8-d6aacfe575c0","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":189,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"92a5378f-a441-4de3-b7e5-53b354f0f5ee","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":189,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"bf43a1ba-e1e7-4a9b-84c5-8c708c1808d6","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":189,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"6abf076b-945c-44df-8a9c-c6e766ca85a5","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":189,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"5316e855-8b07-4c03-8f2f-4e6e7aa5771f","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":189,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"1d2ddf7d-0e34-4275-a44c-8b403df454d1","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":189,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"7d69c8b3-41b1-43c4-9974-d9e3cd37065f","block_type":"box","text":"Ratings.","page_number":189,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"cefad072-de8f-4d72-b36f-5aa9182da5fa","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":189,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"160e7339-db42-484b-aadc-6fab56d822ae","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":189,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"34f63645-95d9-4f59-bdd9-b6e0e3b0bab2","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":189,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"8b901266-1851-4d04-83da-0ab9ec810dbc","block_type":"box","text":"obligation ratings.","page_number":189,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"0b6b763e-69f4-42ec-9394-82e26538a64d","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":189,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"dd6586b6-beff-4cae-b3fa-49918e8b4712","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are assigned","page_number":189,"box":{"x":68,"y":533,"width":833,"height":12}},{"id":"74b2b124-23a5-4ccd-913b-b62e3bfb3af9","block_type":"box","text":"only in cases of exceptionally strong capacity for payment of financial commitments. This capacity","page_number":189,"box":{"x":196,"y":549,"width":697,"height":11}},{"id":"a04bdff2-66aa-4633-b45a-33cfbc39bdda","block_type":"box","text":"is highly unlikely to be adversely affected by foreseeable events.","page_number":189,"box":{"x":197,"y":564,"width":457,"height":11}},{"id":"15f45a4f-b539-4f77-8e1a-45cadd245dc5","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate very","page_number":189,"box":{"x":68,"y":584,"width":829,"height":11}},{"id":"95f3a7e0-64c3-4493-885c-496fe2d73190","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":189,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"7b622e05-d097-4069-96ce-c8071414170a","block_type":"box","text":"to foreseeable events.","page_number":189,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"398ada26-1254-4330-a3e7-630efae483c5","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment of","page_number":189,"box":{"x":68,"y":634,"width":819,"height":12}},{"id":"047b5e5c-8e54-4eb7-8b99-d5a3542bd5dc","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":189,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"adce866a-404d-4f4a-9479-2d5e3e9938a6","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":189,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"a19b1ce7-2950-4086-b456-2d1409a6ee3e","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently low. The","page_number":189,"box":{"x":70,"y":685,"width":805,"height":11}},{"id":"f443b7e9-ed8a-4827-9351-7522083ac0c8","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":189,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"ed735b75-3313-4be2-92bf-60188aa75b7b","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":189,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"7a011101-000b-4f00-80c5-ffc65155fd26","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to credit risk, particularly in the event of","page_number":189,"box":{"x":70,"y":735,"width":830,"height":11}},{"id":"f7326332-4d8c-491e-b75d-d017cde8371e","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":189,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"c59b019d-35cb-413d-abfc-b6f916c22ff4","block_type":"box","text":"alternatives may be available to allow financial commitments to be met.","page_number":189,"box":{"x":196,"y":765,"width":511,"height":11}},{"id":"95c6f7ee-d3f2-489a-9b02-7c29df0a321d","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material credit risk is present.","page_number":189,"box":{"x":70,"y":786,"width":650,"height":11}},{"id":"ce8bc4ec-9267-4ebf-9f1b-692316e9c542","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate that substantial credit risk is present.","page_number":189,"box":{"x":69,"y":806,"width":727,"height":11}},{"id":"8205b10d-744b-4872-b120-7a2fd5ddddab","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate very high levels of credit risk.","page_number":189,"box":{"x":69,"y":826,"width":712,"height":11}},{"id":"f9f29192-7277-4da3-bab1-57fd1ec08acb","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ indicates exceptionally high levels of credit risk.","page_number":189,"box":{"x":69,"y":846,"width":780,"height":11}},{"id":"88a12156-7d3a-4b02-b1b7-2b799d273481","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":189,"box":{"x":101,"y":866,"width":808,"height":11}},{"id":"cc708559-c82f-463c-8a1d-f4a2ee967789","block_type":"box","text":"relative status within major rating categories.","page_number":189,"box":{"x":69,"y":881,"width":320,"height":11}},{"id":"88793b32-eef8-462b-bce9-80aa65ab6374","block_type":"box","text":"A-7","page_number":189,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"c12a84c6-72fb-4e73-9dfd-c24dacb9bb42","block_type":"box","text":"NM1026U-6032801-189/242","page_number":189,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e04c68cb-a566-4f8e-b9b0-c4b46b03127c","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":190,"box":{"x":102,"y":45,"width":761,"height":11}},{"id":"5a3d1d46-fefe-4dd5-8ebd-cf7ec4adb038","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":190,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"159b1ecf-205b-4959-926d-c143966110a2","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":190,"box":{"x":69,"y":75,"width":289,"height":11}},{"id":"49a5b3f5-17cf-4d71-9de0-da3f3357a7da","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":190,"box":{"x":69,"y":105,"width":568,"height":11}},{"id":"79bb50eb-707b-4da1-9be1-0f4e05de9775","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":190,"box":{"x":101,"y":128,"width":806,"height":11}},{"id":"8d18d8a6-4b80-420a-b2b1-fdfceaa07b7e","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":190,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"72a97de6-cea1-42b1-abe0-384d81a119dc","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":190,"box":{"x":69,"y":158,"width":822,"height":11}},{"id":"710095cd-8adb-4f81-93f6-a8261943a2c0","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":190,"box":{"x":69,"y":173,"width":827,"height":11}},{"id":"b7de4145-cf19-4a98-aaae-85ea09cdae18","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":190,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"2c200477-d22a-4924-807c-55a2d4c43e12","block_type":"box","text":"finance markets.","page_number":190,"box":{"x":68,"y":203,"width":118,"height":9}},{"id":"61145ac7-18dd-4261-a6ac-b41bac0ac719","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":190,"box":{"x":102,"y":226,"width":273,"height":11}},{"id":"2ba870ef-1d9b-4a6c-b9f0-370b240400aa","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":190,"box":{"x":70,"y":254,"width":816,"height":11}},{"id":"ba10dcb6-e122-4b5d-a269-ad1b4d581175","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":190,"box":{"x":196,"y":269,"width":692,"height":11}},{"id":"df57fe52-c3e4-4221-bb7f-9d9baa984e80","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":190,"box":{"x":70,"y":289,"width":734,"height":11}},{"id":"a52b6c39-e52e-4c3d-8c45-0eb4647491ca","block_type":"box","text":"commitments.","page_number":190,"box":{"x":196,"y":304,"width":100,"height":9}},{"id":"5d4ba8ad-59d7-4393-8e49-515e4e6fe13d","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":190,"box":{"x":70,"y":324,"width":831,"height":11}},{"id":"e7d2876e-0ae6-4650-bb45-60c49d40c157","block_type":"box","text":"adequate.","page_number":190,"box":{"x":196,"y":340,"width":70,"height":10}},{"id":"26df28fe-f894-40df-b299-186f28d5c681","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":190,"box":{"x":70,"y":360,"width":737,"height":11}},{"id":"44c26e07-ab26-46ce-9360-80de7160ec56","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":190,"box":{"x":196,"y":375,"width":641,"height":11}},{"id":"05806a60-7674-42a0-bd0b-a0e90b634a1c","block_type":"box","text":"economic conditions.","page_number":190,"box":{"x":196,"y":390,"width":149,"height":9}},{"id":"8a449ca1-8693-4a26-98ae-bf2397971538","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":190,"box":{"x":69,"y":410,"width":535,"height":11}},{"id":"507ff2d4-194b-40c7-ad0c-00fc4d8fdba2","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":190,"box":{"x":70,"y":430,"width":749,"height":11}},{"id":"6039d176-3b71-4680-9a9a-545da8f5dcf3","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":190,"box":{"x":196,"y":445,"width":714,"height":12}},{"id":"009d66cb-ee36-444e-8881-a26ce08447c9","block_type":"box","text":"ratings only.","page_number":190,"box":{"x":197,"y":461,"width":83,"height":11}},{"id":"f0be7081-9a8e-4a4c-abe3-f8ec480b5e8b","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term","page_number":190,"box":{"x":70,"y":481,"width":761,"height":11}},{"id":"40240927-ce01-4efa-af42-3e937ba16f19","block_type":"box","text":"obligation.","page_number":190,"box":{"x":196,"y":496,"width":72,"height":11}},{"id":"560d27de-5719-45c2-ab7a-6d2edebf855e","block_type":"box","text":"A-8","page_number":190,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"a437d697-588b-4eaf-a5e4-82d64e4241a1","block_type":"box","text":"NM1026U-6032801-190/242","page_number":190,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"78fd559f-22ef-4847-80ad-fa377a3479b3","block_type":"box","text":"APPENDIX B","page_number":191,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"ce5ef577-1035-45b5-94c7-a644a6bc52ae","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":191,"box":{"x":247,"y":106,"width":484,"height":11}},{"id":"8e6258de-7e87-4136-80e2-becca2978d3d","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":191,"box":{"x":247,"y":121,"width":486,"height":11}},{"id":"7b8909bd-4197-4672-be79-9b253088882c","block_type":"box","text":"Effective Date: January 1, 2025","page_number":191,"box":{"x":376,"y":136,"width":227,"height":11}},{"id":"a1b8d6fb-2b23-4a9b-9ba6-dd2193ee4865","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":191,"box":{"x":231,"y":159,"width":515,"height":11}},{"id":"93f10831-d615-49f1-b0fc-c3f2bb9fd5b8","block_type":"box","text":"□","page_number":191,"box":{"x":284,"y":181,"width":15,"height":12}},{"id":"7cdefb25-37ea-4d28-80ed-3f99e4073299","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":191,"box":{"x":306,"y":182,"width":388,"height":11}},{"id":"86cf9586-7998-4eae-a094-26fbc246668b","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":191,"box":{"x":205,"y":204,"width":589,"height":11}},{"id":"b61eea21-fb43-416c-9f87-443d5b3a200c","block_type":"box","text":"□","page_number":191,"box":{"x":405,"y":227,"width":14,"height":11}},{"id":"139c19c0-ec21-4e84-8648-ba84b888ddf5","block_type":"box","text":"Money Market Funds","page_number":191,"box":{"x":426,"y":227,"width":147,"height":11}},{"id":"f0dcae41-77f0-4752-a7a4-e8d8a3da99cf","block_type":"box","text":"□","page_number":191,"box":{"x":416,"y":249,"width":14,"height":12}},{"id":"dd5aff3b-750e-4a8d-8a41-b4cfb93460c4","block_type":"box","text":"Closed-End Funds","page_number":191,"box":{"x":437,"y":249,"width":125,"height":9}},{"id":"72a38b6e-458d-497c-a60a-9d5574e4b7a7","block_type":"box","text":"□","page_number":191,"box":{"x":460,"y":272,"width":14,"height":11}},{"id":"6e6714c5-f989-49f6-9978-b09b87433390","block_type":"box","text":"Other","page_number":191,"box":{"x":481,"y":272,"width":38,"height":9}},{"id":"4cf49455-91d6-4517-a74f-54e43abaeb4f","block_type":"box","text":"Objective and Scope","page_number":191,"box":{"x":101,"y":295,"width":149,"height":11}},{"id":"f8dfba39-7227-43fd-bc16-e49d1c62f426","block_type":"box","text":"Set forth below is the Open-End Active and Fixed Income Index Fund Proxy Voting Policy.","page_number":191,"box":{"x":134,"y":317,"width":622,"height":12}},{"id":"d423da74-199a-442f-a842-56d0b1f18916","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":191,"box":{"x":102,"y":340,"width":354,"height":11}},{"id":"71bb9e3b-2a57-47c4-9721-f7d5a7d0ecd5","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":191,"box":{"x":134,"y":363,"width":702,"height":11}},{"id":"c71133d4-13cc-419b-a96e-576f1244c714","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":191,"box":{"x":102,"y":378,"width":789,"height":11}},{"id":"560d849d-abcf-4408-b920-11d5243971d6","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":191,"box":{"x":101,"y":393,"width":801,"height":11}},{"id":"5c81459f-b280-4d70-a836-e1f82e48ca36","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":191,"box":{"x":101,"y":408,"width":763,"height":11}},{"id":"15cb4009-26f3-414a-85a8-a54eb87feb90","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":191,"box":{"x":102,"y":423,"width":775,"height":12}},{"id":"3c52bdf9-9466-447d-ac3e-51cec69dc1c2","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":191,"box":{"x":102,"y":439,"width":651,"height":11}},{"id":"6d3aff54-3bd7-4d69-b004-3d6e717ef6c6","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":191,"box":{"x":135,"y":461,"width":718,"height":11}},{"id":"cca63ded-54c1-424a-b841-5ec2be4d8a9e","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed income","page_number":191,"box":{"x":102,"y":476,"width":788,"height":11}},{"id":"25dbf91f-8f59-40e9-9374-bc7c1e22588e","block_type":"box","text":"index Funds managed by BlackRock. 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Potential material conflicts, and the resultant potential for undue influence, might","page_number":191,"box":{"x":102,"y":620,"width":805,"height":11}},{"id":"f35e6b5c-50dc-45f0-8a94-41cdb2975981","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":191,"box":{"x":102,"y":635,"width":797,"height":11}},{"id":"e88aa9e6-7b20-42a1-a104-f1d23ab0b623","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":191,"box":{"x":102,"y":650,"width":756,"height":11}},{"id":"1ac3082b-e08d-438e-830e-19cacca65409","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. 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This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":195,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"dac24f26-7144-4a0b-9526-0d585338e821","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":195,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"4f112771-4ab8-40f4-aa68-aee78c960bff","block_type":"box","text":"2","page_number":195,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"6e5f092a-b545-4a31-a24e-309d027fb100","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":195,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"2e9d6183-5590-4559-9dc5-5d854c21a1f0","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":195,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"845906be-007f-4117-b17c-ccd16e2d4416","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":195,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"a7c8308c-0bdb-4ab8-b8c1-f18500161442","block_type":"box","text":"policies.","page_number":195,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"ccca12b6-8a7f-4ce3-af7a-416395fe3a04","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ac32aba6-2a24-47b1-9a53-441efa0f2a84","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"7be7d81b-a5fa-4648-a6d4-d0e93f15365d","block_type":"box","text":"NM1026U-6032801-195/242","page_number":195,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e084bb22-a736-4478-9176-e973ee8eb3bd","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":196,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"4d50d12e-1907-4ab4-920b-643905f4f5de","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":196,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"2734e6c7-b4d7-4239-98c8-161c98c7172c","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":196,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"7fb45d76-c412-45d1-98d6-d06f28d0827d","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":196,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"9202cea8-5d4d-4416-b640-580d145250e6","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":196,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"25e150da-16c5-4368-b853-606f8fe89841","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":196,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"b95c3739-b1a3-4fbe-a326-8228b18cbff6","block_type":"box","text":"this work with research, data and analytics.","page_number":196,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"ff5acea8-3756-4fd7-8ea9-ea6bab390d7c","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":196,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"37308aa0-501e-4181-9a22-cf5fa5d36a99","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":196,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"c403e01d-aabb-4c58-a235-592915004cc2","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":196,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"8789286d-0fae-4fd3-a11d-55d1933d569a","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":196,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"b5bef3a0-189f-4e33-bfd0-46824d4b4420","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":196,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"898c309c-89c1-421e-9417-e5d7a1dc4447","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":196,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"e38d38f2-0d5b-4b61-b217-fe0dc18fe2e1","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":196,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"7f17c84a-f914-4613-b793-ba35fcf5f3c4","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":196,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"fe961350-f392-46d0-b508-7aabc8892a92","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":196,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"a03c7baf-c1bd-4646-8940-637584f613e7","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":196,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"c200b5ab-79c2-4d01-9225-d1f8212b0112","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":196,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"a6113ba0-11a5-4c13-8b00-948e247f6f7f","block_type":"box","text":"shareholder meetings.","page_number":196,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"1e5cd53d-07d2-46ac-914b-45cfdb0328d2","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":196,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"12a899d9-cb8f-4eeb-a817-41bd6d9b40dd","block_type":"box","text":"investing.","page_number":196,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"f1e56b15-0d15-4a92-a446-123c6e937e96","block_type":"box","text":"3","page_number":196,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"614614cb-2451-4c05-9828-fc2365221d19","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":196,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"6ca1122b-db97-439a-81e8-c3213120617d","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":196,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"61766fe5-de0f-458e-8d5e-ef4a63fd9500","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":196,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"ca9f8965-bf1e-44bc-8860-2b1e4bce5029","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":196,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"4bcb8ae5-2343-4d04-be28-7894f1e4dc21","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":196,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"06971e2e-b619-43fb-a1f8-696da7163dfd","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":196,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"aa89c1fd-0897-464f-a1ac-cb21e299941e","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":196,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"d30c41cb-4496-42fe-941a-0b9d75e8b0d0","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":196,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"1ee21c28-5168-4c5a-9afc-910abf3d13fc","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":196,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"c0bbd236-237a-4048-94ce-600e04feaab6","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":196,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"e673c185-be1e-483f-8d45-01e38a87b6ec","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":196,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"55a8fb09-6d1c-44a5-a1a3-0d77fc3d0f3d","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":196,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"30cf6762-bc34-4115-af59-1c211aa0c919","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":196,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"37bd364a-6f7e-48db-a910-82b6c419d3b4","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":196,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"3c67239e-1a95-4e18-bf33-8a5d473f35f8","block_type":"box","text":"management teams and board directors","page_number":196,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"150e712e-d956-492a-a738-5d9136a7d9a7","block_type":"box","text":"4","page_number":196,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"662e525c-b17d-4df8-ad7c-0fed0077ea94","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":196,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"94623457-85b6-459a-ad58-2441565d517a","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":196,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"161081a4-2102-4ef9-aa11-3271eac405a2","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":196,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"59142abc-8a4e-4000-aa4e-0cebc9a22db5","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":196,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"c7f545b0-1829-44ee-ad1e-582488b1998a","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":196,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"7547f2ec-f264-4a88-821f-c4ea2dadadb3","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":196,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"f7fc339b-c1d1-4a2b-b7fc-67aa428f28cb","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":196,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"268138d7-20c6-47c4-a848-bedb922d2d3d","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":196,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"f754b851-0fd2-41b3-9e5e-ec8391d9c0af","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":196,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"19cddd80-9dea-4d7d-8162-bde4924a50a5","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":196,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"0cd8c55c-46b6-45c5-ba5b-79332b269a8c","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":196,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"1877b3b8-7960-4c82-8aa0-a4821ad71d88","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":196,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"77895068-eac8-4f28-a6bf-2843560aad75","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":196,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"0865e904-b2cd-48d0-bf32-ee77a8388a4d","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":196,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"328a8be9-3a59-4581-a753-e6232d345de9","block_type":"box","text":"3","page_number":196,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"bf167360-ec2c-483b-aad1-00f6c0c083f7","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":196,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"5cee2d2b-7a39-4011-9bdd-303ac9e05817","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":196,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"0ad49d11-ff88-4ad7-a1d3-eeca12003374","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":196,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"04a9d117-4a84-49c5-912d-dec2fdb9951e","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":196,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"e44166d5-b354-4266-bffb-258c4d3e7376","block_type":"box","text":"4","page_number":196,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"70309e12-eccc-4932-9c68-3fb41df372b3","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":196,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"f2c83080-41f7-44f4-a4fe-7ba39bb74787","block_type":"box","text":"boards and their members, where relevant.","page_number":196,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"7cdad4cd-6036-4d22-ae46-d814c2e0f4ed","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"7092d4e2-0852-47a6-a600-ef33009ce15e","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"105a07c5-9479-4317-8fc1-df0f49e08eb0","block_type":"box","text":"NM1026U-6032801-196/242","page_number":196,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fbbd70d5-a94c-42fa-828f-c81900e83e8e","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":197,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"e9f9fd99-e216-4b55-8651-1cb694648a0d","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":197,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"e4779590-9e02-479c-b9e4-736de66317ed","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":197,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"ce1276dd-e4ff-4189-8742-af925c5a3f3f","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":197,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"e11855e9-b50f-435a-812f-9778484a5abf","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":197,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"70865b86-e3d7-4aa1-8e13-a905b102f3e3","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":197,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"d86c5df0-f4dc-430e-b872-886577abab82","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":197,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"13da555f-1113-4d92-8631-34c62b3cbbbc","block_type":"box","text":"5","page_number":197,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"7e1cd926-c51b-4d12-b38e-b7d958f3ed2d","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":197,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"8b7ae1c3-ba45-4479-84f3-6d272463adc0","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":197,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"77ebfc87-1025-418b-8481-785485a7e000","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":197,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"de6ce577-efd5-45ff-aab6-b9b06ffe8f10","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":197,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"b4a22dd3-de73-47c9-8847-99398814db21","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":197,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"cd712922-e9a7-49cf-8359-a176569de2d6","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":197,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"260e5208-8e7e-4059-93e0-09d4721e49f3","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":197,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"8d84eb62-09e3-4776-87a9-779578d791e0","block_type":"box","text":"5","page_number":197,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"4becce6f-767d-4607-9ed2-6874881703dc","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":197,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"12c88e4c-7859-4d71-a288-e0cba6bee7ce","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":197,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"ffcaf354-a3bb-4425-be16-203dc9cf06e2","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":197,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"e88e8d61-708a-40a8-9d29-5b6ec9645ae3","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"2f2a61fc-564c-49be-8071-4069211a1cd8","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":197,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"3aff91db-99be-4e61-bdef-48bdf8b7a0b0","block_type":"box","text":"NM1026U-6032801-197/242","page_number":197,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"79062d39-d898-43a4-8548-8eb1a4437517","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":198,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"68de552e-1d09-448d-9426-1b3347b5d7db","block_type":"box","text":"Roles and responsibilities","page_number":198,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"f359c643-a020-49c9-96b0-ff2647ac16b7","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":198,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"499a89c1-f323-481a-8799-a8be43944900","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":198,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"8c024dd9-9c05-44cc-8277-13b30af7df5d","block_type":"box","text":"6","page_number":198,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"77dc3896-509e-4450-adf8-b0a4b606ee63","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":198,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"62d557ab-7c39-4733-b77d-dfd07f0e4368","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":198,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"2d89917b-a30a-4c1f-911e-6c0028fd1f1b","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":198,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"37682df3-717b-4e79-9676-b36fdd564469","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":198,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"5a76650c-4b0d-4e3c-81a0-30713654015a","block_type":"box","text":"performance over time.","page_number":198,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"3083831d-5d17-4f87-aa01-5d86f627c858","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":198,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"a68ab573-800c-4089-a340-460183d2b36d","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":198,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"c63dc4bc-073f-435e-9c96-aed62dc242ff","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":198,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"7a78e0f4-7f77-434e-8aa5-959397970dc6","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":198,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"e555f7bd-5c79-4e18-9d57-9084002f2092","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":198,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"efd83ba6-0afe-444f-a392-edb86db873a3","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":198,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"66690647-5022-4ed6-8aa9-bad8d44fdde8","block_type":"box","text":"Composition and effectiveness","page_number":198,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"ef9c5e17-e984-4fe4-8905-9cdc31d543d5","block_type":"box","text":"Appointment process","page_number":198,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"935cfea4-d5a5-46d3-96c2-d26fa96af62e","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":198,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"37718804-cfc0-4c67-91dd-9002e8e9a720","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":198,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"56fff623-7f73-4aa2-8cc7-3b81b771b3d5","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":198,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"2518a98a-a9e1-4837-9828-e6fc7e1fae57","block_type":"box","text":"e.g.","page_number":198,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"738d11e6-8bbf-4984-aac3-e3d11738def1","block_type":"box","text":", sector, maturity, geographic","page_number":198,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"a9b09934-0bfa-460f-b5eb-8e59e23211d1","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":198,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"2c7205bd-d79f-47f1-a20e-f92db23d6360","block_type":"box","text":"e.g.","page_number":198,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"4b9bddb0-d41c-4bbc-b0c0-8d6352ad5872","block_type":"box","text":", financial expertise, industry track record). To","page_number":198,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"0fc04728-0c5b-4308-8b9d-66a14608c2ed","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":198,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"b5faeb49-9151-4d23-a349-a82dbb2710dc","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":198,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"02636ea9-85d3-4e1a-ba41-b695e71f10db","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":198,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"9e8940b7-acfb-4439-acd5-38c8a695705a","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":198,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"df63ecdd-0a2d-4c60-adc9-aa971fc7c71a","block_type":"box","text":"and local market requirements.","page_number":198,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"c9a1c29f-7e20-4c73-93e8-52f7d602feb8","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":198,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"abab4988-3d77-4e92-b85f-56a6b0c0efaa","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":198,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"35707c95-7bd3-4126-9ee3-394538abc2f1","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":198,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"5096a064-e2d9-43a6-ad7e-5b9bb57b9b5e","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":198,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"27808cf3-000a-4a23-8c8c-9e7ef85e7103","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":198,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"e88b91dd-2682-4224-90d6-85a699fe52a9","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":198,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"933b7b6a-45c2-4eb0-9189-0a4902a0aff9","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":198,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"f52c145d-f928-4a42-a68f-379ba5100cac","block_type":"box","text":"Independence","page_number":198,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"1b54d921-b15f-4202-af21-a1b17993ac92","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":198,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"d5c40294-238d-4f3c-be4c-0c2b5fbf27ad","block_type":"box","text":"e.g.","page_number":198,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"bcbd7bd7-d4fc-4117-b43b-3c47c25c5487","block_type":"box","text":", government or","page_number":198,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"9fb328b3-d77d-4c75-a45b-4457e885123f","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":198,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"dca29273-1bec-4b72-af32-a602e783af6e","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":198,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"5f6d0d4b-78f3-4002-85a1-251cfad6c324","block_type":"box","text":"conflicts of interest or undue influence.","page_number":198,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"25300a13-9700-475d-9bd5-f099b23e3f30","block_type":"box","text":"7","page_number":198,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"58ae3744-a3ee-4429-9c66-4ab853d79c81","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":198,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"1869577d-d61e-42a7-9912-b2fbcf69410e","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":198,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"0af00d13-1437-4c8d-ab17-c10d50cbb8f2","block_type":"box","text":"independence should meet those local requirements.","page_number":198,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"d94c21c2-5d2b-4ca2-96ab-cfbbce70ffd6","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":198,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"d5e075a7-9091-47e7-af36-2de4aafaba5b","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":198,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"813eef0a-f2ef-4a61-829e-5661bced308b","block_type":"box","text":"composition if this is a perennial issue.","page_number":198,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"87e1e6a8-d920-479b-8f5c-5a2b1b43de09","block_type":"box","text":"6","page_number":198,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"d982b93d-b8c0-4118-8e5f-55201394d47c","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":198,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"401cdf34-6b32-4eff-92da-2938e7f20684","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":198,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"8ec3b12c-6a63-451f-85fd-742d73da6a6b","block_type":"box","text":"7","page_number":198,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"a1f7585a-5674-4854-ac64-b0ab57529c18","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":198,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"3257ca59-4286-4599-9da8-f25083ba07d2","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":198,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"62fc32f7-7636-4f61-89e7-8b86b641e00a","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":198,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"6c2969c4-bc74-4d43-ae68-047154cdedab","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":198,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"9562892b-a77e-4937-a58c-de5909263873","block_type":"box","text":"of the company and shareholders.","page_number":198,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"fcd440ec-8327-4a43-b120-7c7816861f16","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"4fede1c9-0b0b-4248-8633-dc2b5d22fdf1","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":198,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"54f7cc7a-be90-4983-a8fa-8becb3e1f3a7","block_type":"box","text":"NM1026U-6032801-198/242","page_number":198,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8405d431-6d32-4275-9079-0edf9b2c91ea","block_type":"box","text":"Independent board leadership","page_number":199,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"9a634ab1-77c1-4f45-9a6e-bc9750da903d","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":199,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"2dbc6257-5110-4b4d-beb5-b8132efdb59e","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":199,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"e2985d20-222d-4ef5-8b2a-6b276b9aebfc","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":199,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"4b7d25ce-2dc6-42ad-9fea-18fab68f387d","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":199,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"ded916df-8a21-4c5f-8838-c5d5d2772f14","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":199,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"d9ebae16-fdda-4f2e-94af-2460d6c685e5","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":199,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"429fc2b1-1278-47a6-bb4a-20773de1f8a5","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":199,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"6c0e5b2d-c2cb-4d30-80a8-05d8b913bb32","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":199,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"23db1af6-05d8-4c67-ab8d-1d7d5f2d654a","block_type":"box","text":"how it serves the interests of shareholders.","page_number":199,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"b34304ff-d028-4d98-8b94-a84c6ef5cf80","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":199,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"a2a1d0ac-27c2-42a4-aea5-689e355a4b6c","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":199,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"83994f3b-a7dd-48d7-a593-6a98662c1542","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":199,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"83650e5a-7812-4e89-9feb-c46339db0f55","block_type":"box","text":"Tenure and succession","page_number":199,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"46a42181-63a4-43ce-9090-87602ae85da1","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":199,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"95620280-fb6e-4571-9be1-97121cb0d010","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":199,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"1c1b9aaf-aa66-4d68-a634-78839747661f","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":199,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"691aff04-cff6-47c1-a413-168874849e67","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":199,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"ffff150a-b039-4bd5-9eee-0bd3e58eec70","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":199,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"c0309a72-8380-4bba-a476-44b0e08bd1b7","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":199,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"f2446d44-9f35-4437-9693-ec8457547a9c","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":199,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"b10ec771-2156-4c80-a6c7-df77872f26d2","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":199,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"409c6bc2-02a9-4aff-ac09-76302811a1c7","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":199,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"f3f9e3f6-7938-4b66-bcbc-401544084df7","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":199,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"9e9bb40f-6596-49e4-a75b-838513ec9248","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":199,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"0dc93282-3806-4474-93f8-03f420b96499","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":199,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"c6144403-c3c5-4ced-a729-fdc1325d41f7","block_type":"box","text":"for their continued service is not evident.","page_number":199,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"0dcc80c0-3ca7-4af1-b14e-8522781e5c9c","block_type":"box","text":"Capacity","page_number":199,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"75c218e8-40e1-401f-bd6f-9fc3d4b07fa6","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":199,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"1adc09ec-57ab-4c90-8ade-a50e09c10406","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":199,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"dc271095-b94d-4ad1-8b69-dacaed34adbf","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":199,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"8f21581b-c232-4692-bf53-2bab7808d212","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":199,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"f93c90b5-736c-4a6b-8a03-3c40856ec4b6","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":199,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"0d95d74b-480a-4b8d-be18-63d3a09aefbe","block_type":"box","text":"determinations across markets.","page_number":199,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"0e2e086e-5a6a-4166-8c1f-46038dcb9db8","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":199,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"7e6400de-cab2-4a2f-9b08-283c05a31c25","block_type":"box","text":"their duties to the board and company.","page_number":199,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"1a0353f6-e603-4e29-9d1c-1b528512426c","block_type":"box","text":"Director elections","page_number":199,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"43497741-2028-4609-9f9b-60da28879ad8","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":199,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"ee9ddc25-b0ce-48ef-918a-11b149496881","block_type":"box","text":"structure","page_number":199,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"5dafab6a-7ec8-4c0c-b407-0f4eb05dd812","block_type":"box","text":"8","page_number":199,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"9cb33230-3b00-4496-b347-443767309a97","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":199,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"6ffffe13-9eab-46b6-803c-b7db28345259","block_type":"box","text":"basis of its business model (","page_number":199,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"e16f4421-a4b5-444e-b4ec-7b7492d8a0f0","block_type":"box","text":"e.g.","page_number":199,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"534c99c9-f8d5-420e-85f8-9d7d071cbe27","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":199,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"64f7ec7a-b895-4ee3-b290-bd92ac12b54c","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":199,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"1e4cd666-f428-4fb3-90d4-79196f5cccce","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":199,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"cc8c2e9f-e2e2-4c43-b2ef-018af997b651","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":199,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"ddf60f5b-b15e-45ff-b4cc-2dd977501954","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":199,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"0379f79c-47d5-4a55-bf3f-3e91c99d7e2e","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":199,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"55d5f851-fb9b-40ae-b2ee-d7463718efdc","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":199,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"174e3e84-80a4-439f-b671-1fcc96139b21","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":199,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"d43614e8-52ab-4982-9369-947c78dd4b7a","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":199,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"982aaa32-2f3f-473c-937d-cd2e254092be","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":199,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"81ef959b-d2e2-402c-8340-c52928083ac4","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":199,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"01132c01-1b6f-4286-9c25-4c0b920efbcc","block_type":"box","text":"8","page_number":199,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"18451a48-438c-45c6-99c4-c78c5386c180","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":199,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"57c0b74b-a2e6-439f-91d0-77b83230c483","block_type":"box","text":"directors stands for election in any one year.","page_number":199,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"aa1ba4b6-87fa-40d2-b911-dc92ad69b497","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c66d788f-488a-4e3b-bdb1-40f5d157b2c1","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":199,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"242a58a0-520b-4ec0-afe0-53731ae0c745","block_type":"box","text":"NM1026U-6032801-199/242","page_number":199,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a2f4f29f-840d-471f-8ea1-151814f3f45a","block_type":"box","text":"Committees","page_number":200,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"8c0d9038-89a6-483d-9644-60fafca7e1da","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":200,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"a0e24102-6d83-4ff1-85fb-afcdefd0ee61","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":200,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"1b124352-a4cc-4de0-89a8-2f5b277ffc3d","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":200,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"0b671b47-cbe4-4b9c-907e-af441986656a","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":200,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"a2615d21-6f9f-45a0-92ab-3c9a7a700b67","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":200,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"dd706c56-9c6c-48f2-87f3-d4908f035fb2","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":200,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"6f0f3606-d264-438f-89e6-0db10945f957","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":200,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"0d665221-d737-4e7c-a588-ea69f85699f7","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":200,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"82a965e3-cf04-4e35-b49f-9794c264fc32","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"282a77df-2679-4e86-8270-d578483e489c","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":200,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"e8577c64-a2bb-4e7e-ba6c-52f49eedd3a5","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":200,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"ad4bb223-273a-451d-abf7-4e1cd52311f0","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":200,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"3feaba8c-ed12-4d19-9d75-97bfe10a50b5","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"f7f1ff4e-9b9c-4d2e-8fd0-a6af4ed2c8a8","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":200,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"336dfa4a-8428-48fc-94d9-a4c048d22390","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":200,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"7771e79f-ab75-4935-b43e-10e79620b3cf","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":200,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"fa891b28-3f03-46f7-a51c-dfe589d80e67","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":200,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"48ed4cba-5784-49f2-86b4-a759b0438f30","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"57e1cb87-1baf-4583-9243-da9e54fd32c8","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":200,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"fe6f2cc2-1d95-4d52-b122-ecf80892e4bd","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":200,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"76469680-d5cf-4e9a-b662-e551612d6851","block_type":"box","text":"firm-wide compensation policies.","page_number":200,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"df23a209-7bdb-4a04-94df-5e547ac9c6e1","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":200,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"d14e7a9d-7003-48a0-8dc4-3dc1f882b200","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":200,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"e4b6ede3-19d4-42a1-90ef-e8e14b050e00","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":200,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"8e1531f6-d162-4346-9d22-b7519f58c050","block_type":"box","text":"Board and director evaluation","page_number":200,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"01ee8998-3f05-4837-a18b-995e163c89d6","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":200,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"80c48395-faaa-4b36-b24a-e068c9455314","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":200,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"36a639a2-eb9f-4a9d-ba9e-5c7983c1e45b","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":200,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"6cb51417-eb07-43a7-9932-fa8a4690ef7b","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":200,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"ec3d3f2c-49e5-4b90-aabc-6858e1107583","block_type":"box","text":"a result.","page_number":200,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"36744235-7506-45dd-8d70-437aa7518eb9","block_type":"box","text":"Access to independent advice","page_number":200,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"249edeb2-bf21-4e9d-8397-c5dfebc73dfe","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":200,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"bde22fb8-a793-4ec6-984f-ff64e34fb43f","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":200,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"ecebc35a-1052-485b-92f0-7063dae3d8e0","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":200,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"30a55fc4-6ca6-4bbd-af62-fd1eb9d4d838","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":200,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"57fec952-0f66-4add-8575-f5a5a47995e5","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":200,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"7efae993-823e-4850-aab0-005e65896be8","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":200,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"8a7ef97f-d657-4665-a9ed-fccd2d1139fb","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":200,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"7c37e2bd-e3b9-4148-af0e-14858ecba1e1","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":200,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"c22d2c52-9ead-4d6a-aea8-d7f13618d185","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":200,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"7275263b-6e61-4398-9da8-cdeefeafbf67","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":200,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"f7ed81b4-efbd-454c-9050-452c958ab698","block_type":"box","text":"performance.","page_number":200,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"e98e6b2e-db5c-43b2-abbf-87216092c0e3","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":200,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"17df5555-32cf-4330-bccb-966533cefbe6","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":200,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"01d21f96-ba37-450a-b296-9021ed5f46b1","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":200,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"1d847ac1-eb25-4351-9ce3-b7829b85e8ff","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":200,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"e0e1443d-b120-4abc-a345-e8f3982a65ce","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":200,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"b32fa8d5-52ad-48dc-a65b-0c6b4719552d","block_type":"box","text":"recruit and motivate.","page_number":200,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"96873c25-3ba1-4507-8679-f96a8168735d","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":200,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"1db4fb32-7179-4289-a280-85acdfa9159b","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":200,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"d1c18bcb-8ab5-475e-beed-556f6604cdd7","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":200,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"2966f9ac-dd52-449f-8e1f-cda3bacf79ca","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":200,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"41f3224d-8dd7-4c93-a110-1f17ebef5196","block_type":"box","text":"arrangements include:","page_number":200,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"d7e0a2a4-03c9-4345-b080-bc4c098f8803","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"8f0a684e-612b-45db-a982-c5c9af6235f6","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":200,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"04b9dd3e-0ebf-47e9-90cd-9eabc3178670","block_type":"box","text":"the company’s size, sector and market.","page_number":200,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"f655d93f-6a5b-42bc-a362-8eb9f7109996","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"74cbdb70-8ebd-410b-b87c-24d0e3cf2fba","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":200,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"e0f7cbfa-634b-462e-9d9d-e61ab9a1b3b1","block_type":"box","text":"NM1026U-6032801-200/242","page_number":200,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a801c706-2ac9-4731-b4d5-b21aecfd9adf","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"6f7adacd-cd55-49f7-bfce-64ccaf1adb6c","block_type":"box","text":"Variable pay subject to performance metrics that are closely linked to the company’s short- and long-term","page_number":201,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"f989bb35-cd7a-4367-8779-767d5a7db7ca","block_type":"box","text":"strategic objectives.","page_number":201,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"86dede5e-9b69-436b-8479-ddc2a68ac7e5","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"08113bcd-865d-42fb-a82b-e540f44437fa","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":201,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"e2d4b273-2c51-4703-b296-391f61c7ecd4","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"0dd77039-e66f-4e45-af25-568f2a405db8","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":201,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"6e22fb53-6590-4672-a86d-2a166a88a86b","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":201,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"84aaf3c4-7728-481d-b729-adffa5dafab1","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"a1624e1f-8673-41ba-be24-5fdfd1f9d430","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":201,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"09c3d1c7-76ab-4cf8-81f9-80cc460387c2","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"30db0c72-1792-45da-aa4d-bd0a465e0a3f","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":201,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"92ce1640-0402-4acd-9843-46fa9567ebc5","block_type":"box","text":"transparently.","page_number":201,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"31df2b90-6ee1-415b-87d7-a01b652f37a6","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"040f713e-dc17-4217-922d-adbd6e28c4ce","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":201,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"66f2b30a-9137-45af-8c2e-7c403ceedd08","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":201,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"1f93c330-3b98-4452-9cee-0818f49a1473","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"00d15563-bee8-41d0-8819-3a883c947adc","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":201,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"5910ab27-afce-40e5-8869-7d7730512ad6","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"441c5255-34d0-4e1c-97ab-6eed4a7c4b28","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":201,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"17be9473-1bba-4a28-b1c8-4209ed21e5d1","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":201,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"289a56f5-a747-4b24-a02e-63d202c216fa","block_type":"box","text":"misconduct.","page_number":201,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"deca2af0-1093-40fa-9c85-ebe76b98636f","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"d64482b2-aaf1-4d77-8483-44f44a892239","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":201,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"7f9fb48a-568a-46a8-a377-e5d5e7f914ce","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":201,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"7d389bf0-7b78-4808-8e76-8131bb7ff4b6","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":201,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"13322e80-0a3d-435e-900a-926f6d65569c","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":201,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"9cd97f9e-bd76-42f2-a527-70f80c96407c","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":201,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"bc05500a-e67a-4065-8c0b-f8fe72dff1a0","block_type":"box","text":"committee, or the most senior independent director.","page_number":201,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"7fdf1edf-75e6-4abe-b039-55ae4261e4d5","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":201,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"5df82ba0-6dbe-4393-aaf2-24c445fc416a","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":201,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"471a6f2e-c74d-4dba-841d-044a7d75213c","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":201,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"737d2381-9d37-4e41-93ef-5b1216d1c880","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":201,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"268ff6e0-4892-4f5a-9ec2-410294f053ab","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":201,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"e00aac73-9445-4155-a372-8f60baf47697","block_type":"box","text":"CAPITAL STRUCTURE","page_number":201,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"16e2127b-ed93-4841-8e85-e5b56a51c40a","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":201,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"e0ed294c-7398-43da-945b-de96a1a3c27d","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":201,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"b9461bdf-0882-47d1-977c-40e81fde64ac","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":201,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"2843b257-e15a-4d83-9275-edb8563c78ca","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":201,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"dbc6e7b6-f388-4f39-abbe-23180218d95c","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":201,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"fdc9f26c-a854-4033-a5ca-ff9e8dd7aaf1","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":201,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"23b35466-04f9-451b-8914-d4b9249b3443","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":201,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"561bcdb8-bba6-402f-8ec9-f3de4070b133","block_type":"box","text":"Share issuance","page_number":201,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"c0af0956-ab2e-494a-9093-17bb9c719f20","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":201,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"e0f1668d-e3ff-4c59-b0f9-8528fd86bf09","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":201,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"20a894fe-3fb7-4952-80f6-e8759dc944ae","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":201,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"ea6bb4c2-542b-4f85-b9cd-c7cd240968da","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":201,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"d5481c78-2ad8-4895-b926-f45311b59f27","block_type":"box","text":"market environment.","page_number":201,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"9037208d-c81c-4035-8caa-b8a7c2d13922","block_type":"box","text":"Share buybacks","page_number":201,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"f47e677b-c081-4c94-b842-1871e19ab831","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":201,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"13847ede-a79f-4cf3-87d5-8ad2b75bd0d5","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":201,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"d0272561-8a22-4109-9656-12f7a5f60179","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":201,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"7fe086cc-8f3b-41d6-bbd0-e9b5fa2dc306","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":201,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"99eaa217-787c-4d10-a083-159907094fd5","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":201,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"ce3e1f52-ab73-4907-8a05-ed9928954a2d","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":201,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"b0a704b6-bd00-40f2-919e-f64e6f293c00","block_type":"box","text":"of the company and the market environment.","page_number":201,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"2002a36d-6327-485a-9654-075eb492dee2","block_type":"box","text":"Dividends","page_number":201,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"457ae4c4-ac94-44ad-84cb-ccc55d90bad4","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":201,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"e5dc058a-b6ad-4019-871f-673f554974fc","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":201,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"2d5585c2-250c-4f2c-8972-37d0fa042f80","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"3a3edabc-5a99-4d21-834b-a089e28d5741","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":201,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"53934cff-4596-46fa-9c59-b9a45eb9ed7f","block_type":"box","text":"NM1026U-6032801-201/242","page_number":201,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"115aed24-cf83-4ce7-84d6-a4b5b9226b91","block_type":"box","text":"Differentiated voting rights","page_number":202,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"b24ac44a-9576-4047-a82e-9f00abd7d6ef","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":202,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"dd654249-3c26-44cb-8aea-fe548b39d494","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":202,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"afef5e28-c5fb-4664-9495-f70d69a95e95","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":202,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"6bc549a8-522b-4e56-bdd0-061947464611","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":202,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"ae846814-64b6-465e-bf86-3ceb5ed940d9","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":202,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"30f7a1d2-a9b9-4466-942b-2cff4dc62c14","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":202,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"1f1e36aa-9751-479c-a718-a5714426fe35","block_type":"box","text":"analyses of proposals.","page_number":202,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"58fe048b-771d-4c84-9b4d-d26ccabddd50","block_type":"box","text":"Mergers and acquisitions","page_number":202,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"d8660b4e-b4a8-46b4-8cd4-b4b84c16c846","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":202,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"78b51c32-d726-4904-bd21-73c58803784c","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":202,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"c4bb6ece-0702-40b6-8ff3-4cb4d65442dc","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":202,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"fb5f314b-59d7-4ebe-9f77-9103c00ef2de","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":202,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"0937f506-1045-4135-bb98-495eaaea3027","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":202,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"4099b9f5-d3c4-4aed-98f3-c2421d088847","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":202,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"7415a0bb-5a90-4619-9a26-63b8a329c79b","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":202,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"156074a8-46f5-445f-b28f-42851c99fe62","block_type":"box","text":"Anti-takeover defenses","page_number":202,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"bdf4e034-a393-43fa-b544-d0d5a20d4c84","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":202,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"26e9e201-4292-4437-8ecc-3e6efa745eb1","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":202,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"87ace211-ac6b-46b3-87cd-a3c2143eed45","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":202,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"167556ca-0ef6-4e82-9e7f-4ee847a47176","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":202,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"86a5a6b1-c391-4c62-bd78-528bb95daa73","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":202,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"a8802eda-602c-4b49-9dd7-e013b33f4c50","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":202,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"d1330ea6-9023-4060-8961-0c4c117ca77d","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":202,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"81d83896-3d37-45c3-b73a-b04e6797b68a","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":202,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"49f9d749-d66d-40f6-a540-8ee4781a9ae9","block_type":"box","text":"Shareholder activism","page_number":202,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"d48ed402-2c64-44fb-8e1e-652bc5fb9817","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":202,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"ab353575-23c9-4780-8c38-6a3b09ca5fdf","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":202,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"2597922d-6c6f-4336-aa85-f772422c653f","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":202,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"bdacbbc2-bfa8-4650-8a6c-a8ba2d3f35ca","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":202,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"ac37b210-9270-470d-aac4-0b63020aee77","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":202,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"4bb0f693-0f63-48a7-b21e-1758892e0f2d","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":202,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"44b9b344-6cda-4780-9c6d-b6a6a90dc92e","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":202,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"c1d61c06-326f-4846-b998-2ccde0da4df7","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":202,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"480066fc-e5dd-4db3-b542-d99f984ddd68","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":202,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"b7719751-f493-498c-8647-842d36f26a8a","block_type":"box","text":"protecting shareholders’ interests.","page_number":202,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"d08b7a29-5fe8-4f4d-b07a-de386ac54e62","block_type":"box","text":"Significant shareholders and related party transactions","page_number":202,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"0399a16e-66ea-49f1-af8b-a6ebbd665449","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":202,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"c884cfad-5109-47e3-a239-74a9a2cff891","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":202,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"bede0c05-8176-49a7-853e-58f7a330c748","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":202,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"bb836e1f-e04a-4b16-96f2-98b95e15636c","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":202,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"7019131b-fa94-41e6-aa2f-019758cd7b7f","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":202,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"8da67d7d-2e4f-4b12-9a6e-f2bc6fc69a41","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":202,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"ab80009e-da37-4a75-b971-c5430f606fdd","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":202,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"13903462-0318-448c-8083-d0d2d8ccf7c6","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":202,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"aa4674cb-9dc9-4f2c-bf0a-edffbca7a2aa","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":202,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"5bc1998d-4427-401a-950b-c3280e68b197","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":202,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"b8c42101-641e-4bd1-bdec-063c793a3d25","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":202,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"e88468c9-62d1-44f1-8be9-486cc47bd6c7","block_type":"box","text":"audit.","page_number":202,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"04a818d3-0616-4250-85af-13469db23bec","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":202,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"4ef4d97a-6487-43fb-9e7e-bd2f783c447b","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":202,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"23161059-2455-4d11-bb69-bd7cb820371a","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":202,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"98d6d9fb-8864-473a-9593-e9e317dcb6fd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"de0162df-e216-48ed-9448-7dc0b74b82c7","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"c36e5858-3ece-4451-b7c4-b917bc22f110","block_type":"box","text":"NM1026U-6032801-202/242","page_number":202,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7a817057-bd7b-46b7-9bca-04ae1d83ff1b","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":203,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"2fb895cc-a501-409d-89b9-d7d35ebc7e60","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":203,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"cd8f5255-56e2-4b79-907a-ab3358e7177b","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":203,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"f2ffdd08-2708-4d3a-a552-54642d458ec7","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":203,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"58d76ab2-d239-4ea3-b1c0-e23a867c41a7","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":203,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"c60c84d4-3852-4440-a8eb-b3896d557806","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":203,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"3c7f2625-3ce1-43c8-bcfe-11f46e6cb1d2","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":203,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"7172885d-0250-4b3b-a9d0-94432d3b39f5","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":203,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"35be0f2b-fbfc-4e66-9f86-74cacd0854b1","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":203,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"603f807a-6c2d-4527-b845-1ef35181b9b8","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":203,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"24d82d5b-0059-4344-bfcd-5e53c0563c12","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":203,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"7a8e40ac-c417-4a71-8d5b-17e249f9c09c","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":203,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"dcbc0ceb-4767-4733-a419-770050fe2476","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":203,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"7b014b68-e6dd-42dc-9017-e03fbd069364","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":203,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"d86a122a-b83a-4b6b-9284-67cec8ecd41f","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":203,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"34840200-0732-4a67-bfd5-37cfe27482d6","block_type":"box","text":"9","page_number":203,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"c57f6350-802e-4496-87bc-dd7f4513b48c","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":203,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"3336e3f0-27b9-4ede-a441-ca2f9353043b","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":203,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"b10d99bd-e0ca-4bb9-b62f-bbc931bcb4c9","block_type":"box","text":"standards specified by policy makers.","page_number":203,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"389aac53-4959-4157-9430-6d38eedcd626","block_type":"box","text":"10","page_number":203,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"ae8610e0-728e-4da8-b63f-0c0248f79461","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":203,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"be81bbbb-4622-4a04-ae42-2212b4b17b11","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":203,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"5feef3f9-03c0-46e9-9d3e-3e603dd0519a","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":203,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"a5c91649-17e8-4e8e-b756-f7e006f8c4d8","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":203,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"f1677d3c-ff29-4a93-924d-47c4b78f0f35","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":203,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"688c6a8f-07d4-439b-9b84-aadb5495d2c6","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":203,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"0b15bb00-e2a9-44b5-98b3-aa8e05fbecd0","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":203,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"40b1a7c6-16fa-4378-a946-73b6ea0bd2d3","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":203,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"23c59503-2a47-45b9-8198-1b0c43d22a66","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":203,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"0db8277a-bca2-45a6-bf01-d009b7bf19c8","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":203,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"170915a5-124d-4e44-9a4b-253e53fd160a","block_type":"box","text":"remained independent.","page_number":203,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"96b236bb-75c7-494a-9722-65d6cd7d82a0","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":203,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"b0ce8ef9-0f67-4385-8cbe-a9102ac32073","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":203,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"fa998f7a-8abb-42ca-8d1a-3a7897693e3a","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":203,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"9ba3aee3-4afe-4c5e-a00c-cd74cc00d524","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":203,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"94d2ccb4-ffe9-489b-8f28-d69ee30bfaed","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":203,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"ee22620f-9fec-42ad-b51f-3e870434d29e","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":203,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"57d303e6-381b-441a-af01-de6e06c0126d","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":203,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"ce2d236d-6cc7-4919-a186-c00676746e90","block_type":"box","text":"General shareholder meetings","page_number":203,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"f97f1de6-de25-4aa1-9772-77386c9b6b47","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":203,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"3031ef69-ece2-496c-ad42-e396e45c9e33","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":203,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"b3c313b1-86ac-4820-8788-949d3e70105f","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":203,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"8359ae51-4ca8-4a0e-9390-a3ac9b4ba628","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":203,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"fd099814-92f5-4fa7-8d6d-ffdb07a00380","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":203,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"35cc1888-cefb-4368-b8e3-dc7a572d982b","block_type":"box","text":"an in-person meeting.","page_number":203,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"a0a1273b-659d-49d3-91e7-d6a8ddef6a90","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":203,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"36b8f783-0511-402e-8c59-50a7052f097a","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":203,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"90d571a9-a88b-407f-8b30-70d6a130b4a4","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":203,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"9c421581-6109-4670-934a-b5f544c702b6","block_type":"box","text":"participation.","page_number":203,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"e7ef8e20-e9c2-451e-9298-314ffedfa2da","block_type":"box","text":"9","page_number":203,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"7fa22d03-c73a-4c18-b3fb-28b00fb6b969","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":203,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"bfc3954c-48d6-4567-ab77-23e90f2f4c9a","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":203,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"3238e6ae-1096-46a3-a11b-d5e4242ed474","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":203,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"7c12cf20-6ba4-4210-86c5-d3430c33863c","block_type":"box","text":"Disclosures.”","page_number":203,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"fbfaf0ea-d701-4a11-815f-d0a1a30bde49","block_type":"box","text":"10","page_number":203,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"cc61a1a6-a88a-401d-ae62-f9e952a8977d","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":203,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"08614078-1df6-4ef7-bc62-be21ee2f58ca","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":203,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"c44586c9-83c8-4928-9511-c665d5956233","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":203,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"8fe20b5c-c5e3-4c3e-8895-09ce91f78d0e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b85c3a1b-133e-4097-ad30-fae63efa1910","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"eae82c83-6b5f-4d40-81fc-70df41ecc59b","block_type":"box","text":"NM1026U-6032801-203/242","page_number":203,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1a05fe3b-b33a-46a3-a08f-5273829d7a37","block_type":"box","text":"Bylaw amendments","page_number":204,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"d3fe619f-a096-4f1f-855c-98235b0fa37b","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":204,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"8ffd19f6-99a8-43f0-bae2-22d18bcb155d","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":204,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"3d102cbe-2871-4998-851b-f52f218b6c10","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":204,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"caaf66f2-1b23-4ee2-b4b9-170ab5e2f810","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":204,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"ff24f71e-8f92-4c42-9c64-23ea3555131f","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":204,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"7863345d-35ee-4048-af81-c52517e02f47","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":204,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"1bbc94f7-e848-4c91-bd83-c200afe259d7","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":204,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"335e8b0c-8f38-4eee-83f9-a5a69a6ed23b","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":204,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"288f1744-3114-4125-820d-733ad6b0d95b","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":204,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"09e6436b-df6f-4444-892a-ab11c8dd9a79","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":204,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"0be2fa5c-f3b3-4481-bfb1-b9a17d847f47","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":204,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"1d48aecb-6e8a-436a-a00e-6febe83e5b49","block_type":"box","text":"nomination process.","page_number":204,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"5f2946d7-b384-4138-b396-01d5911d5632","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":204,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"b4422c27-0215-4a38-ac64-013280c7610a","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":204,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"ac71f879-b524-405f-a29a-6d72218a2504","block_type":"box","text":"Change of domicile","page_number":204,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"9df4ff92-bd95-45d0-99bf-82a9e197926d","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":204,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"399467b0-7d95-459a-97a7-92d9b4d2daf1","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":204,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"3b3eb655-1001-4f1c-b8d4-86d78b950367","block_type":"box","text":"immaterial.","page_number":204,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"d1f25bfa-767f-44ab-aaf3-f515dbf64cfc","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":204,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"81d85b92-3d3d-447b-aaaa-f6061dc52723","block_type":"box","text":"with our clients’ financial interests.","page_number":204,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"fe383472-63a4-469d-bd91-06aa7a95f5dd","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":204,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"94dde8b4-fd4c-4717-bb6b-e2dd4dab70b4","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":204,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"a5a8cdd6-7c99-483b-b009-d942df79cc8b","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":204,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"957f8f39-e1a1-4372-92c2-ad6c07d16dbb","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":204,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"499540d9-c002-4117-bdbd-2667cd0fa15a","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":204,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"0b15d146-6235-49b8-bcba-23807becab8e","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":204,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"28c03e08-2013-4f3b-aedc-90869fc0d7b8","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":204,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"0ea893d9-ed71-4a45-932c-5054ada7aa3d","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":204,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"cb21984a-f223-4187-a4b0-8a36b76425e5","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":204,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"7f5fa3ad-4967-47e2-80c4-f9ac391f7f6c","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":204,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"c91323aa-4c1e-4bc8-bcc3-520e31551415","block_type":"box","text":"relevant to a company’s business.","page_number":204,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"d8f22485-374d-45ab-9029-e3a6723087e3","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":204,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"47409757-230d-42cc-bd79-3d7f3b4a19fc","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":204,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"2d0ca25e-8209-4945-a4d4-e627fd0c9d28","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":204,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"95e2d84b-92b3-4b8a-84d9-8a4a7d917cf8","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":204,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"c6611058-634e-425d-92f8-bd587ae808d7","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":204,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"19771a56-b19b-4aaf-bc89-1f2dfbe10bec","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":204,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"a3288023-e359-4ea4-b405-bd8e795608bf","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":204,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"019ac36a-814c-46a5-9e6c-3e318a949192","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":204,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"a8a51615-1420-4b15-96ab-8fdd25646f0b","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":204,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"67e7d8d6-0d74-4d79-831f-5b79ba485385","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":204,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"6b46e730-7265-4e61-ada4-b32e001ddd9f","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":204,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"9e4d2b9c-f9e4-4280-afbb-bfda5343e1dd","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":204,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"435049bf-849c-44ad-ba15-71303d0245f8","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":204,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"845fdf73-65a1-45ee-8c61-9d33219b6a41","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":204,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"dfbab98b-e499-4878-8005-9f70fdac5ef5","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":204,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"057a0479-7dff-41af-9214-0df54590df26","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":204,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"52e632a3-de0c-489a-bec8-adef1330aad0","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":204,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"b1ff307b-66cb-4f16-b714-4619b913c464","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":204,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"83e1f6ae-11c6-48a3-b6a5-0c6aa69fe372","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":204,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"c8c2fa07-3b10-4a45-841b-c28a1ebcb1f6","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":204,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"c3943791-23fd-4bc6-beb9-80096dd56ebe","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"77a023dc-52c7-4ff5-9224-6aa0a5e93ff4","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"1e3ad566-7813-447f-84e6-aaae1dc2681c","block_type":"box","text":"NM1026U-6032801-204/242","page_number":204,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d6535819-a2ce-45f7-83cc-1c7b045ec150","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":205,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"78e55b36-7f65-4ec1-a982-83c3e1e8bc95","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":205,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"c490d968-df05-4c6e-994a-51af2ec9e404","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":205,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"fc524e4e-a108-4a03-be1f-2e7fed41d4ad","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":205,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"5767860e-baf0-4591-8292-aac689bb2c7e","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":205,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"41a2a202-5e4f-478e-95a5-eb082cd20d15","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":205,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"4807a143-ad9c-492a-b354-f410af1566c3","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":205,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"dc5a2bf2-e3e5-42d9-8fa7-c33e072b602e","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":205,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"90c76770-4b99-4dd5-a595-c39dcc8d1306","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a8ff9556-3a50-44fb-ae5b-3fe2fd2ee705","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":205,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"597df051-3f49-446a-b391-a9d18c6fd9dd","block_type":"box","text":"NM1026U-6032801-205/242","page_number":205,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"51e5d29b-8a3b-4f96-86f3-b1bfc2b48913","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":206,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"1e6aca78-674a-431a-bcc6-871d0b69c596","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":206,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"863b986b-c42b-485d-8a12-cd136023b31d","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":206,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"b6d45501-2d28-496b-a9f6-00b558fd5478","block_type":"box","text":"11","page_number":206,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"b77bd399-d12e-47ea-b7ff-bf174d8186ac","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":206,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"39bc3246-39ed-41c7-8105-7d14671349ed","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":206,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"6fef5e86-1b85-4ffa-a966-19d2691c7926","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":206,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"da34e5e9-6baa-4d3d-8238-b79fa6ef2b22","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":206,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"f8c27ad9-f7bf-4ef3-b5cc-828f2bfff86b","block_type":"box","text":"regulatory requirements.","page_number":206,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"ad78712a-a5b6-4397-b42a-31f0c621e916","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":206,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"e873146c-94cd-4b82-b719-1beba3d01d84","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":206,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"46141e0d-8c97-4b26-b468-77187f660647","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":206,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"da74b47b-23f5-479b-a82e-5098b3cb8bac","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":206,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"75319602-b488-4899-ab7d-42ec2705e65c","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":206,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"cbdabf9f-f173-49eb-a9ec-4b6e0f5c0519","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":206,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"a8092da6-7797-43cc-bec6-d30596984f7a","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":206,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"b8f4dcef-79f0-4c05-8fe9-c0340d339279","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":206,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"847e5e40-fcd2-497b-8c24-1d01acaf6833","block_type":"box","text":"returns.","page_number":206,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"cbf3bf45-442b-4aea-a763-4c7e1f374ab2","block_type":"box","text":"KEY STAKEHOLDERS","page_number":206,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"881dcf60-73cc-4ace-9157-81182b02ec20","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":206,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"dc332577-d4e6-4655-a5f6-c31beab32aa4","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":206,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"ffb2f649-286c-40ce-9076-5a0c2da7a938","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":206,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"d7c8dda3-d222-43b0-b5fd-ae50265c4065","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":206,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"ed01223c-c459-4db5-9b74-b858d1238f5e","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":206,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"a31f662c-6b38-4f62-82cd-ab7a72496c53","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":206,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"475f45b8-02cd-4022-9beb-cf865f11f169","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":206,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"d92db773-d6de-4723-8bb6-45fd9f653a7b","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":206,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"e0237bef-cd7b-452e-b827-d69c45ac4576","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":206,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"1a197ecf-0abd-473b-91cb-8c3df3f20fbe","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":206,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"8e89a578-4d93-4e3b-b4f1-eae1aa1f16f4","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":206,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"21874016-01f9-4dca-945f-902bcd94a181","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":206,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"f5251f2f-fe3d-49a5-bb4f-f891a8ed50fe","block_type":"box","text":"i.e.","page_number":206,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"a3bdd47a-c462-4d41-893a-146211037f21","block_type":"box","text":", one in which global","page_number":206,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"846a1bc3-d7e7-423e-b301-a0694c04a95b","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":206,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"6b93b282-16c4-489a-8b84-ba869da9a718","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":206,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"cbfc4c80-f4f2-4e45-9458-cef2668e5073","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":206,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"504e50e8-d8bc-43bf-88aa-040855643074","block_type":"box","text":"client.","page_number":206,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"d7ba21b8-01cd-4883-baf5-46f4b70a84a5","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":206,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"b5d3228a-e14c-4843-b3c8-fd1f2d1b35d4","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":206,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"021bbc3d-ddae-4e9d-b08b-5242e4b5b4eb","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":206,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"ffa94e60-7a70-446d-8c31-1c7b031ae1b7","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":206,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"86a6183e-639a-4f9b-8ef1-359a6abc636b","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":206,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"74315cd1-77e3-4f43-b0c6-583a417cb92a","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":206,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"b257b799-1bf7-47a5-a6a2-950ba0fb1b78","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":206,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"35acac87-1cc9-4ff1-afb4-34cf765521e5","block_type":"box","text":"1 and 2 emissions.","page_number":206,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"412f1c40-a868-4e73-abfb-b2901af17d3a","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":206,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"517e3cf1-b518-4f29-bb08-d8eab3bf8238","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":206,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"2bd56327-5fa1-4797-b766-a423f842bd16","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":206,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"00903ce8-3b91-4d28-beae-fc77b2d49478","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":206,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"36d936bd-f1fb-4119-b972-5875957667bf","block_type":"box","text":"11","page_number":206,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"37aa5238-8e2c-402b-988c-727f04f6e8cc","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":206,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"f41eb990-87f2-44ad-853a-3a19762f517c","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":206,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"4f749934-73b5-4aca-a903-dac483ea4c3f","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":206,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"69fabee4-274d-409b-a46b-73e27ca7c3fd","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":206,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"5fe7ae79-3073-4cc9-8005-b6d38d8d54b9","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":206,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"4429ea5d-698e-40a7-b3ee-9e5d176500c6","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":206,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"35306c4d-25df-40d2-a6b9-21c88a9d8459","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":206,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"47d5a7fd-fa19-48c7-bdaa-53393731f72c","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":206,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"57c70d9a-9958-45cd-862d-12576f504918","block_type":"box","text":"sound governance framework.","page_number":206,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"0db32e0b-d92c-400a-b8b4-d0d409b7c71d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"543df535-da3d-477a-bb20-7dd633d162de","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"75c8cbdb-a77c-46cd-8117-63ec05f0067d","block_type":"box","text":"NM1026U-6032801-206/242","page_number":206,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"da786ed9-8e00-497a-ade0-b43ac5cdb14f","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":207,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"47e06dfc-9115-4224-a471-d48bdafa0665","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":207,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"5d485866-fcd8-47e3-be41-7affa0486d2e","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":207,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"f9a6f296-c1fb-4bff-856f-528b33bbbc56","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":207,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"5187ffd4-984f-426c-87f6-34fcff110596","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":207,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"51c3916b-46c1-419d-a835-dc65dc83fd75","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":207,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"6b1924d4-10eb-49ad-812f-2226abbab55f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"78faf34a-30aa-4921-b079-436c8a92e865","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"027a4ed8-4fcb-4788-a2b1-06c6516d7a8a","block_type":"box","text":"NM1026U-6032801-207/242","page_number":207,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4457adce-9f2f-4aea-ae1c-d43f11240f05","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":208,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"0009d2c3-5266-4242-ba0b-a7068ec07fe8","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":208,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"0c39a262-5dc4-408e-b0d0-d088fdcf8bd0","block_type":"box","text":"Oversight","page_number":208,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"72642e4e-761d-4296-8749-8c222f4bf3fb","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":208,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"ea0567c9-d27f-44b9-9bdf-91f71d6e4001","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":208,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"90216060-b30f-465b-b1d5-6572d5beb10d","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":208,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"c6831410-85bf-423c-a4dd-2bfb7852c526","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":208,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"4ef7cea3-ff78-4062-8f7c-9418719c6a55","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":208,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"201fc621-687e-4443-adb6-d63974c91f92","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":208,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"f98ef4ef-341f-484f-ac6c-b7a97f5b3653","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":208,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"c774f376-8569-4cc5-aa97-d52ed5454671","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":208,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"a91bd895-0fe5-4040-8d73-1d0f44d740cf","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":208,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"f3a914cd-5831-4dbd-bacc-a5524e0a2875","block_type":"box","text":"relevant active equity investors.","page_number":208,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"ae819315-655e-474d-a5d1-1e0840d9b88e","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":208,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"f9a5e78c-a344-4667-ae77-2e0ad9a8c8ad","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":208,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"8c62e75c-42c0-404b-9896-831ffe5c18e9","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":208,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"46cd55d2-5f19-4f8b-83bd-0520c5747cd6","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":208,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"024f3dda-8523-41d8-8a61-fa331d40179f","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":208,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"4f664d98-8ee0-4772-a57d-e2c0743bb9b3","block_type":"box","text":"third-party vote services providers” below).","page_number":208,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"294ef8d6-b1b9-43ab-b7c0-0dd11c1c3344","block_type":"box","text":"Voting guidelines and vote execution","page_number":208,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"0ab62db3-c5f4-431d-a4f7-dc46facbb5c0","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":208,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"600da03d-09ef-49d4-9c88-c8c97e04b03a","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":208,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"d36bd47c-748a-4456-88a8-23df5c171b81","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":208,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"3ff0a732-9c29-40d3-8bed-1ef086e72ec1","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":208,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"981165d3-72ef-4e9c-8592-b7e9a5d75fd2","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":208,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"17254957-fcfa-43f3-8ae0-8aff246d40da","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":208,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"378ac430-19df-42a9-b9bb-9eabb2dd9e59","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":208,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"07f8ca5a-2cd2-4c44-b58a-6e241c9e1716","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":208,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"fb6e5318-9cdc-4b45-b090-8c4475a4edc8","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":208,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"7e56c3d0-2d81-4236-8ae3-c171c4ef2c6f","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":208,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"155514d6-68d0-4f03-b004-d03f638b24f3","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":208,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"c2948acd-06b9-4211-98f6-fe544f598b36","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":208,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"98c878b7-a9bd-44c4-a3ee-0dc16eca2be3","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":208,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"8284224f-79fc-41e5-87bc-52110caf8730","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":208,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"22b2afc3-1dbd-4d51-8f6d-32216d981ec4","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":208,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"cac2bd09-823d-4f92-bad3-cf539444f7d0","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":208,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"b0708d05-f355-49d1-8741-cdcbf83da6ce","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":208,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"ddb88e9c-58e5-4c19-80d5-4f5866710735","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":208,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"8a486db6-01bb-41bb-9824-cbac34d7da26","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":208,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"45dc6768-d1b0-4a5f-b7dc-ddf5c957bf8b","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":208,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"90caa037-31a6-436a-93da-ec0cf43116db","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":208,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"cabc6cd7-26ab-4408-b311-8e9c67d69f53","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":208,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"6f5a0e56-e3f0-4e1e-bea7-e3066967fef0","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":208,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"af64f8fb-4b2d-4a22-8ba1-679693fd5e15","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":208,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"542f8435-7bd1-4ca4-a841-f55290eb0270","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":208,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"6e1b870b-83ad-434c-865e-3f69c7f52b8e","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":208,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"e78b53b5-ebe7-4278-ae05-bd7f9a17c0c7","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":208,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"dd5713ed-632d-48eb-b50b-4a02715f346a","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":208,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"2c0b703b-83c5-431c-a6ec-bf8fe27eb807","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":208,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"b3a5c749-fb6a-44c2-a34d-4bf7ab56bbc6","block_type":"box","text":"Voting Choice","page_number":208,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"e4447c7c-4c93-4f86-8644-a5ee4247f4ac","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":208,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"0b28b756-bfb0-49c7-acab-1919e078e573","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":208,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"f08f1768-4b66-4cb3-b3eb-e7c54ae012dd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c8d50b89-eff5-4bed-9ac5-9453bcf77bab","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":208,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"1fb0b19e-ae52-4a32-b11c-a860728aefe4","block_type":"box","text":"NM1026U-6032801-208/242","page_number":208,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bc43350b-77b3-40b7-bd4a-63dfae9610e4","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":209,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"705d93b0-ac90-4149-94e8-ac547bf9a33e","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":209,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"cb5889db-e295-4f3e-920f-a014fd0f726d","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":209,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"6981a7ca-d486-4b81-b482-dd6fcf9f9d84","block_type":"box","text":"strategies.","page_number":209,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"ef00e924-caec-43a3-a34b-82bd6829a377","block_type":"box","text":"12","page_number":209,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"08a51f7c-67be-447f-a92c-247338b97b95","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":209,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"5b2da3f6-12bb-4004-9179-845b2dcd44f0","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":209,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"602e83ae-673f-420d-9706-6f3eef367956","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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Reliance upon this information is","page_number":211,"box":{"x":68,"y":822,"width":823,"height":11}},{"id":"7025740a-96de-42bc-9d8c-3307d0b9780f","block_type":"box","text":"at the sole discretion of the reader.","page_number":211,"box":{"x":69,"y":837,"width":250,"height":9}},{"id":"30ba6391-68fc-4d2f-b6e9-ef31dd149919","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":211,"box":{"x":69,"y":868,"width":196,"height":10}},{"id":"36128d01-1c5b-4983-9958-3f02a1930fa4","block_type":"box","text":"©","page_number":211,"box":{"x":68,"y":898,"width":6,"height":4}},{"id":"9a66fea7-16ea-4bf6-9435-b669efe33d4c","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":211,"box":{"x":75,"y":898,"width":809,"height":11}},{"id":"97ebf2e3-2d41-46fd-91a4-8aaa5d202a60","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":211,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"8aeb95be-cb32-45cf-bede-4b6880dd4a14","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9945d669-3f74-41af-ad35-e88c0f303d5d","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":211,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"52384f80-e303-4209-b810-3e13e39d6968","block_type":"box","text":"NM1026U-6032801-211/242","page_number":211,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b55df519-bf8c-4885-8898-a91b73003a9b","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":212,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"d28827d9-9388-4628-bf43-8cc171b0cb63","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Funds","page_number":212,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"cf3bfe53-5975-4465-8e57-243357397b9e","block_type":"box","text":"□","page_number":212,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"d0813ac7-bbe4-44d5-b1e8-5c8dcf35cad4","block_type":"box","text":"Money Market Funds","page_number":212,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"c87d9038-2a66-4151-a3cd-c5bd7589ebcb","block_type":"box","text":"□","page_number":212,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"725ea58c-3ddc-4e10-a81c-be90a3e02502","block_type":"box","text":"Closed-End Funds","page_number":212,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"d06e90ec-d2f8-43d5-ac18-991804123a66","block_type":"box","text":"□","page_number":212,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"faa4fa56-051a-44ea-8fa0-167df7eacc9e","block_type":"box","text":"Other","page_number":212,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"b9db26a8-7efb-454b-91eb-ae34f0c1a41e","block_type":"box","text":"Objective and Scope","page_number":212,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"fd258eb7-b6a7-4fe9-ae50-b78a583b4c05","block_type":"box","text":"Set forth below is the Index Equity Fund Proxy Voting Policy.","page_number":212,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"18d6a883-c69c-4cb2-b70e-a49be11688b6","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":212,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"46908543-fa23-44ef-b7d9-499c453db9a8","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":212,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"c96f303a-fb56-49cb-9e13-0fe2d580e47f","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":212,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"d7d53cb1-8424-4c3e-bb64-075fb69c7c24","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":212,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"ae9a9859-8bce-45b6-8981-1b4db972320e","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":212,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"87da52af-c081-416c-bdce-576ceabbe9a5","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":212,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"fabf3bec-be1a-4712-825c-866d184c63cc","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":212,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"89d9e5b0-a1c4-4e95-9cbb-77596f4a655b","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":212,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"492454f9-dd8e-4149-a1ad-3d1c5b4bf050","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":212,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"6f9a2e0c-75c9-4d10-809c-f01e87d9cc53","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":212,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"15566350-e33f-488f-86bf-3cbc816ee12c","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":212,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"3bbf2d54-3e5c-4c94-819e-960e830419c2","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":212,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"d5d81f06-51bc-4add-9c07-df3e2e8ae2ab","block_type":"box","text":"Appendix A.","page_number":212,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"7b86eb26-8da9-4ffc-b4e4-c62db5737033","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":212,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"8ae9e0d9-4b78-4b1a-a920-43eea5dade41","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":212,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"a7b5f3ab-76c9-46e9-9e2e-03fadf969021","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":212,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"eb58adf8-6750-430d-8da8-bd2020af0c81","block_type":"box","text":"Conflicts Management","page_number":212,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"de8cd6a0-a923-4302-b7ac-5d42c59cabf1","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":212,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"bd9ab973-8c88-4dba-ab32-6d87a471e1a5","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":212,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"ac21e61d-d418-4bd5-b78c-a18ef54e69a2","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":212,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"7b8d9291-67d4-4f30-9bb1-ae823a9a929c","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":212,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"14f7b37b-69f5-46e3-93bc-0f0008e2e7ca","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":212,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"ad7f8c6f-30ae-4073-b893-67e0b0fbd11d","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. 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Engagements provide companies with the","page_number":216,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"b8866266-5840-4b9d-903f-4d92c621acd9","block_type":"box","text":"opportunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":216,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"92478ad0-b13c-4cfc-b128-ab7b20633434","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":216,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"8d47d319-a4c0-4516-ba8a-74484d4ad5be","block_type":"box","text":"1","page_number":216,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"f6e61854-e638-49a3-851b-e83c097193dd","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":216,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"2f02d9da-caac-4e41-85c2-474c5d98cca4","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":216,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"dffbe1a8-0dab-49b9-bfe0-9496ef2763a2","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":216,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"8110d7e1-ab0d-4069-9644-c538914c1d42","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":216,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"819aa99a-cf0c-4af5-9fbe-4c32bc90d2ae","block_type":"box","text":"2","page_number":216,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"4b7d85b1-7245-481e-ae95-f6f13b1694f8","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":216,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"bee9aa82-c0ee-4f6c-b1fc-a2a000dad800","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":216,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"9599a40c-d6fd-495d-b020-924e4c61ea7f","block_type":"box","text":"material business risk or opportunity.","page_number":216,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"60d809cd-2f99-43c9-8891-eaabf16d75a1","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"347f5749-0fc2-457f-98fd-4a1c2112b0d8","block_type":"box","text":"Global Principles | 3","page_number":216,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"522e93c0-f831-46a0-b908-eeeb73cfb7d5","block_type":"box","text":"NM1026U-6032801-216/242","page_number":216,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"446aafa1-1fd4-48be-ae23-c51ad4d57536","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":217,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"49cf9278-79a6-4202-9703-4fe74db1dff6","block_type":"box","text":"governance. 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These are topics that shareholders may have","page_number":217,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"eec1f373-4d37-42e6-a39d-042447fc1a5b","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":217,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"dd269aa0-04b2-43cf-9dcd-b3641d74537d","block_type":"box","text":"•","page_number":217,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"383d6df6-3e62-41bf-8ed2-a2bf4faecffc","block_type":"box","text":"Boards and directors","page_number":217,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"b174e355-8ce0-4e9e-9440-23a63c90c6fb","block_type":"box","text":"•","page_number":217,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"bc6d7e5f-a85f-4d40-9e94-eac1b2f3b0d1","block_type":"box","text":"Auditors and audit-related issues","page_number":217,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"0fa03882-b815-4e81-8bdd-4233798895e1","block_type":"box","text":"•","page_number":217,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"89f6aedf-137f-47eb-ace5-a9dc4b561b6e","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":217,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"8f4c269b-b034-4e57-8754-5cbc6174f2a1","block_type":"box","text":"•","page_number":217,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"f4e407ce-3ddb-4000-a542-08ce5caca191","block_type":"box","text":"Executive compensation","page_number":217,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"09b3b8c3-a765-491b-8daa-82ab80ba89a7","block_type":"box","text":"•","page_number":217,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"d18165f5-eee4-49c8-b2d8-d32e11554547","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":217,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"32362528-e7bd-4e25-bf95-97e3ae4327ea","block_type":"box","text":"•","page_number":217,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"eccbfc9e-f080-41b7-a28e-1af1aa09dcb3","block_type":"box","text":"Shareholder proposals","page_number":217,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"d558ab14-dc10-4c85-9bbd-2e520ac4463e","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":217,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"77251261-3e70-4c8c-9da0-fa441dd940a1","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":217,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"c0614669-4a03-444b-aa75-80481179ebe5","block_type":"box","text":"which companies operate.","page_number":217,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"ee7c3ab3-d148-49dd-b5f8-b1677c0b1156","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":217,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"9da48c05-f40c-449f-a64c-e8f4d54d23f1","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":217,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"8fb58358-46d0-4e72-bfe5-c02b4c035cff","block_type":"box","text":"supports durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":217,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"2fcfca24-b0ed-4a8b-8ae9-b6e47e9c348a","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":217,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"e4925a8f-d772-4e05-bebd-9a75ed4f670c","block_type":"box","text":"4","page_number":217,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"554a6459-66f3-4be7-9294-b0b3ee223eba","block_type":"box","text":"3","page_number":217,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"9d907d5d-a46b-41e1-8b3d-4de292b19633","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":217,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"78c5340c-239f-498b-a757-c7a857598d90","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":217,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"4083df45-250d-41b0-a4bb-0ed1f8540ec3","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":217,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"4e07ee27-def4-4dc6-8c93-73a5a608159a","block_type":"box","text":"4","page_number":217,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"d27de512-6078-443d-b314-66ffb0c8225e","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":217,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"7e9d7fc5-b2cc-4f73-9f76-c2334ad07c2f","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":217,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"aa7b01b5-3216-4db3-bf61-fc6d0d1b30fb","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":217,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"4f874f9e-761c-4fa1-b3af-9d1443837fb5","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":217,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"fd1bff4e-523a-4d32-b7b3-e01390aac9ba","block_type":"box","text":"guidelines.","page_number":217,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"424fbb79-94d5-4300-9281-9b831fb26ba3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d8cd8dbe-4940-4b94-945a-052632873d4b","block_type":"box","text":"Global Principles | 4","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"4a4291c0-6318-4f9a-9207-e9733767beb8","block_type":"box","text":"NM1026U-6032801-217/242","page_number":217,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2342fba0-13e6-4fd5-b685-8031b6986434","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":218,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"ec94e10b-bf8d-473f-b271-485a0b3fb919","block_type":"box","text":"Oversight role of the board","page_number":218,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"7b2567e8-e85d-444c-becb-920cd56dd527","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":218,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"03065307-0278-4e71-9160-21fd86d7d3a2","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":218,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"251648cc-049a-4585-b2ea-f824115da4a3","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":218,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"ca121056-90e7-4da0-a88f-9ad063ca4c71","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":218,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"64acd617-0dfb-4ebe-92c8-1f7433b2ac5c","block_type":"box","text":"long-term financial performance.","page_number":218,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"9f210f93-ad09-4102-9f60-c1ca87c1d087","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":218,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"1baf5cb4-f910-4b79-bcbe-8d6b38dda189","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":218,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"0ccf35c9-e052-474c-b7c6-d1b0a31492a4","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":218,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"f94d8cce-c757-4783-82e5-84182e7782fc","block_type":"box","text":"the business environment in which a company is operating.","page_number":218,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"18988497-161c-452d-9c75-8c6b80b09691","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":218,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"2ccc0d3f-35dd-4f2e-a43e-709c271ddeaf","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":218,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"3dcfc709-839e-4b66-964c-71cf63b6e230","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":218,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"01c6fdc7-00c5-4ac2-9a14-690f048f6e19","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":218,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"46915ee2-c19e-4fb5-b9bd-fb2ca6986204","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":218,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"13fe4bd8-7fff-4e8c-9a1c-3ad8904e57ec","block_type":"box","text":"mitigating such risks.","page_number":218,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"dddd32e3-a103-4f17-a9df-cbe5a0def8ca","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":218,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"eec9852f-ba0e-47a1-bbc0-048185e9e2a2","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":218,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"1d790f5d-33f2-4a34-89b1-7ba777dbee0b","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":218,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"d30e6b15-a33f-484d-8adf-3fc588ce8cf7","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":218,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"8c23523b-d065-4f40-b464-b9fdd130be8a","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":218,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"d186cce5-70cf-4412-ac5c-6a0681a59dd4","block_type":"box","text":"strategy.","page_number":218,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"589cad57-047b-4538-b208-07b3e1e46474","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":218,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"76dbc558-11ac-4a7e-9919-d1e673f40514","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":218,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"45e0b344-881e-448f-ba81-dac40096dc2b","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":218,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"e2fa7c56-5697-4b2c-aec1-589282cf029b","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":218,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"9d7a2177-eaf2-4ff3-bd1e-282904081dcc","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":218,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"4a80a95e-aaa4-48b2-82bd-6a0c2169d184","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":218,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"8d8d5cbb-7ea9-4143-95c7-060f25e5ae32","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":218,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"763732a9-ed1e-4a27-8ab2-1215a907c98b","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":218,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"9380fb07-cf14-4547-8720-549815abd7ee","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":218,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"195efcae-17f7-4dbb-ac1a-39199a8310f6","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":218,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"cd447080-8017-498c-9b9c-495c8445d88c","block_type":"box","text":"Regular accountability through director elections","page_number":218,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"e637ba9e-84ae-426d-a2e0-048baeb1642f","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":218,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"a6c10f14-d5f5-4081-b23d-e0b84b69d1ad","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":218,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"73bc3e19-9905-4cfd-bcba-01b0a3af430d","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":218,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"6871cc7b-dbde-4163-8c26-e8e11ade88cc","block_type":"box","text":"5","page_number":218,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"233bcc94-844b-4948-92e0-61f86c5863ba","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":218,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"d36b1f0d-5adf-47db-a575-7b6bb1984da8","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":218,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"a283110b-ef51-48cf-aa40-939cde0d3ce7","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":218,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"efadb959-64ab-4000-8320-9979f446517f","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":218,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"8e7cf21b-aa4b-46ae-ae3b-927ef804079f","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":218,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"6c5a3841-a8a0-42f9-8e6b-d53ecbb31dc8","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":218,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"0c8feb49-10dd-405b-adef-feb307ced163","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":218,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"ec347a25-b1e6-4041-91c0-f2f0d1475ba0","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":218,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"802dee21-8b49-486a-9f17-e18fa1a36249","block_type":"box","text":"5","page_number":218,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"f82ccdf9-36ea-4f1b-bcd8-30e1e1de9935","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":218,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"876cb0bc-7062-4b64-930a-a420b8a7684c","block_type":"box","text":"market regulation or voluntary best practice.","page_number":218,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"818c70f6-82c4-4e43-a6d0-a63896a39b12","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"925979bf-5017-4389-a4e5-463902119b7f","block_type":"box","text":"Global Principles | 5","page_number":218,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"517687ab-8a63-47b3-91de-683660bcef22","block_type":"box","text":"NM1026U-6032801-218/242","page_number":218,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"58eb1e79-76bd-4393-b4d0-76e0896ddbf6","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":219,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"fa91e69b-a66f-4ece-9857-6b7e10464403","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":219,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"20cd6fa0-858c-4dea-8886-44230181f46d","block_type":"box","text":"recently.","page_number":219,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"4f661e87-4638-4b79-97f6-fe0b6e56f168","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":219,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"0ee550a2-c31d-4a72-99bb-098763b8c7fc","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":219,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"d27e890e-85bc-448c-bea5-713503fc58f6","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":219,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"d4f67ade-ac4c-462c-9868-2956a9e65076","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":219,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"e49a6e3a-8bfd-4104-8e6d-b36efa82827f","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":219,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"4d08d395-0444-4f6a-9814-454190007c61","block_type":"box","text":"Director independence","page_number":219,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"8ad0db17-109c-446a-ada5-fb7102311be7","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":219,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"2e52f3c5-8751-400f-9ecb-771829c785ff","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":219,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"c3dbd3e2-b393-4f07-95d5-6466ec04ae17","block_type":"box","text":"6","page_number":219,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"440bc79d-3099-42a7-b91c-3fb748b5cb95","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":219,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"86ad73e5-e7f6-4666-8a67-57b7fe6bc60c","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":219,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"705be325-079c-40c5-bde2-1672b3c846d2","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":219,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"bc2480e3-f0f2-4bfd-87df-3770e2910c74","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":219,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"d4d80f3f-5a43-4b26-90bf-345103d8d5c9","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":219,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"4b3dd03b-2ad3-435e-9537-ef254e75b0eb","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"6ffae48c-f27f-461d-9692-88e99bda05c0","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":219,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"1bcf910b-300c-4a9b-8a54-d9fabfe10278","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"c6724013-8377-4e55-bb24-ec83d84b3a25","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":219,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"24ef3966-57aa-46c0-a865-e4a766d349a4","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"532b27ff-6cfb-44ee-801e-4dccf2d3c714","block_type":"box","text":"Interlocking directorates","page_number":219,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"57edfd68-22f5-4455-bd86-982357d83182","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"39163e9a-9dab-409e-8c00-311a2ca741b6","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":219,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"8f3e865c-b87e-4bb8-a09c-34b23daebe40","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":219,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"d1a0d0df-374e-4885-a8ea-11dc843c31ee","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":219,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"79df6be5-6ed9-48fa-9b3a-c349f0591f8d","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":219,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"4e00d431-8a04-4202-b1fc-fa9a3cb02e70","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":219,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"d73f523f-cc69-4c8d-bea9-be6d2d004e3c","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":219,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"5a30dc87-04f5-4932-99dc-7a2a05d441fe","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":219,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"89abd112-3ffb-43ec-ad3b-c7cbb29f7c11","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":219,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"7a110e46-cfd7-43b6-be67-cf0db1dffe2c","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":219,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"e424af0b-cc48-47d2-9c47-c5e7de9cb88f","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":219,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"26e31543-15e8-431a-b681-23a7dcbd0912","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":219,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"983b85cf-12c5-4ad1-b6f2-49ddbd501906","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":219,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"e8a48ca1-928b-4a95-ba39-0c3a3a5bd17a","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":219,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"03b0a945-f347-4a5b-a30d-cef9d3aa9cf1","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":219,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"4de1df2a-3cf5-4325-9a6c-44e1f66ebeb4","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":219,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"0e6edbff-7ee2-44c5-8c10-6f0bfe1ecf75","block_type":"box","text":"Sufficient capacity","page_number":219,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"9fa4bdbb-ee03-41db-9e5b-5a19997eaa10","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":219,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"a004ca76-9ac3-48ba-8b04-5e639ce6e2f1","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":219,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"0a5afd68-b399-46f0-9d5b-5b5b722e403b","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":219,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"18f21c44-2e95-4b67-97c0-ff5ab5eb7df0","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":219,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"53ce8ae0-ee40-44b6-9b41-ba96f95f2747","block_type":"box","text":"Board composition","page_number":219,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"0bc86da9-5288-410a-94e8-6fb43ddeb902","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":219,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"c38ac388-3af2-4b73-bc7d-0d3b285ce51b","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":219,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"bc9f8228-d1e1-4afd-809e-23b7e4b1e9b7","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":219,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"ba457c56-c346-4801-9589-77e6d881b2e3","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":219,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"c7f156d7-a5b4-499f-ba59-ca3a9bdfd193","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":219,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"8d557744-ab80-497d-bfd1-8b19595d7cce","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":219,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"27b36a5e-12e7-415b-a0e7-517b59cf4be1","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":219,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"fa7a3973-7046-46f8-a365-a60b2d2f2603","block_type":"box","text":"6","page_number":219,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"4ff62481-b55b-4c9a-9043-266f90e63db7","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":219,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"8989475d-970d-40f2-b6c9-153c77e5f645","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":219,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"f50d245a-2da6-4def-8dd0-915a6e58527a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6a1b572f-fd8f-4ee0-a762-436caa733b82","block_type":"box","text":"Global Principles | 6","page_number":219,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"00f24908-2352-4547-bbb4-59173f09736b","block_type":"box","text":"NM1026U-6032801-219/242","page_number":219,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f9b4d1cf-6d5e-491a-9e0a-731722e919f0","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":220,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"38be7a08-2e53-4a0a-8e34-dbb77c2e969f","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":220,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"69f15adf-d2ab-472a-92e1-9788765ca33c","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":220,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"b4caa79d-f7e6-46b4-989a-036062e9602a","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":220,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"ba1873f5-eda6-415e-b303-54001ad0de55","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":220,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"63d620ff-684b-4138-9299-f9b99ec53085","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":220,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"8d05aa35-d603-4fe2-8116-2c721fdf4e47","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":220,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"19448083-be20-42dc-b850-32a98ada93ff","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":220,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"95d263ff-e251-441e-9688-af6d1353bc8c","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":220,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"a3041541-03c2-4cda-a16a-4b64318c814a","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":220,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"01a106c0-fd6f-414d-986c-6667dde929ce","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":220,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"a7cdee5e-e20e-4af4-a3fb-d3a7618a72a4","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":220,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"f3d23ec5-4246-41a4-9101-32b16bf86f59","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":220,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"7c39db05-576c-45e6-930b-7962c5d362ae","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":220,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"8561b466-556a-4257-a2dc-71762ccf4018","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":220,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"e1d8a5bb-b6b0-45b1-a042-3be1930b60eb","block_type":"box","text":"systems.","page_number":220,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"b13c9fa8-71d5-4743-a8f2-b8a4bd642c65","block_type":"box","text":"7","page_number":220,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"78bd8830-525c-43ee-85d4-2c63acf2a02c","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":220,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"22319c4a-6b61-43f8-b0f9-d64750237215","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":220,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"aee95683-b984-4407-aec2-653a22fefc16","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":220,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"757a8915-9eb8-4073-ac0e-3f5c39b35814","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":220,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"d59e57e8-be3c-435a-8d7a-dedf927868a3","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":220,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"ea9604b3-e305-4f1a-98d0-83715a54bcc5","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":220,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"14ca12b0-f161-4264-bbc2-7b1ec0b88676","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":220,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"9e0a2a82-700e-4dd5-b3b7-b10891327da5","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":220,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"b5a8ed64-4b7f-42fe-8dae-7ca006f33670","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":220,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"c892e2e8-2ecb-4345-8d30-26a1ba02a0ad","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":220,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"127378f3-9b49-4fa3-a0d3-bf8ebc5df273","block_type":"box","text":"or internal audit function.","page_number":220,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"3513203b-bd31-460a-baa7-f742e0933fec","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":220,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"6793f589-43d1-4bb0-bcbb-db9014519acd","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":220,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"37eb9420-5462-4bae-81e1-337d966df07d","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":220,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"0eb9e8ec-4042-4b9d-ae68-0a3de2e090f2","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":220,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"4f141199-ff9f-4bff-bdc4-8aa21d019bea","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":220,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"bfa4b3cc-7559-470b-88a2-81b6270f362f","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":220,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"729e3761-6e59-436b-80c7-6758527348c5","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":220,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"4d55ea7b-d746-4b1e-b760-2758da03e43d","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":220,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"1495424e-d0c4-4e90-b718-06205be8a192","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":220,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"2cf3427d-1800-471a-b699-0697f7489575","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":220,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"ce03ba69-ebd8-4bad-9e1a-61b78110348b","block_type":"box","text":"risk.","page_number":220,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"792ad120-2f76-4b10-9a91-8626ca8bb092","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":220,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"cc72135c-32b6-48e4-a64b-3ec2a4cb4e95","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":220,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"51012a57-55c9-4f74-a5aa-ef4b0da65926","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":220,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"8bfed823-97e1-424c-9aee-113c0180fe3b","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":220,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"e98d1977-fa51-4067-ba28-b85de9b22062","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":220,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"2fc68e65-1584-4b33-9433-a4bb2ab782a0","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":220,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"adba2dfd-0f06-473f-a973-9c6ffc6429f9","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":220,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"54ed2be1-d31e-462f-99cf-753c11c217cd","block_type":"box","text":"7","page_number":220,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"1243d9da-e137-4f92-ba01-9f89b17b8bb8","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":220,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"69c08123-19bd-4cde-88b2-c1aef22f5a7c","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":220,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"89ccfafc-a180-449d-916d-fe92f8158d42","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":220,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"24be4d4f-9a68-4fe2-a948-bd18c36d2325","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":220,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"fb9918cc-7d34-4698-9cc9-3b5dd3845aa0","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":220,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"1bcbe654-8565-4d35-a684-4ab7fffedcfa","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d4a71810-8176-44e5-b703-b4999c86147a","block_type":"box","text":"Global Principles | 7","page_number":220,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"379d5e58-7997-4882-b12e-5c420ae96ded","block_type":"box","text":"NM1026U-6032801-220/242","page_number":220,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"687c3616-23a6-470d-a279-00f0bb6b8503","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":221,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"a09c55b0-a7a7-4a92-989e-029bd1cc9daa","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":221,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"00852d9b-d354-420c-b50e-cda64009e4ab","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":221,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"b130c3ca-db4d-4565-b4f2-2a031ac41d06","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":221,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"b71f7cdb-234e-4b65-ba4d-5582959bfca2","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":221,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"5a4f329e-edfc-4673-aed7-891d2c9980da","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":221,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"b0066c6a-267b-427b-bfa8-8a4f3cec00bb","block_type":"box","text":"minimizing costs to shareholders.","page_number":221,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"d70b28ec-2231-4540-9a4b-d1c3cde19927","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":221,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"56f96e39-ae5f-4b06-83b1-82f6a87044e6","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":221,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"b0a2c774-c90f-443f-b58d-95a34e260196","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":221,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"21b27928-1ec4-4932-8225-c9e25bbd3651","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":221,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"fb5f34ed-e59d-48bc-970b-2481484d77d2","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":221,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"2ec1cfa6-1b25-4d72-ae4e-6ce5d4abf9c1","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":221,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"de522422-9b6a-41f3-a927-980976f5aab3","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":221,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"a48c300a-b4b8-4be6-8f8c-d11e22325c7a","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":221,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"f3d4af3f-ddb7-43fa-a260-5af2833dce5b","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":221,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"e93524d8-e8c4-4e2f-97f2-b6fd8b9aac8b","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":221,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"8453ce74-2de7-4bca-9ff6-bf3f7e6e3908","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":221,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"f51c2f55-227f-40f7-93c8-ad8c38b35c28","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":221,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"5eb063e4-5b2d-43cb-b549-176c54696449","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":221,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"674a3c77-ed3d-498b-b5a2-9fc8f76c01b0","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":221,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"6700adbe-9204-4d41-b174-adeb6bdf35a9","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":221,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"e35e14d9-b168-4d9b-a419-f3427207835f","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":221,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"23fffea1-0f9a-4276-94fe-6152f6cfe26a","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":221,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"2be4c8ce-da6c-44f2-81c0-a7c4241e2404","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":221,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"03df8871-4d00-44b2-ad8d-29caee120401","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":221,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"0867367b-59db-471b-a607-3f3d6b68530d","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":221,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"115b28ea-d830-48ac-a11c-b3a44e2754f0","block_type":"box","text":"ownership.","page_number":221,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"086b5358-6fc2-4e77-a62b-8140f08d1f53","block_type":"box","text":"8","page_number":221,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"4b31f431-c186-4614-8d08-86e98052a5d5","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":221,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"d47aec36-06ff-409b-98b5-26fd0c9d1fcd","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":221,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"b1a266eb-a14a-4492-85f4-7d1d29cdd7b3","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":221,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"a250497d-7a4a-40e3-96b8-45dbcb7c5fc0","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":221,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"e1486fbb-9ad3-47c2-840b-04051b0d0e0d","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":221,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"1f71d559-9c5b-4f1a-8b26-2c0b14ec7e91","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":221,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"b0d7a8dd-33ff-4cd0-acf2-aafb185e0192","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":221,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"4a70a21a-8ffa-42e1-8d80-7e19c7436e18","block_type":"box","text":"results over a period of years.","page_number":221,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"6295a8b0-42ef-47bb-95b2-9f319fd87302","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":221,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"b5439679-1ce9-49ef-9617-20c5931650f4","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":221,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"9a3fee84-9f76-4e63-a7bd-f1820e6646cd","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":221,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"b0823286-4a8e-4b56-b9b7-5e083cd9a69c","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":221,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"511215a1-3b2f-437b-9003-6635b3905fa5","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":221,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"3136e9db-443c-4e78-9779-e146b7d42da9","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":221,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"bfeb400e-e1e8-4117-b0ef-64622f919976","block_type":"box","text":"executive compensation strategies.","page_number":221,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"1aedaae1-0aea-46b4-b366-e5505671321b","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":221,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"ea70d569-d6b2-4f20-9735-4b87f2e11d70","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":221,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"6d014b59-b7dc-4982-afc7-7e5422671355","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":221,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"887815f3-af77-4aa7-b91d-dd152707f0bd","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":221,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"e9f12d2e-3d00-4ab3-bc6a-0a5ebf27f8e0","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":221,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"f6866d46-8a1e-4056-b24a-65b562d8ebb0","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":221,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"557a905c-7322-449b-9e50-3a43f1fed7b6","block_type":"box","text":"8","page_number":221,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"3aecec1e-1a6a-48e9-83db-baa631faaccb","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":221,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"51838549-f4fb-4bc6-a026-b4b0cb23eef5","block_type":"box","text":"different markets.","page_number":221,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"6ce75a20-6974-49fd-8504-5f6214b41994","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6da64142-1b9c-40d2-830f-0961d98ae301","block_type":"box","text":"Global Principles | 8","page_number":221,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"4cd3ee9c-9c0c-4aaf-9639-a569e607986e","block_type":"box","text":"NM1026U-6032801-221/242","page_number":221,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ffb12651-10bc-41cd-bc2e-a74cee1ffc79","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":222,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"44926591-761a-473d-abda-cb18640f38ae","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":222,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"f661c896-9145-44f6-a760-39d02f5a1eb0","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":222,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"30a6ec26-7c45-4317-a704-31a72fb66f2c","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":222,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"6d18b976-1a23-44a3-94dd-f51e7856ef0f","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":222,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"f2004dbb-bc1b-4d4a-8f38-e8cab9b42d08","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":222,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"3b497d89-a0ab-4503-a62d-25d409e388f1","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":222,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"e6791f5c-b7c0-449b-87eb-bc7f3c7b6f4b","block_type":"box","text":"whom they are charged with overseeing.","page_number":222,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"87a0caee-82e7-4cb1-98ac-070c58f5c03f","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":222,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"d01b0703-2601-45ea-aa96-737edc505a5d","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":222,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"b53250ca-c258-41f6-ba36-68da44b67ec9","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":222,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"af955c98-aeed-43f9-afc6-97accc4e8e05","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":222,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"75bea9d5-a377-496e-b25f-c574979aa763","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":222,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"a93ed880-d92b-4497-a617-60fed1e8b221","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":222,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"d8c7b32a-ff52-4c31-ab55-8a6419c7f038","block_type":"box","text":"structures.","page_number":222,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"6071f98b-208c-4219-a259-12e7d90657e6","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":222,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"f60ea866-6d7d-4ac9-8567-a2990381de91","block_type":"box","text":"Corporate form","page_number":222,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"dfb85c1f-6315-45bc-878f-520bce772d4b","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":222,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"b01c4aa1-aca1-4e7c-afb6-1d0380b3b927","block_type":"box","text":"the company’s purpose and business model.","page_number":222,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"7c25412d-b964-4c8c-a600-974767d0560c","block_type":"box","text":"9","page_number":222,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"355085e3-fd78-447f-9c04-9eabbac2e319","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":222,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"885a884b-b7fa-4938-ae55-46579b5baf70","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":222,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"9a18a2b9-807b-4c8a-b0b0-c7cbc806b8e6","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":222,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"f1cb849f-b1d3-4cb3-8c72-f316b0a415cd","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":222,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"7cf02dc2-d3fc-47f4-825f-af3ced673514","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":222,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"39286cad-ed0f-41dc-b93a-584f6f4ed442","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":222,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"fe2cb5cf-a39f-4f1c-aadf-cde3a72be6b5","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":222,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"e7e69b62-1bed-43e3-b244-e708971e66a4","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":222,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"c7912779-dcd1-4fe1-89f1-4fb8f00177bd","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":222,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"97838a9b-2e22-4c56-ab38-6d356e145480","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":222,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"8db3e049-fa89-4bb5-bf54-a15c6a8fd40e","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":222,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"b3744e2e-4d7c-4509-8515-0e926a074ca7","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":222,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"0662cb23-ec89-481e-96e7-58c7a508ba7d","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":222,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"6a9092a4-4c6e-4e48-8277-8957598f7218","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":222,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"5fd5a4e7-e078-47a6-a124-2ea86665983e","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":222,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"6656053a-b7ba-474b-b64d-c7c61661b70f","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":222,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"92afadae-8fdb-4518-9297-1205567a9e87","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":222,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"d243789b-1775-42df-aaef-681b5e629530","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":222,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"47235533-8b1c-457d-ba6b-e78033167080","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":222,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"3d748db2-50fb-46d8-86dc-f7f1643504e7","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":222,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"d0fd7915-18cb-4086-bad5-fd46ecd7dc6b","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":222,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"c7ac2a53-4447-4935-8b11-93546a216b07","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":222,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"a5e8e409-47ac-446c-b272-b12f07793d9c","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":222,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"b6d5c951-2341-4df4-9079-6d8728ed35a1","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":222,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"2bb4bcad-f0f7-4028-a81d-e3f3f6b1da73","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":222,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"9db6d405-659f-4319-83d4-67f86cb38f12","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":222,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"6e99f826-407c-44ab-847a-1eba6e8485c7","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":222,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"4c9e2566-3d8d-4d28-ad24-f377bed38491","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":222,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"4a920b0f-1a57-43d4-929e-eb739cfc29af","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":222,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"50f8242b-e7f5-4ed2-a460-102b14633add","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":222,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"57917e78-7e24-4e46-8225-b9c6e921a7a3","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":222,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"4702d1e9-c086-4c06-be0b-576f5c3bd1d2","block_type":"box","text":"9","page_number":222,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"0bace77a-0b02-476e-92c4-f075d6659bab","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":222,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"5e88170e-4d88-48bf-9194-556d9a515bbd","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d91b2235-566e-4dd1-a468-f9b80838def2","block_type":"box","text":"Global Principles | 9","page_number":222,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"97c61b4d-cc0d-4bf9-acb0-6bb9f25dd82a","block_type":"box","text":"NM1026U-6032801-222/242","page_number":222,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b6c21347-3272-4e82-84e1-7f3232b5ddf1","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":223,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"ac361fb1-5d08-471c-b6b3-e365b79e5e03","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":223,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"b394e49e-ac28-4339-8ed7-2361bab2773c","block_type":"box","text":"long-term financial interests.","page_number":223,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"3b756f44-9798-4d2d-8cc5-5aa28dab215f","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":223,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"032ff685-fc56-48fa-bc0f-c29ea723d9b6","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":223,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"22109fe5-3dc3-4c0a-bb00-ec03afe88973","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":223,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"7beecece-2d6c-460b-8bce-9cb18558ff19","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":223,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"9e4f81f2-b8f7-4b42-85fd-45d21bba66dc","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":223,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"a29a317d-965d-4508-ae6a-331d11965ddd","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":223,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"cce1af6e-0462-4b8c-9905-0d3f839b91de","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":223,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"3f4bf8b4-8f83-4ab4-89e1-6ff7d6c7493a","block_type":"box","text":"term financial value creation.","page_number":223,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"8f0db78a-5bcb-4050-b98f-c00907cb0cbf","block_type":"box","text":"10","page_number":223,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"36ecc5eb-6d88-45f0-984d-e17fd4b18510","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":223,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"19da30cb-6a4e-45a2-ba2e-9a403b7f064a","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":223,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"9635d88f-9102-40d9-ac5e-fdba3c507290","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":223,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"fa81a970-f92a-4a1d-87ca-a3b494560048","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":223,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"05d68982-91a8-4fb0-ba26-1480633ebe62","block_type":"box","text":"industry-specific metrics.","page_number":223,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"dee026fa-6477-4dc1-a5cd-6c5e424d479c","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":223,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"a3a52036-4252-4f4c-85e1-057c11409c06","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":223,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"e3446dab-eef1-4fb9-9e17-2b2d3112c795","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":223,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"e03ca457-9694-46af-8558-37cd88bb6787","block_type":"box","text":"11","page_number":223,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"c9ad8d30-dcc8-470e-a162-7f35a19cb090","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":223,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"d4fb2888-7b2c-46ff-9c0f-e3ec9d69cb36","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":223,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"5aaee4d6-c18c-4c09-b5a6-16bd4bc1c240","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":223,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"3783b760-4c0d-461b-8e7c-c84c4a270af9","block_type":"box","text":"specific.","page_number":223,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"b868344b-c199-4437-a697-b9da32546279","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":223,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"de8a0363-e7a3-4586-b2f0-10b130496ede","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":223,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"7e668277-1404-4cab-9728-0c7ac24d5713","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":223,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"ec80157d-cc05-4525-aeb9-feefc6bde55e","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":223,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"78b1ea58-2c68-48c9-babf-28b771ae3d7f","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":223,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"dd5ccba0-2e70-4861-b7ee-1bdec78b532b","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":223,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"92a1bc2a-4722-4ca4-b1cb-9f0cc8b2fefc","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":223,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"2dfb516a-d245-485f-b2e4-6a4643ea42b8","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":223,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"bddb0d6e-72e4-4d3d-9aba-7d147570404a","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":223,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"6737465f-415f-4514-9c77-7207f7a82362","block_type":"box","text":"10","page_number":223,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"6af09076-5bbb-41d9-a388-7e289fab8928","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":223,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"bebf324c-0e68-4e34-a6c9-f2565001b26e","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":223,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"8d0db735-730b-47ba-808c-8a7325460467","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":223,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"b6a73c6d-8130-4c30-9623-b3cdfaa907f1","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":223,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"40feac53-d255-4668-809e-3447c070c527","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":223,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"7f166035-c272-43b3-adc9-287bd7f675ec","block_type":"box","text":"11","page_number":223,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"d66bbe75-3e67-4f82-84c9-729a4fcf75ec","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":223,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"f0f1bc3e-2338-43fa-9ce1-df509371e47f","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":223,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"f3a64c00-b404-4235-a3f4-b8357d416d69","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":223,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"3ba182e4-e725-4422-8015-15c4bd19471f","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":223,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"26abf719-fc35-4ab1-9d22-9ef539cba2f1","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":223,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"835519bf-901d-40ce-bb3a-27bf244c9920","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":223,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"fbb15211-a606-4027-8b63-f4d7aecbef67","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"bacd3e6a-888a-48e1-bd9d-7165437dc162","block_type":"box","text":"Global Principles | 10","page_number":223,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"87f991a0-2a42-4894-9459-b003e73499f5","block_type":"box","text":"NM1026U-6032801-223/242","page_number":223,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ff50069a-294a-4508-a444-e3eccd3c4b09","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":224,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"d044ea66-6111-418b-92e4-c9ea0b062bf8","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":224,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"fd80eb0a-3997-45ae-95d6-a63a4d9678fe","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":224,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"94260cc0-818c-48ca-ac8d-862f11307719","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":224,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"646cc1ef-ddc0-49ce-ba1a-d884c7b46c5e","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":224,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"d534c487-d757-4af9-aa34-6bd959d0e8f9","block_type":"box","text":"12, 13","page_number":224,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"b7f0b436-5f13-4e33-bd25-7601ead8fbb9","block_type":"box","text":"From company disclosures and","page_number":224,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"0517f997-60ca-4f05-ba87-284b8ae112a3","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":224,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"99800b07-55af-4d9b-949c-9e9d4975c4ac","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":224,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"6c9c1fed-f8bd-43c5-a7dc-5f89dd2ed571","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":224,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"c685cd38-41f4-413d-9b4a-64c4a33c6f2e","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":224,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"32dbf73e-a166-4cfc-b38b-c2df3c387549","block_type":"box","text":"viewed as best practice in the market.","page_number":224,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"d3897115-e591-485b-89b6-79771a086dc7","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":224,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"537856c8-d3f9-4199-b538-dae3987147df","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":224,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"b197b8b6-f170-423a-88cc-6961a427357b","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":224,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"3bd9f9be-f92f-4aec-b813-f054e892edc9","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":224,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"f8e8feb0-cda5-479d-9cda-90563c3a6e56","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":224,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"165e97e2-2479-4b65-8bd7-841d39338335","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":224,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"786587d1-4f99-4a98-81ba-d65aebc7340c","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":224,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"53117150-88c0-419a-98d2-55f45b44f4b3","block_type":"box","text":"interests of their investors.","page_number":224,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"4a5a409f-b11d-40ef-94f2-7356660a9859","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":224,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"b17bd561-3d1d-4e3e-8e24-1a2cd7716a47","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":224,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"991a5218-52d5-49db-ab40-636f5b8a525b","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":224,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"e290bd2b-fa8d-406d-bd5f-b5466c91530b","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":224,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"06b770f9-c6d0-4ce1-b338-a74b2eaf95fc","block_type":"box","text":"good-faith basis as methodology develops.","page_number":224,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"bddc1b2a-7570-45da-837c-16bc4760725b","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":224,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"e58708e0-8531-45cc-89d0-54dadaa20109","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":224,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"7387a5a9-45cd-43fb-9f41-dca6ab36bf3d","block_type":"box","text":"generate long-term financial returns.","page_number":224,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"ad71e48b-7b8a-4412-9395-2841b002ff9a","block_type":"box","text":"14","page_number":224,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"3608a7f4-5805-4497-a521-61c028c42975","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":224,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"4bb53604-9912-4369-87c2-2b030786619e","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":224,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"59e738d4-3128-4173-b9ff-52772048663c","block_type":"box","text":"15","page_number":224,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"e7716e71-b02f-4a74-8347-3d99f1ec7333","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":224,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"97bc3dc5-c535-4684-9cf2-53ab1356b945","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":224,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"8a038d69-8514-41eb-bf1c-8c658b9c32c9","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":224,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"4c934d7b-f3a1-4642-a7cb-00f500542bcb","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":224,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"3e43cab0-1fb9-4512-ad33-f163fbaa98f4","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":224,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"6500fa93-a7af-4ef0-b21e-5af29bba3e7e","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":224,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"d9752c94-be53-42e2-8fc0-771c9c2c5b61","block_type":"box","text":"12","page_number":224,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"584dd410-9a7f-4856-b090-7de4612f9d6e","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":224,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"e91bd2ea-7289-43b8-8fff-0ca2d623f1c9","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":224,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"c031932d-f92c-437e-be4f-76a410906236","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":224,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"f15d35be-db17-4234-96c2-5132d9a70618","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":224,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"c67434db-4530-4977-83f5-6ad689146537","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":224,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"fbb31ae7-1f21-47f0-b0b2-5ba9c265255d","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":224,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"08ea524f-6281-48cd-83fc-ae096980a40b","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":224,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"54c7c11a-cab9-4cff-b71e-1a945ed8f800","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":224,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"52436901-1fe3-4109-8686-6a928a727eb3","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":224,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"d6f0fd00-bcb6-48b6-8ac3-871695565fa4","block_type":"box","text":"13","page_number":224,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"3ab7bef8-a4cd-4b7c-b09a-5f77c2883b90","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":224,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"6ddb07a5-ad5b-4ef1-bfe0-d05f6ff7add7","block_type":"box","text":"2025.","page_number":224,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"49aeecd5-856f-4eb2-9f10-6c54a4310a26","block_type":"box","text":"14","page_number":224,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"a22da65e-ec38-4d4f-8320-07f1f5d2041c","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":224,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"e6b6b673-ef44-4f71-a562-c8a9e81477f2","block_type":"box","text":"2025.","page_number":224,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"8a7fc434-48d8-4e0e-9764-563c69864593","block_type":"box","text":"15","page_number":224,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"a9048d2f-d629-42ae-98f6-d83e80a726b0","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":224,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"9ec21fd8-2a74-4212-98f4-0839b2f74766","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":224,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"cb03b635-24c8-4aeb-b33a-14812260ad68","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":224,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"ba8a46cf-5e05-4a55-9c89-2ca7de6ed2cd","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":224,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"f5deeb69-8f20-49f0-ac6f-4f2697ca4ddc","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":224,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"48973b6b-fcc6-4e01-ad02-234be7d69dad","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3fd393c0-13af-41aa-b58b-328e33c8dd8d","block_type":"box","text":"Global Principles | 11","page_number":224,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"383c69ea-2e0b-4342-9b6d-58f44a3d8951","block_type":"box","text":"NM1026U-6032801-224/242","page_number":224,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b37f8e25-b1e7-4173-be3d-833fa34c3b9c","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":225,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"14fe8291-b338-4f85-a812-bb6be5e6c418","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":225,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"883acd76-9289-4879-b57c-359f8b14fe8b","block_type":"box","text":"16","page_number":225,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"af568ba0-6752-45cb-9362-e280a519ac6f","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":225,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"ee9187c2-5106-49fd-b1fe-70a0b0a77ecf","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":225,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"982cc80c-5c29-4601-907d-3b42023831ba","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":225,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"ab83f3e6-77d4-4fcc-932e-349731a17ba3","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":225,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"f050bd0e-60ac-4b8e-96e7-2971060c6d33","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":225,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"95aa9ce1-56ef-4a50-ba8c-d40815c866be","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":225,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"e6478f69-14f7-4aa1-9deb-943003b65bd6","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":225,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"56d77406-7b70-4351-bcce-cbf7062123fc","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":225,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"35b8ac8a-1795-485c-8442-bd633a56b819","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":225,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"d67fed1b-021c-49fc-a7b2-ae35ecc41b2f","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":225,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"3792a296-1e9a-4c65-90d0-cbc95213668b","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":225,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"718161b9-2f62-4350-940d-8bcb7329e714","block_type":"box","text":"impacts.","page_number":225,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"ebfa1118-96ad-45c3-b2a7-ddcd0bca6f4f","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":225,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"86b4faf8-bcc9-47a5-9f5f-1dca60b2262d","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":225,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"ed5ddb5f-0e99-4172-a8bd-ab0a10f9dec7","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":225,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"de67e2dd-0911-400a-937c-62c060218066","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":225,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"199d92cf-2c20-4f1c-977e-28df5eae2fc9","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":225,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"f3bcb7c0-0655-4560-a29c-45d58f1cfa64","block_type":"box","text":"clients at the global and regional level.","page_number":225,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"b40049cc-ae02-433a-8a10-94459df9d690","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":225,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"e28e713a-fc6a-4a85-95be-f506626a77e2","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":225,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"f196a02d-cef0-48d0-b697-439272eeb71b","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":225,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"c4553852-7777-4f09-9180-d0dbf2bad684","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":225,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"52822b7b-aa83-45d4-ad48-a6817b01e24c","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":225,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"b2c84fb8-93f3-4648-a462-96f93fd38780","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":225,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"799bb9d7-e7b2-4b33-9043-b43f5521b093","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":225,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"baeeb0f2-d0ab-4679-a41f-a50d26b566db","block_type":"box","text":"are independent from the investment stewardship function.","page_number":225,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"e7a863db-587c-4640-a1c6-67857425a9aa","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":225,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"ee0038cd-df55-4dad-bb5d-9d8ab7536fb0","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":225,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"2c33bedc-5f2f-4dea-9e40-4236b2cfed12","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":225,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"4646990d-20b0-434c-b8a8-b6524924bee2","block_type":"box","text":"VOTE EXECUTION","page_number":225,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"0a6afbf2-677b-4e4e-8479-59b7ccdc250d","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":225,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"22e63068-6191-4b1b-b6ef-0ce89842e998","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":225,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"120da04c-4cd4-40ee-a9ff-d2d12162fd8a","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":225,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"e4e50e2c-3536-40aa-a04a-bf237984ac91","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":225,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"c73fa2f5-307d-43e7-84c1-f09875477394","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":225,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"50c50801-7ef8-4e0d-b9eb-5d912adf50ad","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":225,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"97460a1e-fda1-4485-87dd-c70c4a066bd0","block_type":"box","text":"management policies and procedures,” below).","page_number":225,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"6728ede3-2d51-4762-9cb4-8e3b895c3692","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":225,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"4caf860a-c374-4964-92aa-ffbdd3aff0da","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":225,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"bd25d9e0-3faf-47be-a658-c9da1e5b9142","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":225,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"b708120c-fd28-4d93-9b0f-1e06aa8a8767","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":225,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"1560ccae-e161-4c79-ba65-424388cccfc4","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":225,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"cc22e4ea-4f86-4625-8631-a339dd2b9695","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":225,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"3fc4824a-eaea-4ba3-9b21-e9e3a9e0bf9b","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":225,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"27b211f1-aa67-4f54-a4ae-d63f71844b47","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":225,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"498ded46-e4e5-41ee-9937-943aaf9fc43d","block_type":"box","text":"16","page_number":225,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"c49b092e-e800-4ab8-b01c-1c416647bc2d","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":225,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"6e87cc6b-b915-4739-b744-10966bba76bb","block_type":"box","text":"December 2025.","page_number":225,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"2392fde4-95ee-44c5-b03c-30c617041e11","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b660ee1d-e9c3-42c6-b421-63f131211bfa","block_type":"box","text":"Global Principles | 12","page_number":225,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"d92d326d-61c5-4ebb-8b57-0714f16e59db","block_type":"box","text":"NM1026U-6032801-225/242","page_number":225,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f0fef776-3fdb-4a7e-9de9-b654749b5ea9","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":226,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"4efa8559-3340-42f7-9c71-6a6bd2336fb8","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":226,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"04619b0c-39e1-4870-9787-7f578dd34005","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":226,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"e65eedaf-3720-42d5-a8ae-944e973a7d6a","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":226,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"e2d2b585-9277-447a-858c-03667ca931d6","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":226,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"5f175bc9-9c62-4d0d-a6ce-f38ada58ff16","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":226,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"41142297-a7da-4cc6-9e18-e15e5da58110","block_type":"box","text":"enterprise-level vendor management activities.","page_number":226,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"72a8d354-dd4b-4e71-82af-b1a5e0558a99","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":226,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"0e2d91c6-675c-41f2-873b-7e5693a5e611","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":226,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"465f41c7-cfb2-46d2-b16c-a4b72facaa79","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":226,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"660b6866-22d8-41e3-bff5-d380c4fe42cd","block_type":"box","text":"BlackRock employees.","page_number":226,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"86f9eba8-1563-4454-a78e-184bbb31aa9a","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":226,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"31489534-434a-4a89-82c5-8a1e3de1f005","block_type":"box","text":"SECURITIES LENDING","page_number":226,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"88e6c53f-0361-46f6-a901-d5301c28034b","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":226,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"bf96d015-86ee-4031-bdb5-41a3a6971db0","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":226,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"accf33cf-2c4f-4247-8074-59d0013d1ff0","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":226,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"f3721fc3-ffa7-44be-8570-1d449e6750fd","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":226,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"9aca4157-d7df-4c31-8d60-e6b3390eecf1","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":226,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"38527732-fd66-4cbd-8cf2-a48e74ed99e5","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":226,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"2615b0fa-4081-4f9c-beed-7463d0e07035","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":226,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"fa8c0523-70ca-473b-88b0-ece298438241","block_type":"box","text":"in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to","page_number":226,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"5d6004d9-e66a-4138-b938-58a0d684fdc8","block_type":"box","text":"recall securities on loan as part of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":226,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"abedb9f8-22fb-4a8e-bea3-80578f8bf9b8","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":226,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"6bfca314-0190-4000-9c81-eeb5487a79e5","block_type":"box","text":"potential long-term financial value to clients of voting those securities (based on the information available at the time","page_number":226,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"a7198246-cd6f-4652-9942-b0703e08ebbc","block_type":"box","text":"of recall consideration).","page_number":226,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"843701a2-5e9f-4d3a-ad3d-7bc88e50cd4b","block_type":"box","text":"17","page_number":226,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"51d170f4-66b0-4853-bfa9-ad63dcc4dbe1","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":226,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"c34a7c4e-c33a-4951-b829-5fdfd66f92dd","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":226,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"dcd55893-a4c4-44fe-a9f2-91d9d4801771","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":226,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"5aafd942-b5e2-4c41-aed5-ebc76936fb43","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in certain instances,","page_number":226,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"3ea82e68-8909-4091-8b75-b590ed0f1a3b","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":226,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"422bead5-79c1-4635-9a59-7a09e8629be4","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. It is","page_number":226,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"f22b83c5-5905-4b26-b5c4-4aaa29e57889","block_type":"box","text":"important to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":226,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"31ac376e-2bb4-453f-996b-0139a084454b","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":226,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"db03265f-aa37-48b9-86eb-9e4c519b5ef0","block_type":"box","text":"and may modify it as necessary.","page_number":226,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"799d9218-5d46-43f7-907b-e95589390e78","block_type":"box","text":"VOTING CHOICE","page_number":226,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"506a514c-f62c-4293-b8bc-d3fadb00b75c","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":226,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"4b766d89-de36-4501-9d99-a75ba9e5c55c","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":226,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"f276497e-8517-450a-97fb-91b565cf04e1","block_type":"box","text":"18","page_number":226,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"7d604d6d-da3e-4b65-9c84-a87cdd455a0c","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":226,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"cc549c35-eac1-4f77-ada6-9593e1ec5638","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":226,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"59053317-477b-4198-b3d4-11eaa84ac885","block_type":"box","text":"17","page_number":226,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"21b7f29b-9b85-4c57-b1fb-a912979fc67e","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record","page_number":226,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"600558aa-bcba-481a-93ab-20cf377b37aa","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":226,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"886c1a79-a8d1-4e4f-b4e3-1e54b0f0f23d","block_type":"box","text":"practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any","page_number":226,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"a865267d-ec1a-4ec2-bb4f-306493f6fd6e","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent","page_number":226,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"3ea90144-936f-4d85-8807-470372bd2c2f","block_type":"box","text":"business judgement as a fiduciary, the benefit to a fund’s shareholders of recalling loaned shares in advance of an","page_number":226,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"b2efe3c6-61a0-4a05-b945-8f5d05dcb09f","block_type":"box","text":"estimated record date without knowing whether there will be a vote on matters which have a material impact on the","page_number":226,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"e90f3060-615e-4984-b355-e15f83438a88","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":226,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"4cc40bd5-5180-4b4b-9463-eb3461953287","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the opportunity to vote).","page_number":226,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"d1b02ecf-c3af-4453-9b56-f6e4c8c0f3bf","block_type":"box","text":"18","page_number":226,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"3976afe4-5d01-47d1-b440-ed6ebf56a34f","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":226,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"47a6efc4-291d-4c94-a80d-d8934b94f288","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":226,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"954cc834-ad40-49a0-b004-d70f3c4782e1","block_type":"box","text":"including the decision to lend securities.","page_number":226,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"e3d5e025-28f4-4fd2-b82e-1b2dd63277bf","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4b4fb9c9-475f-42f3-a1a7-dfda01504550","block_type":"box","text":"Global Principles | 13","page_number":226,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"da468934-2dce-4d5e-a769-4188a976cbd5","block_type":"box","text":"NM1026U-6032801-226/242","page_number":226,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"04dc59c5-ab92-4d6d-a2ea-26fb6522a9e1","block_type":"box","text":"certain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":227,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"f14d16f1-36df-481f-92dd-633e91289b80","block_type":"box","text":"(SAE) strategies. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for","page_number":227,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"32e0f2c9-c97c-4058-9de2-b1b7a70a7d65","block_type":"box","text":"BlackRock Voting Choice regardless of their investment strategies.","page_number":227,"box":{"x":70,"y":75,"width":471,"height":11}},{"id":"c220156c-a6be-47a5-a926-01a03e1f3d57","block_type":"box","text":"19","page_number":227,"box":{"x":543,"y":75,"width":9,"height":5}},{"id":"98d240b4-e179-440d-9ffd-b0adc877703e","block_type":"box","text":"Voting Choice is also available for eligible U.S.","page_number":227,"box":{"x":558,"y":75,"width":328,"height":11}},{"id":"ec74d5ea-bde8-489c-a187-05acaf35bd3c","block_type":"box","text":"retail shareholder accounts invested in BlackRock’s largest U.S. exchange-traded fund.","page_number":227,"box":{"x":69,"y":90,"width":619,"height":11}},{"id":"b6a9d1e4-b4c2-45f5-ba98-aad3f9cc0485","block_type":"box","text":"20","page_number":227,"box":{"x":690,"y":90,"width":9,"height":5}},{"id":"3698dc4a-1931-4fa0-8e35-1bc694045a8f","block_type":"box","text":"As a result, the shares attributed to BlackRock portfolios in company share registers may be voted differently","page_number":227,"box":{"x":101,"y":113,"width":782,"height":11}},{"id":"34cde342-a5cf-4b58-9272-e92b3fe5fc33","block_type":"box","text":"depending on whether our clients have authorized BIS to vote on their behalf, have authorized BIS to vote in","page_number":227,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"8350df06-29b9-4833-a73b-00207be5a436","block_type":"box","text":"accordance with a third-party policy, or have elected to vote shares in accordance with their own policy. Our clients","page_number":227,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"1c551c22-a8e2-46f1-9ba4-bac725a03b1b","block_type":"box","text":"have greater control over proxy voting because of Voting Choice.","page_number":227,"box":{"x":69,"y":158,"width":454,"height":11}},{"id":"035fe49c-8fff-41bc-a113-06e95d220d25","block_type":"box","text":"21","page_number":227,"box":{"x":525,"y":158,"width":9,"height":5}},{"id":"345ffe02-7ff3-45fc-b7b2-d11527a9e904","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":227,"box":{"x":343,"y":188,"width":293,"height":9}},{"id":"9aabfd70-49b0-4291-ba5b-48b43a334962","block_type":"box","text":"We are committed to transparency of the stewardship work we do on behalf of clients. We inform clients about","page_number":227,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"17e44523-4b6f-47e9-836d-35ec1d34ec0e","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":227,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"e6bbcc7f-5ee9-415a-8d53-fec26e36d851","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":227,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"d9e097c5-1be1-4a6e-bd01-b8f4f72ca345","block_type":"box","text":"invest on their behalf. We also publish commentaries to share our approach to engagement on our five engagement","page_number":227,"box":{"x":70,"y":256,"width":825,"height":12}},{"id":"77b371a5-683d-4ccb-b569-03f8a79f7921","block_type":"box","text":"priorities, as well as quarterly reports detailing our proxy voting and engagement activities.","page_number":227,"box":{"x":70,"y":272,"width":644,"height":11}},{"id":"66572463-0fbe-4f7c-94be-6922cbc8221b","block_type":"box","text":"19","page_number":227,"box":{"x":69,"y":324,"width":9,"height":4}},{"id":"cf23f0f5-fa1f-4246-96ff-6153a8ad06ed","block_type":"box","text":"With Voting Choice, SMA clients have the ability to select the policy that best aligns with their views and","page_number":227,"box":{"x":83,"y":323,"width":739,"height":12}},{"id":"fac347b0-170c-4f93-aae7-c026c558671a","block_type":"box","text":"preferences from a set of voting policies from third-party proxy advisers. BlackRock can then use its proxy voting","page_number":227,"box":{"x":70,"y":338,"width":800,"height":12}},{"id":"577e3ac5-28f9-4dac-9eec-c0b73579a4ed","block_type":"box","text":"infrastructure to cast votes for the SMA based on the client’s selected voting policy.","page_number":227,"box":{"x":70,"y":354,"width":596,"height":11}},{"id":"c1c42b7c-fa67-4f47-b6eb-c249f4f365e7","block_type":"box","text":"20","page_number":227,"box":{"x":69,"y":372,"width":9,"height":4}},{"id":"7b6b8f80-3ba2-4960-b9cd-fde437f26b72","block_type":"box","text":"Read more about BlackRock Voting Choice on our website.","page_number":227,"box":{"x":84,"y":371,"width":415,"height":11}},{"id":"be9c904a-b27f-48e6-94ea-1039a757aa6b","block_type":"box","text":"21","page_number":227,"box":{"x":69,"y":389,"width":9,"height":5}},{"id":"c5bc0fb8-fee5-49ed-b5d6-b4bc892062c0","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":227,"box":{"x":84,"y":389,"width":820,"height":11}},{"id":"706978fe-3d44-4965-8d78-3881773afce8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6ee749bf-a8f1-41b0-9586-59da447c829e","block_type":"box","text":"Global Principles | 14","page_number":227,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"3924e77a-6f74-4e97-8a09-29324414a5f5","block_type":"box","text":"NM1026U-6032801-227/242","page_number":227,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b8b0cfc5-6a3b-47c5-a3c8-89713e7e9fdc","block_type":"box","text":"Want to know more?","page_number":228,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"77161321-bb8e-40d2-94ef-7079d6fc0c93","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":228,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"393e282c-f9c0-485b-a810-202df14599b9","block_type":"box","text":"This document is provided for information and educational purposes only. 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Under the Guidelines, the dedicated team","page_number":233,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"a8142f17-4a8d-4da4-9253-bb3749d01599","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":233,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"0634f271-877c-4cda-ba31-4ba415fa4817","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":233,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"f5c49f03-2868-4098-a6b6-276c56f867d9","block_type":"box","text":"Voting approach under the Guidelines","page_number":233,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"b2b1c86e-9b39-4eaf-af21-ce511451140c","block_type":"box","text":"12","page_number":233,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"234edb58-e675-472b-b56c-01ad706f59b8","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":233,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"3de023e4-1d7d-4b0a-b908-52cad541b26b","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":233,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"ab0f64c1-8c8a-4bdd-bc16-3ba4752eac17","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":233,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"ad7cf80e-9c99-45ac-8bca-5a9fb030e9fc","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":233,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"b7ce2797-5729-4547-b03f-8df4befbc8b7","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":233,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"8212e92c-4360-411d-b7a6-60bbded76076","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":233,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"c32f262e-51d5-4845-b6d2-3f546ae4dfea","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":233,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"fda6ab04-6cfb-4132-8864-d04b25c3cf49","block_type":"box","text":"Corporate Disclosures","page_number":233,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"e5e1f506-fd40-497b-b219-4f1d89567911","block_type":"box","text":"13","page_number":233,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"f8913327-c920-4340-9c8d-82a703197532","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":233,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"776c3323-fd99-47c4-a7ce-bffca318c4e8","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":233,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"56b6d8a0-fc9f-4b83-a7b1-65a6dafcaeef","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":233,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"329a4ed9-19a6-417f-9ea9-ff268ac8b28c","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":233,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"fc8cd159-438f-492f-a1bd-d28e04883b7f","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":233,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"2396051b-7561-4cb2-8b07-990fd390c618","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":233,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"7afb006e-67c2-4c0e-9a35-33b2ba8e9b06","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":233,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"ac33a1a1-45e5-4ae3-a2f6-865ad26b9bb3","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":233,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"eab08cf6-d1ad-4047-bd9c-2c7c12bdc9fd","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":233,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"5dcd16fe-2ac5-4e3e-90f8-0c12b2a2e390","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":233,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"5fb27746-b770-428b-9768-bbb4b4977000","block_type":"box","text":"14, 15","page_number":233,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"22ffd13f-7e1a-4146-bc0d-42845eef402b","block_type":"box","text":"IFRS","page_number":233,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"b03060ff-6e2d-45cf-b16f-352f6a083016","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":233,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"7e5961bf-8310-4262-9593-973c00b27669","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":233,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"1dafcec2-aa33-4f59-bd4c-7aee3ec837a4","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":233,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"b0aec3fe-f516-41dc-84e6-ae5108a6c952","block_type":"box","text":"and assurance standards are developed.","page_number":233,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"98c668ce-5a4b-473f-96ff-f3c0e9049d44","block_type":"box","text":"12","page_number":233,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"16d99d51-e33f-4869-a256-80aa40d959ba","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":233,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"0dd1b458-c583-4fc8-8d2d-68802e6fd28a","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":233,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"af8e215d-2779-4f2e-b0d4-4ff8651c23f7","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":233,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"dcfb37f8-037e-4318-95b8-7526a98cb1ee","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":233,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"730c5f0d-7160-4ca7-b8b2-b1af82106f7b","block_type":"box","text":"13","page_number":233,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"b8e13a83-a5e0-4da4-9fb3-15485ba1fa3a","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":233,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"c350e13d-8367-4e8c-90b4-d63462cc3c66","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":233,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"b96c10d9-982d-4356-836e-ba27bea8faa1","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":233,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"308c8e6c-926b-40b4-b1f5-92e5fa9d31a9","block_type":"box","text":"14","page_number":233,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"ed2e91a1-f199-40d9-be31-5e0cb46949d4","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":233,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"cc450909-5833-4c71-96c3-f3dddcf91a85","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":233,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"e763e383-c0a0-4f40-b660-16f461dd318b","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":233,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"a02ab5a6-c34b-440b-a6c7-bc2c54f1f9cb","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":233,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"d092235e-7583-4c9f-b789-1011520a31bf","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":233,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"662f55cf-7132-4a00-9191-e73aab721691","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":233,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"9ef94434-9e72-4ecc-aa43-477ff4ea8434","block_type":"box","text":"15","page_number":233,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"28f3e76e-5617-4197-8f57-f9dcd6af14e5","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":233,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"5edf61fc-fab4-4065-bfa9-83471884f28b","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":233,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"b39280e3-ff93-4083-a198-9f9a54101aac","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":233,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"6589d94a-f48d-45a0-84f2-fd052628ac46","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":233,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"d07d3416-139e-400c-9a98-6b13d0168ffb","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":233,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"0c5c3b95-1ea6-46e6-8070-aba266ec9d4f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":233,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0f0939dd-f359-4cb7-8982-17fd06c567ac","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":233,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"83a1d7c9-b84c-43e7-9664-bc7eb699c210","block_type":"box","text":"NM1026U-6032801-233/242","page_number":233,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"aacbf57c-c0fe-4f52-9115-4c3b7d7d22a7","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":234,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"d9c4a441-30e9-429b-99c0-a628e15dd7bb","block_type":"box","text":"16, 17","page_number":234,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"2b19a46d-3d6c-458d-9789-6b6837132bad","block_type":"box","text":"In addition, the dedicated team looks to","page_number":234,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"a6985373-f4e8-452f-8233-e037f6599883","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":234,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"2bb1f274-39d0-49d8-91e0-3336575afa98","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":234,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"d07bfa7e-e15d-4c3e-8067-f535da26f790","block_type":"box","text":"scope 3 emissions reductions. 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The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":234,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"8ff967da-f296-442f-8727-6e3c727197c6","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":234,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"63175855-44c4-4ce4-94f0-ebbdfbd7690e","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":234,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"1bb0b9fe-b43d-4184-9d84-87f665c47380","block_type":"box","text":"18","page_number":234,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"6c85805a-ba06-43d9-b508-9bfdbe5b49fe","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":234,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"16ce14be-b457-448d-9d91-40522596fe67","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. 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The directors most likely to be in focus are the chair of the board","page_number":235,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"a212ffd1-bd67-4711-b6e0-0fc6b5053444","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":235,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"1fcb31f4-6564-4acc-bc87-cafe872ba482","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. 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Similarly, the dedicated team generally supports management’s proposal on a progress report if the","page_number":236,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"de9d581f-efbc-44d3-9c18-bb47a03720df","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":236,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"3760658f-d4f2-469e-b4d6-d75e827b9c87","block_type":"box","text":"transition plan and targets.","page_number":236,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"b86f17fd-6aec-4dd0-936a-dd10d596c1c8","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":236,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"cfb7f4c4-c12d-4287-95a1-c18f41d58e05","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":236,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"567514f7-34a3-44b2-b003-87736017d5f3","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":236,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"01a2d4b5-f8c6-4cec-a8bb-c9ffb77de67c","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. 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Some companies, in light of their long-term strategy, may decide to include relevant","page_number":236,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"c2cabdbd-72d4-4487-a924-a96932071121","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":236,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"4868d00b-092a-4165-a55d-2d0df2626aa0","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":236,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"e46e2a69-7fac-4693-a87c-c4e8d9c00408","block_type":"box","text":"24","page_number":236,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"ae9042fb-0be7-4736-8247-1adec7c87f31","block_type":"box","text":"While the dedicated team may escalate voting by not supporting additional management proposals, principally","page_number":236,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"256f568d-5827-431c-97fc-f81a1242129d","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":236,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"3fa6885a-63f1-48b0-a059-90faa7024759","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. 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Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":237,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"5e25919a-f010-43ca-92d4-2f3bc4239121","block_type":"box","text":"strategy and risk management.","page_number":237,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"2b6ead77-6b2a-4b9e-bbc3-11e4406e7a58","block_type":"box","text":"Auditors and audit-related issues","page_number":237,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"4f7bc76f-a1b4-459a-a661-4f7b5ef22ab8","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":237,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"54449f4f-35e5-4ec3-846b-f468f51f105a","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":237,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"7b7844ad-33c3-4888-97dc-9569989d64e8","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":237,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"3abaa79a-8a3b-4f74-a58f-fac57a35914a","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":237,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"5ac8212f-b60f-4158-b7a9-0247a33148a6","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":237,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"1d0b9a2a-6691-4ef3-8091-3d5c02df0ef0","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":237,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"c67bc91a-71ff-4542-887f-a16e85db7fb3","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":237,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"ad49f9ee-2a23-4cba-a10b-a83e07475612","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":237,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"1160044c-9a19-423b-9563-7a1e932b0be4","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":237,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"9cdc7d8e-9aa2-4122-8a99-199fb653d317","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":237,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"8200a355-2b2f-464c-984e-6edf8fd8b522","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":237,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"3b52ab25-a56a-4159-9b4a-59561061a517","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":237,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"d3b5502d-411e-41f5-b01c-3008b2630968","block_type":"box","text":"sustainability-related risks and opportunities that may be relevant to a company’s business model and long-term","page_number":237,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"bc99c58b-5cb1-4a8f-8533-c1b0e8cc78cf","block_type":"box","text":"financial performance. These include a company’s impacts or dependencies on natural capital and key","page_number":237,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"17f82027-8151-42dd-a806-eb671c0937ab","block_type":"box","text":"stakeholders.","page_number":237,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"f273f06e-2eb3-4ebe-9e4d-739169b77678","block_type":"box","text":"26","page_number":237,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"b2bf69b7-60c1-42e4-94af-902a7471d465","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":237,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"ff30a8a4-830d-42ba-aa56-29fcd0235f80","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":237,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"3b1cec1e-6bf9-4465-93bc-b73272395e6e","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":238,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"68d28756-95f4-4476-a814-adaa54e3cc98","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":238,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"e5a984f5-b98e-4a46-9040-031f736f24f0","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and portfolios.","page_number":238,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"0c6bf6f9-042c-4fd2-ad96-b88e28afa48c","block_type":"box","text":"Decarbonization:","page_number":238,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"1191c524-773d-47f9-aa29-7e66f2538e28","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":238,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"7c7ec90f-3b0e-43df-ae1d-55b6fcce3858","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":238,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"af900924-66ae-4ae1-804a-1621a39bd50c","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":238,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"aa68b0d8-2cef-45d4-ba30-167d036e8a24","block_type":"box","text":"e.g., methane.","page_number":238,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"9b3e97ca-6266-4879-bbd6-354738bab3b2","block_type":"box","text":"Climate-related risks and opportunities:","page_number":238,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"1ff38c55-47ee-40ad-9268-2c17158815ea","block_type":"box","text":"The investment opportunities and risks associated with the transition","page_number":238,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"7f2eec54-b7fe-4f86-a587-e0a7fce189da","block_type":"box","text":"to a low-carbon economy, including transition risks and opportunities and physical risks and opportunities in adapting","page_number":238,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"66c090f5-f07f-4a14-93a6-f31f93bea856","block_type":"box","text":"to physical climate change.","page_number":238,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"0939d46a-d024-4498-8d38-fa145540ea12","block_type":"box","text":"Climate-related transition plan:","page_number":238,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"cdfa6c9e-c218-4bc0-8430-8b4527b4b2c7","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":238,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"316f4bff-c244-40e9-9824-5bb06e04d780","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":238,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"b05d1862-c533-4074-aea2-424c01ccb7a7","block_type":"box","text":"greenhouse gas emissions.”","page_number":238,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"153fc469-2143-48bc-960c-c4d1f8cdab70","block_type":"box","text":"27","page_number":238,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"da1b61ea-4ac7-4985-81f2-ac37cfd85e0f","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":238,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"a35c7b0d-132b-4983-bd01-e36de566ab29","block_type":"box","text":"Targets that “","page_number":238,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"281c6c88-f07c-42ca-b921-f8fbdaeaabf5","block_type":"box","text":"are in line with what the latest climate science","page_number":238,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"26a98477-f419-4701-a537-e7be7752f473","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":238,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"4436ee69-577e-4509-bb87-4828d84b3d3e","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":238,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"29a3b538-9703-46e3-b3c3-fb534aca6d2c","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":238,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"5ecc0394-e746-4ecb-b64a-aebc4c5ab8ad","block_type":"box","text":"with the Paris Agreement goals.”","page_number":238,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"d64f9153-9950-4094-8eba-c2ba1a1fb9bd","block_type":"box","text":"28","page_number":238,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"9d6f25b1-a835-4306-9be4-f342c463b9aa","block_type":"box","text":"Scope 1:","page_number":238,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"a182abd3-0763-4a74-afb8-cdcdc54da7a9","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":238,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"341effab-d1c5-49c2-a652-04a41defa8c0","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":238,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"df63a02c-f893-4704-b5c3-9f7601e25dee","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":238,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"89867538-f333-4085-b043-503df8a9055d","block_type":"box","text":"29","page_number":238,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"55c2330b-8532-4f9a-af64-21ae8e2c41c4","block_type":"box","text":"Scope 2","page_number":238,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"d064aff2-4c24-4ee3-89de-5af7f660a810","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":238,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"60885d3b-cf1c-4a98-b5a8-6cb5b99f9dc4","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":238,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"245294aa-70b1-453f-84f7-c3bf08a46d81","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":238,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"644645aa-5981-4447-996d-4ef7a984e119","block_type":"box","text":"30","page_number":238,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"8ad97362-6eb0-4557-aae2-3ba9f0f509d8","block_type":"box","text":"Scope 3:","page_number":238,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"33c4ae16-ccd8-493a-a0f2-3ee4f0f10e63","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional reporting category that allows for the treatment","page_number":238,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"7c0295fb-6b71-4b67-b543-235814ef3388","block_type":"box","text":"of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur","page_number":238,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"5149908a-7db8-4f68-9030-68a3efeb7a9d","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":238,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"dfb4bcd5-188b-4bb6-89af-58ddcc9f2796","block_type":"box","text":"31","page_number":238,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"03c66a40-6746-492d-bd72-81f2e2cbb2b5","block_type":"box","text":"27","page_number":238,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"56c6fbdd-c45a-47be-a72d-5d65ddf5e6c4","block_type":"box","text":"As defined by the International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":238,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"c9084bfd-7e34-4702-83f7-0eb81dce0633","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We","page_number":238,"box":{"x":69,"y":694,"width":779,"height":11}},{"id":"aeb9b749-b6fc-4608-851e-1211ae7bd807","block_type":"box","text":"anticipate transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":238,"box":{"x":69,"y":709,"width":836,"height":11}},{"id":"68a387d8-578e-4f20-a639-fe34b0d34c62","block_type":"box","text":"28","page_number":238,"box":{"x":69,"y":727,"width":9,"height":4}},{"id":"d77eb600-e7ff-45b0-abad-13ba49f7dfe9","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that","page_number":238,"box":{"x":83,"y":726,"width":785,"height":12}},{"id":"2fe660d1-47bb-419e-bc47-32f214f0b2c0","block_type":"box","text":"enables companies and financial institutions worldwide to play their part in combating the climate crisis. We develop","page_number":238,"box":{"x":69,"y":742,"width":831,"height":11}},{"id":"fc2087f7-808f-42cd-8003-5fc97d9a31e2","block_type":"box","text":"standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in","page_number":238,"box":{"x":69,"y":757,"width":826,"height":11}},{"id":"faa22dfd-198c-4f9b-afc2-889c12afecbc","block_type":"box","text":"line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest.”","page_number":238,"box":{"x":70,"y":772,"width":795,"height":11}},{"id":"a8f5d319-21c6-42fd-bccf-e4d91474f225","block_type":"box","text":"Source: Science Based Targets initiative, “About Us.” Websites accessed in December 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