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I-1","page_number":16,"box":{"x":70,"y":108,"width":839,"height":11}},{"id":"70c753dd-c4e8-40f2-a700-6d364471a289","block_type":"box","text":"Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-6","page_number":16,"box":{"x":70,"y":125,"width":839,"height":9}},{"id":"f5657bd0-f998-4cc2-b840-8453c5e59c5e","block_type":"box","text":"Information on Trustees and Officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-9","page_number":16,"box":{"x":70,"y":141,"width":839,"height":9}},{"id":"42ea82c2-f249-4fa3-9252-151f85d230e9","block_type":"box","text":"Management, Advisory and Other Service Arrangements . . . . . . . . .","page_number":16,"box":{"x":70,"y":158,"width":469,"height":11}},{"id":"111fd4be-0c97-42d6-ad86-ee5456d67968","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-20","page_number":16,"box":{"x":545,"y":158,"width":364,"height":8}},{"id":"5a2ffa2e-3ef7-4642-a90c-799a17313725","block_type":"box","text":"Information on Sales Charges and Distribution Related Expenses .","page_number":16,"box":{"x":70,"y":174,"width":469,"height":11}},{"id":"3a54c38c-69b0-4344-9022-f1e68524f5a0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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I-26","page_number":16,"box":{"x":358,"y":207,"width":551,"height":9}},{"id":"1c4a5802-f572-43b1-8f38-b844796a950b","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":16,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"3a8ae459-da2a-4b80-b5fb-4b0ccd9c727d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-28","page_number":16,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"dc2f23f7-f51d-41af-baeb-23c304f17077","block_type":"box","text":"Financial Statements","page_number":16,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"a70df4ad-4a53-4f74-bb5c-c7334c931829","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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I","page_number":16,"box":{"x":195,"y":386,"width":676,"height":8}},{"id":"08598408-79c9-476e-86cb-d06bd18d1107","block_type":"box","text":"I-122","page_number":16,"box":{"x":874,"y":386,"width":35,"height":8}},{"id":"02913a58-79ea-4dcf-95eb-188d8e3729a7","block_type":"box","text":"Por tfolio Transactions and Brokerage . .","page_number":16,"box":{"x":69,"y":402,"width":283,"height":11}},{"id":"e98ac8ce-1588-43a2-abb6-5dabd5a45b36","block_type":"box","text":".............................................................. 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I","page_number":16,"box":{"x":203,"y":435,"width":668,"height":8}},{"id":"ed6fec99-4fa7-4a25-aa42-b1d0cb948b92","block_type":"box","text":"I-136","page_number":16,"box":{"x":874,"y":435,"width":35,"height":9}},{"id":"9240f7a1-bb1d-43c1-bdc6-01bfdfa42a73","block_type":"box","text":"Proxy Voting Policies and Procedures . . . . . . . . . . . . . . . . . . . . . .","page_number":16,"box":{"x":69,"y":451,"width":437,"height":11}},{"id":"deabe949-0c3d-496a-8759-980cf012203a","block_type":"box","text":"........................................... I","page_number":16,"box":{"x":513,"y":451,"width":358,"height":9}},{"id":"946bc232-cc0c-4d6e-9e6e-01ed6e4d8dae","block_type":"box","text":"I-138","page_number":16,"box":{"x":874,"y":451,"width":35,"height":9}},{"id":"98c9ba98-c97f-4adf-835c-8318d3e9e23e","block_type":"box","text":"General Information","page_number":16,"box":{"x":69,"y":467,"width":140,"height":9}},{"id":"fa1ca543-0ad5-4016-afcd-57f9791b7b7f","block_type":"box","text":"............................................................................... I","page_number":16,"box":{"x":219,"y":468,"width":652,"height":8}},{"id":"eaf1d221-404f-4a50-8d0d-1b68fecd8692","block_type":"box","text":"I-138","page_number":16,"box":{"x":874,"y":467,"width":35,"height":9}},{"id":"6bbea8db-ed4c-419a-9397-8f095f37577d","block_type":"box","text":"Appendix A — Description of Bond Ratings. . . .","page_number":16,"box":{"x":68,"y":484,"width":332,"height":11}},{"id":"b7be3e7f-d6f8-4471-b88e-67e27993a7fd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1","page_number":16,"box":{"x":407,"y":484,"width":502,"height":9}},{"id":"f968c319-2d31-4ca3-b63e-587d94f9d729","block_type":"box","text":"Appendix B — Proxy Voting Policies . . . . . .","page_number":16,"box":{"x":68,"y":500,"width":300,"height":11}},{"id":"dfe702d6-0721-4232-94e9-b94cdf4b975c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1","page_number":16,"box":{"x":374,"y":500,"width":535,"height":9}},{"id":"30a952bd-66e2-443c-9645-27806cc8b196","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a2f40e05-8809-4077-b09d-95afe4809f56","block_type":"box","text":"PART I: INFORMATION ABOUT THE FUND","page_number":17,"box":{"x":340,"y":45,"width":298,"height":9}},{"id":"1de0d92b-20e9-4c96-acaf-ae9f83969dd6","block_type":"box","text":"Par t I of this Statement of Additional Information (“SAI”) sets for th information about iShares U.S. Aggregate","page_number":17,"box":{"x":102,"y":67,"width":776,"height":12}},{"id":"dc8de17f-be03-425c-b9de-f0a61ca594cd","block_type":"box","text":"Bond Index Fund (the “Fund”), a series of BlackRock Funds III (the “Trust”). It includes information about the Trust’s","page_number":17,"box":{"x":70,"y":82,"width":827,"height":11}},{"id":"e9426490-ba7e-412a-82a4-09f9423cf962","block_type":"box","text":"Board of Trustees (the “Board” or the “Board of Trustees”), the advisory and management services provided to and","page_number":17,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"3897b825-fec4-4a33-94c4-827b0a796536","block_type":"box","text":"the management fees applicable to the Fund and information about other fees applicable to and services provided to","page_number":17,"box":{"x":68,"y":113,"width":836,"height":11}},{"id":"670d4592-18d4-4340-9271-66448fd4a26b","block_type":"box","text":"the Fund. This Par t I of this SAI should be read in conjunction with the Fund’s Prospectus and those por tions of Par t","page_number":17,"box":{"x":68,"y":128,"width":831,"height":11}},{"id":"8551a775-25a8-4497-a8da-e4b0e4642b91","block_type":"box","text":"II of this SAI that per tain to the Fund.","page_number":17,"box":{"x":70,"y":143,"width":263,"height":11}},{"id":"ee5a06bb-1215-4abd-9cd4-63fae0a4a6fc","block_type":"box","text":"I. Investment Objective and Policies","page_number":17,"box":{"x":69,"y":173,"width":262,"height":11}},{"id":"ee9db0c7-7bda-4478-bcb2-61041ce99029","block_type":"box","text":"Please see the Fund’s Prospectus for more information about the Fund’s investment objective and policies. The","page_number":17,"box":{"x":102,"y":196,"width":796,"height":11}},{"id":"b21f74d9-59d2-4e5c-a7e0-d874d20d3f8d","block_type":"box","text":"Fund’s investment objective is non-fundamental, which means it can be changed by the Board without shareholder","page_number":17,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"64dd62c1-1642-4d5b-a8d4-b3c42366a3e5","block_type":"box","text":"approval. The Fund invests all of its assets in U.S. Total Bond Index Master Por tfolio (the “Master Por tfolio”) of","page_number":17,"box":{"x":69,"y":226,"width":793,"height":11}},{"id":"4f616865-3afb-4e8d-be9e-0fc07852a49e","block_type":"box","text":"Master Investment Por tfolio (“MIP”), which has substantially the same investment objective, policies and restrictions","page_number":17,"box":{"x":70,"y":241,"width":832,"height":11}},{"id":"ba94c735-dc6f-4a23-ae36-58bf61abba2a","block_type":"box","text":"as the Fund.","page_number":17,"box":{"x":69,"y":257,"width":87,"height":8}},{"id":"03d35b4c-8076-4734-b3ee-c5a12cdb520c","block_type":"box","text":"The Fund is subject to Rule 35d-1 under the Investment Company Act of 1940, as amended (the “Investment","page_number":17,"box":{"x":101,"y":279,"width":779,"height":11}},{"id":"b5054dfc-2ba3-4e7a-b5f3-916959e44859","block_type":"box","text":"Company Act”), and will not change its investment policies required by that Rule without giving shareholders 60 days’","page_number":17,"box":{"x":69,"y":294,"width":836,"height":11}},{"id":"36450f38-9139-427c-a63a-dd6d3533423f","block_type":"box","text":"prior written notice.","page_number":17,"box":{"x":70,"y":309,"width":135,"height":11}},{"id":"7e1b226f-948a-4ad7-a6c8-774f9f3d528c","block_type":"box","text":"In implementing the Fund’s investment strategy, from time to time, BlackRock Fund Advisors (“BFA” or the","page_number":17,"box":{"x":102,"y":332,"width":756,"height":11}},{"id":"8fcfff39-a581-4274-a661-c129092fe249","block_type":"box","text":"“Manager”), the Fund’s investment manager, may consider and employ techniques and strategies designed to","page_number":17,"box":{"x":70,"y":347,"width":784,"height":11}},{"id":"e07c4f0b-719d-44a2-a645-c37acb54370a","block_type":"box","text":"minimize and defer the U.S. federal income taxes which may be incurred by shareholders in connection with their","page_number":17,"box":{"x":69,"y":362,"width":805,"height":11}},{"id":"f0458750-1b28-4e97-9068-d49c1360c18a","block_type":"box","text":"investment in the Fund.","page_number":17,"box":{"x":70,"y":377,"width":165,"height":9}},{"id":"50f90b1a-06af-4c03-a871-93b489f1bcb8","block_type":"box","text":"The Fund is classified as diversified under the Investment Company Act.","page_number":17,"box":{"x":101,"y":400,"width":512,"height":11}},{"id":"5c191f66-cdcb-499b-bb94-4075a9aa9d82","block_type":"box","text":"Master/Feeder Structure","page_number":17,"box":{"x":69,"y":430,"width":184,"height":11}},{"id":"96ba532e-18ca-479b-bfb7-4632ab8b27a5","block_type":"box","text":"The Fund seeks to achieve its investment objective by investing all of its assets in the Master Por tfolio. In other","page_number":17,"box":{"x":101,"y":453,"width":798,"height":11}},{"id":"72a178fc-8603-4c74-9fe0-1c158a319840","block_type":"box","text":"words, the Fund is a “Feeder Fund” into the Master Por tfolio, and the Master Por tfolio in turn is a Master Fund. The","page_number":17,"box":{"x":68,"y":468,"width":826,"height":10}},{"id":"02c61413-2311-4b34-a0e9-218f2f88967a","block_type":"box","text":"Board of Trustees believes that neither the Fund nor its shareholders will be adversely affected by investing its","page_number":17,"box":{"x":70,"y":483,"width":788,"height":11}},{"id":"042a3708-9596-4245-9e6a-434d14bab14f","block_type":"box","text":"assets in the Master Por tfolio. However, if another feeder fund or other investor withdraws its investment from the","page_number":17,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"462b13ac-83fa-465b-a201-1336fccd8056","block_type":"box","text":"Master Por tfolio, the economic efficiencies (","page_number":17,"box":{"x":70,"y":513,"width":315,"height":11}},{"id":"929c632d-8928-4755-bfb2-800f826b256e","block_type":"box","text":"e.g.","page_number":17,"box":{"x":387,"y":515,"width":24,"height":10}},{"id":"9e34d344-1e15-42da-9e87-52dff3ae0dca","block_type":"box","text":", spreading fixed expenses among a larger asset base) that the","page_number":17,"box":{"x":414,"y":513,"width":451,"height":12}},{"id":"6261b118-57e4-48df-82dd-19b1b5064fba","block_type":"box","text":"Board of Trustees believes may be available through investment in the Master Por tfolio may not be fully achieved. In","page_number":17,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"35bd94f3-047f-4d45-8666-b37ece793888","block_type":"box","text":"addition, although it is unlikely, the master/feeder structure may give rise to accounting or operational difficulties.","page_number":17,"box":{"x":69,"y":543,"width":812,"height":12}},{"id":"570546ba-e704-4354-9efb-35d948cedc8e","block_type":"box","text":"The Fund may withdraw its investment in the Master Por tfolio only if the Board of Trustees determines that such","page_number":17,"box":{"x":101,"y":566,"width":800,"height":11}},{"id":"a264341a-f75a-424f-b571-313f2102996e","block_type":"box","text":"action is in the best interests of the Fund and its shareholders. 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To the","page_number":22,"box":{"x":69,"y":380,"width":819,"height":11}},{"id":"e275db22-1091-4e66-8df2-cc87c7cb8207","block_type":"box","text":"extent the Fund uses CFTC Derivatives, it intends to do so below such prescribed levels and will not market itself as","page_number":22,"box":{"x":69,"y":395,"width":827,"height":11}},{"id":"5a387bfb-867a-4e65-9d42-481c68100d67","block_type":"box","text":"a “commodity pool” or a vehicle for trading such instruments. Accordingly, BFA has claimed an exclusion from the","page_number":22,"box":{"x":69,"y":410,"width":808,"height":11}},{"id":"d65ad9db-b955-484b-81f7-0d1d37ae4818","block_type":"box","text":"definition of the term “commodity pool operator” under the Commodity Exchange Act (“CEA”) pursuant to Rule 4.5","page_number":22,"box":{"x":69,"y":425,"width":813,"height":11}},{"id":"5b84da64-3661-46a7-af08-be2eea2ed5a1","block_type":"box","text":"under the CEA. BFA is not, therefore, subject to registration or regulation as a “commodity pool operator” under the","page_number":22,"box":{"x":69,"y":440,"width":822,"height":12}},{"id":"5370f4b2-0b56-4ed7-9e92-9e1b077fe934","block_type":"box","text":"CEA in respect of the Fund.","page_number":22,"box":{"x":69,"y":455,"width":192,"height":11}},{"id":"5554e320-afc5-47d1-a41d-30e0949d1e6d","block_type":"box","text":"II. Investment Restrictions","page_number":22,"box":{"x":69,"y":486,"width":194,"height":9}},{"id":"d9d639c4-4104-4693-9c50-ba78731b7263","block_type":"box","text":"The Trust, on behalf of the Fund, has adopted restrictions and policies relating to the investment of the Fund’s","page_number":22,"box":{"x":101,"y":508,"width":789,"height":12}},{"id":"8fec5a84-7724-44ae-8c2a-7ccd5c7a8077","block_type":"box","text":"assets and its activities. Cer tain of the restrictions are fundamental policies of the Fund and may not be changed","page_number":22,"box":{"x":69,"y":523,"width":809,"height":12}},{"id":"28c4b45f-a6ee-42e0-b4ac-c4de2a003ffd","block_type":"box","text":"without the approval of the holders of a majority of the Fund’s outstanding voting securities (which for this purpose","page_number":22,"box":{"x":68,"y":538,"width":818,"height":12}},{"id":"32b019d5-4d0e-4e2d-b6a7-7a5077895c38","block_type":"box","text":"and under the Investment Company Act, means the lesser of (i) 67% of the shares represented at a meeting at which","page_number":22,"box":{"x":69,"y":554,"width":836,"height":11}},{"id":"b177fdb1-64d5-48f1-9f20-b1bce7479f53","block_type":"box","text":"more than 50% of the outstanding shares are represented or (ii) more than 50% of the outstanding shares). The","page_number":22,"box":{"x":69,"y":569,"width":799,"height":11}},{"id":"c90806cb-bb65-4187-8781-3cff4023f525","block_type":"box","text":"Trust, on behalf of the Fund, has also adopted cer tain non-fundamental investment restrictions, which may be","page_number":22,"box":{"x":68,"y":584,"width":784,"height":11}},{"id":"9caffaaf-83fc-49b3-8946-0f04edf52cdf","block_type":"box","text":"changed by the Board of Trustees without shareholder approval. None of the following fundamental or non","page_number":22,"box":{"x":69,"y":599,"width":759,"height":11}},{"id":"b129fade-b0df-4533-8892-d0a0062e9dcf","block_type":"box","text":"fundamental investment restrictions shall prevent the Fund from investing all of its assets in shares of another","page_number":22,"box":{"x":68,"y":614,"width":792,"height":11}},{"id":"464134f7-da6c-4af5-9e46-3670902acb6c","block_type":"box","text":"registered investment company with the same investment objective and fundamental policies (in a master/feeder","page_number":22,"box":{"x":69,"y":629,"width":809,"height":11}},{"id":"53bf8809-aebe-42d0-9a0c-df31da602a60","block_type":"box","text":"structure).","page_number":22,"box":{"x":69,"y":645,"width":72,"height":10}},{"id":"72f47d53-3334-4298-9655-7aea14025ea1","block_type":"box","text":"Fundamental Investment Restrictions of the Fund","page_number":22,"box":{"x":102,"y":667,"width":360,"height":9}},{"id":"b235caf2-3539-427a-824a-f9847a0cf85e","block_type":"box","text":"The Fund is subject to the following investment restrictions, all of which are fundamental policies. The Fund may","page_number":22,"box":{"x":101,"y":690,"width":800,"height":11}},{"id":"4b9f8b86-0ae2-4654-a966-25666919a758","block_type":"box","text":"not:","page_number":22,"box":{"x":69,"y":706,"width":26,"height":8}},{"id":"21954421-ffd0-4ed4-a5ee-87e175b9721e","block_type":"box","text":"(1) Purchase the securities of issuers conducting their principal business activity in the same industry if,","page_number":22,"box":{"x":102,"y":727,"width":743,"height":12}},{"id":"7f6bb100-27f2-46bf-9fb3-c595e0483f2c","block_type":"box","text":"immediately after the purchase and as a result thereof, the value of the Fund’s investments in that industry would","page_number":22,"box":{"x":70,"y":743,"width":812,"height":11}},{"id":"d8cfd3b5-c5e8-41ac-9b39-859ca708281d","block_type":"box","text":"equal or exceed 25% of the current value of the Fund’s total assets, provided that this restriction does not limit the","page_number":22,"box":{"x":69,"y":758,"width":822,"height":11}},{"id":"78e306c3-e51c-4429-8e68-14b950b31e32","block_type":"box","text":"Fund’s: (i) investments in securities of other investment companies, (ii) investments in securities issued or","page_number":22,"box":{"x":70,"y":773,"width":762,"height":11}},{"id":"5c4f1d91-f565-4d50-a3de-718e1da0412d","block_type":"box","text":"guaranteed by the U.S. Government, its agencies or instrumentalities, or (iii) investments in repurchase agreements","page_number":22,"box":{"x":68,"y":788,"width":828,"height":11}},{"id":"8366645d-683f-46b9-870d-d3b71d7bb8a1","block_type":"box","text":"collateralized by U.S. Government securities, and provided fur ther that the Fund reserves the right to concentrate in","page_number":22,"box":{"x":69,"y":803,"width":825,"height":11}},{"id":"d1a4e431-384e-4d6b-91f5-a8b6dcf7c32a","block_type":"box","text":"any industry in which the index that the Fund tracks becomes concentrated to approximately the same degree during","page_number":22,"box":{"x":69,"y":818,"width":832,"height":11}},{"id":"b3cc3304-58e1-4959-874e-566b749f1cce","block_type":"box","text":"the same period;","page_number":22,"box":{"x":68,"y":834,"width":120,"height":10}},{"id":"4360485f-2bb2-4b40-b8b1-5b6d99babaf7","block_type":"box","text":"(2) Purchase the securities of any single issuer if, as a result, with respect to 75% of the Fund’s total assets,","page_number":22,"box":{"x":102,"y":856,"width":779,"height":11}},{"id":"1446cf24-5cd6-4388-b52d-fa3440f36bc6","block_type":"box","text":"more than 5% of the value of its total assets would be invested in the securities of such issuer or the Fund’s","page_number":22,"box":{"x":69,"y":871,"width":775,"height":9}},{"id":"06021e50-c6c9-4768-a6ca-20aa4e6a527f","block_type":"box","text":"ownership would be more than 10% of the outstanding voting securities of such issuer, provided that this restriction","page_number":22,"box":{"x":69,"y":886,"width":825,"height":11}},{"id":"38ebe4d6-90ab-49ee-9f6d-43188821e0e6","block_type":"box","text":"I-6","page_number":22,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"6f4fd5cd-f6cd-43f5-bb79-f3f02a9cfa0e","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":22,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e124468-8374-4510-b7e0-f677e6547058","block_type":"box","text":"does not limit the Fund’s cash or cash items, investments in securities issued or guaranteed by the U.S.","page_number":23,"box":{"x":69,"y":45,"width":745,"height":11}},{"id":"b3236f63-c510-4873-8aae-853ca082c1e8","block_type":"box","text":"Government, its agencies and instrumentalities, or investments in securities of other investment companies;","page_number":23,"box":{"x":69,"y":60,"width":775,"height":11}},{"id":"2a358a3d-def9-4006-a9ba-d4b9917974f3","block_type":"box","text":"(3) Borrow money or issue senior securities, except to the extent permitted under the Investment Company Act,","page_number":23,"box":{"x":102,"y":83,"width":793,"height":11}},{"id":"d0930b8b-f67b-426b-851e-e2cf0cb52612","block_type":"box","text":"including the rules, regulations and any orders obtained thereunder;","page_number":23,"box":{"x":70,"y":98,"width":482,"height":11}},{"id":"f03c49ac-f5f6-463b-9325-478d4ba751dd","block_type":"box","text":"(4) Make loans to other par ties, except to the extent permitted under the Investment Company Act, including the","page_number":23,"box":{"x":102,"y":120,"width":802,"height":12}},{"id":"a68d362a-befc-49a4-a6b8-f8fd9a1dec0f","block_type":"box","text":"rules, regulations and any orders obtained thereunder. For the purposes of this limitation, entering into repurchase","page_number":23,"box":{"x":69,"y":135,"width":818,"height":12}},{"id":"f1d18d05-7d86-4b89-a50c-b31d870ea883","block_type":"box","text":"agreements, lending securities and acquiring any debt securities are not deemed to be the making of loans;","page_number":23,"box":{"x":69,"y":150,"width":769,"height":12}},{"id":"2e803436-03d8-4f04-b57c-e01f991d4e6a","block_type":"box","text":"(5) Underwrite securities of other issuers, except to the extent that the purchase of permitted investments","page_number":23,"box":{"x":102,"y":173,"width":759,"height":11}},{"id":"0c55d129-d3d1-409a-8b74-06ea7d593b2b","block_type":"box","text":"directly from the issuer thereof or from an underwriter for an issuer and the later disposition of such securities in","page_number":23,"box":{"x":69,"y":188,"width":806,"height":11}},{"id":"c2917886-2457-4b90-9659-d7bbad41e1ad","block_type":"box","text":"accordance with the Fund’s investment program may be deemed to be an underwriting; and provided fur ther, that the","page_number":23,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"6e14cd60-e45b-4f15-9424-3d9be3d0ef18","block_type":"box","text":"purchase by the Fund of securities issued by an open-end management investment company, or a series thereof, with","page_number":23,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"f0674c59-1dc9-4247-975a-36880d2d4563","block_type":"box","text":"substantially the same investment objective, policies and restrictions as the Fund shall not constitute an underwriting","page_number":23,"box":{"x":69,"y":234,"width":840,"height":11}},{"id":"bc837f7b-1d83-4017-88ed-bd3f9d292e51","block_type":"box","text":"for purposes of this paragraph;","page_number":23,"box":{"x":68,"y":249,"width":220,"height":11}},{"id":"8185d269-407d-442c-b66e-dad78fca1045","block_type":"box","text":"(6) Purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but","page_number":23,"box":{"x":102,"y":271,"width":793,"height":11}},{"id":"cb525524-8d65-49f9-a3be-ca42e784cd88","block_type":"box","text":"this shall not prevent the Fund from investing in securities or other instruments backed by real estate or securities of","page_number":23,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"079857d4-54c6-46fc-95e2-6a17470fc172","block_type":"box","text":"companies engaged in the real estate business);","page_number":23,"box":{"x":69,"y":302,"width":347,"height":11}},{"id":"d2871558-8395-456c-9521-f777c853a36b","block_type":"box","text":"(7) Purchase or sell commodities, provided that (i) currency will not be deemed to be a commodity for purposes","page_number":23,"box":{"x":102,"y":324,"width":792,"height":11}},{"id":"67fc8370-c05c-4259-bc10-1fb5031d0ba0","block_type":"box","text":"of this restriction, (ii) this restriction does not limit the purchase or sale of futures contracts, forward contracts or","page_number":23,"box":{"x":69,"y":339,"width":810,"height":11}},{"id":"ba32d2a3-1a8e-436a-bbf7-7259f3007021","block_type":"box","text":"options, and (iii) this restriction does not limit the purchase or sale of securities or other instruments backed by","page_number":23,"box":{"x":69,"y":355,"width":798,"height":11}},{"id":"31ff4d06-258f-4a24-85f5-8261136df77a","block_type":"box","text":"commodities or the purchase or sale of commodities acquired as a result of ownership of securities or other","page_number":23,"box":{"x":69,"y":370,"width":773,"height":11}},{"id":"8b4ee542-e947-493d-be80-a642e97a211c","block_type":"box","text":"instruments; and","page_number":23,"box":{"x":70,"y":385,"width":119,"height":10}},{"id":"95f9307b-eddf-45d6-9ba8-8cbf226e06c5","block_type":"box","text":"(8) Purchase securities on margin (except for shor t-term credit necessary for the clearance of transactions and","page_number":23,"box":{"x":102,"y":407,"width":790,"height":12}},{"id":"50b076ca-5113-48d2-93ec-274fa0636965","block_type":"box","text":"except for margin payments in connection with options, futures and options on futures) or make shor t sales of","page_number":23,"box":{"x":69,"y":423,"width":789,"height":11}},{"id":"3271a648-1e80-442b-8745-ee4f9a3e6dd8","block_type":"box","text":"securities.","page_number":23,"box":{"x":69,"y":438,"width":72,"height":9}},{"id":"a7f341e5-7d94-4c46-a071-13b786bf8599","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":23,"box":{"x":102,"y":461,"width":494,"height":11}},{"id":"d8a059f0-3866-43db-b7a4-0aa7766e4b1c","block_type":"box","text":"The following notations are not considered to be par t of the Fund’s fundamental investment restrictions and are","page_number":23,"box":{"x":101,"y":483,"width":799,"height":11}},{"id":"b39f9e24-41c4-4f30-9fb2-9bc5b2d56cea","block_type":"box","text":"subject to change without shareholder approval.","page_number":23,"box":{"x":69,"y":498,"width":341,"height":11}},{"id":"d81783a7-b136-4366-b181-c61eba9b4650","block_type":"box","text":"With respect to the fundamental policy relating to concentration set for th in fundamental investment restriction","page_number":23,"box":{"x":101,"y":521,"width":791,"height":11}},{"id":"1ac020be-eb8b-4390-98b4-998689f1c690","block_type":"box","text":"no. 1 above, with respect to the Fund’s industry classifications, the Fund currently utilizes any one or more of the","page_number":23,"box":{"x":69,"y":536,"width":808,"height":11}},{"id":"193a9aa3-735b-4239-8f5e-d53181d656a4","block_type":"box","text":"industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as","page_number":23,"box":{"x":70,"y":551,"width":836,"height":11}},{"id":"d685c621-2fea-4398-b6b8-07be904513aa","block_type":"box","text":"defined by Fund management. The policy also will be interpreted to give broad authority to the Fund as to how to","page_number":23,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"12984b48-2b8e-445c-9d9c-36b63a84cb4c","block_type":"box","text":"classify issuers within or among industries.","page_number":23,"box":{"x":69,"y":581,"width":306,"height":12}},{"id":"826fb81c-6d52-4f39-b1e8-34262ca13a03","block_type":"box","text":"While cer tain swaps are now considered commodity interests for purposes of the Commodity Exchange Act and","page_number":23,"box":{"x":101,"y":604,"width":793,"height":11}},{"id":"b63ca568-e0fa-45cd-a9f0-84d39c32d5f6","block_type":"box","text":"the rules thereunder, at the time of the Fund’s adoption of fundamental investment restriction no. 7 above, many","page_number":23,"box":{"x":68,"y":619,"width":808,"height":11}},{"id":"aacd0cb6-8d1a-421a-882e-fea7a4dd93e1","block_type":"box","text":"swaps were treated as securities for purposes of the Fund’s compliance with applicable law. Accordingly, fundamental","page_number":23,"box":{"x":69,"y":634,"width":839,"height":12}},{"id":"09283cca-b671-45e7-ad7b-00ad2bdd9ed7","block_type":"box","text":"investment restriction no. 7 above is being interpreted to permit the Fund to engage in transactions in swaps and","page_number":23,"box":{"x":70,"y":650,"width":807,"height":11}},{"id":"cd568039-facf-4d95-a782-c2241433051a","block_type":"box","text":"options on swaps related to financial instruments, such as securities, securities indices and currencies, but not to","page_number":23,"box":{"x":69,"y":664,"width":818,"height":11}},{"id":"e6e732d7-6d1d-42d2-9c02-c7fbf9cf7f14","block_type":"box","text":"engage in transactions in swaps or options on swaps related to physical commodities, such as oil or metals.","page_number":23,"box":{"x":69,"y":680,"width":774,"height":11}},{"id":"d1474610-f8ae-4ade-9bba-798bc009ab1b","block_type":"box","text":"With respect to fundamental investment restriction no. 3 above, the Investment Company Act currently allows","page_number":23,"box":{"x":101,"y":702,"width":781,"height":11}},{"id":"eb569e53-1516-4966-857b-4f00d4372a74","block_type":"box","text":"the Fund to borrow up to one-third of the value of its total assets (including the amount borrowed) valued at the","page_number":23,"box":{"x":68,"y":717,"width":795,"height":12}},{"id":"3ddf0a93-14f7-49b5-bad5-87b219aeb8ed","block_type":"box","text":"lesser of cost or market, less liabilities (not including the amount borrowed) at the time the borrowing is made. With","page_number":23,"box":{"x":70,"y":732,"width":826,"height":12}},{"id":"f27e9ff1-c094-4083-9ead-e216e1355723","block_type":"box","text":"respect to fundamental investment restriction no. 4 above, the Investment Company Act and regulatory","page_number":23,"box":{"x":69,"y":748,"width":736,"height":11}},{"id":"2dc15224-d7d8-4f7f-be5c-bb68422a8037","block_type":"box","text":"interpretations currently limit the percentage of the Fund’s securities that may be loaned to one-third of the value of","page_number":23,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"4bc97624-600a-4676-8e50-9ce3c47cff1c","block_type":"box","text":"its total assets.","page_number":23,"box":{"x":70,"y":778,"width":109,"height":9}},{"id":"c7b524e7-437c-401d-93df-ae7bed3ba021","block_type":"box","text":"Non-Fundamental Investment Restrictions of the Fund","page_number":23,"box":{"x":102,"y":801,"width":392,"height":9}},{"id":"5ac0e049-1086-47a4-9908-8c22048a8fa1","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":23,"box":{"x":102,"y":823,"width":768,"height":12}},{"id":"98b8024b-4617-4db8-a11b-9dff9595fefa","block_type":"box","text":"approval, the Fund may not purchase securities of other investment companies, except to the extent permitted by the","page_number":23,"box":{"x":69,"y":838,"width":838,"height":11}},{"id":"4413d35f-b72e-4ff2-85a2-2bab00a01aaf","block_type":"box","text":"Investment Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open","page_number":23,"box":{"x":70,"y":853,"width":817,"height":12}},{"id":"4a9bc0a1-f228-45c4-9730-e48b1db38d7b","block_type":"box","text":"end investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of","page_number":23,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"b027a02a-3082-49e1-9c1d-ea37da288a61","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased","page_number":23,"box":{"x":68,"y":884,"width":840,"height":11}},{"id":"b01c43de-d1bc-4746-90f7-20e4c001fec7","block_type":"box","text":"by another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":23,"box":{"x":69,"y":899,"width":783,"height":11}},{"id":"63fcf35d-d8b6-483c-b8f2-807fb8d1e68e","block_type":"box","text":"I-7","page_number":23,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"ccae9b73-50f6-4bf2-8ca6-d6a9e762bb99","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":23,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eaf337e1-36a0-43f9-8eb7-29a99a5a9381","block_type":"box","text":"Notwithstanding any other investment policy or restriction (whether or not fundamental), the Fund may and does","page_number":24,"box":{"x":102,"y":45,"width":796,"height":11}},{"id":"29bb1e3a-81ff-4422-925a-6ce0263db65d","block_type":"box","text":"invest all of its assets in the securities of a single open-end management investment company with substantially the","page_number":24,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"d11f162b-d597-4fa7-a3a7-79fa1f3ac8ca","block_type":"box","text":"same fundamental investment objective, policies and limitations as the Fund. See “Investment Objective and Policies","page_number":24,"box":{"x":69,"y":75,"width":836,"height":11}},{"id":"073c9281-67d6-40d3-9cba-eb5c46a7971d","block_type":"box","text":"— Master/Feeder Structure.”","page_number":24,"box":{"x":68,"y":90,"width":210,"height":11}},{"id":"38aecec3-c380-4969-9a81-0a4ea880f4a5","block_type":"box","text":"Fundamental Investment Restrictions of the Master Portfolio","page_number":24,"box":{"x":102,"y":113,"width":444,"height":9}},{"id":"1f6e2b15-ae51-4d24-918e-ff5f66b3fb98","block_type":"box","text":"The Master Por tfolio has adopted the following investment restrictions as fundamental policies. These","page_number":24,"box":{"x":101,"y":135,"width":730,"height":12}},{"id":"2ff260b9-b9d9-4c6b-ae8d-c8c0d6176ceb","block_type":"box","text":"restrictions cannot be changed, as to the Master Por tfolio, without approval by the holders of a majority (as defined","page_number":24,"box":{"x":69,"y":150,"width":823,"height":12}},{"id":"affd57a6-c2ac-41e8-aa45-5bfd191f4405","block_type":"box","text":"in the Investment Company Act) of the Master Por tfolio’s outstanding voting interests. The Master Por tfolio may not:","page_number":24,"box":{"x":70,"y":166,"width":828,"height":11}},{"id":"ef3039d0-90d6-47d4-b77a-6e2ff35af4c5","block_type":"box","text":"(1) Purchase the securities of issuers conducting their principal business activity in the same industry if,","page_number":24,"box":{"x":102,"y":188,"width":743,"height":12}},{"id":"ebbed3b2-aae4-43c4-b3de-1d4c481e407f","block_type":"box","text":"immediately after the purchase and as a result thereof, the value of the Master Por tfolio’s investments in that","page_number":24,"box":{"x":70,"y":203,"width":786,"height":12}},{"id":"0588f292-275f-4697-9f3f-71f14c18d70d","block_type":"box","text":"industry would equal or exceed 25% of the current value of the Master Por tfolio’s total assets, provided that this","page_number":24,"box":{"x":70,"y":218,"width":803,"height":12}},{"id":"98dfe53e-faf3-484f-8d83-2d3f252601ca","block_type":"box","text":"restriction does not limit the Master Por tfolio’s: (i) investments in securities of other investment companies,","page_number":24,"box":{"x":69,"y":234,"width":772,"height":11}},{"id":"4ed013d4-da15-4647-856f-71bd5e98e4c0","block_type":"box","text":"(ii) investments in securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities, or","page_number":24,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"0f871c4d-6d1e-4f84-842d-3a38e854e3b0","block_type":"box","text":"(iii) investments in repurchase agreements collateralized by U.S. Government securities, and provided fur ther that the","page_number":24,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"9d4c7349-40bf-4198-be91-5cbaff4108f6","block_type":"box","text":"Master Por tfolio reserves the right to concentrate in any industry in which the index that the Master Por tfolio tracks","page_number":24,"box":{"x":70,"y":279,"width":823,"height":11}},{"id":"304836d2-a283-4746-b87f-9a467695c983","block_type":"box","text":"becomes concentrated to approximately the same degree during the same period;","page_number":24,"box":{"x":69,"y":294,"width":584,"height":11}},{"id":"67eb1a3c-9168-400b-9175-103a219b7306","block_type":"box","text":"(2) Purchase the securities of any single issuer if, as a result, with respect to 75% of the Master Por tfolio’s total","page_number":24,"box":{"x":102,"y":317,"width":802,"height":11}},{"id":"f9af9f18-d8d1-4659-a97b-d1d99a82fea5","block_type":"box","text":"assets, more than 5% of the value of its total assets would be invested in the securities of such issuer or the Master","page_number":24,"box":{"x":69,"y":332,"width":837,"height":10}},{"id":"ef5be3a7-07ae-47d1-80c2-ac977b3f8ad0","block_type":"box","text":"Por tfolio’s ownership would be more than 10% of the outstanding voting securities of such issuer, provided that this","page_number":24,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"c6ed5fb7-2440-407f-883b-eb47e34994c8","block_type":"box","text":"restriction does not limit the Master Por tfolio’s cash or cash items, investments in securities issued or guaranteed","page_number":24,"box":{"x":69,"y":362,"width":820,"height":11}},{"id":"3b7681b3-cb72-4758-836f-60d703f186cc","block_type":"box","text":"by the U.S. Government, its agencies and instrumentalities, or investments in securities of other investment","page_number":24,"box":{"x":69,"y":377,"width":773,"height":12}},{"id":"bef9ef5e-165b-4417-9620-c3549e1572ca","block_type":"box","text":"companies;","page_number":24,"box":{"x":69,"y":393,"width":80,"height":10}},{"id":"254e5339-43a8-4f87-8332-f68773fd50c2","block_type":"box","text":"(3) Borrow money or issue senior securities, except to the extent permitted under the Investment Company Act,","page_number":24,"box":{"x":102,"y":415,"width":793,"height":11}},{"id":"0116bb47-da8d-4da1-a519-e89cb8046a5f","block_type":"box","text":"including the rules, regulations and any orders obtained thereunder;","page_number":24,"box":{"x":70,"y":430,"width":482,"height":11}},{"id":"f06065b0-ba7a-4491-9d19-6c64bf51b338","block_type":"box","text":"(4) Make loans to other par ties, except to the extent permitted under the Investment Company Act, including the","page_number":24,"box":{"x":102,"y":453,"width":802,"height":11}},{"id":"132342e7-e463-40bb-a953-350b46011a5a","block_type":"box","text":"rules, regulations and any orders obtained thereunder. For the purposes of this limitation, entering into repurchase","page_number":24,"box":{"x":69,"y":468,"width":818,"height":11}},{"id":"f1207f3f-54fd-4d50-bbdc-a5a187f43dcf","block_type":"box","text":"agreements, lending securities and acquiring any debt securities are not deemed to be the making of loans;","page_number":24,"box":{"x":69,"y":483,"width":769,"height":11}},{"id":"37e7d697-e75a-4500-941b-90db0055a38f","block_type":"box","text":"(5) Underwrite securities of other issuers, except to the extent that the purchase of permitted investments","page_number":24,"box":{"x":102,"y":506,"width":759,"height":11}},{"id":"4628c66b-f0f1-466c-be04-92e04fd458f2","block_type":"box","text":"directly from the issuer thereof or from an underwriter for an issuer and the later disposition of such securities in","page_number":24,"box":{"x":69,"y":521,"width":806,"height":11}},{"id":"82c16201-3833-43f8-9369-04715623bbfd","block_type":"box","text":"accordance with the Master Por tfolio’s investment program may be deemed to be an underwriting; and provided","page_number":24,"box":{"x":69,"y":536,"width":798,"height":11}},{"id":"66d2ddb4-c1fc-4f41-b636-40ff8832709d","block_type":"box","text":"fur ther, that the purchase by the Master Por tfolio of securities issued by an open-end management investment","page_number":24,"box":{"x":68,"y":551,"width":792,"height":11}},{"id":"0926c7a8-12ae-4553-8147-01d6babf5e90","block_type":"box","text":"company, or a series thereof, with substantially the same investment objective, policies and restrictions as the","page_number":24,"box":{"x":69,"y":566,"width":790,"height":11}},{"id":"0ced75b3-4664-4b26-8b71-0c46257072f8","block_type":"box","text":"Master Por tfolio shall not constitute an underwriting for purposes of this paragraph;","page_number":24,"box":{"x":70,"y":581,"width":596,"height":12}},{"id":"79b43763-fe08-402c-bd66-18b0a01dc21e","block_type":"box","text":"(6) Purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but","page_number":24,"box":{"x":102,"y":604,"width":793,"height":11}},{"id":"733ef3c0-5842-46bc-85b1-a1e884b42c79","block_type":"box","text":"this shall not prevent the Master Por tfolio from investing in securities or other instruments backed by real estate or","page_number":24,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"8e541a36-ec4b-428f-ae1b-1fcd755fc1a9","block_type":"box","text":"securities of companies engaged in the real estate business);","page_number":24,"box":{"x":69,"y":634,"width":440,"height":12}},{"id":"93c16a5f-4dda-4b70-a343-ba4fc130bf87","block_type":"box","text":"(7) Purchase or sell commodities, provided that (i) currency will not be deemed to be a commodity for purposes","page_number":24,"box":{"x":102,"y":657,"width":792,"height":11}},{"id":"6e39d61b-b51a-4bfc-a270-f55c90c34d09","block_type":"box","text":"of this restriction, (ii) this restriction does not limit the purchase or sale of futures contracts, forward contracts or","page_number":24,"box":{"x":69,"y":672,"width":810,"height":11}},{"id":"58127d3b-dd65-4b90-9b6b-2910cd620fbb","block_type":"box","text":"options, and (iii) this restriction does not limit the purchase or sale of securities or other instruments backed by","page_number":24,"box":{"x":69,"y":687,"width":798,"height":11}},{"id":"8b65fde0-7e73-4db7-ae5e-5302fc5b500e","block_type":"box","text":"commodities or the purchase or sale of commodities acquired as a result of ownership of securities or other","page_number":24,"box":{"x":69,"y":702,"width":773,"height":11}},{"id":"e5186a10-6e34-4c95-b859-e489e762253d","block_type":"box","text":"instruments; and","page_number":24,"box":{"x":70,"y":718,"width":119,"height":10}},{"id":"2d2e7baf-c931-445c-a54e-d02890fac50e","block_type":"box","text":"(8) Purchase securities on margin (except for shor t-term credit necessary for the clearance of transactions and","page_number":24,"box":{"x":102,"y":740,"width":790,"height":11}},{"id":"2be8b4c4-4f29-4f18-8d7a-87b45816c8c6","block_type":"box","text":"except for margin payments in connection with options, futures and options on futures) or make shor t sales of","page_number":24,"box":{"x":69,"y":755,"width":789,"height":11}},{"id":"8491b5df-ae7f-4cdb-8165-5061938e280c","block_type":"box","text":"securities.","page_number":24,"box":{"x":69,"y":771,"width":72,"height":8}},{"id":"72555467-b2c0-4fb5-abe9-69b83816311d","block_type":"box","text":"Notations Regarding the Master Por tfolio’s Fundamental Investment Restrictions","page_number":24,"box":{"x":102,"y":793,"width":575,"height":11}},{"id":"7fcd2895-fb65-41a2-8f2d-664679ee443d","block_type":"box","text":"The following notations are not considered to be par t of the Master Por tfolio’s fundamental investment","page_number":24,"box":{"x":101,"y":816,"width":736,"height":11}},{"id":"48fa3ccc-0cee-4e22-9337-2d13c8c9fade","block_type":"box","text":"restrictions and are subject to change without shareholder approval.","page_number":24,"box":{"x":69,"y":831,"width":485,"height":11}},{"id":"68a1fee9-db56-46a5-870c-fa87d1c30984","block_type":"box","text":"With respect to the fundamental policy relating to concentration set for th in fundamental investment restriction","page_number":24,"box":{"x":101,"y":853,"width":791,"height":12}},{"id":"02975b58-dc25-4ad3-895e-1decbf0d1d80","block_type":"box","text":"no. 1 above, with respect to the Master Por tfolio’s industry classifications, the Master Por tfolio currently utilizes any","page_number":24,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"7503c215-b155-4572-a4d1-6b77b87f4bf7","block_type":"box","text":"one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group","page_number":24,"box":{"x":69,"y":884,"width":835,"height":11}},{"id":"3395bc20-5dc3-408a-a1bd-2c9833479f49","block_type":"box","text":"I-8","page_number":24,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"77e6b07a-b06a-4cec-a294-2ba8dbf0c1a1","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":24,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dbb68e9f-48b0-4668-992a-1134645db6ef","block_type":"box","text":"indexes, and/or as defined by Master Por tfolio management. The policy also will be interpreted to give broad","page_number":25,"box":{"x":70,"y":45,"width":774,"height":11}},{"id":"48d047f3-8739-42db-81bf-ffc00e72ac5a","block_type":"box","text":"authority to the Master Por tfolio as to how to classify issuers within or among industries.","page_number":25,"box":{"x":69,"y":60,"width":632,"height":11}},{"id":"eaef5adc-504e-472a-a30c-7a6e2fcc8c86","block_type":"box","text":"While cer tain swaps are now considered commodity interests for purposes of the Commodity Exchange Act and","page_number":25,"box":{"x":101,"y":82,"width":793,"height":12}},{"id":"9ba59108-faaa-429b-95b8-ac96f7943ded","block_type":"box","text":"the rules thereunder, at the time of the Master Por tfolio’s adoption of fundamental investment restriction no.","page_number":25,"box":{"x":68,"y":98,"width":778,"height":11}},{"id":"f7ec8621-71db-4ea3-8392-e5da068644e6","block_type":"box","text":"(7) above, many swaps were treated as securities for purposes of the Master Por tfolio’s compliance with applicable","page_number":25,"box":{"x":69,"y":113,"width":825,"height":11}},{"id":"f114fbda-fc13-4d68-98aa-3ac47a05d3cf","block_type":"box","text":"law. Accordingly, fundamental investment restriction no. (7) above is being interpreted to permit the Master Por tfolio","page_number":25,"box":{"x":70,"y":128,"width":827,"height":11}},{"id":"2e993e87-2c82-40b3-90aa-23be805f0ecf","block_type":"box","text":"to engage in transactions in swaps and options on swaps related to financial instruments, such as securities,","page_number":25,"box":{"x":68,"y":143,"width":784,"height":11}},{"id":"4d0ad825-0d4d-4e0c-a759-f55760a7f8bb","block_type":"box","text":"securities indices and currencies, but not to engage in transactions in swaps or options on swaps related to physical","page_number":25,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"2977432b-a9f9-4aa8-b9e7-4b2845f9e65b","block_type":"box","text":"commodities, such as oil or metals.","page_number":25,"box":{"x":69,"y":173,"width":254,"height":11}},{"id":"6d0e5f14-9a29-4b5d-b4e7-00359d9c804e","block_type":"box","text":"With respect to fundamental investment restriction no. (3) above, the Investment Company Act currently allows","page_number":25,"box":{"x":101,"y":196,"width":790,"height":11}},{"id":"b95ebc42-63e9-4f33-8171-419c6a5c3e64","block_type":"box","text":"the Master Por tfolio to borrow up to one-third of the value of its total assets (including the amount borrowed) valued","page_number":25,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"808fdf47-7214-4596-870a-0c62ad99d534","block_type":"box","text":"at the lesser of cost or market, less liabilities (not including the amount borrowed) at the time the borrowing is made.","page_number":25,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"dc412707-85d7-48f1-ba7c-7b5aa98278fa","block_type":"box","text":"With respect to fundamental investment restriction no. (4) above, the Investment Company Act and regulatory","page_number":25,"box":{"x":68,"y":241,"width":783,"height":11}},{"id":"0cd91cfc-03ee-438a-a13c-e8f5238d028c","block_type":"box","text":"interpretations currently limit the percentage of the Master Por tfolio’s securities that may be loaned to one-third of","page_number":25,"box":{"x":70,"y":256,"width":817,"height":12}},{"id":"33d48047-28ec-4ed2-8179-ba612ca2c1dd","block_type":"box","text":"the value of its total assets.","page_number":25,"box":{"x":68,"y":271,"width":200,"height":9}},{"id":"ed68ecdf-ed0e-4cce-a1c6-8d1ef2833505","block_type":"box","text":"Non-Fundamental Investment Restrictions of the Master Portfolio","page_number":25,"box":{"x":102,"y":294,"width":477,"height":9}},{"id":"3fa6c154-0390-4947-89a0-f307c1fb0f88","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":25,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"f107d9a0-f79c-4260-b560-efaf665f5af5","block_type":"box","text":"approval, the Master Por tfolio may not purchase securities of other investment companies, except to the extent","page_number":25,"box":{"x":69,"y":332,"width":797,"height":11}},{"id":"7cda2a07-dc15-4dad-8180-730c09df43b6","block_type":"box","text":"permitted by the Investment Company Act. As a matter of policy, however, the Master Por tfolio will not purchase","page_number":25,"box":{"x":70,"y":347,"width":797,"height":11}},{"id":"da62b0c8-08aa-44a9-9709-772a920038a2","block_type":"box","text":"shares of any registered open-end investment company or registered unit investment trust, in reliance on Section","page_number":25,"box":{"x":69,"y":362,"width":807,"height":11}},{"id":"125a030b-b195-4a6e-9de1-1b9c7588a634","block_type":"box","text":"12(d)(1)(F) or (G) (the “fund of funds” provisions) of the Investment Company Act, at any time the Master Por tfolio","page_number":25,"box":{"x":70,"y":377,"width":811,"height":11}},{"id":"fa101a8d-94b2-4f7d-a810-57c5cfcc5982","block_type":"box","text":"has knowledge that its shares are purchased by another investment company investor in reliance on the provisions of","page_number":25,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"05b2bd4e-6e00-456a-9525-5644d264c49b","block_type":"box","text":"subparagraph (G) of Section 12(d)(1).","page_number":25,"box":{"x":69,"y":407,"width":265,"height":12}},{"id":"d1a71897-c297-4cd9-a622-8f436b823b1f","block_type":"box","text":"III. Information on Trustees and Officers","page_number":25,"box":{"x":69,"y":438,"width":290,"height":9}},{"id":"4535f083-c4b6-4c11-ae9b-e98b72ae58c3","block_type":"box","text":"The Board consists of thir teen individuals (each, a “Trustee”), eleven of whom are not “interested persons” of","page_number":25,"box":{"x":101,"y":460,"width":789,"height":11}},{"id":"16a50ecc-7601-48e2-a504-be296a5b41b7","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The same individuals serve on the","page_number":25,"box":{"x":68,"y":475,"width":838,"height":12}},{"id":"a612d4fb-5f31-4087-9a3e-3a158de9c703","block_type":"box","text":"Board of Trustees of MIP. The registered investment companies advised by the Manager or its affiliates (the","page_number":25,"box":{"x":70,"y":491,"width":768,"height":11}},{"id":"7c88edfd-8752-4480-b248-cf00007551e0","block_type":"box","text":"“BlackRock-advised Funds”) are organized into the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income","page_number":25,"box":{"x":70,"y":506,"width":794,"height":11}},{"id":"779dfdd5-2aa2-4362-9327-5e0e5e7a1f71","block_type":"box","text":"Complex, and the iShares Complex (each, a “BlackRock Fund Complex”). The Trust and MIP are included in the","page_number":25,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"90caffda-b1fb-487a-be9a-5d1ebe2d68e2","block_type":"box","text":"BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex. The Trustees also oversee as board","page_number":25,"box":{"x":70,"y":536,"width":800,"height":11}},{"id":"c89bfabd-e786-4833-97de-332bd37b1d3c","block_type":"box","text":"members the operations of the other open-end registered investment companies included in the BlackRock Multi","page_number":25,"box":{"x":69,"y":551,"width":807,"height":11}},{"id":"e9600f66-32f3-47bf-ae72-5dac84eb893c","block_type":"box","text":"Asset Complex.","page_number":25,"box":{"x":68,"y":566,"width":110,"height":11}},{"id":"a08e24c9-e0b2-452e-bdcb-95e48e82b6cb","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and the Fund. The Chair of the Board is an","page_number":25,"box":{"x":101,"y":589,"width":769,"height":11}},{"id":"2ce68a72-13b2-4a09-9c08-631a87d1f942","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":25,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"660a4b11-42de-4b7c-85f6-e896aa1a6cca","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":25,"box":{"x":70,"y":619,"width":821,"height":11}},{"id":"e9165824-874d-4ef1-8c3d-896174f3bab8","block_type":"box","text":"Committee, a Per formance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":25,"box":{"x":69,"y":634,"width":835,"height":12}},{"id":"d82dcfc9-9741-42fc-8d5b-d0c539eaf505","block_type":"box","text":"is to preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":25,"box":{"x":70,"y":649,"width":830,"height":12}},{"id":"bb094edf-4d59-430e-9e24-f1eca3ffe0e0","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee per forms a similar role with respect to the","page_number":25,"box":{"x":68,"y":664,"width":789,"height":12}},{"id":"6374acb4-b35e-4be9-ba1d-8148d0329b55","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also per form such other functions as may be","page_number":25,"box":{"x":69,"y":680,"width":810,"height":11}},{"id":"e14dda8e-ff1e-4624-9960-6b48744dac39","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":25,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"8c89381f-3a6f-49ad-a7e5-c836a3c23f3a","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":25,"box":{"x":70,"y":710,"width":794,"height":11}},{"id":"7da821c9-a6c2-49df-b210-230dce3091fc","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":25,"box":{"x":69,"y":725,"width":816,"height":11}},{"id":"2666c102-0fd7-4922-9558-1359f1f7f931","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and repor ts","page_number":25,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"ec4263b9-0577-41b5-a368-7374aa0e6721","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":25,"box":{"x":70,"y":755,"width":811,"height":11}},{"id":"1efecea7-d699-4d5c-ac6d-2529ccf55d97","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":25,"box":{"x":68,"y":770,"width":809,"height":11}},{"id":"c597f8da-5699-4ebf-a36a-161787352be9","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":25,"box":{"x":69,"y":785,"width":825,"height":12}},{"id":"18750a46-2f98-4f94-a430-88e9e2de5a39","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":25,"box":{"x":69,"y":801,"width":441,"height":11}},{"id":"04f4fde2-27dd-4496-8fa2-e27c94e8702d","block_type":"box","text":"The Board has engaged the Manager to manage the Fund on a day-to-day basis. The Board is responsible for","page_number":25,"box":{"x":101,"y":823,"width":777,"height":12}},{"id":"01bb29f0-3eaa-40c1-b4db-006642976aa5","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":25,"box":{"x":69,"y":838,"width":832,"height":12}},{"id":"88678551-ebca-4bf0-baf1-21bfc5b4e48c","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s char ter, and the Fund’s","page_number":25,"box":{"x":68,"y":853,"width":820,"height":12}},{"id":"09d57572-a587-4d88-bd83-69fbaf404c70","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance, operations","page_number":25,"box":{"x":70,"y":869,"width":812,"height":11}},{"id":"95d28e04-9595-47ee-adc0-a0497c4503fa","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":25,"box":{"x":69,"y":884,"width":819,"height":11}},{"id":"42be38dc-19c9-4add-9739-9ed516ee84cb","block_type":"box","text":"the operations of the Fund.","page_number":25,"box":{"x":68,"y":899,"width":192,"height":11}},{"id":"d2a804b4-2a2c-49a1-95b4-00afcd811ed7","block_type":"box","text":"I-9","page_number":25,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"678c9c34-c412-40ae-83a7-5018c89e013d","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":25,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9ccc1914-617a-44a0-b337-d343846526fd","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":26,"box":{"x":102,"y":45,"width":785,"height":11}},{"id":"cf0ec610-d110-4201-afdc-c7b4fb11aa1f","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":26,"box":{"x":69,"y":60,"width":828,"height":11}},{"id":"5b87e013-66f3-44bb-9dec-71ee48185041","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":26,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"3913b0de-788d-4bc7-bdfd-41ddc23175cd","block_type":"box","text":"there are a number of risk management functions per formed by the Manager and the sub-advisers or other service","page_number":26,"box":{"x":68,"y":90,"width":820,"height":11}},{"id":"5736e8ae-8a56-4777-aae5-51737e7b6c64","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":26,"box":{"x":70,"y":105,"width":811,"height":11}},{"id":"c322fb90-a3db-4161-a400-fc3804dfafea","block_type":"box","text":"par t of the Board’s general oversight of the Fund and is addressed as par t of various Board and Committee","page_number":26,"box":{"x":70,"y":120,"width":767,"height":12}},{"id":"df2cd46b-2ffb-4998-9b55-976397f97ac3","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":26,"box":{"x":69,"y":135,"width":815,"height":12}},{"id":"720f86bb-7d24-4b5b-aa1d-346ed2a8de36","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":26,"box":{"x":70,"y":150,"width":803,"height":12}},{"id":"7f6420a3-c195-4981-b233-7b51cb2b5ca6","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":26,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"ee36a53d-1e69-400b-a646-a7a669439ecd","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":26,"box":{"x":69,"y":181,"width":812,"height":11}},{"id":"a4c3bc87-1309-4e1c-8d12-ec3ef14bb11e","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":26,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"36ffa534-684a-49e0-8b76-485943711c5d","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":26,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"aa25266d-7cb6-45d7-9676-278886afec0e","block_type":"box","text":"testing of the Trust’s compliance program and repor ts to the Board regarding compliance matters for the Fund and","page_number":26,"box":{"x":68,"y":226,"width":818,"height":11}},{"id":"dc0f0e1e-bfed-416a-9fab-04eb069df97b","block_type":"box","text":"its service providers. The Independent Trustees have engaged independent legal counsel to assist them in","page_number":26,"box":{"x":70,"y":241,"width":759,"height":11}},{"id":"bfacc897-1b39-4869-aaaf-4e46cf18e298","block_type":"box","text":"per forming their oversight responsibilities.","page_number":26,"box":{"x":70,"y":256,"width":299,"height":12}},{"id":"c25beffd-8c15-4d3f-95c3-4c4835f54015","block_type":"box","text":"Audit Committee.","page_number":26,"box":{"x":101,"y":279,"width":122,"height":9}},{"id":"68f72214-0840-4b85-854f-47fff3bdab79","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":26,"box":{"x":229,"y":279,"width":673,"height":11}},{"id":"ffbd25ff-bd5c-409b-bf88-8f6c00125621","block_type":"box","text":"A. Cotty, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Trustees. The principal","page_number":26,"box":{"x":68,"y":294,"width":814,"height":11}},{"id":"007c9330-5330-4e92-af31-fb2189cac20c","block_type":"box","text":"responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval, the selection,","page_number":26,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"beaea63e-2854-4255-93ea-3bd8565e36f5","block_type":"box","text":"retention, termination and compensation of the Fund’s independent registered public accounting firm (the","page_number":26,"box":{"x":69,"y":324,"width":753,"height":12}},{"id":"e0c54939-5ab8-402e-9e4d-32712942a026","block_type":"box","text":"“Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":26,"box":{"x":70,"y":340,"width":797,"height":11}},{"id":"6eb89e35-e3b2-4c54-9020-565412a1d404","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":26,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"d55922d6-1006-4791-b0ff-77d34f117e1c","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":26,"box":{"x":70,"y":370,"width":807,"height":11}},{"id":"d01d7acc-bb9f-4756-b74c-f0f1f7b70939","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":26,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"2fd9fa3a-8a45-4e5f-9346-a5e79ccb756b","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":26,"box":{"x":69,"y":400,"width":834,"height":11}},{"id":"ce4787c9-1f4f-48a2-91c2-964ed971b377","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund and the internal controls of the Fund","page_number":26,"box":{"x":69,"y":415,"width":838,"height":11}},{"id":"14b495c5-8b6a-4600-900c-aaed001ffac7","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":26,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"6d7edd30-ddb6-4334-8119-dc0e4c024a70","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":26,"box":{"x":70,"y":445,"width":809,"height":12}},{"id":"65764951-9bdb-41be-8c23-1978d9a03845","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":26,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"938fe778-feca-4299-94e2-f9929a9bdfbb","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":26,"box":{"x":69,"y":475,"width":774,"height":12}},{"id":"772feb92-5f40-4349-9a75-0ba6d54f2176","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":26,"box":{"x":69,"y":491,"width":815,"height":11}},{"id":"a2c0deb0-0c1d-4b21-84dd-d4144d9d1bf1","block_type":"box","text":"regarding financial repor ting; and (9) under take such other duties and responsibilities as may from time to time be","page_number":26,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"6f331030-e52e-4925-8afd-1b3b8d0b8837","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written char ter for the Audit Committee.","page_number":26,"box":{"x":69,"y":521,"width":812,"height":11}},{"id":"7bb046b3-7c3f-44b8-b98d-dc9e0b244bb3","block_type":"box","text":"During the fiscal year ended December 31, 2025, the Audit Committee met four times.","page_number":26,"box":{"x":70,"y":536,"width":617,"height":11}},{"id":"1cf88213-81ca-4204-b068-577114fa768a","block_type":"box","text":"Governance and Nominating Committee.","page_number":26,"box":{"x":102,"y":559,"width":286,"height":11}},{"id":"88994b49-1241-4003-a68e-30fd3ca3c81d","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":26,"box":{"x":394,"y":559,"width":464,"height":11}},{"id":"3729fbbb-56ef-4c8a-9010-a5053ef5a93b","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton","page_number":26,"box":{"x":70,"y":574,"width":833,"height":11}},{"id":"1c9a27f7-b648-4ae9-92f0-e0cc4e00ba1c","block_type":"box","text":"and Henry R. Keizer, all of whom are Independent Trustees. The principal responsibilities of the Governance","page_number":26,"box":{"x":69,"y":589,"width":769,"height":11}},{"id":"b06422e9-3b7e-4294-97ea-6752fcefc22d","block_type":"box","text":"Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and recommend","page_number":26,"box":{"x":69,"y":604,"width":802,"height":11}},{"id":"7d0e9581-e6a4-4898-8fcd-07683f704e6a","block_type":"box","text":"Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the Board with","page_number":26,"box":{"x":70,"y":619,"width":819,"height":11}},{"id":"6f8426a5-2e1f-4b3b-a430-298aff177cbe","block_type":"box","text":"respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee periodic","page_number":26,"box":{"x":69,"y":634,"width":810,"height":11}},{"id":"7d8d4864-a8e4-4624-bf89-85be22a783b6","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":26,"box":{"x":69,"y":649,"width":824,"height":11}},{"id":"66606af1-b606-4685-bfd0-5be61b2f8aa5","block_type":"box","text":"recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters and","page_number":26,"box":{"x":69,"y":665,"width":793,"height":11}},{"id":"2c5b3c35-882f-4998-8532-8ca71f8fad9a","block_type":"box","text":"develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to Board","page_number":26,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"e9e0c0f9-4166-4ad1-83a5-0955333c9e39","block_type":"box","text":"policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of ethics as","page_number":26,"box":{"x":70,"y":695,"width":835,"height":11}},{"id":"c8211683-9546-4664-98c1-edb8a2a443d2","block_type":"box","text":"they relate to Independent Trustees; and (7) under take such other duties and responsibilities as may from time to","page_number":26,"box":{"x":68,"y":710,"width":815,"height":11}},{"id":"236bea93-523c-481a-9851-2cfa29a19b06","block_type":"box","text":"time be delegated by the Board to the Governance Committee. The Governance Committee may consider nominations","page_number":26,"box":{"x":68,"y":725,"width":841,"height":11}},{"id":"68199dc0-d4f5-4851-aeee-c54411f02cc0","block_type":"box","text":"for Trustees made by the Fund’s shareholders as it deems appropriate. Fund shareholders who wish to recommend a","page_number":26,"box":{"x":68,"y":740,"width":838,"height":11}},{"id":"c68e4de8-fd49-467f-bd27-1dac307b737d","block_type":"box","text":"nominee should send nominations to the Secretary of the Trust that include biographical information and set for th","page_number":26,"box":{"x":69,"y":755,"width":815,"height":11}},{"id":"607b7991-fa98-4868-8ccf-14bcbdb9ac5a","block_type":"box","text":"the qualifications of the proposed nominee. The Board has adopted a written char ter for the Governance Committee.","page_number":26,"box":{"x":68,"y":770,"width":833,"height":11}},{"id":"4641d4cf-23e2-4dd1-a729-7f9e070e452e","block_type":"box","text":"During the fiscal year ended December 31, 2025, the Governance Committee met eleven times.","page_number":26,"box":{"x":70,"y":785,"width":684,"height":12}},{"id":"3e66e43a-30b9-4aae-8bbb-6edc7bacc401","block_type":"box","text":"Compliance Committee.","page_number":26,"box":{"x":102,"y":808,"width":168,"height":11}},{"id":"f627e65c-b723-4c49-a518-4e02aed23a26","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":26,"box":{"x":276,"y":808,"width":629,"height":11}},{"id":"532df34b-65ab-450e-82a5-b902599b30b0","block_type":"box","text":"Walton (Chair), Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of whom are","page_number":26,"box":{"x":68,"y":823,"width":789,"height":12}},{"id":"7091fd39-9a02-49ba-8445-bb2d6fa98197","block_type":"box","text":"Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its responsibility to","page_number":26,"box":{"x":70,"y":838,"width":812,"height":12}},{"id":"44eef00e-8579-42e1-9b3a-a5b55cc5d1e2","block_type":"box","text":"oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of BFA and any","page_number":26,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"24f5d692-a02c-4d4b-b4ca-f36ee7d9982b","block_type":"box","text":"sub-adviser and the Trust’s third-par ty service providers. The Compliance Committee’s responsibilities include,","page_number":26,"box":{"x":69,"y":869,"width":789,"height":11}},{"id":"8ec7470e-863c-43b3-9785-21633f65f260","block_type":"box","text":"without limitation, to (1) oversee the compliance policies and procedures of the Trust and its service providers and","page_number":26,"box":{"x":68,"y":884,"width":819,"height":11}},{"id":"84022b34-bc15-4d41-ad95-de43c129ae12","block_type":"box","text":"recommend changes or additions to such policies and procedures; (2) review information on and, where appropriate,","page_number":26,"box":{"x":69,"y":899,"width":832,"height":11}},{"id":"e3f232fe-3ee3-48c6-aeb9-e97d6e488d10","block_type":"box","text":"I-10","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c8807974-30d4-4585-8c5e-6b21d9b39c63","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7206fec3-cf61-4c1c-be98-72c77e843ffa","block_type":"box","text":"recommend policies concerning the Trust’s compliance with applicable law; (3) review repor ts from, oversee the","page_number":27,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"2b96b66f-4b48-4503-b8e9-e476a638f312","block_type":"box","text":"annual per formance review of, and make cer tain recommendations and determinations regarding the Trust’s Chief","page_number":27,"box":{"x":69,"y":60,"width":818,"height":11}},{"id":"d2168f89-ebfb-4126-8945-0d3130f4c16c","block_type":"box","text":"Compliance Officer (the “CCO”), including determining the amount and structure of the CCO’s compensation and","page_number":27,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"5db82fbe-315e-46c3-9b02-b8cfeaef647b","block_type":"box","text":"recommending such amount and structure to the full Board for approval and ratification; and (4) under take such","page_number":27,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"159d01a7-21c2-4835-8008-e6ed36b5f931","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":27,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"aedd3758-66c0-4c67-8e71-07de5c7c8f48","block_type":"box","text":"The Board has adopted a written char ter for the Compliance Committee. During the fiscal year ended","page_number":27,"box":{"x":68,"y":120,"width":720,"height":12}},{"id":"fc4ca78c-c464-43df-9456-6832b2c5d64f","block_type":"box","text":"December 31, 2025, the Compliance Committee met four times.","page_number":27,"box":{"x":70,"y":135,"width":460,"height":11}},{"id":"b14c5f98-a5ba-403d-9ac0-462409d9e708","block_type":"box","text":"Per formance Oversight Committee.","page_number":27,"box":{"x":102,"y":158,"width":248,"height":11}},{"id":"d4e88597-e0cf-43e5-8322-d9f21ac1811c","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":27,"box":{"x":356,"y":158,"width":531,"height":11}},{"id":"f009d82f-5e4a-4e8c-8831-c20fd7cb925b","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton and Neil","page_number":27,"box":{"x":69,"y":173,"width":837,"height":11}},{"id":"2859fb13-9f23-4910-9968-ba08ff121d85","block_type":"box","text":"A. Cotty, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is to assist the","page_number":27,"box":{"x":68,"y":188,"width":808,"height":12}},{"id":"9a26e41f-f59b-49d7-a77f-04585f4a0fbc","block_type":"box","text":"Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed-upon","page_number":27,"box":{"x":70,"y":203,"width":769,"height":12}},{"id":"7c297a8d-a7a5-46ca-8f74-06d17003b725","block_type":"box","text":"per formance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":27,"box":{"x":70,"y":218,"width":775,"height":12}},{"id":"9b9befd2-0c99-4fca-a0d9-685bb0791d68","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":27,"box":{"x":69,"y":234,"width":782,"height":11}},{"id":"354cb2bd-60fd-4341-85e4-df44da9a05fc","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":27,"box":{"x":70,"y":249,"width":829,"height":11}},{"id":"5eb2608b-3dc2-4dd6-95f6-b6a6904b4bf9","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":27,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"e21dfcda-9d17-44c2-bee3-144b3e9792d1","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":27,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"32f95de2-3e51-4b49-b1fc-e7afe5d50d0a","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":27,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"6cffce47-9460-4b5f-ac35-7a439c5ffaf7","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":27,"box":{"x":68,"y":309,"width":811,"height":11}},{"id":"5bee0acb-2300-42bf-a292-8b8f11f6de60","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":27,"box":{"x":69,"y":324,"width":757,"height":12}},{"id":"ddf31042-0933-4bb5-bc43-cd525cbc8747","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":27,"box":{"x":70,"y":339,"width":835,"height":12}},{"id":"86588924-0709-4c79-8994-771cc67480cf","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":27,"box":{"x":68,"y":355,"width":800,"height":11}},{"id":"3ddd8cee-3bd5-401a-89c3-4a4f6cc08274","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Per formance Oversight","page_number":27,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"4b7125f4-a216-441b-a9e3-82d75171b712","block_type":"box","text":"Committee. The Board has adopted a written char ter for the Per formance Oversight Committee. During the fiscal year","page_number":27,"box":{"x":69,"y":385,"width":838,"height":11}},{"id":"df8a6b87-d3b1-4c32-a506-d3016016aeed","block_type":"box","text":"ended December 31, 2025, the Per formance Oversight Committee met five times.","page_number":27,"box":{"x":69,"y":400,"width":587,"height":11}},{"id":"09674bd3-ae5a-4f20-b5d2-5cd19327ddd9","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":27,"box":{"x":101,"y":423,"width":186,"height":11}},{"id":"edec8665-d7e2-4738-a241-59f580f8a5b4","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":27,"box":{"x":293,"y":423,"width":598,"height":11}},{"id":"fa0650a8-2575-42be-961a-1984b0a96240","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":27,"box":{"x":70,"y":438,"width":817,"height":11}},{"id":"9c676599-9db5-4c9c-89b7-7f0936d76617","block_type":"box","text":"serves as an interested Trustee. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":27,"box":{"x":69,"y":453,"width":795,"height":11}},{"id":"da761c72-ed54-4aef-9eb6-8490f63bc5b5","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":27,"box":{"x":69,"y":468,"width":788,"height":11}},{"id":"60981566-bf6e-4b82-879d-0a82b309f0df","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":27,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"4616e228-8f10-4068-a713-77b64da9ee94","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written char ter for the Ad Hoc Topics Committee. During","page_number":27,"box":{"x":68,"y":498,"width":816,"height":11}},{"id":"e52c0425-7be6-4a31-ae76-c98f98cf4aac","block_type":"box","text":"the fiscal year ended December 31, 2025, the Ad Hoc Topics Committee did not meet.","page_number":27,"box":{"x":68,"y":513,"width":618,"height":11}},{"id":"53dc472b-3b51-4f4d-9502-f7325641fa98","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":27,"box":{"x":101,"y":536,"width":771,"height":11}},{"id":"e7f0ee05-4885-49a0-9910-7ff26a450139","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":27,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"47b709e9-3363-40f4-9a1d-bb72e51b41d1","block_type":"box","text":"of Policy”). The Board believes that each Independent Trustee satisfied, at the time he or she was initially elected or","page_number":27,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"1364bcbb-0434-409a-98e9-e7787d021e34","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":27,"box":{"x":69,"y":581,"width":825,"height":11}},{"id":"553bd2c1-4ff7-4d3f-bcb8-75ccbf09f268","block_type":"box","text":"in determining that a par ticular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":27,"box":{"x":70,"y":596,"width":807,"height":12}},{"id":"961f6867-9f75-411a-a98e-0b238d1cc13d","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":27,"box":{"x":70,"y":612,"width":787,"height":11}},{"id":"17376fd3-920a-45ce-8125-f6d5bc376cc1","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":27,"box":{"x":69,"y":627,"width":805,"height":11}},{"id":"5772b278-5054-4ff7-88b4-821a4c159ae6","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":27,"box":{"x":68,"y":642,"width":794,"height":11}},{"id":"5e93d1ac-27c3-4679-a960-259838b84eb4","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":27,"box":{"x":68,"y":657,"width":829,"height":11}},{"id":"f12429df-cee1-41b6-81f7-20504ecbe012","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":27,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"93272a3f-c385-48ee-99f4-2281d2d656fb","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":27,"box":{"x":69,"y":687,"width":771,"height":11}},{"id":"81186af5-26a1-4940-9340-a19698b53e96","block_type":"box","text":"business judgment in the per formance of their duties as Trustees.","page_number":27,"box":{"x":69,"y":702,"width":473,"height":12}},{"id":"fd1f8dfe-d85d-4c00-8ad0-da8eb733a5f5","block_type":"box","text":"Each Trustee’s ability to per form his or her duties effectively is evidenced by his or her educational background","page_number":27,"box":{"x":102,"y":725,"width":792,"height":11}},{"id":"bb4f8ca1-1e51-4f96-8fb9-69b2fe8ae5cd","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":27,"box":{"x":69,"y":740,"width":807,"height":11}},{"id":"2f194816-3c47-4034-b8d3-5a4a12f54a2e","block_type":"box","text":"board member of the Trust and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":27,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"46736f4b-3dae-42a5-adcc-1e28268a17cc","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":27,"box":{"x":70,"y":770,"width":759,"height":12}},{"id":"7150f4bc-3bde-49bf-951f-b368e004370e","block_type":"box","text":"par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":27,"box":{"x":70,"y":785,"width":685,"height":12}},{"id":"d1ea5b0a-0829-448a-8b0e-458a0c1a94a1","block_type":"box","text":"ad hoc","page_number":27,"box":{"x":762,"y":786,"width":47,"height":8}},{"id":"fbbc654d-4925-4dcd-9117-325b28519303","block_type":"box","text":"committees","page_number":27,"box":{"x":814,"y":786,"width":82,"height":8}},{"id":"bd560b88-8c5c-4f0f-ac37-33e21f9b13de","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":27,"box":{"x":68,"y":801,"width":395,"height":11}},{"id":"2bd2b3d7-3b3a-43a7-94f2-bfe4d98a1e69","block_type":"box","text":"Trustees Elect.","page_number":27,"box":{"x":103,"y":823,"width":103,"height":9}},{"id":"3ab13558-3429-437d-b81b-6576e27b754f","block_type":"box","text":"Jeffrey Jarczyk and Marc D. Stern have been appointed as Trustees of the Trust effective","page_number":27,"box":{"x":213,"y":823,"width":634,"height":11}},{"id":"09fac5c0-82ee-4897-a3e3-b742249c4e37","block_type":"box","text":"July 1, 2026 (each, a “Trustee Elect”). Each Trustee Elect is expected to qualify as an Independent Trustee at the","page_number":27,"box":{"x":69,"y":838,"width":811,"height":11}},{"id":"2008bdf7-fc83-4c42-8aca-d0376aaefb17","block_type":"box","text":"time of his service. Each Trustee Elect has been retained as a consultant to the Independent Trustees to assist the","page_number":27,"box":{"x":68,"y":853,"width":826,"height":11}},{"id":"abdcbe51-6d7b-4bf8-b5e2-529ca9b7b2be","block_type":"box","text":"Independent Trustees in the per formance of their duties to the Trust and is expected to serve in that capacity until","page_number":27,"box":{"x":70,"y":869,"width":816,"height":11}},{"id":"13a3c3c0-59cb-454f-a3a1-76e132a30f0d","block_type":"box","text":"July 1, 2026.","page_number":27,"box":{"x":69,"y":884,"width":92,"height":11}},{"id":"da01c984-4242-48de-8f9f-1511bfc10795","block_type":"box","text":"I-11","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"cc5e2b2a-979c-45d7-81d6-4df88c8213a3","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"95081978-fe3b-476e-8cb4-fb48451854e4","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":28,"box":{"x":101,"y":45,"width":751,"height":11}},{"id":"6f32ef9b-85e2-4958-b4e9-fc12ad5cd4ca","block_type":"box","text":"suppor t the conclusion that each Trustee should serve on the Board.","page_number":28,"box":{"x":69,"y":60,"width":492,"height":11}},{"id":"5a1da4b7-503b-4edd-934c-8c60d7667ef1","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":28,"box":{"x":68,"y":88,"width":409,"height":9}},{"id":"5fe6b1a7-513d-4f9b-a1a7-f54ee59d383e","block_type":"box","text":"Independent Trustees","page_number":28,"box":{"x":70,"y":105,"width":154,"height":10}},{"id":"1d83122f-14a1-435a-90fb-31bfe0a2a378","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":28,"box":{"x":69,"y":120,"width":781,"height":11}},{"id":"6d213913-2888-4624-a9e2-6518da79dfc7","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":28,"box":{"x":265,"y":135,"width":604,"height":11}},{"id":"374cc94c-7494-48ac-9bc4-0d4bc7bf0f22","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":28,"box":{"x":265,"y":150,"width":623,"height":11}},{"id":"18465b37-39e1-4ded-b7fa-3ec4008d4dd8","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":28,"box":{"x":265,"y":165,"width":637,"height":11}},{"id":"c453ccda-599a-4b1d-86ee-08b2f8996a20","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":28,"box":{"x":265,"y":180,"width":631,"height":11}},{"id":"7f7f6da4-c69f-4525-8e51-74ec87ce8c66","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":28,"box":{"x":264,"y":195,"width":626,"height":11}},{"id":"3481ebb2-df07-4781-840c-ebd2bea29107","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":28,"box":{"x":265,"y":210,"width":639,"height":11}},{"id":"46199238-b188-4f2e-aa70-5b898c170633","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":28,"box":{"x":264,"y":226,"width":637,"height":11}},{"id":"579dbeae-6f32-4de1-b895-96c1311d9f31","block_type":"box","text":"exper tise across asset classes and strategies, and insight and perspective on the","page_number":28,"box":{"x":265,"y":241,"width":586,"height":11}},{"id":"7a5b93b9-ae02-458e-9bc6-8622946b06e5","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":28,"box":{"x":265,"y":256,"width":640,"height":11}},{"id":"819c45d1-fdc9-4a43-b497-86202730f790","block_type":"box","text":"Committee and the Per formance Oversight Committee.","page_number":28,"box":{"x":265,"y":271,"width":389,"height":11}},{"id":"596fb042-57c2-4bdc-9880-bec687d877aa","block_type":"box","text":"Susan J. Car ter Susan J. Car ter has over 35 years of experience in investment management. She has","page_number":28,"box":{"x":69,"y":293,"width":806,"height":12}},{"id":"677f9164-3ed0-4167-8694-3fa8c2ae7adc","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":28,"box":{"x":265,"y":309,"width":604,"height":11}},{"id":"1eca8580-bc86-4c99-acc2-51b2d660ece6","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":28,"box":{"x":265,"y":324,"width":632,"height":11}},{"id":"30fb7d7a-8c78-4aec-8b83-79f27e47f0ac","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":28,"box":{"x":265,"y":339,"width":562,"height":9}},{"id":"4f0c0a3e-770b-4f49-b413-a42d508baab9","block_type":"box","text":"Ms. Car ter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":28,"box":{"x":265,"y":354,"width":616,"height":10}},{"id":"b34100fa-f798-400d-8033-65b5342f5420","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":28,"box":{"x":264,"y":369,"width":591,"height":11}},{"id":"f8986c54-623d-47eb-8220-12721388de25","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":28,"box":{"x":265,"y":384,"width":641,"height":11}},{"id":"13b4c4e8-ea12-4454-9cf6-101949fdac77","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":28,"box":{"x":264,"y":399,"width":638,"height":12}},{"id":"17e0dbbf-7ccd-47d3-8298-cd68d987a214","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":28,"box":{"x":265,"y":414,"width":584,"height":12}},{"id":"dfacf3c8-6401-4adc-958b-985798252fd0","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":28,"box":{"x":265,"y":429,"width":630,"height":12}},{"id":"f4c07864-c4fe-43bc-b99a-90dbc93a187e","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":28,"box":{"x":265,"y":445,"width":634,"height":11}},{"id":"c1a66620-82d1-45b7-a0b9-15dab1f75fa7","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":28,"box":{"x":265,"y":460,"width":599,"height":11}},{"id":"b1f8ecb7-35cb-4343-88e9-f75e93123d8e","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":28,"box":{"x":265,"y":475,"width":407,"height":11}},{"id":"462a0d84-8cc6-4417-9d73-d631cac4ce2c","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":28,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"f343eeb9-830c-49b6-8049-951d413de17c","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":28,"box":{"x":265,"y":513,"width":638,"height":11}},{"id":"bed9e7b6-c012-4a37-8d70-ea68e17a8ec0","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":28,"box":{"x":265,"y":528,"width":642,"height":11}},{"id":"e73c38a8-f7e8-4ed7-9646-9b80773962fe","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":28,"box":{"x":265,"y":542,"width":601,"height":12}},{"id":"f4df8491-b73d-424f-a65a-565f83cec005","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":28,"box":{"x":265,"y":558,"width":595,"height":11}},{"id":"0fc88c2c-edf6-4d86-a416-19deba2b25d1","block_type":"box","text":"perspective on the markets and the economy.","page_number":28,"box":{"x":265,"y":573,"width":323,"height":11}},{"id":"7508639e-bda1-4f18-abe2-2a5b631bed85","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":28,"box":{"x":70,"y":596,"width":798,"height":11}},{"id":"6ffc575e-f8a7-41fc-bf4e-79a78f5567d4","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":28,"box":{"x":265,"y":611,"width":631,"height":11}},{"id":"893ff872-dd6f-41e9-91f9-0c170491c6cb","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":28,"box":{"x":265,"y":626,"width":633,"height":11}},{"id":"a9164d0e-f642-4ef5-a639-391c9b3d7b78","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":28,"box":{"x":265,"y":641,"width":628,"height":11}},{"id":"4c07002b-5506-45dd-9d35-ddfb98ff514e","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":28,"box":{"x":265,"y":656,"width":596,"height":12}},{"id":"0ad97d85-9e21-4d2a-ab15-5f137879cfeb","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial exper t, as such","page_number":28,"box":{"x":265,"y":671,"width":616,"height":12}},{"id":"8b9ae9ea-7fa7-4d09-9a65-041362f56155","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":28,"box":{"x":264,"y":686,"width":368,"height":11}},{"id":"c10397e4-83d3-4eb0-ad09-e443b4d2b32b","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":28,"box":{"x":70,"y":709,"width":806,"height":11}},{"id":"f8c4325a-7878-4ec0-a1a7-545785e9170d","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":28,"box":{"x":264,"y":724,"width":584,"height":12}},{"id":"7066420d-2c68-48f7-a207-61d92b12988b","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":28,"box":{"x":265,"y":740,"width":622,"height":11}},{"id":"8873cb59-bc48-4141-a049-3fc0dfd552e1","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":28,"box":{"x":265,"y":755,"width":638,"height":11}},{"id":"2004c217-2e28-4183-b232-b01aa8da8c2c","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":28,"box":{"x":265,"y":770,"width":570,"height":11}},{"id":"aac7f6e0-fbf1-415c-8dd6-998de2712b8a","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":28,"box":{"x":265,"y":785,"width":642,"height":11}},{"id":"bcc852fe-f696-4124-ab3d-edfaa8b0c850","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":28,"box":{"x":265,"y":800,"width":626,"height":11}},{"id":"9d08c330-d131-4215-ae75-15d2c8dabc88","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":28,"box":{"x":265,"y":815,"width":630,"height":11}},{"id":"da050404-0928-445c-bcc2-01fa603bf244","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":28,"box":{"x":265,"y":830,"width":602,"height":11}},{"id":"bd46950d-ecdd-4b3e-95af-0ee8759af102","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":28,"box":{"x":264,"y":845,"width":643,"height":12}},{"id":"56a6b4d8-c2b7-43e4-90af-eeb7b06316be","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":28,"box":{"x":264,"y":860,"width":639,"height":12}},{"id":"d175b135-0180-45a1-b771-f2c69c9ebf29","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":28,"box":{"x":264,"y":875,"width":641,"height":11}},{"id":"675147c5-2811-4554-8aab-807bf98b9320","block_type":"box","text":"applicable Commission rules.","page_number":28,"box":{"x":265,"y":891,"width":208,"height":11}},{"id":"f514a012-74f6-489e-96b5-9f61aea2654d","block_type":"box","text":"I-12","page_number":28,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"91556030-25b1-4717-94e6-e6c34abf8abd","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"42095c99-ec53-4159-a198-8d40dac9f713","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":29,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"7abfd80e-326f-4ddd-95e6-d7a273e97d98","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":29,"box":{"x":69,"y":65,"width":769,"height":12}},{"id":"fd74bfdf-f6dd-47bf-9b2f-9c569b2bcdb3","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":29,"box":{"x":265,"y":81,"width":621,"height":11}},{"id":"1fccd81c-eb1e-4ad8-aad9-3102df202519","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":29,"box":{"x":265,"y":96,"width":599,"height":11}},{"id":"32c11a50-ce10-41a1-8b0c-cc8ec3ccaeb3","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":29,"box":{"x":265,"y":111,"width":641,"height":11}},{"id":"676dbb51-5115-4c11-b782-152df584a821","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":29,"box":{"x":264,"y":126,"width":602,"height":11}},{"id":"1610d439-1813-47f5-b257-4b6ff402db82","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":29,"box":{"x":264,"y":141,"width":617,"height":11}},{"id":"482ad053-627f-4310-aa1c-d6f0aea40473","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":29,"box":{"x":265,"y":156,"width":629,"height":11}},{"id":"16aded4c-9e66-4492-8356-4daa5bd60157","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":29,"box":{"x":264,"y":171,"width":628,"height":11}},{"id":"883dd645-23ae-41c4-9a79-2dd6721e2107","block_type":"box","text":"ar ticles and books on these topics.","page_number":29,"box":{"x":265,"y":187,"width":251,"height":10}},{"id":"b0088e42-3258-4af0-a7e1-e75f33b4ea69","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":29,"box":{"x":70,"y":209,"width":764,"height":11}},{"id":"54096df4-47bf-4647-be4b-016b61703563","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":29,"box":{"x":265,"y":224,"width":642,"height":11}},{"id":"c7cf00c9-5a28-4b11-a575-dd0150feedbb","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":29,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"5a3d81d8-517e-44ae-b5dc-912d8f01994b","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":29,"box":{"x":265,"y":254,"width":603,"height":12}},{"id":"ac58a1da-d99a-47ad-aef2-d5067910339c","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":29,"box":{"x":265,"y":269,"width":629,"height":12}},{"id":"e0f5361f-7851-484c-af87-b404c56b7620","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":29,"box":{"x":70,"y":292,"width":804,"height":11}},{"id":"ddbea765-9d34-4abf-a86b-17252db5a669","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":29,"box":{"x":265,"y":307,"width":552,"height":11}},{"id":"110f7f5f-4b40-4ae4-8900-b5c2c0062c85","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":29,"box":{"x":265,"y":322,"width":636,"height":12}},{"id":"b6b051cb-b71d-48c2-99f9-49241caa245b","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":29,"box":{"x":265,"y":338,"width":639,"height":11}},{"id":"ebe86f82-8f43-4d54-8ecb-e127fd8645e0","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":29,"box":{"x":265,"y":353,"width":576,"height":11}},{"id":"fde562db-4cd8-49ab-b252-53a1501b1f10","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":29,"box":{"x":265,"y":368,"width":626,"height":11}},{"id":"b284bfde-6078-4965-a2ac-1dc274d250d3","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":29,"box":{"x":265,"y":383,"width":592,"height":11}},{"id":"22b6092b-bc16-4443-9e91-4c0efffdbdf9","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":29,"box":{"x":265,"y":398,"width":629,"height":11}},{"id":"64c3933e-6ca5-492c-89cd-150000fb6e51","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":29,"box":{"x":265,"y":413,"width":626,"height":11}},{"id":"9103a9dc-c3e0-478a-9049-b3459b175fad","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":29,"box":{"x":264,"y":428,"width":608,"height":12}},{"id":"e78cfba9-c161-4077-b000-48d21d0376a3","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":29,"box":{"x":265,"y":443,"width":575,"height":12}},{"id":"d7fe79e7-33c4-4678-803d-8f566fc48cd4","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":29,"box":{"x":264,"y":459,"width":591,"height":11}},{"id":"4b70d7af-5ba0-43cb-a35f-f2a9a3234446","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":29,"box":{"x":265,"y":474,"width":627,"height":11}},{"id":"24ff959a-2bcf-47fb-ade9-3fc7605a026b","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":29,"box":{"x":265,"y":489,"width":578,"height":11}},{"id":"459e75b5-2c84-43c2-a936-f66a09d1458a","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":29,"box":{"x":265,"y":504,"width":607,"height":11}},{"id":"2efd7e96-917e-47a0-b537-4acb52a3f984","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":29,"box":{"x":265,"y":519,"width":615,"height":11}},{"id":"edd1ecbc-7904-4d1f-baf7-3e32445b4404","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":29,"box":{"x":265,"y":534,"width":638,"height":11}},{"id":"6afb257c-2b85-41ae-a2c4-e11f2e861f1b","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":29,"box":{"x":265,"y":549,"width":635,"height":11}},{"id":"dd33f6d4-be53-4e72-908c-96b4972218e8","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":29,"box":{"x":265,"y":564,"width":642,"height":12}},{"id":"61bacf72-6691-45e1-b14c-4bf9e6a9d4cf","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":29,"box":{"x":265,"y":580,"width":627,"height":11}},{"id":"0ff2ae22-10ba-43f3-9793-72d53c130d6e","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":29,"box":{"x":265,"y":595,"width":628,"height":11}},{"id":"631af7ce-d2fa-43ea-ab94-5904b14957a6","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":29,"box":{"x":265,"y":610,"width":460,"height":11}},{"id":"9beab026-f5b4-403e-9c10-c66dd31067f4","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":29,"box":{"x":70,"y":632,"width":818,"height":12}},{"id":"060124c5-c605-4199-a623-3cc949fd6a40","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":29,"box":{"x":264,"y":647,"width":603,"height":12}},{"id":"1f0e830c-e0fa-4fb2-ac1f-f6562189c3a5","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":29,"box":{"x":265,"y":663,"width":606,"height":11}},{"id":"4ae41e86-b8e0-4747-9b38-788c089945ad","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":29,"box":{"x":265,"y":678,"width":608,"height":9}},{"id":"d6a42adb-ad0c-4d99-80dd-1bb77dfeed24","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":29,"box":{"x":265,"y":693,"width":626,"height":11}},{"id":"6a059c30-668d-461b-898b-1d92b33c55db","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":29,"box":{"x":265,"y":708,"width":591,"height":11}},{"id":"fbaea986-dd07-4080-8587-0644cad35a92","block_type":"box","text":"various private and non-profit boards.","page_number":29,"box":{"x":264,"y":723,"width":265,"height":11}},{"id":"2f371adc-dcb5-4a36-bbcc-08adc98bed0d","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":29,"box":{"x":70,"y":746,"width":807,"height":11}},{"id":"70a38043-ea38-458a-bf21-411472680df3","block_type":"box","text":"companies, most recently as a member of the boards of cer tain BlackRock-advised Funds","page_number":29,"box":{"x":264,"y":761,"width":641,"height":11}},{"id":"6d6fb33f-a286-4803-9c47-9a1cf06c2631","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":29,"box":{"x":265,"y":776,"width":618,"height":11}},{"id":"3383b894-d1dd-4a48-a64f-ee6f70571250","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":29,"box":{"x":265,"y":791,"width":594,"height":11}},{"id":"fd013889-6b4a-4ad2-aa30-1a4141eea031","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":29,"box":{"x":265,"y":806,"width":639,"height":12}},{"id":"0cf41a6f-7b73-4c2a-bdb4-68bcdccd8f6f","block_type":"box","text":"be an audit committee financial exper t, as such term is defined in the applicable","page_number":29,"box":{"x":265,"y":821,"width":575,"height":11}},{"id":"2af825f9-5a8f-4f83-b529-a6bd7daa8282","block_type":"box","text":"Commission rules.","page_number":29,"box":{"x":265,"y":837,"width":131,"height":8}},{"id":"89086e20-0785-406a-aa90-96fae2e168da","block_type":"box","text":"I-13","page_number":29,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"dcf7f376-279f-4a50-850d-909f7e99a442","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"26f3838d-1ea9-4ed7-89f4-646cef52d4bc","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":30,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"f8b25cc0-b2b3-4f2e-a467-6c7023f023db","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":30,"box":{"x":69,"y":65,"width":808,"height":12}},{"id":"19fa0758-1c78-43a3-b3da-4c4edb77b274","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liber ty Square Asset","page_number":30,"box":{"x":265,"y":81,"width":630,"height":11}},{"id":"9cacbce5-7c50-4582-80d0-592603de8683","block_type":"box","text":"Management, LP from 1998 to 2015, an investment manager that specialized in long/","page_number":30,"box":{"x":265,"y":96,"width":618,"height":11}},{"id":"08e38889-2593-4289-ac6d-9dc350c97706","block_type":"box","text":"shor t non-U.S. equity investments, and was an owner and General Par tner of Neon Liber ty","page_number":30,"box":{"x":265,"y":111,"width":643,"height":11}},{"id":"f070ede2-58a7-486a-ac15-ba350f76dbc2","block_type":"box","text":"Capital Management, LLC from 2003 to 2023, a firm focusing on long/shor t equities in","page_number":30,"box":{"x":265,"y":126,"width":624,"height":11}},{"id":"6064eece-0d2c-488b-985e-b04591a7cee4","block_type":"box","text":"global emerging and frontier markets. These positions have provided her with insight and","page_number":30,"box":{"x":264,"y":141,"width":634,"height":11}},{"id":"e82a0523-8f61-489c-9d07-9d8b57a7a31a","block_type":"box","text":"perspective on the markets and the economy. Ms. Walton has been determined by the","page_number":30,"box":{"x":265,"y":156,"width":614,"height":11}},{"id":"93ab8f59-f76c-4648-936f-05dc43f94834","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":30,"box":{"x":264,"y":171,"width":641,"height":11}},{"id":"132aefed-f1b9-4bfd-8b90-220af1f97ac0","block_type":"box","text":"applicable Commission rules.","page_number":30,"box":{"x":265,"y":186,"width":208,"height":11}},{"id":"ea13f2a4-c703-435b-9c8a-fb18290d8cb0","block_type":"box","text":"Trustees Elect","page_number":30,"box":{"x":70,"y":209,"width":101,"height":9}},{"id":"7d80bedd-e7ea-47b3-841e-19ecc5307f55","block_type":"box","text":"Jeffrey Jarczyk Mr. Jarczyk is a CPA and has more than 30 years of experience in the financial services","page_number":30,"box":{"x":69,"y":224,"width":818,"height":11}},{"id":"4dd92e65-20d9-430e-a794-1611d6e313cd","block_type":"box","text":"industry, including over 19 years at Fidelity Investments, where he served, at different","page_number":30,"box":{"x":265,"y":239,"width":614,"height":12}},{"id":"83a9b681-5696-4e4b-9fa9-6cc0b82c3ec1","block_type":"box","text":"times, as the Chief Auditor and the Chief Accounting Officer of Fidelity Investments’","page_number":30,"box":{"x":264,"y":254,"width":594,"height":12}},{"id":"d40641c4-8b6c-47ea-beab-9ce4de008c5e","block_type":"box","text":"parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a par tner at","page_number":30,"box":{"x":265,"y":270,"width":586,"height":11}},{"id":"1e205037-2abf-4000-9348-a59136b82109","block_type":"box","text":"Deloitte and Ar thur Andersen for approximately 17 years. These positions have allowed","page_number":30,"box":{"x":265,"y":285,"width":620,"height":11}},{"id":"32d8d917-a52f-48d6-91cd-947fcc8758cf","block_type":"box","text":"him to work extensively with audit and risk committees and company executives helping to","page_number":30,"box":{"x":265,"y":300,"width":643,"height":11}},{"id":"8987ff14-3ba1-42eb-a7bf-2b5c536927c9","block_type":"box","text":"identify, manage and mitigate risks for financial services companies.","page_number":30,"box":{"x":265,"y":315,"width":488,"height":11}},{"id":"9b216476-9dc3-4ab3-95ee-16fdbaead5f0","block_type":"box","text":"Marc D. Stern Mr. Stern has more than 30 years of experience in investing and asset management.","page_number":30,"box":{"x":70,"y":338,"width":800,"height":11}},{"id":"aaf8e38e-7b15-4a8c-93cb-5572cd297ae6","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":30,"box":{"x":265,"y":353,"width":638,"height":11}},{"id":"f9ddc797-cb22-4660-9c66-33d1cbff768a","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":30,"box":{"x":265,"y":368,"width":608,"height":11}},{"id":"b15da09d-34d0-4305-af53-bea59a037af7","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":30,"box":{"x":264,"y":383,"width":645,"height":10}},{"id":"6114a20e-3075-45c2-965f-eb6ffde73c67","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":30,"box":{"x":264,"y":398,"width":639,"height":9}},{"id":"8ccbaaee-52a2-42cf-94a7-fc0833976f79","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":30,"box":{"x":264,"y":413,"width":573,"height":11}},{"id":"6eaa62fe-b39e-4f96-b49e-73737065d280","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":30,"box":{"x":265,"y":428,"width":625,"height":12}},{"id":"1ab1158f-936f-4003-84fb-3ea5be40ce44","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. 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Montgomery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":35,"box":{"x":79,"y":314,"width":517,"height":11}},{"id":"1121c08f-01fe-40e0-adf7-4e9d97c50205","block_type":"box","text":"None Over $100,000","page_number":35,"box":{"x":666,"y":313,"width":228,"height":11}},{"id":"03eed0e0-5ebd-4b87-bbcd-be6f3e0129be","block_type":"box","text":"Donald C. 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Urish .","page_number":35,"box":{"x":79,"y":374,"width":126,"height":9}},{"id":"1e9c676a-c9e4-4b76-a791-e85712d25b2d","block_type":"box","text":"................................................","page_number":35,"box":{"x":211,"y":382,"width":385,"height":1}},{"id":"7463235a-6c14-4304-900f-be3a5f360ea8","block_type":"box","text":"None Over $100,000","page_number":35,"box":{"x":666,"y":373,"width":228,"height":12}},{"id":"62d76c89-d0df-4144-9901-218432c3b8be","block_type":"box","text":"Claire A. Walton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":35,"box":{"x":79,"y":389,"width":517,"height":9}},{"id":"1bb94a4d-086c-4747-b6f7-e33cea679170","block_type":"box","text":"None Over $100,000","page_number":35,"box":{"x":666,"y":389,"width":228,"height":11}},{"id":"ed61daac-5122-4b1c-a4bf-7c2bddcfb6a7","block_type":"box","text":"Interested Trustees","page_number":35,"box":{"x":70,"y":405,"width":138,"height":8}},{"id":"18d512f4-1e78-4956-9106-8120e88c81b5","block_type":"box","text":"Rober t Fairbairn","page_number":35,"box":{"x":79,"y":420,"width":113,"height":8}},{"id":"d8e8962d-0d5a-4ffa-96f5-7404e1b07513","block_type":"box","text":"..................................................","page_number":35,"box":{"x":195,"y":427,"width":401,"height":1}},{"id":"0dcdc9cb-d991-4783-a052-0ac1a4287690","block_type":"box","text":"None Over $100,000","page_number":35,"box":{"x":666,"y":419,"width":228,"height":11}},{"id":"9b81324d-f17f-4f52-ba02-4794fb15a11b","block_type":"box","text":"John M. Perlowski","page_number":35,"box":{"x":78,"y":435,"width":127,"height":9}},{"id":"deabccbf-4e3e-4d21-ad2b-58269c937c90","block_type":"box","text":"................................................","page_number":35,"box":{"x":211,"y":442,"width":385,"height":1}},{"id":"7106244e-e427-4369-b985-e2dd346af399","block_type":"box","text":"None Over $100,000","page_number":35,"box":{"x":666,"y":434,"width":228,"height":11}},{"id":"a510a3da-9111-4d1b-95b5-56e8612e0036","block_type":"box","text":"As of April 2, 2026, the Trustees and officers of the Trust as a group directly or indirectly beneficially owned an","page_number":35,"box":{"x":101,"y":458,"width":792,"height":12}},{"id":"b1045d66-487c-4364-9129-5f1710ac2669","block_type":"box","text":"aggregate of less than 1% of any class of the outstanding shares of the Fund. As of December 31, 2025, none of the","page_number":35,"box":{"x":69,"y":474,"width":837,"height":11}},{"id":"27fd0e8e-97cf-48d1-a2a5-a6bb5620f9f4","block_type":"box","text":"Independent Trustees of the Trust or their immediate family members owned beneficially or of record any securities of","page_number":35,"box":{"x":70,"y":489,"width":840,"height":11}},{"id":"6777f3f0-78f2-4b32-932f-7ae3dc508bff","block_type":"box","text":"the Fund’s investment adviser, principal underwriter, or any person directly or indirectly controlling, controlled by, or","page_number":35,"box":{"x":68,"y":504,"width":821,"height":11}},{"id":"5d648040-561f-48dc-a8a7-3e89973c340a","block_type":"box","text":"under common control with such entities.","page_number":35,"box":{"x":69,"y":519,"width":293,"height":9}},{"id":"84627bbf-3e4e-4bfe-a5f5-b1a7af6f3f60","block_type":"box","text":"Compensation of Trustees","page_number":35,"box":{"x":69,"y":549,"width":190,"height":11}},{"id":"e61c2e89-f2b3-49a2-a144-b4d6bb975699","block_type":"box","text":"Each Trustee who is an Independent Trustee is paid as compensation an annual retainer of $375,000 per year","page_number":35,"box":{"x":102,"y":571,"width":791,"height":12}},{"id":"956b5a3d-a46b-47b9-9643-e579a2fea578","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":35,"box":{"x":68,"y":587,"width":810,"height":11}},{"id":"3269fb9e-edd6-49af-a43c-c71833033e03","block_type":"box","text":"including the Trust and MIP, and a $20,000 board meeting fee to be paid for each in-person board meeting attended","page_number":35,"box":{"x":70,"y":601,"width":828,"height":12}},{"id":"d7b9cb62-0a34-4f6b-ab7f-8aafd60f91ea","block_type":"box","text":"(and may receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings","page_number":35,"box":{"x":69,"y":617,"width":811,"height":12}},{"id":"e517418c-58c3-41af-adfb-139176b8e1c5","block_type":"box","text":"held in a calendar year (compensation for meetings in excess of this number to be determined on a case-by-case","page_number":35,"box":{"x":69,"y":632,"width":805,"height":12}},{"id":"db1df6cf-840c-4958-8f21-613caa42525f","block_type":"box","text":"basis), together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":35,"box":{"x":69,"y":647,"width":838,"height":12}},{"id":"7f367589-bb56-4e1b-af89-82ac49d932ff","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":35,"box":{"x":69,"y":663,"width":769,"height":11}},{"id":"b87dbe6b-5598-4922-8534-e786ef4bec7e","block_type":"box","text":"Committee and Per formance Oversight Committee are paid as compensation an additional annual retainer of","page_number":35,"box":{"x":69,"y":678,"width":778,"height":11}},{"id":"37de525b-6be5-41e0-af73-75a921a7e029","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":35,"box":{"x":69,"y":692,"width":689,"height":12}},{"id":"27bf6a26-6e9c-438d-9dd4-d8fe02d6b22c","block_type":"box","text":"Each Trustee Elect currently serves as a consultant to the Independent Trustees in the per formance of the","page_number":35,"box":{"x":102,"y":715,"width":761,"height":12}},{"id":"5b47ab7b-3a77-431f-b11d-13ab996eca73","block_type":"box","text":"Independent Trustees’ duties to the Trust and is paid compensation at the same rate as the compensation paid to","page_number":35,"box":{"x":70,"y":731,"width":816,"height":11}},{"id":"4f42b1ea-4ec2-40ce-b277-1cec20371d77","block_type":"box","text":"any Independent Trustees who are not the Chair of the Board or a Chair of a Committee. This compensation","page_number":35,"box":{"x":69,"y":746,"width":768,"height":11}},{"id":"81ae6ef5-40c1-4ef2-96b6-93796fa8cc4a","block_type":"box","text":"arrangement will continue until July 1, 2026, when each Trustee Elect is expected to begin serving as an","page_number":35,"box":{"x":69,"y":761,"width":747,"height":11}},{"id":"198726f6-0a08-4140-82ab-578736c65dbd","block_type":"box","text":"Independent Trustee and will be compensated in a manner similar to other Independent Trustees.","page_number":35,"box":{"x":70,"y":776,"width":695,"height":11}},{"id":"af3f2468-5757-4f7d-a874-8eba7187c089","block_type":"box","text":"The following table sets for th the compensation MIP paid to the Trustees on behalf of the Master Por tfolio, for","page_number":35,"box":{"x":101,"y":799,"width":788,"height":11}},{"id":"c492ba8c-cc37-4a78-9d86-23f430bb26e4","block_type":"box","text":"the fiscal year ended December 31, 2025, and the aggregate compensation paid to them by all BlackRock-advised","page_number":35,"box":{"x":68,"y":814,"width":817,"height":11}},{"id":"379383b8-33a3-4771-a77c-d2c511a8a905","block_type":"box","text":"Funds for the calendar year ended December 31, 2025. The Trustees received no additional compensation from the","page_number":35,"box":{"x":70,"y":829,"width":826,"height":11}},{"id":"6cccd850-5aa9-45cf-bb04-5f1bd9120452","block_type":"box","text":"Trust on behalf of the Fund.","page_number":35,"box":{"x":68,"y":844,"width":196,"height":9}},{"id":"b7c177e0-404f-4472-90ed-5b72a3d5fe71","block_type":"box","text":"I-19","page_number":35,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"e5a58273-126e-4bee-a313-c602a92d342e","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"60e611d1-7da2-4b21-977e-ffe906e13914","block_type":"box","text":"Name","page_number":36,"box":{"x":69,"y":89,"width":32,"height":7}},{"id":"45675093-1a6a-4621-a18d-4bc93ba9d2a5","block_type":"box","text":"Compensation","page_number":36,"box":{"x":484,"y":79,"width":82,"height":9}},{"id":"2c9ad832-2dca-46a2-9e32-151dde26dee6","block_type":"box","text":"from the Master Portfolio","page_number":36,"box":{"x":451,"y":89,"width":148,"height":7}},{"id":"262afd4f-3224-468a-9738-222a459902a6","block_type":"box","text":"Estimated Annual","page_number":36,"box":{"x":630,"y":69,"width":101,"height":7}},{"id":"aaf2c273-2f1e-41ca-b935-2948cb0d996b","block_type":"box","text":"Benefits upon","page_number":36,"box":{"x":641,"y":79,"width":79,"height":9}},{"id":"9241e35e-819e-45f1-9ce4-c55665d1ce6a","block_type":"box","text":"Retirement","page_number":36,"box":{"x":648,"y":89,"width":65,"height":7}},{"id":"2df437a8-e908-43c9-882c-d6262035f819","block_type":"box","text":"Aggregate Compensation","page_number":36,"box":{"x":761,"y":49,"width":148,"height":9}},{"id":"ae1dc549-b282-408e-8d5f-da2eb023d2bf","block_type":"box","text":"from the Master","page_number":36,"box":{"x":788,"y":59,"width":95,"height":7}},{"id":"be6c77ac-37c7-4474-8c60-32c1d15460ca","block_type":"box","text":"Portfolio and","page_number":36,"box":{"x":799,"y":69,"width":73,"height":7}},{"id":"6523ddeb-bc29-40d1-b8da-adf186f17b1c","block_type":"box","text":"Other BlackRock","page_number":36,"box":{"x":785,"y":79,"width":102,"height":7}},{"id":"97d721c1-32a5-45bc-9934-e4760e506554","block_type":"box","text":"Advised Funds","page_number":36,"box":{"x":791,"y":89,"width":84,"height":7}},{"id":"59a0367b-ed3d-4567-a330-15dc891325ea","block_type":"box","text":"1","page_number":36,"box":{"x":876,"y":89,"width":3,"height":4}},{"id":"7c2c95de-79a4-4247-a62f-b25be25fc220","block_type":"box","text":"Independent Trustees","page_number":36,"box":{"x":70,"y":107,"width":154,"height":11}},{"id":"32dfd1c7-14f5-497a-8e68-1e9f4b7bbad9","block_type":"box","text":"Christopher J. 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Car ter . .","page_number":36,"box":{"x":79,"y":137,"width":129,"height":9}},{"id":"df2800ed-0ef4-42ae-ae27-ba3770d99f2e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . $2,379","page_number":36,"box":{"x":215,"y":137,"width":336,"height":11}},{"id":"9b6292a6-b0fe-447b-8e6a-2010d193c2c5","block_type":"box","text":"None $445,000","page_number":36,"box":{"x":663,"y":137,"width":208,"height":11}},{"id":"b7ab234c-d14e-4ff1-b64a-9cfc6db6cdb9","block_type":"box","text":"Collette Chilton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,379","page_number":36,"box":{"x":79,"y":152,"width":472,"height":11}},{"id":"8b304713-3a76-41dc-b57d-cfd32a443ea8","block_type":"box","text":"None $445,000","page_number":36,"box":{"x":663,"y":152,"width":208,"height":11}},{"id":"e90054a6-2b4f-425e-b63d-7416c250808d","block_type":"box","text":"Neil A. Cotty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,451","page_number":36,"box":{"x":79,"y":167,"width":472,"height":12}},{"id":"2568c47c-a51f-47d1-a379-26db54a6f477","block_type":"box","text":"None $467,500","page_number":36,"box":{"x":663,"y":167,"width":208,"height":11}},{"id":"a6b2b5d5-d33e-46ec-a5b2-42cc0b91089e","block_type":"box","text":"Henry R. Keizer","page_number":36,"box":{"x":79,"y":183,"width":109,"height":11}},{"id":"f3aca4cb-a913-4624-8baf-326513e03107","block_type":"box","text":"2","page_number":36,"box":{"x":189,"y":183,"width":4,"height":4}},{"id":"d07eac2f-c735-4db5-8e6b-be9ff1d7554b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,607","page_number":36,"box":{"x":198,"y":182,"width":353,"height":11}},{"id":"0117f39b-b65b-44cd-9e06-3cf619260c0d","block_type":"box","text":"None $490,000","page_number":36,"box":{"x":663,"y":182,"width":208,"height":11}},{"id":"be478eb4-e07c-4387-b1f8-aa69eca239b5","block_type":"box","text":"Cynthia A. Montgomery","page_number":36,"box":{"x":79,"y":198,"width":164,"height":11}},{"id":"38575080-ce7a-45b1-b46b-5f1d25edf161","block_type":"box","text":"3","page_number":36,"box":{"x":244,"y":198,"width":4,"height":5}},{"id":"e74e6f66-db00-43db-8a40-c85597f32e83","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . $2,607","page_number":36,"box":{"x":255,"y":197,"width":296,"height":11}},{"id":"759a7346-dda4-4311-ba08-5cbdf684893a","block_type":"box","text":"None $490,000","page_number":36,"box":{"x":663,"y":197,"width":208,"height":11}},{"id":"5e68570d-9646-41c7-ac2c-45f4c47f9d63","block_type":"box","text":"Donald C. Opatrny","page_number":36,"box":{"x":79,"y":213,"width":129,"height":11}},{"id":"0ff10ad3-4f04-438e-aec9-844c7b53b548","block_type":"box","text":"4","page_number":36,"box":{"x":208,"y":213,"width":4,"height":5}},{"id":"05e97c8f-c3f5-43a2-a6a8-ec5e9661bad9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . $2,607","page_number":36,"box":{"x":215,"y":212,"width":336,"height":11}},{"id":"1049b5c2-e498-46c6-8415-f990c589f8a8","block_type":"box","text":"None $490,000","page_number":36,"box":{"x":663,"y":212,"width":208,"height":11}},{"id":"fe8b7383-b0ea-4daa-9de6-be0d78b8296b","block_type":"box","text":"Lori Richards","page_number":36,"box":{"x":79,"y":228,"width":91,"height":9}},{"id":"cb922d0d-7179-4186-a257-6b23f0539551","block_type":"box","text":"5","page_number":36,"box":{"x":172,"y":228,"width":4,"height":5}},{"id":"7a286faa-4055-49bc-8bf6-a21b1b112586","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,379","page_number":36,"box":{"x":182,"y":227,"width":369,"height":11}},{"id":"8cdab6a5-a2bc-4320-b30c-b0e8df78b4ea","block_type":"box","text":"None $445,000","page_number":36,"box":{"x":663,"y":227,"width":208,"height":11}},{"id":"bfeb98e0-0a10-4f51-aa17-ddd10e46928d","block_type":"box","text":"Mark Stalnecker","page_number":36,"box":{"x":79,"y":243,"width":115,"height":9}},{"id":"eb7c9bb9-6404-4219-8c48-1c1aa3d092a9","block_type":"box","text":"5","page_number":36,"box":{"x":195,"y":244,"width":4,"height":4}},{"id":"1a2d7276-07e3-486e-80b6-6da609e7dd11","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $3,138","page_number":36,"box":{"x":206,"y":242,"width":346,"height":12}},{"id":"3502e3d7-d46a-4c54-9ce1-4b65d4f6b5b5","block_type":"box","text":"None $595,000","page_number":36,"box":{"x":663,"y":242,"width":208,"height":12}},{"id":"1cf4d250-d698-403c-85ac-68be30669365","block_type":"box","text":"Kenneth L. Urish . . .","page_number":36,"box":{"x":79,"y":258,"width":146,"height":9}},{"id":"85d18a6c-9023-4edc-88e9-aa94f720ee61","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . $2,379","page_number":36,"box":{"x":231,"y":258,"width":320,"height":11}},{"id":"ff53441c-195d-4c3c-93e5-ebee7f4f70b0","block_type":"box","text":"None $445,000","page_number":36,"box":{"x":663,"y":258,"width":208,"height":11}},{"id":"eafa68de-9be2-4c81-bd76-5a487ffa8b1b","block_type":"box","text":"Claire A. 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None","page_number":36,"box":{"x":198,"y":304,"width":345,"height":9}},{"id":"57c6ff66-3cd6-4492-8202-3bfde539cb4f","block_type":"box","text":"None None","page_number":36,"box":{"x":663,"y":304,"width":190,"height":9}},{"id":"92d42114-10f1-405f-be44-4920bf8ddb69","block_type":"box","text":"John M. Perlowski","page_number":36,"box":{"x":78,"y":319,"width":127,"height":9}},{"id":"474e60c5-2069-41ec-9a14-01487b37c2a8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":36,"box":{"x":215,"y":319,"width":328,"height":9}},{"id":"9314ef18-01bf-49c2-b7df-b6692a1d564d","block_type":"box","text":"None None","page_number":36,"box":{"x":663,"y":319,"width":190,"height":9}},{"id":"0a59c481-0df7-4fff-bf3a-77e514be4988","block_type":"box","text":"1","page_number":36,"box":{"x":69,"y":343,"width":3,"height":4}},{"id":"309827f8-9d49-49ca-a564-b88ddfa3ec06","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Trustee receives compensation, see “Biographical Information” beginning on","page_number":36,"box":{"x":94,"y":343,"width":786,"height":9}},{"id":"122cf6b2-fb5e-426e-a021-b68c57fa87be","block_type":"box","text":"page I-15.","page_number":36,"box":{"x":94,"y":353,"width":55,"height":9}},{"id":"66be05f1-3f25-4e5c-ace2-df01220c85c5","block_type":"box","text":"2","page_number":36,"box":{"x":69,"y":366,"width":3,"height":3}},{"id":"55227d55-46d6-44f5-9db3-c272fa18d4f5","block_type":"box","text":"Chair of the Audit Committee.","page_number":36,"box":{"x":93,"y":366,"width":168,"height":7}},{"id":"350afe66-11f5-4361-89a3-33a98b2f6c1f","block_type":"box","text":"3","page_number":36,"box":{"x":69,"y":379,"width":3,"height":3}},{"id":"14210ac1-8675-471f-8cd1-3e756325e20b","block_type":"box","text":"Chair of the Governance Committee.","page_number":36,"box":{"x":93,"y":378,"width":206,"height":8}},{"id":"2dc7e365-8c21-424f-9c4a-ab2b8f47e2cd","block_type":"box","text":"4","page_number":36,"box":{"x":68,"y":391,"width":4,"height":4}},{"id":"ec1809de-fb44-434e-9b04-a23364a7c623","block_type":"box","text":"Chair of the Per formance Oversight Committee.","page_number":36,"box":{"x":93,"y":391,"width":269,"height":9}},{"id":"0c27c15d-22d4-4f77-af9e-98f7f63cfb6b","block_type":"box","text":"5","page_number":36,"box":{"x":69,"y":404,"width":3,"height":3}},{"id":"8f7987d1-1fa5-48de-9aea-e28c66f3dd27","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":36,"box":{"x":93,"y":404,"width":352,"height":8}},{"id":"a09020a2-b0a2-437f-ad4e-a0cdad1294ee","block_type":"box","text":"6","page_number":36,"box":{"x":69,"y":416,"width":3,"height":4}},{"id":"e4063bf9-2b66-4b0e-a26d-7549484719b1","block_type":"box","text":"Chair of the Compliance Committee.","page_number":36,"box":{"x":93,"y":416,"width":205,"height":9}},{"id":"0f39e2af-57f1-4809-b107-837070601bac","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":36,"box":{"x":69,"y":445,"width":432,"height":11}},{"id":"3442f3fa-d2b9-4161-aeac-bd07b6858259","block_type":"box","text":"Investment Adviser","page_number":36,"box":{"x":69,"y":475,"width":140,"height":9}},{"id":"108c4f9e-b714-4bb7-a457-7d82cdb0393e","block_type":"box","text":"BFA provides investment advisory services to the Master Por tfolio pursuant to an investment advisory contract","page_number":36,"box":{"x":102,"y":498,"width":790,"height":11}},{"id":"f997c59d-94f5-49dd-9ee9-ac16d63eaaf4","block_type":"box","text":"(the “Advisory Contract”) with MIP. Pursuant to the Advisory Contract, BFA furnishes to MIP’s Board of Trustees","page_number":36,"box":{"x":69,"y":513,"width":793,"height":11}},{"id":"925efda2-f4ef-4786-84bf-720a08bde24a","block_type":"box","text":"periodic repor ts on the investment strategy and per formance of the Master Por tfolio.","page_number":36,"box":{"x":70,"y":528,"width":604,"height":11}},{"id":"e0aabe99-fc64-4c25-9f8d-932ac83d52fc","block_type":"box","text":"BFA is an indirect wholly-owned subsidiary of BlackRock, Inc.","page_number":36,"box":{"x":102,"y":550,"width":430,"height":12}},{"id":"16866999-ec97-45a5-bf9c-1d5742358ada","block_type":"box","text":"The Advisory Contract is subject to annual approval by (i) MIP’s Board of Trustees or (ii) vote of a majority (as","page_number":36,"box":{"x":101,"y":573,"width":778,"height":11}},{"id":"2914a1c0-5cae-49fe-a20e-476cba3a8c3e","block_type":"box","text":"defined in the Investment Company Act) of the outstanding voting interests of the Master Por tfolio, provided that in","page_number":36,"box":{"x":69,"y":588,"width":819,"height":12}},{"id":"bcb6674f-7e37-47af-9cbf-773af2fbc906","block_type":"box","text":"either event the continuance also is approved by a majority of the Independent Trustees of MIP, by a vote cast in","page_number":36,"box":{"x":69,"y":603,"width":801,"height":12}},{"id":"d3b83ba1-a669-4730-824e-9cd9b4eb2997","block_type":"box","text":"person at a meeting called for the purpose of voting on such approval. The Advisory Contract is terminable without","page_number":36,"box":{"x":70,"y":618,"width":815,"height":12}},{"id":"30c8c1e6-d132-47f1-9895-5b14026ddf26","block_type":"box","text":"penalty on 60 days’ written notice by either par ty. 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$0","page_number":38,"box":{"x":331,"y":386,"width":543,"height":8}},{"id":"008dc052-77f6-4ead-bf0c-c13d8da0c573","block_type":"box","text":"James Mauro 135 45 4 0 0 0","page_number":38,"box":{"x":73,"y":399,"width":798,"height":7}},{"id":"81b4207a-65e4-41bc-bef5-67802646044f","block_type":"box","text":"$859.34 Billion $50.53 Billion $3.32 Billion $0 $0 $0","page_number":38,"box":{"x":331,"y":411,"width":543,"height":9}},{"id":"d9e0095c-ba6d-4d19-a911-eb8c90052a70","block_type":"box","text":"Marcus Tom 15 11 5 0 0 0","page_number":38,"box":{"x":74,"y":424,"width":797,"height":8}},{"id":"e9d0a85a-c5bb-4001-b82e-932a64a28427","block_type":"box","text":"$83.53 Billion $50.58 Billion $1.79 Billion $0 $0 $0","page_number":38,"box":{"x":335,"y":436,"width":539,"height":9}},{"id":"6c45eccb-cdc9-4bc4-a67e-0cd6ba81c1d1","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":38,"box":{"x":69,"y":471,"width":304,"height":11}},{"id":"9ac26ac0-c221-4cc2-8adc-02124cbc0f0d","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of December 31, 2025.","page_number":38,"box":{"x":101,"y":494,"width":700,"height":11}},{"id":"d35f3fce-8212-4f35-8d19-7ce2e1569d52","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":38,"box":{"x":102,"y":516,"width":774,"height":12}},{"id":"9d7e2cb9-c0ab-4543-92aa-d497a2c4fc7e","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":38,"box":{"x":70,"y":532,"width":837,"height":11}},{"id":"1e647fc3-a5c1-4855-a01c-a7c620868ba1","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":38,"box":{"x":69,"y":547,"width":823,"height":11}},{"id":"31cec94e-0067-446c-be5c-86f2b809c090","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":38,"box":{"x":69,"y":562,"width":799,"height":11}},{"id":"c5ccf588-0f52-4737-bf83-2ce18c137736","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":38,"box":{"x":70,"y":577,"width":670,"height":11}},{"id":"80816f4f-89b7-40b4-a6b6-4df1f83868b6","block_type":"box","text":"Base Compensation.","page_number":38,"box":{"x":102,"y":600,"width":148,"height":11}},{"id":"9669463c-d63c-4d57-b380-ab1db999d496","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":38,"box":{"x":257,"y":600,"width":640,"height":11}},{"id":"4a9c76bd-9c09-4f79-a48e-022d5f932a53","block_type":"box","text":"firm.","page_number":38,"box":{"x":68,"y":615,"width":32,"height":9}},{"id":"8f7c8e93-ad74-410b-a6c9-e043c3fa3b98","block_type":"box","text":"Discretionary Incentive Compensation","page_number":38,"box":{"x":69,"y":645,"width":277,"height":11}},{"id":"3eb6f63a-d5c4-405a-a2da-9894e353e967","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the per formance of BlackRock, Inc.,","page_number":38,"box":{"x":102,"y":668,"width":792,"height":11}},{"id":"bdea573f-9880-4892-9b98-445d6288f3ff","block_type":"box","text":"the per formance of the por tfolio manager’s group within BlackRock, the investment per formance, including risk","page_number":38,"box":{"x":68,"y":683,"width":800,"height":11}},{"id":"38ebd572-4089-4acc-afb9-4d1a74baabde","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that por tfolio manager relative to","page_number":38,"box":{"x":69,"y":698,"width":777,"height":11}},{"id":"a48bd1c0-6fd4-45b9-a214-8dbdd8261e48","block_type":"box","text":"predetermined benchmarks, and the individual’s per formance and contribution to the overall per formance of these","page_number":38,"box":{"x":70,"y":713,"width":817,"height":11}},{"id":"bde9d397-dc1b-407a-911e-8864c8bcd286","block_type":"box","text":"por tfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against","page_number":38,"box":{"x":70,"y":728,"width":830,"height":11}},{"id":"6a399d78-cb9f-49a9-8019-db1e35ef7615","block_type":"box","text":"which the per formance of the Fund or other accounts managed by the por tfolio managers are measured. Among","page_number":38,"box":{"x":68,"y":743,"width":801,"height":12}},{"id":"be8e4b3d-3c5c-4727-9ebf-d4f8c627b448","block_type":"box","text":"other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each por tfolio","page_number":38,"box":{"x":69,"y":758,"width":819,"height":12}},{"id":"0c607443-28bf-45c7-9347-13b206a2f427","block_type":"box","text":"manager’s compensation based on the per formance of the Fund and other accounts managed by each por tfolio","page_number":38,"box":{"x":69,"y":773,"width":797,"height":12}},{"id":"feffea4b-fd96-4b7e-83be-045d2179afb7","block_type":"box","text":"manager relative to the various benchmarks. Per formance of fixed-income funds is measured on a pre-tax and/or","page_number":38,"box":{"x":69,"y":789,"width":807,"height":11}},{"id":"010c0a16-f0d7-40a6-82c2-473544b3136d","block_type":"box","text":"after-tax basis over various time periods including 1-, 3- and 5-year periods, as applicable. With respect to these","page_number":38,"box":{"x":69,"y":804,"width":798,"height":11}},{"id":"f2af9ab6-84e2-4717-b374-c48b1315bd61","block_type":"box","text":"por tfolio managers, such benchmarks for the Fund and other accounts are:","page_number":38,"box":{"x":70,"y":819,"width":534,"height":11}},{"id":"e6efc5cc-ee50-4500-b22f-6aae5e3e4e4c","block_type":"box","text":"Portfolio Manager Benchmarks","page_number":38,"box":{"x":69,"y":847,"width":267,"height":9}},{"id":"e03f4ef6-de71-48af-b671-df3240cdd26a","block_type":"box","text":"James Mauro","page_number":38,"box":{"x":69,"y":864,"width":95,"height":9}},{"id":"9e4c8613-40a4-4805-abd7-ffce4d3f42d2","block_type":"box","text":"Marcus Tom","page_number":38,"box":{"x":70,"y":879,"width":84,"height":9}},{"id":"a7df0bd4-3a0f-417f-ba4b-b7e7409c1f24","block_type":"box","text":"A combination of market-based indices (","page_number":38,"box":{"x":264,"y":863,"width":286,"height":12}},{"id":"31fcc3b3-21a8-4142-8d58-5cc40e075e10","block_type":"box","text":"e.g.","page_number":38,"box":{"x":551,"y":865,"width":25,"height":10}},{"id":"243042f5-366c-4cde-a18d-268256cbecfa","block_type":"box","text":", Bloomberg MBS Index and the Bloomberg","page_number":38,"box":{"x":579,"y":864,"width":306,"height":11}},{"id":"4ddb1374-ca1f-43e5-a821-674921d877ba","block_type":"box","text":"U.S. TIPS 0-5 Years Index).","page_number":38,"box":{"x":265,"y":879,"width":188,"height":11}},{"id":"d2f194f0-2f13-49ea-a79d-6ff60f4ff9be","block_type":"box","text":"I-22","page_number":38,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"f08e53d8-0a39-4683-abdd-52337b1f6900","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5170dcba-36a0-4af0-bc4c-08e2a7baaf9f","block_type":"box","text":"Portfolio Manager Benchmarks","page_number":39,"box":{"x":69,"y":49,"width":267,"height":9}},{"id":"8a03dbdf-ba6f-4e4f-b4d9-6cbcd5d75b01","block_type":"box","text":"Jonathan Graves, CFA A combination of market-based indices (","page_number":39,"box":{"x":69,"y":73,"width":481,"height":11}},{"id":"b1b8e208-7701-43cf-9cbf-bf8fb29a98ed","block_type":"box","text":"e.g.,","page_number":39,"box":{"x":551,"y":74,"width":30,"height":10}},{"id":"2d4c113d-213a-49ba-acfa-b7429026a1c7","block_type":"box","text":"Bloomberg U.S. Aggregate Bond Index),","page_number":39,"box":{"x":588,"y":73,"width":279,"height":11}},{"id":"7f660cc9-11c4-43b1-b6c3-90a358ff60a8","block_type":"box","text":"cer tain customized indices and cer tain fund industry peer groups.","page_number":39,"box":{"x":264,"y":88,"width":469,"height":11}},{"id":"085b27a3-de24-49af-84e9-e6c0da46e5a0","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":39,"box":{"x":102,"y":112,"width":389,"height":11}},{"id":"e1256d2d-6a95-4ef3-8d75-3fa899a95a55","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":39,"box":{"x":499,"y":112,"width":383,"height":11}},{"id":"39ad6aff-b03b-4989-affb-9662dc61ea47","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":39,"box":{"x":70,"y":127,"width":815,"height":11}},{"id":"ac8aec85-eaa6-4071-9050-dfa12830b8ba","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":39,"box":{"x":68,"y":142,"width":522,"height":11}},{"id":"6677aaab-01cc-4e30-8429-40bc6570dcd4","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":39,"box":{"x":102,"y":165,"width":760,"height":11}},{"id":"bb392915-5d21-497b-a6c4-77066ba06623","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":39,"box":{"x":69,"y":180,"width":795,"height":11}},{"id":"1969aff6-98f4-4644-873f-29788aaa7eb3","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":39,"box":{"x":69,"y":195,"width":805,"height":11}},{"id":"84332757-98c7-44a5-b65d-b2ef81cecb8e","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":39,"box":{"x":69,"y":210,"width":822,"height":12}},{"id":"ca119bbd-a996-4f8a-955e-e032ac7fcbf6","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":39,"box":{"x":68,"y":225,"width":839,"height":12}},{"id":"b900e210-567f-4d8b-8a89-58e36699fb63","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":39,"box":{"x":69,"y":241,"width":802,"height":11}},{"id":"368c4633-0e97-4bd3-b980-81864d633e26","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":39,"box":{"x":70,"y":256,"width":820,"height":11}},{"id":"5656a8d8-8323-4c25-9a72-520bb47d9f81","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":39,"box":{"x":70,"y":271,"width":801,"height":11}},{"id":"f3821c71-f593-4340-9145-22253fa9c55f","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":39,"box":{"x":70,"y":286,"width":831,"height":11}},{"id":"bb4f33d2-3bdc-473c-bccd-d8b91c5f3166","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":39,"box":{"x":69,"y":301,"width":479,"height":11}},{"id":"59b1cee5-19c8-4c92-a44a-ced60e3237f3","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":39,"box":{"x":102,"y":324,"width":785,"height":11}},{"id":"2d575736-e79a-4e3d-b08f-3ed6bc2fe346","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":39,"box":{"x":68,"y":339,"width":836,"height":11}},{"id":"918af8aa-8a2b-430d-9e4e-0d78113bd3b4","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":39,"box":{"x":68,"y":354,"width":821,"height":11}},{"id":"2d6fe5df-166e-44bc-a8ef-32c247102bba","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":39,"box":{"x":69,"y":369,"width":829,"height":11}},{"id":"6603f386-bb63-4b97-869a-771a28671a95","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":39,"box":{"x":70,"y":384,"width":835,"height":11}},{"id":"51ae3264-1412-4330-bd70-34a1a6a386a6","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":39,"box":{"x":69,"y":399,"width":414,"height":12}},{"id":"8bc68089-bea7-488a-b908-340c2d327bb7","block_type":"box","text":"Other Compensation Benefits.","page_number":39,"box":{"x":101,"y":422,"width":218,"height":11}},{"id":"a6081086-897f-441d-ba24-d77612ff7009","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":39,"box":{"x":327,"y":422,"width":552,"height":11}},{"id":"a8975e71-e9b5-4c60-af45-5064a4a124f9","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":39,"box":{"x":69,"y":437,"width":582,"height":11}},{"id":"d4a0670d-3b9a-4c32-9d1b-b0e32b7255dc","block_type":"box","text":"Incentive Savings Plans","page_number":39,"box":{"x":102,"y":460,"width":167,"height":11}},{"id":"89370d35-76eb-4a43-974a-fe6c18926bbf","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":39,"box":{"x":274,"y":460,"width":614,"height":11}},{"id":"df357fbd-a98a-41eb-b0da-d638d5416b75","block_type":"box","text":"employees are eligible to par ticipate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":39,"box":{"x":69,"y":475,"width":831,"height":11}},{"id":"c98c905e-d8e8-4092-834b-19310f01348f","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":39,"box":{"x":70,"y":490,"width":785,"height":11}},{"id":"344b9563-3116-4c07-b230-3a73642b1047","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":39,"box":{"x":69,"y":504,"width":830,"height":12}},{"id":"c123ca82-5606-44fe-ae47-3baf2ab02f1a","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":39,"box":{"x":69,"y":520,"width":799,"height":12}},{"id":"febb08b8-58e1-4fbe-8b7e-8847eefdff17","block_type":"box","text":"($350,000 for 2025). The RSP offers a range of investment options, including registered investment companies and","page_number":39,"box":{"x":69,"y":535,"width":831,"height":12}},{"id":"ab428c07-b287-48ad-a7b1-ba2a76d37d85","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":39,"box":{"x":69,"y":550,"width":798,"height":12}},{"id":"82ac468e-a762-46b1-bc5d-5e0f87b68f08","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":39,"box":{"x":70,"y":566,"width":809,"height":11}},{"id":"31ec0fd4-b59c-4ff6-8951-1acc411443d7","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the par ticipant attains age 65. The ESPP allows for","page_number":39,"box":{"x":68,"y":581,"width":793,"height":11}},{"id":"5efb47fd-3178-4df0-bf24-788003b8ac10","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":39,"box":{"x":70,"y":596,"width":832,"height":11}},{"id":"e6cf3410-eb6f-45d5-8dc8-ebb5f7ffbd4c","block_type":"box","text":"Annual par ticipation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":39,"box":{"x":68,"y":611,"width":805,"height":11}},{"id":"cc5684aa-a091-4b2d-8918-22e971ee581c","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":39,"box":{"x":69,"y":625,"width":808,"height":12}},{"id":"0cadae71-d2b9-411b-94db-c1fd32028543","block_type":"box","text":"par ticipate in these plans.","page_number":39,"box":{"x":70,"y":641,"width":185,"height":11}},{"id":"76ed6f73-0e66-438f-a7b5-e7ebddbc7075","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":39,"box":{"x":69,"y":671,"width":268,"height":12}},{"id":"a292a001-3782-4116-be56-3d027bbd20ed","block_type":"box","text":"The following table sets for th the dollar range of equity securities of the Fund beneficially owned by each","page_number":39,"box":{"x":101,"y":694,"width":744,"height":11}},{"id":"8470f18d-6959-47ec-a7fb-1d53e74d0d8c","block_type":"box","text":"por tfolio manager of the Fund as of December 31, 2025.","page_number":39,"box":{"x":70,"y":709,"width":405,"height":11}},{"id":"1b6126e9-022f-487b-baf4-42e5307daefb","block_type":"box","text":"Portfolio Manager","page_number":39,"box":{"x":69,"y":748,"width":105,"height":8}},{"id":"60c6a1c3-d80c-4eb1-aefc-7899c3c87357","block_type":"box","text":"Dollar Range of Equity","page_number":39,"box":{"x":759,"y":737,"width":129,"height":9}},{"id":"917306e9-9b0b-4820-a6b4-c3c1f15ee827","block_type":"box","text":"Securities Beneficially Owned","page_number":39,"box":{"x":736,"y":748,"width":173,"height":8}},{"id":"ecdb6e35-9053-4816-89fd-1efdaac8702d","block_type":"box","text":"James Mauro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":39,"box":{"x":69,"y":766,"width":772,"height":8}},{"id":"7de02cc0-05ad-4b77-8540-574a85d2effc","block_type":"box","text":"Jonathan Graves, CFA . . . . . . . . . . .","page_number":39,"box":{"x":69,"y":780,"width":245,"height":11}},{"id":"7b0bafe2-ad56-4968-ad6a-1812961405d4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":39,"box":{"x":320,"y":781,"width":521,"height":8}},{"id":"6a6751c8-abd2-4d92-ae0b-c497a7f19262","block_type":"box","text":"Marcus Tom. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":39,"box":{"x":70,"y":796,"width":771,"height":8}},{"id":"215b502f-1096-45c4-b35e-350f0f34bd98","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":39,"box":{"x":69,"y":827,"width":403,"height":11}},{"id":"644f03a8-e34d-415d-bc53-33a56918004c","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":39,"box":{"x":102,"y":850,"width":727,"height":11}},{"id":"33243273-5790-4741-b643-e3ed41c3bcdb","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":39,"box":{"x":70,"y":865,"width":814,"height":11}},{"id":"2742e8a0-48aa-4b43-9bc2-d44567a0f7c2","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":39,"box":{"x":70,"y":880,"width":837,"height":11}},{"id":"3ac2fc3f-0045-4658-ba2b-e99206350ed5","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":39,"box":{"x":70,"y":895,"width":810,"height":11}},{"id":"6dacb77b-a27d-468d-95b5-263363794c2f","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":39,"box":{"x":69,"y":910,"width":782,"height":11}},{"id":"231fd1a2-bc5e-4005-9cc0-2ae010e05f0a","block_type":"box","text":"I-23","page_number":39,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"f8db89db-33c2-4ab9-a0f7-e0f4cba4c2e6","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"78f68a3b-1e57-483c-bec3-45c6676afd0b","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":40,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"e647a5d5-4aae-41d9-acc6-42e5ea23802c","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":40,"box":{"x":69,"y":60,"width":828,"height":11}},{"id":"44d82a9f-facc-4a78-a1a2-95a2bd12d9df","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":40,"box":{"x":68,"y":75,"width":834,"height":11}},{"id":"0dca711e-ed2f-42b7-af2f-b9814e91798f","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":40,"box":{"x":70,"y":90,"width":777,"height":11}},{"id":"3a2230cb-3601-42be-88df-6560d2708e1d","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":40,"box":{"x":70,"y":105,"width":821,"height":11}},{"id":"5f01da38-7c37-49e9-8fee-ad22b0018b43","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":40,"box":{"x":69,"y":120,"width":819,"height":11}},{"id":"141e5c42-aa02-4b9c-9cf4-c81af6448ddb","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":40,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"7d35b321-980e-44be-aad6-6191333b37d6","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":40,"box":{"x":68,"y":150,"width":804,"height":12}},{"id":"6418973e-6388-4c42-9ebb-253d3bfa41b3","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":40,"box":{"x":69,"y":166,"width":760,"height":11}},{"id":"12aef872-cf71-46a1-bc4c-7ea091de067c","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":40,"box":{"x":69,"y":181,"width":834,"height":11}},{"id":"269e2ca6-0f30-443b-bd31-3d8767339a13","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":40,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"69ef6760-58cf-47dd-a730-aed060069f2b","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":40,"box":{"x":69,"y":211,"width":822,"height":11}},{"id":"33c37140-041a-459a-ad40-bf2b2c583c54","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":40,"box":{"x":70,"y":226,"width":835,"height":11}},{"id":"94858271-e240-431a-8cca-25a366e374c4","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Messrs. Mauro, Graves and Tom may be","page_number":40,"box":{"x":69,"y":241,"width":837,"height":11}},{"id":"02cb52ce-10c6-4fbc-876c-0802ab1c5566","block_type":"box","text":"managing hedge fund and/or long only accounts, or may be par t of a team managing hedge fund and/or long only","page_number":40,"box":{"x":69,"y":256,"width":811,"height":12}},{"id":"cbdf3b47-9ff2-4806-9f86-465bb510e29d","block_type":"box","text":"accounts, subject to incentive fees. Messrs. Mauro, Graves and Tom may therefore be entitled to receive a por tion of","page_number":40,"box":{"x":69,"y":271,"width":838,"height":12}},{"id":"1c9189e7-5001-4f74-b82f-cb7a480654a6","block_type":"box","text":"any incentive fees earned on such accounts.","page_number":40,"box":{"x":69,"y":286,"width":316,"height":12}},{"id":"08996e72-0464-4ae4-ac93-b41d9a57637e","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":40,"box":{"x":101,"y":309,"width":788,"height":11}},{"id":"f9387792-8d43-4a0c-8f2e-d834f07e53f4","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":40,"box":{"x":70,"y":324,"width":839,"height":11}},{"id":"d0bc93b6-b373-4cb8-8cb4-b76e625129d5","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":40,"box":{"x":68,"y":339,"width":823,"height":12}},{"id":"c8ead7e3-4d59-4bae-b73b-45925c820d1c","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":40,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"232d3dac-3153-4075-95b1-5ed95691790d","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":40,"box":{"x":69,"y":370,"width":777,"height":11}},{"id":"431d991a-98f0-46bd-a1d1-bd8ad1a02ee7","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":40,"box":{"x":70,"y":385,"width":826,"height":11}},{"id":"656d97d3-67db-4ed7-99d6-b91d80f230b1","block_type":"box","text":"Accounting Services","page_number":40,"box":{"x":68,"y":415,"width":150,"height":11}},{"id":"6780d5fb-f938-4582-81d4-9ea91e900af0","block_type":"box","text":"State Street Bank and Trust Company (“State Street”), serves as the accounting services provider for the","page_number":40,"box":{"x":102,"y":438,"width":753,"height":11}},{"id":"0d5dc9ed-700d-4010-a831-735fad6a86e0","block_type":"box","text":"Master Por tfolio. State Street maintains the books of account and other financial records (other than those","page_number":40,"box":{"x":70,"y":453,"width":763,"height":11}},{"id":"1ff93c99-8a5f-431a-978c-fe87c618738f","block_type":"box","text":"maintained by the Master Por tfolio’s custodian); records general ledger entries; calculates daily net income;","page_number":40,"box":{"x":69,"y":468,"width":770,"height":11}},{"id":"ae37e0f2-6f8d-4690-aaf6-7550ba334e40","block_type":"box","text":"reconciles activity to the trial balance; calculates and publishes daily net asset value; prepares account balances;","page_number":40,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"ca4d5756-b2f7-43d5-bd4e-3d9e3fb47638","block_type":"box","text":"and provides such other accounting services as may be required. In connection with its accounting services, State","page_number":40,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"7e483d8f-f472-4766-8a38-cf789d8e3833","block_type":"box","text":"Street also provides cer tain administration services.","page_number":40,"box":{"x":69,"y":513,"width":373,"height":11}},{"id":"66a26997-a677-452f-bf3b-2329031ffdb0","block_type":"box","text":"Custodian","page_number":40,"box":{"x":69,"y":544,"width":72,"height":9}},{"id":"b99a5609-b28e-4b4d-aa99-77b6ee0350bc","block_type":"box","text":"State Street, which has its principal offices at One Congress Street, Suite 1, Boston, Massachusetts 02114-","page_number":40,"box":{"x":102,"y":566,"width":778,"height":11}},{"id":"dca9fc24-1479-4e0d-9815-8bf6fcbcac80","block_type":"box","text":"2016, is the custodian for the Fund and Master Por tfolio. The custodian, among other responsibilities, maintains a","page_number":40,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"faf2df66-ba5d-4622-8d96-431d08ec2bbd","block_type":"box","text":"custody account or accounts in the name of the Fund and the Master Por tfolio, receives and delivers all assets for","page_number":40,"box":{"x":69,"y":596,"width":816,"height":12}},{"id":"27f934d6-ca50-42f9-8e50-d584c1b484d1","block_type":"box","text":"the Fund and the Master Por tfolio upon purchase and upon sale or maturity, and collects and receives all income and","page_number":40,"box":{"x":68,"y":612,"width":838,"height":11}},{"id":"f00b0dc2-b70c-4a10-ad7a-c894a6456251","block_type":"box","text":"other payments and distributions on account of the assets of the Fund and the Master Por tfolio.","page_number":40,"box":{"x":69,"y":627,"width":685,"height":11}},{"id":"e4e84b8b-f329-4343-a7d7-a5cb1335a5ab","block_type":"box","text":"Shareholder Servicing Agents","page_number":40,"box":{"x":68,"y":657,"width":216,"height":11}},{"id":"401f912b-34ee-4b85-99ef-fe822142df8c","block_type":"box","text":"The Board of Trustees has adopted a Shareholder Servicing Plan pursuant to which the Fund has entered into","page_number":40,"box":{"x":101,"y":680,"width":783,"height":11}},{"id":"fa5bddd4-3761-4f1c-9b34-e6d41e6d84f3","block_type":"box","text":"Shareholder Servicing Agreements with BAL and other entities, and BAL may also enter into Shareholder Servicing","page_number":40,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"88903dc7-3c4f-4ea1-8bd2-45b81df6e521","block_type":"box","text":"Agreements with securities dealers, brokers, investment advisers, service providers or other industry professionals","page_number":40,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"f2ebcdc9-9ce3-4b77-a444-8926d9638ee5","block_type":"box","text":"(including BFA, BlackRock Investments, LLC (“BRIL”) and their affiliates) (collectively, “Shareholder Servicing Agents”)","page_number":40,"box":{"x":69,"y":725,"width":838,"height":11}},{"id":"487d2aad-190e-4d89-bdf8-0a3f8009525c","block_type":"box","text":"for the provision of cer tain services to Fund shareholders. The services provided by BAL or Shareholder Servicing","page_number":40,"box":{"x":68,"y":740,"width":810,"height":11}},{"id":"875fa722-9aac-4bcc-8035-e81d4e1dcd48","block_type":"box","text":"Agents may include serving as an agent of the Fund for purposes of accepting orders for purchases and redemptions","page_number":40,"box":{"x":68,"y":755,"width":835,"height":11}},{"id":"7a6401a8-ed6c-41b9-82fa-1e43af379d02","block_type":"box","text":"of Fund shares, providing administrative suppor t and account service such as processing purchases and","page_number":40,"box":{"x":69,"y":770,"width":747,"height":12}},{"id":"159b93d2-3610-4b79-baf3-a5d841ead7a8","block_type":"box","text":"redemptions of shares on behalf of individual and omnibus Fund accounts, answering shareholder inquiries, keeping","page_number":40,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"a7d29908-2883-47f3-80f8-3176193df31c","block_type":"box","text":"records, transmitting repor ts and communications from the Fund, and providing repor ts on the status of individual","page_number":40,"box":{"x":69,"y":801,"width":813,"height":11}},{"id":"d059fb3b-99fc-4130-a342-675b9936b227","block_type":"box","text":"and omnibus accounts. Shareholder Servicing Agents may provide these services, in whole or in par t, by operating","page_number":40,"box":{"x":69,"y":816,"width":818,"height":11}},{"id":"09507023-e438-4471-9786-f8160fc67a2f","block_type":"box","text":"electronic transaction systems or websites through which shareholders may obtain information or engage in purchase","page_number":40,"box":{"x":69,"y":831,"width":839,"height":11}},{"id":"790bfd21-e628-4922-8ef2-12fc4dafc0de","block_type":"box","text":"or redemption transactions of Fund shares. By operating these systems or providing other services described above,","page_number":40,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"61772923-1575-442e-926f-33d1a4d159f1","block_type":"box","text":"the Shareholder Servicing Agents make the Fund available to their clients.","page_number":40,"box":{"x":68,"y":861,"width":528,"height":11}},{"id":"f702b52b-9a05-4928-ae3b-24959761ea4f","block_type":"box","text":"A Shareholder Servicing Agent may make decisions about which investment options it will service and make","page_number":40,"box":{"x":101,"y":884,"width":770,"height":11}},{"id":"69d77b62-5a5b-4308-9918-312badbc84c3","block_type":"box","text":"available to its clients based on the payments the Shareholder Servicing Agent may be eligible to receive for its","page_number":40,"box":{"x":69,"y":899,"width":794,"height":11}},{"id":"c8c57632-aef2-4169-b67a-ea1d0e574c11","block_type":"box","text":"I-24","page_number":40,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"dd1deb73-2542-44eb-aab6-7d9b486c8a47","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"31930a47-773a-430e-ad0a-6462b8d4cafa","block_type":"box","text":"services. 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For providing some or all of these","page_number":41,"box":{"x":68,"y":158,"width":787,"height":11}},{"id":"91d97389-7cf2-4aca-a598-e9b8c113caec","block_type":"box","text":"services, each Shareholder Servicing Agent is entitled to receive a monthly fee at the annual rate of up to 0.25% of","page_number":41,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"38833d22-9ac8-455d-ae39-cae2bc1f0baa","block_type":"box","text":"the average daily net assets of the Fund represented by shares owned during the period for which payment is being","page_number":41,"box":{"x":68,"y":188,"width":824,"height":12}},{"id":"a34d3ed2-1c54-450b-9636-85713262be3b","block_type":"box","text":"made by investors with whom the Shareholder Servicing Agent maintains a servicing relationship, or an amount that","page_number":41,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"2e5553a2-c999-4445-831e-873d822d712d","block_type":"box","text":"equals the maximum amount payable to the Shareholder Servicing Agent under applicable laws, regulations or rules,","page_number":41,"box":{"x":69,"y":219,"width":831,"height":11}},{"id":"eaf352b9-a120-48f1-8e6b-b92804a98a27","block_type":"box","text":"including the Conduct Rules of the Financial Industry Regulatory Authority, Inc., whichever is less.","page_number":41,"box":{"x":70,"y":234,"width":691,"height":11}},{"id":"b7044190-efa4-41fa-92ce-b460a2d5f8fa","block_type":"box","text":"A Shareholder Servicing Agent also may impose cer tain conditions on its customers, subject to the terms of the","page_number":41,"box":{"x":101,"y":256,"width":799,"height":12}},{"id":"ee4ab32c-fe13-45b2-98c2-6df7d0e6f9e7","block_type":"box","text":"Fund’s Prospectus and this SAI, that are in addition to or different from those imposed by the Trust, such as","page_number":41,"box":{"x":70,"y":271,"width":773,"height":12}},{"id":"46e4c08e-bc4b-4a26-8281-0480ffa35105","block_type":"box","text":"requiring a minimum initial investment or payment of a separate fee for additional services.","page_number":41,"box":{"x":69,"y":286,"width":651,"height":12}},{"id":"318aa30d-99b9-4609-a5f0-a15e8df3dd63","block_type":"box","text":"Transfer and Dividend Disbursing Agent","page_number":41,"box":{"x":68,"y":317,"width":287,"height":11}},{"id":"ad1be881-4b91-4d4f-9f33-6402032dcebe","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road,","page_number":41,"box":{"x":102,"y":339,"width":764,"height":12}},{"id":"0d59978c-4122-45fc-9975-28d40351f5a3","block_type":"box","text":"Westborough, Massachusetts 01581, serves as the transfer agent and dividend disbursing agent for the Fund.","page_number":41,"box":{"x":68,"y":355,"width":792,"height":11}},{"id":"a80ebfad-79e4-4ca2-8450-4d6013af3384","block_type":"box","text":"Credit Agreement","page_number":41,"box":{"x":69,"y":385,"width":129,"height":11}},{"id":"0c887225-3e78-4bde-8724-a9b3114a9844","block_type":"box","text":"MIP, on behalf of the Master Por tfolio, along with cer tain other funds managed by the Manager and its affiliates","page_number":41,"box":{"x":102,"y":407,"width":796,"height":12}},{"id":"37233c4c-0ced-4e00-9116-3c9cc95d7ac3","block_type":"box","text":"(“Par ticipating Funds”), is a par ty to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":41,"box":{"x":69,"y":422,"width":817,"height":12}},{"id":"4d79cdf8-3bb7-45a8-b021-b25fb5bdcef3","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":41,"box":{"x":68,"y":438,"width":743,"height":11}},{"id":"5dc9834a-38b5-42cc-a715-98e93a6e7106","block_type":"box","text":"commitments designated for cer tain Par ticipating Funds, the Par ticipating Funds, including the Master Por tfolio, can","page_number":41,"box":{"x":69,"y":453,"width":829,"height":11}},{"id":"9f7f578e-690e-495e-bc8e-7946d78910e2","block_type":"box","text":"borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage","page_number":41,"box":{"x":69,"y":467,"width":819,"height":12}},{"id":"cfbf787e-86a5-41ab-a1fe-2baaac878639","block_type":"box","text":"and other limitations as specified in the Credit Agreement. The Master Por tfolio may borrow under the Credit","page_number":41,"box":{"x":69,"y":483,"width":774,"height":11}},{"id":"843763e8-b5f1-41c2-96f9-066b50e6bcbc","block_type":"box","text":"Agreement to meet shareholder redemptions and for other lawful purposes. However, the Master Por tfolio may not","page_number":41,"box":{"x":68,"y":498,"width":818,"height":11}},{"id":"91ff77e8-c41c-450f-a0ce-e752d9cf3c81","block_type":"box","text":"borrow under the Credit Agreement for leverage. The Master Por tfolio may borrow up to the maximum amount","page_number":41,"box":{"x":69,"y":513,"width":782,"height":12}},{"id":"3b9b7d13-7b20-412b-a9e3-eb9e833494f8","block_type":"box","text":"allowable under the Fund’s current Prospectuses and SAI, subject to various other legal, regulatory or contractual","page_number":41,"box":{"x":69,"y":529,"width":808,"height":11}},{"id":"63c6073f-a3a2-43ab-bcee-bffbdcf88f29","block_type":"box","text":"limits. Borrowing results in interest expense and other fees and expenses for the the Master Por tfolio which may","page_number":41,"box":{"x":70,"y":543,"width":804,"height":12}},{"id":"f13fdf88-8c66-4c67-a81c-2083ad8354ee","block_type":"box","text":"impact the Master Por tfolio’s net expenses. The costs of borrowing may reduce the Master Por tfolio’s return. The","page_number":41,"box":{"x":70,"y":559,"width":810,"height":11}},{"id":"f978f757-156b-4e9a-a9a8-7ef7b2f5bf32","block_type":"box","text":"Master Por tfolio is charged its pro rata share of upfront fees and commitment fees on the aggregate commitment","page_number":41,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"a07f84b6-8cd0-459d-a6d5-0afcf18eb80b","block_type":"box","text":"amount based on its net assets. If the Master Por tfolio borrows pursuant to the Credit Agreement, the Master","page_number":41,"box":{"x":69,"y":589,"width":786,"height":11}},{"id":"b4dbac58-cd3e-4be6-b1ad-aa7adb0eb9cd","block_type":"box","text":"Por tfolio will be charged interest at a variable rate.","page_number":41,"box":{"x":69,"y":604,"width":360,"height":11}},{"id":"7f6ef885-b6f0-4273-bdf5-a9632774ddde","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":41,"box":{"x":68,"y":634,"width":491,"height":11}},{"id":"b3227b02-6b29-4178-8a3c-fa7688665473","block_type":"box","text":"BlackRock Investments, LLC (“BRIL”) is the distributor for the Fund’s shares. BRIL is a registered broker-dealer","page_number":41,"box":{"x":102,"y":657,"width":791,"height":11}},{"id":"945571a9-17b1-491d-b0b2-4685122be37b","block_type":"box","text":"located at 50 Hudson Yards, New York, New York 10001.","page_number":41,"box":{"x":70,"y":672,"width":403,"height":11}},{"id":"f007669e-2dc5-42e5-94ec-832cb4eece68","block_type":"box","text":"The Trust has entered into a distribution agreement with BRIL in connection with the continuous offering of","page_number":41,"box":{"x":101,"y":695,"width":762,"height":11}},{"id":"c4c1152b-8f98-47e9-bce3-049d497e6fd2","block_type":"box","text":"shares of the Fund.","page_number":41,"box":{"x":69,"y":710,"width":137,"height":9}},{"id":"4360c452-6844-4af3-b8eb-e35697892175","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges “CDSCs”))","page_number":41,"box":{"x":102,"y":732,"width":769,"height":12}},{"id":"0656a078-868b-42ac-a1ba-c18d101b39bc","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“affiliates”) for the periods shown.","page_number":41,"box":{"x":69,"y":748,"width":804,"height":11}},{"id":"ae14b8f9-45ea-4766-a460-1d4001f34e2d","block_type":"box","text":"Investor P Shares","page_number":41,"box":{"x":646,"y":776,"width":102,"height":7}},{"id":"056f9e75-5ac4-40c4-97ce-53e6e3132745","block_type":"box","text":"Gross Sales","page_number":41,"box":{"x":485,"y":812,"width":68,"height":7}},{"id":"c3fd1d45-9864-4713-8ab3-d0227d80a766","block_type":"box","text":"Charges","page_number":41,"box":{"x":496,"y":822,"width":47,"height":9}},{"id":"96e93d6f-01c4-4026-a860-1fb63cbbd06e","block_type":"box","text":"Collected","page_number":41,"box":{"x":492,"y":832,"width":54,"height":7}},{"id":"557b4863-95b9-4d26-9a11-046cc04359c1","block_type":"box","text":"Sales Charges","page_number":41,"box":{"x":583,"y":812,"width":84,"height":9}},{"id":"4c2c4053-6d68-4e07-9b46-fb92d145738f","block_type":"box","text":"Retained by","page_number":41,"box":{"x":591,"y":822,"width":69,"height":9}},{"id":"b0d1f7d3-a3d7-4534-9242-a8e35a21177a","block_type":"box","text":"BRIL","page_number":41,"box":{"x":612,"y":832,"width":27,"height":7}},{"id":"9c36e174-975a-499d-aa9b-623ce6371765","block_type":"box","text":"Sales Charges","page_number":41,"box":{"x":704,"y":822,"width":84,"height":9}},{"id":"6430d771-fd56-4c7f-8da8-fe6cf345265e","block_type":"box","text":"Paid To Affiliates","page_number":41,"box":{"x":697,"y":832,"width":98,"height":7}},{"id":"1d666409-f533-4356-99a9-8c3639dccff1","block_type":"box","text":"CDSCs","page_number":41,"box":{"x":847,"y":792,"width":40,"height":7}},{"id":"6036ec36-05f6-4fdf-b499-690230bf3568","block_type":"box","text":"Received on","page_number":41,"box":{"x":832,"y":802,"width":70,"height":7}},{"id":"58cd74fc-e669-4cdd-9b40-529c3a3165e9","block_type":"box","text":"Redemption of","page_number":41,"box":{"x":826,"y":812,"width":84,"height":9}},{"id":"639b447e-eed9-4a14-8add-6419a71fa78f","block_type":"box","text":"Load-Waived","page_number":41,"box":{"x":832,"y":822,"width":71,"height":7}},{"id":"79de7df6-c7f8-4d17-9d60-937bd6c3c2b3","block_type":"box","text":"Shares","page_number":41,"box":{"x":847,"y":832,"width":40,"height":7}},{"id":"6a6fa677-5eef-473b-9883-9a5a4f251ef4","block_type":"box","text":"Fiscal Year Ended December 31, 2025.","page_number":41,"box":{"x":70,"y":850,"width":278,"height":10}},{"id":"95ed3c51-1729-4ab0-a4c1-9e2917006917","block_type":"box","text":".............","page_number":41,"box":{"x":354,"y":857,"width":100,"height":2}},{"id":"64c5fdcd-daca-4596-8a53-169033d607cc","block_type":"box","text":"$37,505 $3,500 $3,500 $0","page_number":41,"box":{"x":488,"y":849,"width":388,"height":11}},{"id":"de2a184a-d087-4f23-9dc8-c0f0c17a92ff","block_type":"box","text":"Fiscal Year Ended December 31, 2024.","page_number":41,"box":{"x":70,"y":865,"width":278,"height":10}},{"id":"666e419f-f767-4c0d-9dbb-f42d80bb375f","block_type":"box","text":".............","page_number":41,"box":{"x":354,"y":872,"width":100,"height":2}},{"id":"9914bdaa-27cf-4dbd-8884-e8dfa41d18a6","block_type":"box","text":"$24,925 $2,276 $2,276 $0","page_number":41,"box":{"x":488,"y":864,"width":388,"height":11}},{"id":"287a4af7-6597-4dfa-b8fd-f7c2b454a5cb","block_type":"box","text":"Fiscal Year Ended December 31, 2023.","page_number":41,"box":{"x":70,"y":880,"width":278,"height":10}},{"id":"e27f463c-14d5-4e7e-85ab-6876fd4b8e9f","block_type":"box","text":".............","page_number":41,"box":{"x":354,"y":887,"width":100,"height":2}},{"id":"fc8b6899-4e1b-46bc-8d5f-b4fb12e46503","block_type":"box","text":"$15,013 $1,249 $1,249 $0","page_number":41,"box":{"x":488,"y":879,"width":388,"height":11}},{"id":"b720d19a-48ab-4d22-bfe0-66a70151dacf","block_type":"box","text":"I-25","page_number":41,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"b12dd201-c2cf-4f4f-a2d5-c55fe6dcf8e3","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f4e35d21-da37-4044-ba6c-81c2e381f649","block_type":"box","text":"The Trust has adopted a Distribution Plan for Investor A and Investor P Shares pursuant to Rule 12b-1 under the","page_number":42,"box":{"x":101,"y":45,"width":800,"height":11}},{"id":"1b1065b8-7b7d-41f6-9a3a-a3e80d65c138","block_type":"box","text":"Investment Company Act (the “Plan”) pursuant to which the Investor A and Investor P Shares of the Fund pay the","page_number":42,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"ce4d4fe6-d177-4b5f-aa5c-ebd9a5ea0e7b","block_type":"box","text":"Distributor an ongoing service fee, accrued daily and paid monthly, at the annual rate of 0.25% of the average daily","page_number":42,"box":{"x":70,"y":75,"width":820,"height":11}},{"id":"778481d1-8ad8-4127-9dcd-5de59f59e8f8","block_type":"box","text":"net assets attributable to such shares. The Independent Trustees believe that there is reasonable likelihood that the","page_number":42,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"ff90d16a-0d59-4bc6-8c87-d6565b30956e","block_type":"box","text":"Plan will benefit the Fund and its Investor A and Investor P shareholders.","page_number":42,"box":{"x":69,"y":105,"width":516,"height":9}},{"id":"661831d4-c531-4d34-bffb-90c069b980c2","block_type":"box","text":"For the fiscal year ended December 31, 2025, the Fund’s Investor A and Investor P Shares bore the following","page_number":42,"box":{"x":102,"y":128,"width":780,"height":11}},{"id":"008f947e-e28c-4174-9684-2a72879d365a","block_type":"box","text":"distribution and/or service fees under the Plan:","page_number":42,"box":{"x":69,"y":143,"width":337,"height":11}},{"id":"07080af5-5afa-4137-b471-76478faf5a95","block_type":"box","text":"Class Name","page_number":42,"box":{"x":69,"y":181,"width":68,"height":7}},{"id":"eb4973b3-5843-4a74-a466-d19b7d8ca879","block_type":"box","text":"Fees Paid","page_number":42,"box":{"x":845,"y":171,"width":56,"height":7}},{"id":"b3da1fd0-49c9-4d2e-941d-140187f52710","block_type":"box","text":"to BRIL","page_number":42,"box":{"x":851,"y":181,"width":44,"height":7}},{"id":"0fe00fb7-e08d-4436-9bb3-16c677a0e1f2","block_type":"box","text":"Investor A Shares . .","page_number":42,"box":{"x":70,"y":199,"width":140,"height":9}},{"id":"3981c5c1-ee05-4fc6-b60e-fe1d4226c1c0","block_type":"box","text":".........................................................................","page_number":42,"box":{"x":217,"y":206,"width":588,"height":2}},{"id":"4c316a97-afd6-44f3-bcad-4401aeaed728","block_type":"box","text":"$438,332","page_number":42,"box":{"x":837,"y":198,"width":72,"height":11}},{"id":"f9e216a7-691b-4502-9ebf-2bfa28c2f2d2","block_type":"box","text":"Investor P Shares . .","page_number":42,"box":{"x":70,"y":214,"width":140,"height":9}},{"id":"e4a7c1db-5791-4013-a252-216d86a48838","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,310","page_number":42,"box":{"x":217,"y":213,"width":692,"height":12}},{"id":"1625d353-ffee-45a2-a404-e2a56a09a8b6","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":42,"box":{"x":68,"y":246,"width":318,"height":11}},{"id":"5521a760-295a-45c0-9293-d5b3684efd5c","block_type":"box","text":"An illustration of the computation of the offering price of the Investor P Shares of the Fund based on the value of","page_number":42,"box":{"x":101,"y":268,"width":805,"height":12}},{"id":"0b574fd3-4934-4e3c-a39a-6cc2f6fc70e4","block_type":"box","text":"the Fund’s Investor P Shares’ net assets and the number of Investor P Shares outstanding on December 31, 2025 is","page_number":42,"box":{"x":68,"y":283,"width":838,"height":12}},{"id":"f4eda98a-462a-47ac-9933-13c429a22b02","block_type":"box","text":"set for th below:","page_number":42,"box":{"x":69,"y":298,"width":110,"height":9}},{"id":"c46951c6-6a9e-470f-8bd4-35196f040f02","block_type":"box","text":"Investor P Shares","page_number":42,"box":{"x":807,"y":327,"width":102,"height":7}},{"id":"5b4fa779-3b36-49f1-8284-0a8fed859f46","block_type":"box","text":"Net Assets . . .","page_number":42,"box":{"x":70,"y":345,"width":102,"height":8}},{"id":"7bbd90e1-0743-4afe-9e80-e9732a4f0cbd","block_type":"box","text":"..........................................................................","page_number":42,"box":{"x":179,"y":352,"width":597,"height":1}},{"id":"cd7d1d69-285e-4447-93e6-d91ba2c7d303","block_type":"box","text":"$13,049,280","page_number":42,"box":{"x":810,"y":344,"width":96,"height":11}},{"id":"1624cd9d-d98a-49d9-8180-f361bf5ca09a","block_type":"box","text":"Number of Shares Outstanding . . . . . . . . .","page_number":42,"box":{"x":70,"y":360,"width":298,"height":11}},{"id":"3e2eeda4-6413-491a-8353-6c3324b67dcd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,","page_number":42,"box":{"x":374,"y":360,"width":468,"height":10}},{"id":"60c1ccf6-75a1-4bf7-a726-a34c489c631c","block_type":"box","text":"423,006","page_number":42,"box":{"x":844,"y":360,"width":62,"height":10}},{"id":"59705c80-cdb1-49f3-bd9e-488940f9f0e3","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding) .","page_number":42,"box":{"x":70,"y":375,"width":583,"height":11}},{"id":"4b40c249-7d2d-4e95-b325-94e32b06bd4a","block_type":"box","text":". . . . . . . . . . . . . . . $9.17","page_number":42,"box":{"x":660,"y":374,"width":246,"height":11}},{"id":"995f07f8-2071-462f-b2a5-a4d5abb2d9b0","block_type":"box","text":"Sales Charge (4.00% of offering price; 4.17% of net asset value per share)","page_number":42,"box":{"x":69,"y":390,"width":534,"height":11}},{"id":"1be9f0c0-bc36-478d-a080-09f8b892248a","block_type":"box","text":"1","page_number":42,"box":{"x":604,"y":390,"width":4,"height":5}},{"id":"db13aa34-0c7a-4258-9065-11982f8a3e34","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $0.38","page_number":42,"box":{"x":619,"y":389,"width":287,"height":11}},{"id":"b6be679a-03e9-4a94-8206-a3ab9f1af860","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9.55","page_number":42,"box":{"x":69,"y":409,"width":837,"height":12}},{"id":"d96ff396-8651-4c8e-bb4c-6dffddb54293","block_type":"box","text":"1","page_number":42,"box":{"x":69,"y":442,"width":3,"height":3}},{"id":"fd1bf3d7-2616-442a-9fc2-f0b87077bfa1","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":42,"box":{"x":94,"y":442,"width":541,"height":8}},{"id":"4aebefce-7eb9-43bf-8506-1b446ec21ad6","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":42,"box":{"x":101,"y":462,"width":787,"height":12}},{"id":"ab81d83c-756b-4aa6-9a9a-624116953e9d","block_type":"box","text":"set for th above for Investor P Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":42,"box":{"x":69,"y":477,"width":833,"height":12}},{"id":"f5b8d641-fda9-4904-a56a-429ee1540b52","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":42,"box":{"x":69,"y":492,"width":813,"height":12}},{"id":"fe3c8d8b-00a7-4e7f-91bc-25ed9ed89340","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":42,"box":{"x":69,"y":508,"width":377,"height":11}},{"id":"999c9227-b04c-4cc7-8c08-8d31741c787e","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":42,"box":{"x":68,"y":538,"width":302,"height":11}},{"id":"7c2e8471-cf28-4400-9acf-01decf4fc04f","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":42,"box":{"x":102,"y":561,"width":609,"height":11}},{"id":"05d45392-3915-4f11-b4ad-31a04e0c35b0","block_type":"box","text":"The Master Por tfolio paid no brokerage commissions during the past three fiscal years.","page_number":42,"box":{"x":101,"y":583,"width":622,"height":12}},{"id":"632845d9-4bb3-4f5a-8661-ff4aa14d9042","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":42,"box":{"x":101,"y":606,"width":770,"height":11}},{"id":"1da21e2b-c3e9-4317-9d8e-2e5736051843","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":42,"box":{"x":69,"y":621,"width":814,"height":11}},{"id":"531c56e9-283d-4139-8811-4750a36d79db","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended December 31, 2025. The","page_number":42,"box":{"x":68,"y":636,"width":784,"height":11}},{"id":"7098e611-7e53-4408-a095-096d8ba82838","block_type":"box","text":"provision of Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage","page_number":42,"box":{"x":70,"y":651,"width":839,"height":12}},{"id":"6c90417a-b5a7-442c-8931-bd2a4d7fe693","block_type":"box","text":"business with such brokers.","page_number":42,"box":{"x":69,"y":667,"width":198,"height":8}},{"id":"05d0a2d1-c80d-4899-915d-a198b5370fc9","block_type":"box","text":"Amount of Commissions","page_number":42,"box":{"x":333,"y":695,"width":141,"height":7}},{"id":"599012fb-8f26-42c1-8f89-972df38f90c1","block_type":"box","text":"Paid to Brokers for Providing","page_number":42,"box":{"x":320,"y":705,"width":168,"height":9}},{"id":"c2547af7-29a6-49ff-9324-d57c8dbe12d2","block_type":"box","text":"28(e) Eligible Research Services","page_number":42,"box":{"x":308,"y":715,"width":191,"height":9}},{"id":"6c39a1ca-f882-4172-9bf8-9173f4a202da","block_type":"box","text":"Amount of Brokerage","page_number":42,"box":{"x":545,"y":705,"width":124,"height":9}},{"id":"1dd5986d-2acc-4934-a022-ae79796bad2e","block_type":"box","text":"Transactions Involved","page_number":42,"box":{"x":544,"y":715,"width":125,"height":7}},{"id":"f0548017-7440-4b2b-bdcf-8afeae5131cc","block_type":"box","text":"$0 $0","page_number":42,"box":{"x":395,"y":732,"width":221,"height":10}},{"id":"63f20ccf-ef43-4ad8-a0bb-6f6db2ba4f95","block_type":"box","text":"As of December 31, 2025, the value of the Master Por tfolio’s aggregate holdings of the securities of its regular","page_number":42,"box":{"x":101,"y":756,"width":797,"height":12}},{"id":"828977be-e95f-4536-af33-4ca033779d46","block_type":"box","text":"brokers or dealers (as defined in Rule 10b-1 under the Investment Company Act) or their parents, if any por tion of","page_number":42,"box":{"x":69,"y":772,"width":812,"height":11}},{"id":"75c5ff77-1fbc-430c-a3db-0375b5d01f7e","block_type":"box","text":"such holdings were purchased during the fiscal year ended December 31, 2025, is as follows:","page_number":42,"box":{"x":69,"y":787,"width":671,"height":11}},{"id":"2d53a8e1-6ac8-4178-a747-94380d49f5e3","block_type":"box","text":"Regular Broker/Dealer","page_number":42,"box":{"x":69,"y":825,"width":132,"height":9}},{"id":"c03b02be-9310-4876-8f6c-d746f7ac8920","block_type":"box","text":"Debt (D)/Equity (E)","page_number":42,"box":{"x":647,"y":825,"width":114,"height":9}},{"id":"4262110c-d230-44b4-b1e8-b04768a973ae","block_type":"box","text":"Aggregate Holidings","page_number":42,"box":{"x":791,"y":815,"width":118,"height":9}},{"id":"bfd47c83-740c-4fd2-9f5f-91a03ffdc98b","block_type":"box","text":"(000’s)","page_number":42,"box":{"x":829,"y":825,"width":42,"height":9}},{"id":"4aed2634-b5d4-4a45-a071-128d590a14a6","block_type":"box","text":"JPMorgan Chase & Co","page_number":42,"box":{"x":69,"y":843,"width":158,"height":11}},{"id":"2c2ef502-a0f0-47cc-af7a-c7f7f7bdf825","block_type":"box","text":"................................................ D","page_number":42,"box":{"x":230,"y":843,"width":479,"height":9}},{"id":"4575fbb8-4201-41ed-92c1-17371569d4ff","block_type":"box","text":"$21,429","page_number":42,"box":{"x":819,"y":842,"width":62,"height":11}},{"id":"3be691f0-e6e8-4bc8-af09-899ac3f41d06","block_type":"box","text":"Morgan Stanley. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D","page_number":42,"box":{"x":70,"y":858,"width":639,"height":11}},{"id":"9b74632c-6de7-4ea0-ac9c-81b5b1319209","block_type":"box","text":"$19,819","page_number":42,"box":{"x":819,"y":857,"width":62,"height":11}},{"id":"fb7e16ff-4a7c-4ac3-a179-d37fb1c0d718","block_type":"box","text":"Bank Of America NA","page_number":42,"box":{"x":70,"y":873,"width":141,"height":9}},{"id":"1ee7197e-d09c-4cc7-a523-e33c4aa30547","block_type":"box","text":".................................................. D","page_number":42,"box":{"x":214,"y":873,"width":495,"height":9}},{"id":"860bd91d-c420-425d-87b4-21ec2e47fa0d","block_type":"box","text":"$19,184","page_number":42,"box":{"x":819,"y":872,"width":62,"height":11}},{"id":"f413b32f-a34d-4c5e-9596-83f43098c883","block_type":"box","text":"Wells Fargo & Company","page_number":42,"box":{"x":68,"y":888,"width":169,"height":11}},{"id":"0a4987dd-493a-4450-b136-2b393853ffa8","block_type":"box","text":".............................................. D","page_number":42,"box":{"x":247,"y":888,"width":462,"height":9}},{"id":"56a0df43-8c26-4720-bb5b-5c28ea44fbc6","block_type":"box","text":"$17,088","page_number":42,"box":{"x":819,"y":887,"width":62,"height":12}},{"id":"1d0c806b-da49-4a88-b371-bf3b69844e77","block_type":"box","text":"Citigroup INC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D","page_number":42,"box":{"x":69,"y":903,"width":640,"height":12}},{"id":"605ae0db-c50e-44fd-94ab-ede071b48d20","block_type":"box","text":"$15,875","page_number":42,"box":{"x":819,"y":903,"width":62,"height":11}},{"id":"97a91c36-460d-4f9e-8d36-9626261a9fe1","block_type":"box","text":"I-26","page_number":42,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"0b918cb6-6fc0-47ee-9524-fa2b66731507","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ea0136e0-5f4a-4cf5-a5a1-b46fa1f42426","block_type":"box","text":"Regular Broker/Dealer","page_number":43,"box":{"x":69,"y":59,"width":132,"height":9}},{"id":"61b8f97c-715f-4b73-85a1-50979b12996a","block_type":"box","text":"Debt (D)/Equity (E)","page_number":43,"box":{"x":647,"y":59,"width":114,"height":9}},{"id":"fe06def6-8cf8-4c87-bf0b-86882ee74617","block_type":"box","text":"Aggregate Holidings","page_number":43,"box":{"x":791,"y":49,"width":118,"height":9}},{"id":"68347605-71a3-4a52-8f9a-cfa5671e5b6f","block_type":"box","text":"(000’s)","page_number":43,"box":{"x":829,"y":59,"width":42,"height":9}},{"id":"cd4317e3-28d1-4e4d-9848-1571622c2448","block_type":"box","text":"Goldman Sachs Group INC","page_number":43,"box":{"x":69,"y":77,"width":188,"height":11}},{"id":"eaccf9dd-a1af-4c3e-8879-8eb824ff463b","block_type":"box","text":"............................................ D","page_number":43,"box":{"x":263,"y":77,"width":446,"height":9}},{"id":"b72fffae-5f99-4001-927b-cb948a275791","block_type":"box","text":"$14,430","page_number":43,"box":{"x":819,"y":76,"width":62,"height":11}},{"id":"fc180edc-7029-4e2b-8c8e-f1c7e930101b","block_type":"box","text":"BMO Mor tgage Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $ 1,711","page_number":43,"box":{"x":70,"y":91,"width":811,"height":12}},{"id":"1e5a1cea-4f44-40b7-aa46-e6981ec3d357","block_type":"box","text":"Securities Lending","page_number":43,"box":{"x":68,"y":123,"width":135,"height":11}},{"id":"b0967736-3ffd-415b-af1a-9ab751c954cc","block_type":"box","text":"To the extent that the Master Por tfolio engages in securities lending, the Master Por tfolio conducts its securities","page_number":43,"box":{"x":101,"y":146,"width":804,"height":11}},{"id":"47023d10-3c26-4d18-a850-eedc5cd151e0","block_type":"box","text":"lending pursuant to an exemptive order from the Commission permitting it to lend por tfolio securities to borrowers","page_number":43,"box":{"x":70,"y":161,"width":814,"height":11}},{"id":"ccc8f5e8-26a4-4f57-86b3-1ec1d12c6f3b","block_type":"box","text":"affiliated with the Master Por tfolio and to retain an affiliate of the Master Por tfolio as securities lending agent. To the","page_number":43,"box":{"x":69,"y":176,"width":837,"height":12}},{"id":"2e8c1f20-53a8-4009-b4ea-2622adbcb37d","block_type":"box","text":"extent that the Master Por tfolio engages in securities lending, BlackRock Institutional Trust Company, N.A. (“BTC”)","page_number":43,"box":{"x":69,"y":191,"width":816,"height":12}},{"id":"74c1e19f-7514-4671-8b07-7015bf3c6dcd","block_type":"box","text":"acts as securities lending agent for the Master Por tfolio, subject to the overall supervision of BFA, pursuant to a","page_number":43,"box":{"x":69,"y":206,"width":800,"height":12}},{"id":"a755dd74-c1f8-4883-95e3-589f07df6fa0","block_type":"box","text":"written agreement (the “Securities Lending Agency Agreement”). BTC administers the lending program in accordance","page_number":43,"box":{"x":68,"y":222,"width":832,"height":11}},{"id":"3826f5b1-e089-4c81-92c0-85d4f7bb6af9","block_type":"box","text":"with guidelines approved by MIP’s Board.","page_number":43,"box":{"x":68,"y":237,"width":292,"height":11}},{"id":"8607ca4c-0d2e-45f7-b7d2-34451653be39","block_type":"box","text":"The Master Por tfolio retains a por tion of the securities lending income and remits the remaining por tion to BTC","page_number":43,"box":{"x":101,"y":259,"width":794,"height":12}},{"id":"30b9b4d0-1528-4276-82e8-9e436015f0b0","block_type":"box","text":"as compensation for its services as securities lending agent. Securities lending income is generally equal to the total","page_number":43,"box":{"x":69,"y":275,"width":835,"height":11}},{"id":"094d407f-6c61-4211-be19-732c14cfda6f","block_type":"box","text":"of income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined","page_number":43,"box":{"x":69,"y":290,"width":786,"height":11}},{"id":"bfe27ae8-74a8-4e68-a526-109f0069bb65","block_type":"box","text":"below), and any fees or other payments to and from borrowers of securities. As securities lending agent, BTC bears","page_number":43,"box":{"x":69,"y":305,"width":823,"height":11}},{"id":"7c3beaef-02bc-478b-a769-f88dc05f32e3","block_type":"box","text":"all operational costs directly related to securities lending. The Master Por tfolio is responsible for fees in connection","page_number":43,"box":{"x":69,"y":320,"width":823,"height":11}},{"id":"d47b5513-6e4a-42e9-a5e5-1483cecf8ee9","block_type":"box","text":"with the investment of cash collateral received for securities on loan in money market funds advised by BFA or its","page_number":43,"box":{"x":68,"y":335,"width":809,"height":11}},{"id":"32cc5464-854f-41e5-83a2-03eb9dc5781f","block_type":"box","text":"affiliates, and such fees will not be subject to any waivers (the “collateral investment fees”); however, BTC has","page_number":43,"box":{"x":69,"y":350,"width":791,"height":11}},{"id":"4ae6af56-fd5d-4616-b818-6648e6fcf979","block_type":"box","text":"agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral","page_number":43,"box":{"x":69,"y":365,"width":778,"height":12}},{"id":"e1ce852f-9fa6-4eb3-9d3c-15a0768cccd9","block_type":"box","text":"investment fees the Master Por tfolio bears to an annual rate of 0.04%. Such money market fund shares will not be","page_number":43,"box":{"x":70,"y":380,"width":820,"height":12}},{"id":"c6253c0b-d052-4816-9d02-85798bd71beb","block_type":"box","text":"subject to a sales load, distribution fee or service fee.","page_number":43,"box":{"x":69,"y":395,"width":385,"height":12}},{"id":"11902d70-6d2a-4419-88da-7e7c203036f7","block_type":"box","text":"To the extent that the Master Por tfolio invests cash collateral in a non-government money market fund, the","page_number":43,"box":{"x":101,"y":418,"width":761,"height":11}},{"id":"b27cc767-a948-4243-8127-eaf6a47c7102","block_type":"box","text":"Master Por tfolio may be subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity","page_number":43,"box":{"x":70,"y":433,"width":830,"height":11}},{"id":"3b2a37ab-68c4-44f3-872e-ef1e7cbabd36","block_type":"box","text":"fees may be imposed or terminated at any time at the discretion of the board of directors of the money market fund,","page_number":43,"box":{"x":68,"y":448,"width":831,"height":12}},{"id":"37f760fd-dc7d-4cfc-932e-41b6facf7cd1","block_type":"box","text":"or its delegate, if it is determined that such fee would be, or would not be, respectively, in the best interest of the","page_number":43,"box":{"x":69,"y":463,"width":810,"height":12}},{"id":"d22f1ac8-94c7-49dd-a4c2-6c88ea43f4b1","block_type":"box","text":"money market fund. Additionally, the Master Por tfolio will be subject to a mandatory liquidity fee if the money market","page_number":43,"box":{"x":69,"y":479,"width":832,"height":11}},{"id":"34827d81-9c16-404a-a826-c4a68b4ad971","block_type":"box","text":"fund’s total net redemptions on a single day exceed 5% of the money market fund’s net assets, unless the liquidity","page_number":43,"box":{"x":68,"y":494,"width":824,"height":11}},{"id":"90497261-695d-4355-ac0b-4af4ce0a3629","block_type":"box","text":"costs are de minimis (i.e., less than one basis point (0.01%)). The money market fund will determine the size of the","page_number":43,"box":{"x":69,"y":509,"width":826,"height":11}},{"id":"9e6beea8-a12f-48f0-af09-59ea46a11ed9","block_type":"box","text":"mandatory liquidity fee by making a good faith estimate of cer tain costs the money market fund would incur if it were","page_number":43,"box":{"x":69,"y":524,"width":834,"height":11}},{"id":"4ba5a91f-077b-448e-b782-880dadcb0ab8","block_type":"box","text":"to sell a pro rata amount of each security in the por tfolio to satisfy the amount of net redemptions on that day. There","page_number":43,"box":{"x":68,"y":539,"width":835,"height":11}},{"id":"c5e43b37-80fd-4c35-85ca-f8f31dd577db","block_type":"box","text":"is no limit to the size of a mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro","page_number":43,"box":{"x":70,"y":554,"width":839,"height":12}},{"id":"c11823c1-27fd-4c4f-9a1c-b1181d3cfde9","block_type":"box","text":"rata amount of each por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity","page_number":43,"box":{"x":69,"y":569,"width":816,"height":12}},{"id":"813fb270-21ad-4517-9034-0a257fb58a45","block_type":"box","text":"fee of 1% on the value of shares redeemed on that day. The imposition of any such discretionary or mandatory","page_number":43,"box":{"x":68,"y":584,"width":791,"height":12}},{"id":"cbee5620-0352-4c0c-84da-8f65fd57788c","block_type":"box","text":"liquidity fee would reduce the Master Por tfolio’s returns on securities lending.","page_number":43,"box":{"x":70,"y":600,"width":552,"height":11}},{"id":"8918a6b3-4fe7-49bc-9867-b1360bc5dbea","block_type":"box","text":"Under the securities lending program, the Master Por tfolio is categorized into one of several specific asset","page_number":43,"box":{"x":102,"y":622,"width":760,"height":12}},{"id":"1fd9a268-dd45-4f1c-82d8-8fd4220ea023","block_type":"box","text":"classes. 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The number of shares of each series, and","page_number":45,"box":{"x":69,"y":416,"width":818,"height":11}},{"id":"bee7b243-3cc7-47fc-b546-c59c865ededa","block_type":"box","text":"classes thereof, is unlimited and each share has no par value. The Board of Trustees may, in the future, authorize","page_number":45,"box":{"x":69,"y":431,"width":814,"height":11}},{"id":"0cf4fd0c-a9b4-41f1-82e6-792e89367909","block_type":"box","text":"the issuance of other series representing shares of additional investment por tfolios or funds. Except to the extent","page_number":45,"box":{"x":68,"y":446,"width":814,"height":11}},{"id":"05cb0277-10e8-4fc0-b365-c8632fe34be0","block_type":"box","text":"the Investment Company Act expressly grants to shareholders the power to vote on such termination(s), the Trust, or","page_number":45,"box":{"x":68,"y":461,"width":834,"height":11}},{"id":"9b21007a-131d-4315-8e63-8c9f74a497b9","block_type":"box","text":"any series (or class) thereof, may be terminated at any time by the Trustees with written notice to the shareholders.","page_number":45,"box":{"x":69,"y":476,"width":825,"height":11}},{"id":"9254f9ff-f3cf-4621-bfb2-0e232f874247","block_type":"box","text":"Although the Trust is not required to hold regular annual shareholder meetings, occasional annual or special","page_number":45,"box":{"x":101,"y":499,"width":771,"height":11}},{"id":"a95e8261-0a60-4016-b8f0-c39166d9c17b","block_type":"box","text":"meetings may be required for purposes such as electing and removing Trustees, approving advisory contracts, and","page_number":45,"box":{"x":69,"y":514,"width":818,"height":11}},{"id":"50f19ba8-7323-468b-87ff-0f6125db4f52","block_type":"box","text":"changing the Fund’s fundamental investment policies.","page_number":45,"box":{"x":69,"y":529,"width":383,"height":11}},{"id":"db109c37-38d7-4567-aaa8-a5a0bef4d1fa","block_type":"box","text":"History of the Trust","page_number":45,"box":{"x":69,"y":559,"width":140,"height":11}},{"id":"2679994b-62de-40c8-911e-f276299ba61b","block_type":"box","text":"The Trust was organized on December 4, 2001 as a statutory trust under the laws of the State of Delaware","page_number":45,"box":{"x":101,"y":582,"width":768,"height":11}},{"id":"30dc7cf5-8093-4bbb-98f3-d546a772d8a4","block_type":"box","text":"under the name Barclays Global Investors Funds. The Trust was originally organized as a Maryland corporation named","page_number":45,"box":{"x":69,"y":597,"width":839,"height":11}},{"id":"e6439f44-2c4f-4be0-a363-4f2a5eb30554","block_type":"box","text":"Barclays Global Investors Funds, Inc. (the “Maryland corporation”). On August 21, 2001, the Board of Directors of","page_number":45,"box":{"x":70,"y":612,"width":813,"height":11}},{"id":"27a463aa-0b4c-4caa-9828-f2b1c9f4e2af","block_type":"box","text":"the Maryland corporation approved a proposal to redomicile the Maryland corporation in Delaware as a Delaware","page_number":45,"box":{"x":68,"y":628,"width":806,"height":10}},{"id":"b0813291-d650-49dc-b7dc-cdf302bb4fe3","block_type":"box","text":"statutory trust (the “Redomiciling”). Shareholders of the Maryland corporation approved the Redomiciling on","page_number":45,"box":{"x":69,"y":642,"width":771,"height":12}},{"id":"f681c7fb-ccf9-4b7c-b824-485063514eaa","block_type":"box","text":"November 16, 2001. The Trust was established with multiple series corresponding to, and having identical","page_number":45,"box":{"x":70,"y":658,"width":759,"height":11}},{"id":"50081ff4-8f1e-4396-b359-c252f28f5c11","block_type":"box","text":"designations as, the series of the Maryland corporation. The Redomiciling was effected on January 11, 2002, at","page_number":45,"box":{"x":69,"y":673,"width":803,"height":11}},{"id":"90c74667-85ea-46ca-b7bf-09f0d26cc7ad","block_type":"box","text":"which time the Trust assumed the operations of the Maryland corporation and adopted the Maryland corporation’s","page_number":45,"box":{"x":68,"y":688,"width":817,"height":11}},{"id":"7e38a524-e3f9-440b-9c30-5f383d4ed4b9","block_type":"box","text":"registration statement. Shor tly thereafter, the Maryland corporation was dissolved. On December 1, 2009, the Trust","page_number":45,"box":{"x":69,"y":703,"width":829,"height":11}},{"id":"2044e513-ddba-4b2b-be04-f5c5dcb40301","block_type":"box","text":"was renamed BlackRock Funds III.","page_number":45,"box":{"x":68,"y":718,"width":243,"height":9}},{"id":"22171c9b-8de7-4125-a3c8-c7be59c93c4e","block_type":"box","text":"IX. Financial Statements","page_number":45,"box":{"x":69,"y":748,"width":179,"height":9}},{"id":"8f56d0ca-d521-4a05-8318-3ce53e44bc15","block_type":"box","text":"The audited financial statements, financial highlights and notes thereto in the Fund’s Annual Financial","page_number":45,"box":{"x":101,"y":771,"width":726,"height":11}},{"id":"5c1d16db-f41c-44fa-b2ab-c4c19d270ffe","block_type":"box","text":"Statements and Additional Information for the fiscal year ended December 31, 2025, as filed with the SEC on Form","page_number":45,"box":{"x":69,"y":786,"width":823,"height":11}},{"id":"46520e41-7671-42ab-984f-4220cec0ddc9","block_type":"box","text":"N-CSR (the “2025 Annual Financial Statements”), are incorporated in this SAI by reference. No other par ts of the","page_number":45,"box":{"x":70,"y":801,"width":804,"height":11}},{"id":"56fdcd6c-36cf-40c9-b6f1-19c8f2493ee9","block_type":"box","text":"2025 Annual Financial Statements are incorporated by reference herein. The 2025 Annual Financial Statements have","page_number":45,"box":{"x":69,"y":816,"width":837,"height":11}},{"id":"b822047f-f205-4c9a-adc3-365c3f6a77d3","block_type":"box","text":"been audited by PricewaterhouseCoopers LLP. The repor t of PricewaterhouseCoopers LLP is incorporated herein by","page_number":45,"box":{"x":69,"y":831,"width":820,"height":12}},{"id":"7f2e47d7-b097-4f83-a61a-7b3f6db24b29","block_type":"box","text":"reference. Such 2025 Annual Financial Statements have been incorporated herein in reliance upon the repor t of such","page_number":45,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"e7a761ab-ba6d-4566-92cc-c169d339b9fa","block_type":"box","text":"firm given their authority as exper ts in accounting and auditing. Additional copies of the Fund’s annual and semi","page_number":45,"box":{"x":68,"y":862,"width":804,"height":11}},{"id":"678a857c-96b6-473d-9563-d944cc687430","block_type":"box","text":"annual repor ts to shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional","page_number":45,"box":{"x":69,"y":877,"width":770,"height":11}},{"id":"26bf9629-ae4b-488a-a6ac-e38f736ccc1d","block_type":"box","text":"Information may be obtained at no charge by telephoning the Distributor at the telephone number appearing on the","page_number":45,"box":{"x":70,"y":892,"width":818,"height":11}},{"id":"28350d13-0aee-4f42-bd7f-961ac44aedf9","block_type":"box","text":"front page of this SAI.","page_number":45,"box":{"x":68,"y":907,"width":155,"height":11}},{"id":"24436628-4896-4ebd-b98d-bf772269c5f0","block_type":"box","text":"I-29","page_number":45,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"3846abab-4c07-4722-a544-b20a4e21086f","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"94dedd6e-f541-4a35-8fc0-4c7e7493dbf2","block_type":"box","text":"PART II","page_number":46,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"79a2efca-3cba-412a-bd50-82abca602dab","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":46,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"2ff672f4-e773-4d3b-a148-799594e569ed","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Cer tain Funds may also be referred to as “Municipal Funds” if","page_number":46,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"65562a84-c232-4bc0-9c61-9e6d50bde269","block_type":"box","text":"they invest cer tain of their assets in municipal investments described below.","page_number":46,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"29edc0f4-3cf2-4d91-8232-11ce5a0483a2","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":46,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"b5456525-a87e-47b3-a464-9995bbfeecbe","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":46,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"e21e89b5-0a3b-4603-a024-ae0bcc522277","block_type":"box","text":"stock and shares of beneficial interest are referred to herein as “shares” or “Common Stock,” holders of shares of","page_number":46,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"20917f29-bec7-4def-b983-3103a556bad1","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":46,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"8598e306-fc2b-4bb7-85eb-cc107bfabec1","block_type":"box","text":"“Directors,” the boards of trustees/directors of each Fund are referred to as the “Board of Directors” or the “Board,”","page_number":46,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"791eb200-4bd6-48bc-8c1f-3e1ee2da772a","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":46,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"9b23367f-82ed-4192-af39-b6c274998fd7","block_type":"box","text":"of each Fund and is referred to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or","page_number":46,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"e8ad2949-5100-4d1c-acfc-86c2cbddc34a","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":46,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"16680b13-26ad-418b-b43e-613b1f79c848","block_type":"box","text":"Ar ticles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “char ter.”","page_number":46,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"0beef4c9-ff9b-4804-a543-a93ead3fd2bf","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":46,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"e28e74ac-f5c5-4157-9a38-0e2ec96e7baf","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":46,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"73c57ae4-e694-4f85-90f8-a016fa461c40","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":46,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"2a50d318-a87e-48ec-92ad-d5bf42f3c5c6","block_type":"box","text":"Cer tain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a por tion of their assets in a","page_number":46,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"14ff726c-7ddf-453e-a4dd-9523a91f5ab4","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":46,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"a4d4204e-332e-472c-b4f4-61f98346bc4d","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All investments are generally","page_number":46,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"efbf8a48-8149-4b98-a9c6-82c26ebc80f3","block_type":"box","text":"made at the level of the Master Por tfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":46,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"fe7e86a9-9745-418d-94b6-a79ca9bf2daa","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":46,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"41478a49-b46a-4d1d-a367-cca93c8d4d12","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":46,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"7a124376-0125-400a-b03c-4714307313b7","block_type":"box","text":"In addition to containing information about the Funds, Par t II of this SAI contains general information about all","page_number":46,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"c2f23136-66c4-4ff2-82e9-31af0bc3386b","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":46,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"3856841e-0d83-4409-a222-c8032dcbc027","block_type":"box","text":"par ticular Fund.","page_number":46,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"4df63d38-f4ef-4bdb-81de-0ff93ceb26eb","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":46,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"218e6d2f-d69d-4bde-9278-0f1b9b7e7793","block_type":"box","text":"Set for th below are descriptions of some of the types of investments and investment strategies that one or more","page_number":46,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"835cd169-562c-4272-9bfe-55f321822de9","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":46,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"53763b7f-cb83-4d79-a816-8a43a73db4d8","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":46,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"ca16e8c3-e84f-4b7d-ac7f-89faad14b215","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":46,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"7ed1e9b7-82d3-4eda-beea-da5d078f46f6","block_type":"box","text":"I of this SAI for fur ther information on each Fund’s investment policies and risks. Information contained in this","page_number":46,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"7327fe3e-56e9-4bf0-a1d6-f0d28d3b46cb","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":46,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"c1bf2bf3-86f8-4aad-9780-b9f07b9dfee9","block_type":"box","text":"applies only to those Funds specifically identified in Par t I of this SAI as making each type of investment or using","page_number":46,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"aa792435-5a56-4184-9f56-36ee9262337f","block_type":"box","text":"each investment strategy (each, a “Covered Fund”). Information that does not apply to a Covered Fund does not form","page_number":46,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"c8552be8-6bef-4615-b25c-2c6a613bb5a0","block_type":"box","text":"a par t of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":46,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"14a27f7a-554a-4af7-a29b-46401bb6b28a","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a par t of that Covered Fund’s SAI.","page_number":46,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"740dcae6-5a1e-4d22-ae2e-cb09ab52e08e","block_type":"box","text":"Asset-Backed Securities.","page_number":46,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"525d0c86-1b4b-4f73-8fe8-8801099d673b","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":46,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"32fc3366-f2e1-4996-a5d2-a29ac775ee63","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":46,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"2b4a113d-9ce1-4663-9ea4-a3a2b1090388","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":46,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"a9d7b554-ba4d-4104-9a35-7a81a02ba74d","block_type":"box","text":"credit card receivables) are passed through to a Fund. The value of asset-backed securities, like that of traditional","page_number":46,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"3ec0177b-dcfb-4cde-98e7-47dbdeb75308","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":46,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"8e289de0-f2ba-481c-90e6-997d28375677","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":46,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"7f19d969-18da-48a8-ba6f-b4c9f1222cd6","block_type":"box","text":"price paid by a Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and","page_number":46,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"e66cfcf2-e138-4990-9ff4-7ca7a2a12b75","block_type":"box","text":"the average life of the securities are based on a number of factors, including the anticipated rate of prepayment of","page_number":46,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"d57d7daf-2a31-424a-9503-71dcdb9d0f85","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":46,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"13c32d54-1a60-4327-82f1-fd4056b090aa","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":46,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"2e6d62ee-0042-4134-88af-f86e354b16b2","block_type":"box","text":"Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely receive a rate of","page_number":46,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"0bbf43c0-40e5-4d36-b915-95a84184a199","block_type":"box","text":"interest that is lower than the rate on the security that was prepaid. To the extent that a Fund purchases asset","page_number":46,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"2a1b1bb4-461a-42b7-a080-25648eee5331","block_type":"box","text":"backed securities at a premium, prepayments may result in a loss to the extent of the premium paid. If a Fund buys","page_number":46,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"13cd3837-7847-42c8-b9ac-eef956a96c58","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":46,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"5a028def-9717-4f29-9b90-3b74749c501f","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":46,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"3781378c-0378-4b48-96f6-0a858241ff61","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":46,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"49d25d27-56c8-49b0-a33d-c8d0bf670755","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This par ticular risk may effectively","page_number":46,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"a7454ecd-886f-4dd6-a7e6-55b00d305609","block_type":"box","text":"change a security that was considered shor t- or intermediate-term at the time of purchase into a longer term security.","page_number":46,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"756677bb-7c71-42cb-9020-f39ab855a734","block_type":"box","text":"II-1","page_number":46,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"d6aa13db-a808-4571-86f4-2f03586fe161","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8fcf43c8-f269-45b3-a34e-8ff774cfb936","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":47,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"ef6b8ad6-225b-4ace-b257-31a74753f89d","block_type":"box","text":"than does the value of shor ter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":47,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"35cda56d-175a-4d81-ac53-66d29d860b18","block_type":"box","text":"interest rates decline, the value of an asset-backed security with prepayment features may not increase as much as","page_number":47,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"eb7d1bc7-98b8-418e-b25f-0d7014d2ef53","block_type":"box","text":"that of other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate or","page_number":47,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"37b5c227-3bf9-4d18-907c-f71ef1cf2db3","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":47,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"877ab9ba-a685-4174-b0a0-75f0e92f2967","block_type":"box","text":"Asset-Based Securities.","page_number":47,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"af900517-9c93-4dc1-a474-dbc95a50a291","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":47,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"98e7f64a-954b-4532-ad84-0960cff6a653","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":47,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"07fee1d9-24ca-465d-9255-3861c7366a78","block_type":"box","text":"asset such as gold bullion. These securities are referred to as “asset-based securities.” A Fund will purchase only","page_number":47,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"901baa00-d796-4611-8bc1-cbf062e5d755","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":47,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"d379cd59-c0b0-4a8d-a751-57969dd0638a","block_type":"box","text":"investment grade (for example, AAA, AA, A or BBB by S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by","page_number":47,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"9adc83e0-a64b-4891-b43c-5cacf7fd19a4","block_type":"box","text":"Moody’s Investors Service, Inc. (“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by","page_number":47,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"0dc55d8e-d6eb-4370-b867-6c29285f00a0","block_type":"box","text":"issuers that the Manager has determined to be of similar creditwor thiness. Obligations ranked in the four th highest","page_number":47,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"e5b1c5c8-f660-4320-97fa-ce9443bbbc5b","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":47,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"8f5bcfc5-fab5-4d5f-8c77-c95182a82fa3","block_type":"box","text":"likely to be downgraded than securities rated in the three highest rating categories. If an asset-based security is","page_number":47,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"0698ea7e-b9b0-45e6-92c0-7d5b4ee70422","block_type":"box","text":"backed by a bank letter of credit or other similar facility, the Manager may take such backing into account in","page_number":47,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"91736d8a-4ddf-45a5-9f07-fee4cf864629","block_type":"box","text":"determining the creditwor thiness of the issuer. While the market prices for an asset-based security and the related","page_number":47,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"9c32faac-1549-42e4-8d25-53ceaf99df39","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be per fect correlation in","page_number":47,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"43a891e6-a92e-4d42-ba94-95376478870b","block_type":"box","text":"the two price movements. Asset-based securities may not be secured by a security interest in or claim on the","page_number":47,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"27acd1cb-2bd7-4763-a863-6167c73ed5b8","block_type":"box","text":"underlying natural resource asset. The asset-based securities in which a Fund may invest may bear interest or pay","page_number":47,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"2fdc89cc-8b22-44c9-8b4b-f7ccf296070f","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":47,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"9231f88e-8f30-495f-870c-d29e64bce249","block_type":"box","text":"at maturity in cash at the stated principal amount or, at the option of the holder, directly in a stated amount of the","page_number":47,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"5dd05955-7277-4f6e-97d2-415332b19f42","block_type":"box","text":"asset to which it is related. In such instance, because no Fund presently intends to invest directly in natural resource","page_number":47,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"cc58cc50-0cd4-44f5-8916-5f5e38037610","block_type":"box","text":"assets, a Fund would sell the asset-based security in the secondary market, to the extent one exists, prior to","page_number":47,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"543bbc09-58de-442f-a1bc-2384d7027c6f","block_type":"box","text":"maturity if the value of the stated amount of the asset exceeds the stated principal amount and thereby realize the","page_number":47,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"82a0069e-6514-46e7-896a-a81ccb5d4d19","block_type":"box","text":"appreciation in the underlying asset.","page_number":47,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"061bfa73-9123-4237-b033-3303fc76b024","block_type":"box","text":"Precious Metal-Related Securities.","page_number":47,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"6e078a52-e890-4530-b0e7-25353b667215","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":47,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"ecfc5304-e467-4a36-ae0e-2874850e9b20","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":47,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"00502d9e-9d3f-4716-a92f-640eb27a99dd","block_type":"box","text":"e.g.","page_number":47,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"92a5fed9-dac4-4980-8999-107effafdf2f","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":47,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"3cba7c11-f130-45bf-9e3b-a914d90a5beb","block_type":"box","text":"indexed to the value of such metals. Such securities may be purchased when they are believed to be attractively","page_number":47,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"2d979ff6-3394-44f9-8461-18110c15be41","block_type":"box","text":"priced in relation to the value of a company’s precious metal-related assets or when the values of precious metals","page_number":47,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"818b2259-675e-46ed-a1a3-52613535e79d","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":47,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"15c16456-4d1b-47e7-b750-5d63813e0392","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":47,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"7eb8e449-e28d-42aa-b628-4ece3b2e9514","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":47,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"48d06077-5f00-4bdb-bc6e-b4c81d357cb7","block_type":"box","text":"metal prices during such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":47,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"04e54899-9062-4de9-a304-5493769d2102","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":47,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"f9c7c261-3aa3-42bd-a77b-a18deac7a762","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":47,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"3bc8cc2e-fbbc-4a82-8941-70b54815d92c","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":47,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"0fe9c776-371d-4d97-be9c-59dc276173bc","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":47,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"71af30b9-652e-4d75-a4d4-38b5c6b00ba7","block_type":"box","text":"South African gold production.","page_number":47,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"28ffb4a3-33a8-4b1d-80ef-2349b50645e2","block_type":"box","text":"Borrowing and Leverage.","page_number":47,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"2a27e6c1-608a-4aa8-ab4b-c461863f5840","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":47,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"410a5179-5e74-441d-a491-17b4e149f2d3","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":47,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"c49e8ae2-9713-4cbd-a340-0ac3b1eb1cea","block_type":"box","text":"securities at any time when borrowings exceed 5% of their total assets, except (a) to honor prior commitments or","page_number":47,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"b5065f44-8cae-4194-9b9b-75f8fce3f0f1","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":47,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"61466750-a3ec-49cc-9a03-c82bad434eb9","block_type":"box","text":"other securities transactions.","page_number":47,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"20cafdd1-67c5-4b77-a010-ba49a585cd46","block_type":"box","text":"Cer tain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":47,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"503af93a-7102-4078-b547-d43023677db5","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":47,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"bca37495-75f2-4c94-b683-0c81a2901720","block_type":"box","text":"leveraging increases the Fund’s exposure to capital risk, and borrowed funds are subject to interest costs that will","page_number":47,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"a4144a12-d545-4e44-9b6b-c1aaaf6705f4","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an oppor tunity for greater total return, but, at the same","page_number":47,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"60fcc9ea-fcb3-4560-9f6a-db26fbd0a090","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":47,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"1a0cee0d-359f-41f1-9225-6cb35cc01e0e","block_type":"box","text":"shares and in the yield on the Fund’s por tfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":47,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"a41b945e-cefb-49f2-bd02-1619b08c50bb","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":47,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"d3bf352e-2811-4eb0-91ac-16087cbffd02","block_type":"box","text":"for the Fund that can exceed the income from the assets purchased with the borrowings. To the extent the income or","page_number":47,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"58527a18-589f-4ad8-ad23-c30f35de5de7","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":47,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"177ff09a-b4b6-47b1-a831-363fbc28daff","block_type":"box","text":"pay on the borrowings, the Fund’s return will be greater than if leverage had not been used. Conversely, if the income","page_number":47,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"e3cf7e06-9977-4f43-b4eb-d971cf9cd79e","block_type":"box","text":"or capital appreciation from the securities purchased with such borrowed funds is not sufficient to cover the cost of","page_number":47,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"fd8b3257-61c1-4176-8940-4c8309fb2b7c","block_type":"box","text":"borrowing, the return to the Fund will be less than if leverage had not been used and, therefore, the amount available","page_number":47,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"857fbba3-f279-471b-8b06-a9d1a74ea7b2","block_type":"box","text":"for distribution to shareholders as dividends will be reduced. In the latter case, the Manager in its best judgment","page_number":47,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"4bebe43b-4c6a-4ca3-ae46-a7a6d5953d49","block_type":"box","text":"II-2","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"54ce060d-787e-4255-b440-6f8c72957ad8","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"db9c1a7b-2a82-4139-8115-550d59cf3883","block_type":"box","text":"never theless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":48,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"3c2e8681-84cf-45f6-b127-fd2c34b08720","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":48,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"8625e403-8d39-45ab-b948-36d13b08184d","block_type":"box","text":"Cer tain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":48,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"a86af08e-7b10-4924-8cd2-f7ccbc9bd0a1","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":48,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"cff9e5a3-a4be-444d-bfd3-7c09ad29bcf1","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s por tfolio in accordance with the","page_number":48,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"da816cb3-be8d-4b08-b1a1-8cc7acff1dd7","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":48,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"ba84f5f8-b8fc-45d5-a26a-03e9cf61322a","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":48,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"ab657c17-ea78-4f91-a809-a53a0c47b43a","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":48,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"0654968b-16ac-4250-a60b-ddb7fa284ece","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such borrowings are","page_number":48,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"f020451b-faaf-4d0c-b8a9-8310cc794ee1","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":48,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"27d5913a-6bf7-44ca-b280-7d04d1a1f70a","block_type":"box","text":"Cash Management.","page_number":48,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"b65f2b12-dbed-4851-83a4-f7af4456c15c","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":48,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"8b74a667-12b6-4f76-a4b0-e9e9b46c2d26","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":48,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"1ac3c7c8-9705-463b-ac66-ee73e69f5d72","block_type":"box","text":"in the opinion of the Manager, a por tion of a Fund’s assets may be invested in cer tain types of instruments with","page_number":48,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"cd0f4250-0da2-4e33-afaf-363b15d94263","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":48,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"ed152359-2b69-46e6-a2d2-52818e4fff0d","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":48,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"77e44a92-f515-4152-a15b-04de49336b85","block_type":"box","text":"Securities”); (ii) other fixed-income securities rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of","page_number":48,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"2f70b7d0-d2bc-442a-9f83-e54bbc09097e","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":48,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"ee95d72f-7bd8-45b2-aa01-2c972969cbc2","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":48,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"77e1c6b0-955d-4002-ab83-12ab2b10c578","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":48,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"1bfd977e-fc45-4c04-81b9-40dabed95801","block_type":"box","text":"have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or outstanding commercial paper, bank","page_number":48,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"0f1d67d2-5ba0-4cf9-a722-95efdda9cb61","block_type":"box","text":"obligations or other shor t-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":48,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"fbed5673-dff3-405a-86de-0dc2d28cf437","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":48,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"da55619d-e760-4cf1-89fd-7e940016aac9","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":48,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"1a5afef9-d6fa-4f75-9875-814c862c1f3c","block_type":"box","text":"Collateralized Debt Obligations.","page_number":48,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"8bc5fe0b-aef0-4a32-8896-77804ac2afcb","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":48,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"9760af81-73cd-4e93-a811-e5f50cc782bb","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":48,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"c557070b-aba8-4369-bada-1d898535e5cf","block_type":"box","text":"structured securities. CDOs are types of asset-backed securities. A CBO is ordinarily issued by a trust or other","page_number":48,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"3f19864e-a6b9-4832-bcc1-e924cc063881","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":48,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"c888160c-9e13-40b8-9567-9df362052fe4","block_type":"box","text":"include high risk, below investment grade securities) held by such issuer. A CLO is ordinarily issued by a trust or","page_number":48,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"abb4ff13-1e55-4f1a-a6c1-61bdb4f19fe3","block_type":"box","text":"other SPE and is typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S.","page_number":48,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"bd6f03a8-041d-43aa-9ce8-d140b33a231f","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":48,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"0c81a65d-67e4-4673-93b7-6b2380ed8d7a","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":48,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"fbd3bbed-f879-470d-8b19-c5dd580fdfa6","block_type":"box","text":"the United States may not be deemed to be foreign securities if the CLO is collateralized by a pool of loans, a","page_number":48,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"4736560c-5f9a-419e-8509-eaa4d0de8223","block_type":"box","text":"substantial por tion of which are U.S. loans. Although cer tain CDOs may benefit from credit enhancement in the form","page_number":48,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"7403cf41-72a1-4856-a2df-fdd58fa99a31","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":48,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"67c66001-9575-4551-a132-ec80a99fdfec","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Cer tain CDO issuers may","page_number":48,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"570f217f-ccd0-4925-8d0a-54054cce0203","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":48,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"e0909965-761b-4b1e-9275-675add7899d7","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":48,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"7ce5d59e-bae9-4ec6-8fdd-3b9673504f13","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":48,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"fabb910f-4a65-49de-8c07-d4f1ef141e79","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more por tions, called tranches,","page_number":48,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"f14c2322-8906-4377-8541-7e5c71a8579b","block_type":"box","text":"varying in risk and yield. The riskiest por tion is the “equity” tranche, which bears the first loss from defaults from the","page_number":48,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"7299e8cd-08d3-44ab-9caa-32e17f2c3aa4","block_type":"box","text":"bonds or loans in the SPE and serves to protect the other, more senior tranches from default (though such protection","page_number":48,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"0bba5ef2-e27a-40c6-abf3-c41218fe9395","block_type":"box","text":"is not complete). Since it is par tially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":48,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"8aebf893-22d7-45fe-8c4f-6dd0b48917dd","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":48,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"d257438a-225b-4ce1-bf0d-625e51d4505c","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":48,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"10504136-6da7-49f5-8472-d8c57f079739","block_type":"box","text":"of the underlying collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage","page_number":48,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"0c909a4e-fc9c-4ae7-b1eb-8d530ef9d50b","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":48,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"eba699c5-b75b-4e73-9219-6aa06a188d77","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on cer tain tranches","page_number":48,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"002b0f9a-6954-4ebf-8c68-c06d47624555","block_type":"box","text":"of a CDO may be paid in kind or deferred and capitalized (paid in the form of obligations of the same type rather than","page_number":48,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"9feb86ac-f199-4444-b692-4774fe0b3a1a","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":48,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"79e02b2f-30c5-4dd6-ae38-ee1f5ccf97ea","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the","page_number":48,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"64fa95b8-7911-47ea-bd69-b304704f79e7","block_type":"box","text":"CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus are not","page_number":48,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"c424f40d-8642-44ea-8654-f13fa2217bb4","block_type":"box","text":"registered under the securities laws. However, an active dealer market may exist for CDOs, allowing a CDO to qualify","page_number":48,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"3568b77f-49e3-4693-a7d7-4b1e3422a7e1","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":48,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"472ee322-85c2-4241-af0f-e04412d26b10","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":48,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"c4cdf9db-b225-469c-9154-3638524b5712","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":48,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"a7c37154-cc88-410d-b41d-2cdde29b1e34","block_type":"box","text":"II-3","page_number":48,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"7bddc3b0-92a2-4d90-9415-674c50974454","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b6a4ad39-7921-48b1-8177-016f11f0a0ea","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical","page_number":49,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"e8912bf7-c9a6-4b0c-ab31-cdbe2c7bb650","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":49,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"14bb94af-97db-4132-8a4a-2e2b9d5c570e","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":49,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"ca4c43cf-1f55-4538-b4e0-8f3634e9e01c","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":49,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"d293ed89-8988-49aa-b52f-fc11e7c1dcd9","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":49,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"e12224dc-8776-4c90-b64d-bb89d73aa371","block_type":"box","text":"(vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage test failures; and (viii) the","page_number":49,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"182a35a4-1eab-43c8-9cc4-f15437c31968","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":49,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"96f1ffea-c486-45ad-a32f-3cdae4d63b74","block_type":"box","text":"Commercial Paper.","page_number":49,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"a8cefc07-6afc-42e4-9449-494423298c83","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":49,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"abc518d6-002d-4e48-9ef5-93057ac121cc","block_type":"box","text":"Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance on the “private","page_number":49,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"d65931b9-0ab8-41e1-8113-e908924facfb","block_type":"box","text":"placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act. Section 4(a)(2) paper is","page_number":49,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"34f06bef-e333-4ff6-889a-d8ca9e481b18","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":49,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"457ebd6c-9bf2-40a7-a7aa-56498002d641","block_type":"box","text":"investors such as the Fund through or with the assistance of investment dealers who make a market in the Section","page_number":49,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"378f3c57-1cba-4448-9949-3cadbace0871","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Cer tain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":49,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"25d4c14f-01b0-4e2e-8498-fbb317c8ec58","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":49,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"c47fa75d-684a-40fd-bdf1-e5ab3649d31d","block_type":"box","text":"time of purchase) “A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub","page_number":49,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"d851b709-27ea-4e5d-a72b-7a0cd109cca5","block_type":"box","text":"adviser, “high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":49,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"2ebcf93a-8498-4aa3-8924-8d113cda0899","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":49,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"c4a70d44-dd8e-4a63-b5e0-bab676e6445b","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":49,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"ba2ba985-91d4-40dc-853a-e9ff6463be38","block_type":"box","text":"paper prices will decline and vice versa. However, the shor t-term nature of a commercial paper investment generally","page_number":49,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"edffd44c-bf47-40ac-a66c-488b164f6f02","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":49,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"42ae0186-08f6-4579-a972-b556267168c3","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":49,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"665310e3-e059-4592-aac1-9ac1a67ff4ea","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":49,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"9170a934-2bcc-41ab-af73-a6495365261b","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":49,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"7fe94f2e-2246-4bc8-8b72-910e983ec6ee","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":49,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"e2126e96-629f-419f-8930-e1a5b670aabd","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":49,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"3e623c07-8072-40c7-bf1e-9d969410258e","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":49,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"e6971d9d-8142-4fc3-929c-617643e7c6a6","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":49,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"b99b3e15-2ec4-4151-9470-d2e880f1df1e","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":49,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"fb05849b-4b18-49b8-9bc9-df005df6474f","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":49,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"b83201f2-fbd0-4997-915f-bf08c6f368c5","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":49,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"efd541d9-2c4f-4068-966b-8762635a1cd5","block_type":"box","text":"variable.","page_number":49,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"de929972-b587-49ce-b3f0-b907869d7046","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":49,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"076d8e17-3a3d-4dbd-82e9-2c9d2c3bc108","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":49,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"0f04467b-0bed-400e-87a1-4d503854d593","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":49,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"e306e91a-387d-410a-8752-b1592a5384d5","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":49,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"a0c9b909-2a39-4cfd-b632-3d9a2c52108d","block_type":"box","text":"rising inflation, the prices of cer tain commodities, such as oil and metals, have historically tended to increase. Of","page_number":49,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"29037b0a-85b6-4713-91b6-975442c542f2","block_type":"box","text":"course, there cannot be any guarantee that these investments will per form in that manner in the future, and at","page_number":49,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"c373ad82-34b1-48f8-ac95-21259ba9afc3","block_type":"box","text":"cer tain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":49,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"1a8bd64e-05c7-434c-b1ff-22bb677d31fa","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":49,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"d99a7963-6f52-40bd-9799-490f8710356a","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":49,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"515d27e2-ea76-4aad-9786-239eff1bcf11","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":49,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"80d8bbab-6156-446a-9b91-7848d4c1ad27","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":49,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"0559defa-f242-4965-85fa-fafb3c466fe6","block_type":"box","text":"securities. Over the long term, the returns on the Fund’s investments are expected to exhibit low or negative","page_number":49,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"d7997fc9-1d5c-46fd-af1c-0ed874adaba0","block_type":"box","text":"correlation with stocks and bonds.","page_number":49,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"dc2d8de4-f63f-4f29-b395-95e2e60969f1","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":49,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"012e4c2d-8ded-403e-a538-3977dfe927ca","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":49,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"b5cb1244-9774-4385-b78f-e66dba3d7cad","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":49,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"99368604-cf43-41e9-8dfe-91eba3496004","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":49,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"78eed413-982d-45ff-a457-070200648f79","block_type":"box","text":"be predominantly a security if (a) the issuer of the hybrid instrument receives payment in full of the purchase price of","page_number":49,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"5dc88497-c237-40a9-baee-a4fcc9c33ae4","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":49,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"7dacbef9-ff8b-4bc0-91d7-1b47f75405fc","block_type":"box","text":"holder of the hybrid instrument is not required to make any payment to the issuer in addition to the purchase price","page_number":49,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"98696df0-8ce9-477f-bbd9-8da507357452","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":49,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"36c42f5a-b224-4681-865a-ea24da228140","block_type":"box","text":"instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the instrument to","page_number":49,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"63c44760-2ee0-4624-8ac0-eb43a579485a","block_type":"box","text":"mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as a contract of sale of a","page_number":49,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"1d6f996b-5e84-45ef-9b43-2b16caec8398","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":49,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"8e7290da-1060-4869-9ce8-31be9015ae3d","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":49,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"5710302d-7aa5-4256-8c40-e37bb5d94e1b","block_type":"box","text":"principal protected hybrid instrument means that the issuer will pay, at a minimum, the par value of the note at","page_number":49,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"299bc164-5102-4be1-ab1d-ca8652644597","block_type":"box","text":"II-4","page_number":49,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"7ac316cb-cb28-4254-8aa6-0991cd421d50","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"76a0f0de-088c-417b-87db-1124d962ec21","block_type":"box","text":"maturity. Therefore, if the commodity value to which the hybrid instrument is linked declines over the life of the note,","page_number":50,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"e226a228-78a9-430b-8312-a1e37e8a241c","block_type":"box","text":"the Fund will receive at maturity the face or stated value of the note. With a principal protected hybrid instrument, the","page_number":50,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"e6e285e5-1775-4fa1-a99f-be416c1320df","block_type":"box","text":"Fund will receive at maturity the greater of the par value of the note or the increase in its value based on the","page_number":50,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"9c79837c-026a-4a49-a78e-33285c151c09","block_type":"box","text":"underlying commodity or index. This protection is, in effect, an option whose value is subject to the volatility and price","page_number":50,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"7491374e-21c8-4800-a361-8d1f5da71827","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in par t on the","page_number":50,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"ab8d42fb-cdf8-4a56-b998-66d2425e1075","block_type":"box","text":"cost of the protection. In addition, the protection feature depends upon the ability of the issuer to meet its obligation","page_number":50,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"06944812-4944-425e-b9b9-a6eaabedcb8a","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditwor thiness of the issuer. With full principal protection,","page_number":50,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"ecbb1b13-28c5-4857-95e7-41ae21221809","block_type":"box","text":"the Fund will receive at maturity of the hybrid instrument either the stated par value of the hybrid instrument, or","page_number":50,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"f97c22fc-d904-427b-9ef8-7507aab79f98","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":50,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"078a3e0b-e010-43b3-9bfa-a64cef737daa","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":50,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"cdd1d069-3ec5-4c70-ab16-3c631110f8ca","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":50,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"00268d49-8887-4bf2-a07d-9dacd4fa5c83","block_type":"box","text":"variable to which the hybrid instrument is linked declines in value during the term of the hybrid instrument. However,","page_number":50,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"80e4c324-5523-4509-bcc1-44cc84eea477","block_type":"box","text":"par tially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":50,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"d3ff6ce6-08f2-4e27-9bf5-c0dfb3c09c85","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":50,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"b80702bd-9399-4f73-9973-6e658b1865a2","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":50,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"1b4412a4-e293-4d53-bcfa-f3e368bf25f0","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":50,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"3e66c78d-0328-46da-b625-8792c5a1dd93","block_type":"box","text":"economic variable may have declined sufficiently in value such that some or all of the face value of the hybrid","page_number":50,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"c477838e-61d4-4762-a306-9c7635dd6b15","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":50,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"b60be10f-5e31-4235-9a05-5e06088137a8","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":50,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"7cff1d32-cae8-42d4-a3fe-b75e265bbdaf","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":50,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"30a1f8ef-3f88-4a5e-abdb-76d204939e6c","block_type":"box","text":"index or other economic variable over the term of the note, the cost of the note, and any other economic factors that","page_number":50,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"867d0e14-d983-40f2-a2af-1d0c7b3013e8","block_type":"box","text":"the Manager believes are relevant.","page_number":50,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"2d795c7a-7897-4774-9049-fb42c5fa30fc","block_type":"box","text":"Limitations on Leverage.","page_number":50,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"4aed7a93-1343-4004-a1bf-72cf809d8250","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":50,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"b06b1acd-bf17-4bc1-bc74-b441c84048da","block_type":"box","text":"avoid being subject to undue leverage risk, a Fund will seek to limit the amount of economic leverage it has under any","page_number":50,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"1107bc79-1bfc-42a9-9f31-f72f148faaa5","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall por tfolio. A Fund will not invest in a hybrid","page_number":50,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"7aa19c64-d19f-4937-82c0-e88078656f25","block_type":"box","text":"instrument if, at the time of purchase: (i) that instrument’s “leverage ratio” exceeds 300% of the price increase in","page_number":50,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"5ac1fd54-b25d-4f1e-b476-660d3d4c3f06","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":50,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"66fef85a-742d-498d-b0e1-6794fe45d7bd","block_type":"box","text":"ratio” exceeds 150%, measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a","page_number":50,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"ca21f223-cdc7-49ae-b5e4-dba92968a529","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":50,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"a69f08b8-4c98-4957-9bf6-9e1126f0baf6","block_type":"box","text":"other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1% gain in the","page_number":50,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"114055a3-e7e7-4826-a90b-2540d3cee6a3","block_type":"box","text":"underlying economic variable would be expected to result in a 1.5% gain in value for the hybrid instrument.","page_number":50,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"89bfa39f-5dc7-40ae-8d0c-945cb9c2868d","block_type":"box","text":"Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5% loss if the underlying economic","page_number":50,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"94ea0582-a209-4776-ace0-9919cf92b173","block_type":"box","text":"variable lost 1% of its value. “Por tfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":50,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"adf64923-d0fc-4ca7-9e71-a8563927fb1d","block_type":"box","text":"instruments in a Fund’s por tfolio, weighted by the market values of such instruments or, in the case of futures","page_number":50,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"8c71c1e3-528f-4378-9af6-715f17a49bae","block_type":"box","text":"contracts, their notional values. A Fund may at times or from time to time decide not to use leverage in its","page_number":50,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"b9a51bf5-2708-4771-b14a-c2c91d05b764","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":50,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"93d5b1b0-5e83-4c85-8cc6-92bffe51933c","block_type":"box","text":"Counterpar ty Risk.","page_number":50,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"297f9ff6-b7b2-4c3a-b7b0-d8dfea55e4fa","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":50,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"81b2d21f-c68d-4925-bfac-ef56400832ab","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":50,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"f1d212db-0d48-40ad-a14e-d29ad4f392ae","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":50,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"696f1992-f340-4b97-8c88-2a4ca1338fd7","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":50,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"bf2e66e2-bd8a-404f-9a9f-6027138ccaec","block_type":"box","text":"e.g.","page_number":50,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"5ff81b77-f1de-49c8-b14f-1d2d9e8d1e2d","block_type":"box","text":",","page_number":50,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"c0ac88e1-6268-44f8-a0b7-4d79cfd671d6","block_type":"box","text":"ratings of AAA or AA by S&P). Therefore, the risk is small that an exchange clearinghouse might be unable to meet its","page_number":50,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"1992550e-38ee-4402-adf6-fdab545d1c52","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterpar ty credit risk of the","page_number":50,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"9ef38007-5590-4f93-88c2-f4e165e5f5dd","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to per form its","page_number":50,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"acbc265a-8e00-47f2-bdbf-599ae31d13f1","block_type":"box","text":"obligations under the structured note.","page_number":50,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"c3c2d52a-c9a2-4ad2-99f3-b12310dcd622","block_type":"box","text":"Convertible Securities.","page_number":50,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"2db76c53-8669-4ed3-86e0-4954903c90dc","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":50,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"9dac862b-b528-4531-a89d-21112b2da950","block_type":"box","text":"may be conver ted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":50,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"92271a07-02c1-46e3-8584-870799f4de3d","block_type":"box","text":"a different issuer within a par ticular period of time at a specified price or formula. A conver tible security entitles the","page_number":50,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"0bd2a202-b833-41e1-8689-5dabbbf3d2d2","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the conver tible","page_number":50,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"630f6ba7-fd2b-4974-a236-703eeab700d6","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":50,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"48412284-77ea-416a-b6ba-742a661c8501","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":50,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"4bcb5cf9-7669-4c67-89f1-0947f32b07ce","block_type":"box","text":"with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than","page_number":50,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"8c61fe3c-04ca-406f-a9b4-380d4c4dc557","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":50,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"559dcf8b-a9ba-4ca9-b2a8-1255d1b92259","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":50,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"25472695-150a-4724-add2-ae8c989b83b7","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the conver tible security’s investment value.","page_number":50,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"ce95e1fe-db12-48f6-8093-962a04675d25","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":50,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"8fc2678a-7fc5-4bea-8076-c714f1c38cc1","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":50,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"433fc0b0-bbd3-4d85-ae05-0ab516b9f126","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":50,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"697b4b37-dc89-4f05-aad9-f74a5aaffd2d","block_type":"box","text":"II-5","page_number":50,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"9c976957-9d84-4f29-9ec4-5052d5007e30","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f9cc0d00-ba8f-4360-8650-0d33e82e035c","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":51,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"89ba0800-0f70-4d89-b528-b9c1c89cf9c8","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":51,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"38fd46fe-4bb4-4843-95dc-65db9e8644d2","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":51,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"eb8883c3-d132-4795-bc23-249f50b959f2","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":51,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"5be1986d-55c2-44b2-8877-8d24e3ed9170","block_type":"box","text":"in value relative to the underlying common stock due to their fixed-income nature. As a result of the conversion","page_number":51,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"aa8a69c9-926a-4a98-9310-a6dcd6b22820","block_type":"box","text":"feature, however, the interest rate or dividend preference on a conver tible security is generally less than would be the","page_number":51,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"8d3facd5-ac08-4778-8692-a4546bdb8753","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":51,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"45e2d0bf-7789-49de-9fbb-4253b097ad57","block_type":"box","text":"In analyzing conver tible securities, the Manager will consider both the yield on the conver tible security relative to","page_number":51,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"ff5f348a-6653-449b-8f8a-c8d66675f9d3","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":51,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"144192b4-1312-4c0c-9a0f-4f6aae6ddec1","block_type":"box","text":"things.","page_number":51,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"61701a9a-a5ea-4d63-8943-71813fc7c787","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":51,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"3f5aa0d5-9e7d-4219-a459-459260d9472e","block_type":"box","text":"substantial por tion of the conver tible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":51,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"a2a5687f-7908-412a-8ea4-ab42867a51a3","block_type":"box","text":"securities may be quoted in the currency of the country where the issuer is domiciled. As a result, fluctuations in the","page_number":51,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"ad7a347f-2c1b-494d-beb9-9a8056dbf9c6","block_type":"box","text":"exchange rate between the currency in which the debt security is denominated and the currency in which the share","page_number":51,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"761353a4-15b6-4990-8813-404700687555","block_type":"box","text":"price is quoted will affect the value of the conver tible security. With respect to conver tible securities denominated in","page_number":51,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"67f81108-c280-4fd9-a0d5-1a745158c34e","block_type":"box","text":"a currency different from that of the underlying equity securities, the conversion price may be based on a fixed","page_number":51,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"f735750a-b90b-4eea-bfbb-b6ab7f2958ff","block_type":"box","text":"exchange rate established at the time the security is issued, which may increase the effects of currency risk. As","page_number":51,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"261c660d-d469-47ac-af1d-206a5578b433","block_type":"box","text":"described below, a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to","page_number":51,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"3db0b935-9e88-46d5-9378-0de2b24827cb","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":51,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"20209bbc-4dd1-4886-bcfb-f5d69fcfffc1","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":51,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"42636288-8ee8-4236-bcb4-a2050617dd4b","block_type":"box","text":"nonconver tible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":51,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"142b3df4-1aeb-47b5-ae7c-e0032f0643d5","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":51,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"ef1bfcde-0a87-4f9b-84b5-ca10b56ec6b5","block_type":"box","text":"i.e.","page_number":51,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"bfa872d0-4383-4cf1-8b47-957fe2dce94b","block_type":"box","text":", strictly on the basis of its yield) is","page_number":51,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"73095826-88ee-4128-b32d-8088648502f3","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":51,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"934f4feb-6c48-4162-8817-15a4c26ccaf4","block_type":"box","text":"conver tible security typically will fluctuate. At the same time, however, the value of the conver tible security will be","page_number":51,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"cc616299-ed72-4bb2-8b15-cdad63856710","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":51,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"8af2b879-0986-4d8d-9dfb-b5d0ceb96797","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":51,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"0d62b1f5-0fe2-4dbe-9760-15ab970f6bbd","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":51,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"e13b8d76-08bf-4fee-afc8-620bfc081373","block_type":"box","text":"the price of the conver tible security is governed principally by its investment value. To the extent the conversion value","page_number":51,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"d6101154-a81d-4309-83d8-e01e7c20e670","block_type":"box","text":"of a conver tible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":51,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"d92a82c4-439b-49a2-9270-756fb368b408","block_type":"box","text":"conver tible security will be influenced principally by its conversion value. A conver tible security will sell at a premium","page_number":51,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"042b90b6-09d0-4532-b7b4-128d50dca610","block_type":"box","text":"over the conversion value to the extent investors place value on the right to acquire the underlying common stock","page_number":51,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"5f3f521a-4c0a-4bed-99f2-a5412eea77e9","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of conver tible securities issued in Japan and","page_number":51,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"2681c889-d089-4aff-8678-171153e6b7f8","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":51,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"450f62ac-1eab-4b97-afea-f39478dbc759","block_type":"box","text":"than the securities’ investment value.","page_number":51,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"773c0876-fc43-4c0b-be5e-408941c8d17d","block_type":"box","text":"Holders of conver tible securities generally have a claim on the assets of the issuer prior to the common","page_number":51,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"81ddff67-5078-45b2-89d8-103b2814f0fc","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A conver tible security may be","page_number":51,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"7dc1e258-154a-4d1f-9af5-adc5f6cf78d0","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a char ter provision, indenture or other","page_number":51,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"df80c539-136b-4394-8d2d-4a8f83396918","block_type":"box","text":"governing instrument pursuant to which the conver tible security was issued. If a conver tible security held by a Fund is","page_number":51,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"0ed0078d-e960-472e-8a6b-0b6ee0d21886","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, conver t it into the underlying common stock","page_number":51,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"c6db638e-1b6d-44c0-b337-fff29bf0e264","block_type":"box","text":"or sell it to a third par ty. Cer tain conver tible debt securities may provide a put option to the holder, which entitles the","page_number":51,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"dbef1acd-658d-4c45-97f6-3f47923b9a80","block_type":"box","text":"holder to cause the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":51,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"4d01b984-c8a8-4613-adce-01a59b2b05e4","block_type":"box","text":"security under cer tain circumstances.","page_number":51,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"4a881328-69ae-42d3-82bc-07bdb3d99490","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":51,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"bcd78f12-f969-4bd0-8bf5-de23c68c31d5","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":51,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"ebb8e286-6450-4d91-9518-da9e68cf153d","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":51,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"3be4698b-2f50-49e1-b84c-a503238cdf41","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":51,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"f0c823d6-253a-40d2-8f16-7a5b38b8898f","block_type":"box","text":"issue a Cash-Settled Conver tible that is conver tible into common stock only if the company successfully completes a","page_number":51,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"759ddda3-3b51-4a29-9b69-adef9e0e0839","block_type":"box","text":"public offering of its common stock prior to maturity and otherwise pays a cash amount to reflect any equity","page_number":51,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"d69035ba-024b-4460-ade8-4fe6f9d26076","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":51,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"7d8af19e-ff0c-472f-bf93-b30bd4a61c5d","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":51,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"36750f46-6f14-4e3b-9607-d2dfb2d21742","block_type":"box","text":"i.e.","page_number":51,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"9bdcd686-863d-432b-8d1e-0a50d12c7cfd","block_type":"box","text":", fixed-income (“fixed","page_number":51,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"0565991f-6de5-4164-84bb-9969289303b9","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":51,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"fc666cd4-278e-4990-b8b6-819577d6aa87","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":51,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"c58e3910-14d4-4b91-9eee-804112923592","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":51,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"0cfc8d35-1f28-4ba8-9a08-0abc99780528","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":51,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"0ca67ab4-12aa-493d-8c1e-8beb558a71f5","block_type":"box","text":"II-6","page_number":51,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"a2ed4868-6d91-4c82-a687-4856c2da539d","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e581565-6d78-43e8-8068-07dc894142e9","block_type":"box","text":"specified quantity of the underlying stocks within a specified period of time at a specified price or, in the case of a","page_number":52,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"784cc42f-3d6e-48fd-a119-6c25607a88f4","block_type":"box","text":"stock index option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":52,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"de82372b-4b0c-4f4d-9356-e19dba73918a","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":52,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"97b8a21f-89ec-4e06-af18-903e9699d3ca","block_type":"box","text":"conver tible security, which is a single security that has a unitary market value, a Manufactured Conver tible is","page_number":52,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"68603164-aae9-414d-9daa-ec1186e3eac1","block_type":"box","text":"comprised of two or more separate securities, each with its own market value. Therefore, the total “market value” of","page_number":52,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"f587820d-ffd5-4c3c-8f20-5985892e38d0","block_type":"box","text":"such a Manufactured Conver tible is the sum of the values of its fixed-income component and its conver tibility","page_number":52,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"cd612d6a-7f61-4b41-a056-ffdb9bf53ed3","block_type":"box","text":"component.","page_number":52,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"4eaed506-ae60-4c07-aa6a-27f4e9df497e","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Conver tible than in the purchase of a traditional","page_number":52,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"2877b93d-960b-423c-8312-c943f5b0ec62","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":52,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"68be0612-8204-4938-b092-f2be2dc8a418","block_type":"box","text":"fixed-income instrument and an equity feature with respect to the stock of the issuer of the fixed-income instrument","page_number":52,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"57b36e6e-b1e3-4910-aa2f-2e1b6b882316","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":52,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"0cb84690-2734-45ff-81c1-9a4c417d4576","block_type":"box","text":"fixed-income instrument of an issuer with an equity feature with respect to the stock of a different issuer when the","page_number":52,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"b4a2382d-c93a-43af-b6a5-da48457e5ee4","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":52,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"de9f8b0f-d850-474f-8666-079b8e6259df","block_type":"box","text":"investments. For example, the Manager may combine an equity feature with respect to an issuer’s stock with a fixed","page_number":52,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"502bf710-c7b4-46d9-bff4-a65ea757663a","block_type":"box","text":"income security of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":52,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"5d9225a2-c9f2-4c85-bd0b-4beea4e05cba","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":52,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"942b29ea-9922-4725-97c1-bfc8259f3857","block_type":"box","text":"security issued by that issuer. A Manufactured Conver tible also is a more flexible investment in that its two","page_number":52,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"fb8cdbb8-eda0-4071-b2ac-eb8e22ccd7ac","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":52,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"832eefca-06cb-4d18-9e0e-0da8c316830d","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":52,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"a20d1c73-4b33-49a7-b2c8-e58aa59d9229","block_type":"box","text":"Conver tible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":52,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"6017258c-0517-40bc-bde6-0165917cdb19","block_type":"box","text":"favorable market conditions.","page_number":52,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"10ded5a1-f22d-46d4-9265-4a5f42837334","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":52,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"397abb7f-dfbc-49cc-b35e-6e26efccefa0","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":52,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"f5b4d729-74ee-4d5a-82ea-beeb0b33dd17","block_type":"box","text":"by combining a shor t-term U.S. Treasury instrument and a call option on a stock, the Manufactured Conver tible would","page_number":52,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"27d5809a-7097-4bac-8cbd-d88224838f43","block_type":"box","text":"be expected to outper form a traditional conver tible of similar maturity that is conver tible into that stock during","page_number":52,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"2303ecff-4005-4ef7-9ce5-44786d281f56","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":52,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"3a6b7e6b-6eae-4caa-9a2c-4cd836d59258","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":52,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"e18331cf-b038-4ccc-b971-fcf9cc32b949","block_type":"box","text":"Corporate Loans.","page_number":52,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"fe20ef3b-c1b6-48ff-afc3-112c64148e3c","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":52,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"88977101-f7f3-4a2e-a7c9-57e98e0b2ea2","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Cer tain Funds may invest in","page_number":52,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"a92c9aad-940c-4f39-92e1-e0836c692eae","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":52,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"f12e4c90-9f68-42de-8e38-6e6663caa26e","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":52,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"737093ba-c554-4b2e-bd71-1b57819d98b1","block_type":"box","text":"in such Loans in the form of par ticipations in Loans (“Par ticipations”) and assignments of all or a por tion of Loans","page_number":52,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"ba32a97b-63ab-477c-8328-d1290f06d6d8","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":52,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"310bd2a2-168d-4a36-8088-ca5630e6188e","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":52,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"e9d0f6ff-7281-4de0-a3bf-fcc9676bde9e","block_type":"box","text":"only with the Lender, not with the borrower. The Fund will have the right to receive payments of principal, interest and","page_number":52,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"4503d6b1-8745-4c99-9d36-5fde6f362f9b","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Par ticipation and only upon receipt by the Lender of","page_number":52,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"ab316929-7dc7-403c-afaf-74b4c4f50f21","block_type":"box","text":"the payments from the borrower. In connection with purchasing Par ticipations, the Fund generally will have no right to","page_number":52,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"e7a6a069-a572-4877-97eb-a98ff0d23a0f","block_type":"box","text":"enforce compliance by the borrower with the terms of the loan agreement relating to the Loans, nor any rights of set","page_number":52,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"f6b72d3f-1227-4b9a-9ba1-cc8944d136b9","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral suppor ting the Loan in which it has","page_number":52,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"b397f437-4f2a-4afa-9d21-98a83fdb5eef","block_type":"box","text":"purchased the Par ticipation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":52,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"2870bcad-a396-4278-9905-9a1c8a3b710a","block_type":"box","text":"that is selling the Par ticipation. In the event of the insolvency of the Lender selling the Par ticipation, the Fund may be","page_number":52,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"ff6a021c-205d-4850-a025-4855e6d170e9","block_type":"box","text":"treated as a general creditor of the Lender and may not benefit from any set-off between the Lender and the","page_number":52,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"6b62adbf-87c1-4c06-8cf9-7750fcb5a98e","block_type":"box","text":"borrower. The Fund will acquire Par ticipations only if the Lender interpositioned between the Fund and the borrower is","page_number":52,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"1c197373-b874-4936-a028-ba3177a7d4f2","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":52,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"9ef9f8f7-13c7-4ba9-b0cf-19812ff317d1","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterpar ty’s credit","page_number":52,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"9f53c9c3-052c-43e7-9a31-b80d9f542a7a","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":52,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"a4a823c6-c050-44fc-ae6c-837b9e1b21c0","block_type":"box","text":"whereby a Fund would agree to purchase a Par ticipation or Assignment at set terms in the future. For more","page_number":52,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"fde3364a-2f12-4c95-985e-4970103b8984","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":52,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"7d44cf8c-1440-4bc2-847e-7a6398b39d03","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":52,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"2c080215-f074-46d3-bf8b-0f0cd03bfdb8","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Par ticipations. In cer tain cases, the market for such","page_number":52,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"d754494d-c774-4d54-8838-7c7bf7a74850","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":52,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"e7376e71-7298-404e-a736-d5a1016c64c4","block_type":"box","text":"could be sold only to a limited number of institutional investors. The lack of a sufficiently liquid secondary market","page_number":52,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"9df5acde-ac77-4193-aa91-dee51a7bf805","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of par ticular","page_number":52,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"b251c224-9be3-4ce8-a72d-596e72180350","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":52,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"8eb2d207-36db-43ab-bbd7-c54bf601c647","block_type":"box","text":"of the borrower.","page_number":52,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"6f52371b-5579-4257-af62-ebd243268bc9","block_type":"box","text":"II-7","page_number":52,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"a6f0b224-4f26-4201-a349-661d52b36d3c","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f6111ba3-4e05-4d91-bd2b-1bf98274083c","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":53,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"7e4ddd72-aeb0-47f4-9cc4-b56532a1a1b7","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":53,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"5f8d9e7b-6616-4d5a-884a-484ea262210a","block_type":"box","text":"Failure by the syndicate agent to fulfill its obligations may delay or adversely affect receipt of payment by the Fund.","page_number":53,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"09e77c2f-3357-48ac-b960-14c026638e23","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income. Although","page_number":53,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"e895ed7f-e78f-44d2-963c-39d5bc99b709","block_type":"box","text":"borrowers frequently provide collateral to secure repayment of these obligations they do not always do so. If they do","page_number":53,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"0069b2e2-fd3e-44cb-9231-f0c3aca90007","block_type":"box","text":"provide collateral, the value of the collateral may not completely cover the borrower’s obligations at the time of a","page_number":53,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"a3e9540c-8149-4235-b677-aba5024435c4","block_type":"box","text":"default. If a borrower files for protection from its creditors under the U.S. bankruptcy laws, these laws may limit a","page_number":53,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"ee84d70c-60dc-4043-8edb-bee77dc6408d","block_type":"box","text":"Fund’s rights to its collateral. In addition, the value of collateral may erode during a bankruptcy case. In the event of","page_number":53,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"0c268633-8c04-4ef2-bd44-c52c886df29c","block_type":"box","text":"a bankruptcy, the holder of a Loan may not recover its principal, may experience a long delay in recovering its","page_number":53,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"216b41fe-2487-416f-8ae7-920b6879a174","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":53,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"050770a4-b2d6-4a62-bdb2-fca291ee65f6","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of","page_number":53,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"881be250-ddd8-43af-9388-49bcfff5fd5f","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":53,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"76925c62-32ee-4809-8d03-ee5c8d07c997","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to shor t-term liquidity needs, a Fund may hold","page_number":53,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"d9235f38-59ef-48f6-b1c6-186f725efe2d","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":53,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"16a05db5-9079-4c62-8025-8ecce99de2d4","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":53,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"aa7ab44e-caf6-4c43-ba57-56221497fce2","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":53,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"c2d270a8-b313-4bbc-a873-05ff970318f9","block_type":"box","text":"interests in Loans, such as the Funds, may not have the protection of the anti-fraud provisions of the federal","page_number":53,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"0ba44033-639f-47e7-b4ba-e7d12abec9ed","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, par ties generally would","page_number":53,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"06a10f2d-60b3-4784-8571-94e1b13e78c3","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":53,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"2dd56d79-533f-4f25-9ace-423f3ef74c72","block_type":"box","text":"state law.","page_number":53,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"90406ec1-d636-4a8f-9073-7393fc1f4056","block_type":"box","text":"Direct Lending.","page_number":53,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"fcde6ccb-be9f-4bcd-a344-6340749a023e","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":53,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"c9a17525-ae91-4353-9c55-981a10044f59","block_type":"box","text":"between the Fund and a borrower may not be administered by an underwriter or agent bank. The Fund may provide","page_number":53,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"d60fed75-3333-4228-b00a-b0106884274b","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":53,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"a3e90083-4342-4a7d-bcc7-d6975322a1c0","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":53,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"e07b1e48-cd86-456f-a56a-98a01f007a5b","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":53,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"8c49de3f-526f-4426-9581-7a9bce3e32d9","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditwor thiness of the","page_number":53,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"090d70ca-36f4-41bb-8b25-ce3de5f6b65f","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":53,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"dc279133-65ef-4d44-932a-fbbf112ed4a1","block_type":"box","text":"loans are substantially similar to those associated with investing in corporate loans. In making a direct loan, the Fund","page_number":53,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"c5fe989c-5bf3-4c7f-ab8d-ffcfa123ada5","block_type":"box","text":"is exposed to the risk that the borrower may default or become insolvent and, consequently, that the Fund will lose","page_number":53,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"448a6551-2d19-4d72-8380-f53f4661c244","block_type":"box","text":"money on the loan. Fur thermore, direct loans may subject the Fund to liquidity and interest rate risk and cer tain","page_number":53,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"c86a3fa7-7d09-4b96-9c9f-017a2feb7e51","block_type":"box","text":"direct loans may be deemed illiquid. Direct loans are not publicly traded and may not have a secondary market. The","page_number":53,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"f99204f8-d1ea-426b-80ab-7a6889ce2544","block_type":"box","text":"lack of a secondary market for direct loans may have an adverse impact on the ability of the Fund to dispose of a","page_number":53,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"360b8321-2c70-4ae7-84b3-57e79dcc6247","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":53,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"3726205d-5732-4794-b761-62210ee2bb93","block_type":"box","text":"When engaging in direct lending, the Fund’s per formance may depend, in par t, on the ability of the Fund to","page_number":53,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"1965cca8-602e-4b7e-8662-5de5537457ca","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":53,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"83c560fe-59fd-43ed-a479-ed73986a4da9","block_type":"box","text":"Increased competition for, or a diminishment in the available supply of, qualifying loans could result in lower yields on","page_number":53,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"93651e33-8e09-43e1-ade0-f25d17b5f465","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":53,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"c2bb51d7-8b24-4c21-a88e-cd614419c9b7","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":53,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"477abdbe-7713-4f90-bfa1-79aebfcedcfa","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":53,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"e3e304f8-300b-4f02-829d-2f34721cca35","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":53,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"0651593b-f540-4bab-b027-454a66d849c5","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":53,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"1f44ef1e-6417-4265-be41-4285d9cabc09","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":53,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"0232db56-a049-4c72-85e0-97f834c80592","block_type":"box","text":"Credit Linked Securities.","page_number":53,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"214cef08-82ad-4069-a81f-629bf001133f","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":53,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"4293fd8a-15a7-4e05-9e5e-897b30fc74ea","block_type":"box","text":"securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests in a derivative instrument","page_number":53,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"7069121f-2a7a-4aba-9a63-f3b2996b0d0a","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":53,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"f5bc5e6b-209f-4510-8224-ff1f91f096c2","block_type":"box","text":"to provide exposure to cer tain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":53,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"4bcab3e3-79d4-4eb2-982f-4e702f9f90ec","block_type":"box","text":"cash management tool in order to gain exposure to a cer tain market and/or to remain fully invested when more","page_number":53,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"695e63f1-6fbb-49f7-9f24-0c4611316eb5","block_type":"box","text":"traditional income producing securities are not available.","page_number":53,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"638f6da5-c8f0-410d-b4b6-0803ff505a1a","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":53,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"56409cfb-89ee-4f19-8721-e4196a14fcc5","block_type":"box","text":"income payments (in the form of distributions) and payment of principal at the end of the term of the security.","page_number":53,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"b20d7acc-67ff-4a94-a560-9edb7294a684","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":53,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"d1e256b4-c611-4f01-851f-d910cf850395","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":53,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"51daf5f3-65e1-4426-8385-9fdcdb8ade69","block_type":"box","text":"instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of","page_number":53,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"3f34454c-551a-49fd-ae6e-a7f33b01de11","block_type":"box","text":"II-8","page_number":53,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"ad89f745-5fd4-44bc-b313-4548944ac6ec","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77e20b52-6b3e-4c72-9b25-11b8228bb32b","block_type":"box","text":"payments over the term of the swap agreements provided that no event of default has occurred with respect to the","page_number":54,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"ec8257c3-6ea8-4d0c-a113-98b1b5816c21","block_type":"box","text":"referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and","page_number":54,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"c05d65b3-9759-47e4-b26e-0d5a164692f5","block_type":"box","text":"the issuer would be obligated to pay the counterpar ty the par (or other agreed upon value) of the referenced debt","page_number":54,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"847229a6-e330-402e-b81e-c1816b7da133","block_type":"box","text":"obligation. This, in turn, would reduce the amount of income and principal that a Fund would receive. A Fund’s","page_number":54,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"70ed0583-972b-46f4-930e-b66c9e7806dc","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":54,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"789316f2-f3a6-4f55-9ec1-52daeeff1712","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":54,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"457aa2f1-6265-40d4-a977-806ecae9ed0b","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":54,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"1fc8fb0a-5a4b-4a4e-b4bd-a9ea5ebf03ed","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":54,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"aa531da4-e22a-492c-ac59-64e2ac621a52","block_type":"box","text":"investments.","page_number":54,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"2ddf9a1c-1154-41b2-a395-6457c7236dff","block_type":"box","text":"Debt Securities.","page_number":54,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"2021236e-2511-4d4c-b0d0-edcd6f9e7322","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":54,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"9dbfd769-68c0-4e9a-8714-b9f03ad87e40","block_type":"box","text":"timely payments of principal and interest. The degree of credit risk depends on the issuer’s financial condition and on","page_number":54,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"fb0cf4cc-2de6-4adc-a89d-c3e18c6d41ac","block_type":"box","text":"the terms of the debt securities. Changes in an issuer’s credit rating or the market’s perception of an issuer’s","page_number":54,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"069e05db-58f1-41c5-93ae-3660b721ddb7","block_type":"box","text":"creditwor thiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":54,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"f5090eff-b8e5-4f4a-8a24-1be829821e0c","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":54,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"9ca725fe-ef42-4e2c-8abe-569da220afc4","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the security may","page_number":54,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"5d9527a6-1810-44ec-ab75-9ea1b8c86ef9","block_type":"box","text":"fall when interest rates rise. If interest rates move sharply in a manner not anticipated by Fund management, a","page_number":54,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"7e0e3980-4524-49c9-ba75-391a26ee6d56","block_type":"box","text":"Fund’s investments in debt securities could be adversely affected and the Fund could lose money. In general, the","page_number":54,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"9a3cc81d-bedb-43be-80df-4cd6f814865b","block_type":"box","text":"market price of debt securities with longer maturities will go up or down more in response to changes in interest","page_number":54,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"b9841adc-d205-4a5d-9097-585c50c91ea7","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":54,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"25c434fb-c3db-4bad-8bc0-ecb454e78a4e","block_type":"box","text":"During periods of rising interest rates, the average life of cer tain fixed-income securities is extended because of","page_number":54,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"c1982cf5-b7cb-4cc2-af06-71279becb003","block_type":"box","text":"slower than expected principal payments. This may lock in a below-market interest rate and extend the duration of","page_number":54,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"9ee57ed0-a3f9-4ed0-8e4f-cb144f52911e","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":54,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"50e205e4-0450-4698-9a69-7314625f1dfe","block_type":"box","text":"interest rates. As a result, in a period of rising interest rates, these securities may exhibit additional volatility and","page_number":54,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"1efae8f1-a0a5-42cf-9b5a-2c65a58907a5","block_type":"box","text":"lose value. This is known as extension risk.","page_number":54,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"691f81db-2c90-49cb-9e5d-0af2186ec4a0","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in prevailing","page_number":54,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"3de389cc-b05b-4273-b4b6-04931a47a823","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":54,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"c3190704-81d7-44f8-9bd2-7ef90d927cb5","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":54,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"e6f13072-258a-4a11-a8f8-7a35d909c56f","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":54,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"5a9d0521-0be5-4b8f-b33f-cdb91c24bbd4","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":54,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"13b84a62-a8a6-4995-b67c-b8086a3922a6","block_type":"box","text":"Floating and Variable Rate Securities","page_number":54,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"8b6e341b-8e64-4a20-bffb-42f3dad45d8d","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":54,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"5c170141-c8e9-4544-a10f-d2dad34d60bf","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":54,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"7cae1b5e-7b7b-425c-a6b3-86a9b7a83722","block_type":"box","text":"with fixed interest rates, but may decline in value if their interest rates do not rise as much, or as quickly, as interest","page_number":54,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"11eb8ddc-b2ff-4152-ad5d-95d7ee0009c7","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":54,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"ef0f31cb-019a-4f33-948b-a06ded52eb91","block_type":"box","text":"impact of interest rate changes on floating rate investments is typically mitigated by the periodic interest rate reset of","page_number":54,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"e447c7ea-609c-43b8-ba7e-9e488aaf9fa0","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":54,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"1364b78a-9798-4b73-abea-51a7b64dd9bd","block_type":"box","text":"market interest rates.","page_number":54,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"95977f36-d729-4b85-ac8c-ff0ecb955d8d","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":54,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"f5d7e30b-e349-4f59-a90c-c9e98a4ef282","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":54,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"5d6dc064-202e-405f-a9b0-8ad39de7fab0","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":54,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"a63af541-38e6-4790-8b84-6571844bde19","block_type":"box","text":"common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of","page_number":54,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"4f32b7ea-5e4d-41ea-8ffa-a979629974e3","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as par t of a semi-annual coupon.","page_number":54,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"ca80a022-c265-44a2-b895-1b69c824fa98","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thir ty years, although it is","page_number":54,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"db64cd8a-3a8b-40bf-b5a7-8a18af3a46f2","block_type":"box","text":"possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on","page_number":54,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"38213d34-1f6a-490c-a026-aa65b3873277","block_type":"box","text":"a semi-annual basis, equal to a fixed percentage of the inflation-adjusted principal amount. For example, if a Fund","page_number":54,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"d3c66810-d794-43e8-ac35-6422e9c89235","block_type":"box","text":"purchased an inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5%","page_number":54,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"37502108-916f-4a97-8adb-805445621af7","block_type":"box","text":"semi-annually), and inflation over the first six months was 1%, the mid-year par value of the bond would be $1,010","page_number":54,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"3cd94bbb-1208-42a8-bc62-afbb283fb015","block_type":"box","text":"and the first semi-annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half","page_number":54,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"710e4d31-2636-49f2-9ddf-674ee132262a","block_type":"box","text":"of the year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be $1,030","page_number":54,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"d1f7e96d-7920-47e8-b290-cdec6bea5eb3","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":54,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"6f57cf41-ab71-4767-8f10-8dbc62583ce0","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":54,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"85940bc0-a2c8-486c-9ed7-8f055b31619a","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":54,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"96b3bc8d-ed90-49df-a1e4-735c49e51863","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":54,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"6a5c0346-606b-4060-98ee-365eb95cd98e","block_type":"box","text":"guaranteed in the case of U.S. Treasury inflation-indexed bonds, even during a period of deflation. However, the","page_number":54,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"591e335f-bfde-4ab8-b982-3b8f6cd134bc","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Cer tain Funds may also invest in other","page_number":54,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"248db396-54a7-4a4a-a5f1-8283a534150b","block_type":"box","text":"inflation related bonds which may or may not provide a similar guarantee. If a guarantee of principal is not provided,","page_number":54,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"5f600ffa-e127-448b-ad1f-aaf0eaffd92b","block_type":"box","text":"II-9","page_number":54,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"bc2b5778-88a2-460e-9bbc-90d07a647999","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad575c53-8913-462a-bd12-52de64240471","block_type":"box","text":"the adjusted principal value of the bond repaid at maturity may be less than the original principal. In addition, if the","page_number":55,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"31dbba00-81a5-4dae-9003-5ac7cd0a2565","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":55,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"f4b409f2-cf4f-47f0-b8be-bb4e9b89b0b3","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":55,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"9a77b9a2-c4b7-4869-9cc8-534860151c9c","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real","page_number":55,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"974dc78c-6669-43cd-a580-3fc6775c25e9","block_type":"box","text":"interest rates, in turn, are tied to the relationship between nominal interest rates and the rate of inflation. Therefore,","page_number":55,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"416c91be-0d64-411f-9af6-b5f893e5fdf2","block_type":"box","text":"if inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an","page_number":55,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"8c44ef15-1805-47a2-b762-f1344d69536f","block_type":"box","text":"increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increased at a faster rate than","page_number":55,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"f4369f18-6c6d-403f-9afe-317416efcc2e","block_type":"box","text":"inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no","page_number":55,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"83cfdff4-8a1f-4642-b2f9-c81a11ee9696","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":55,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"cbf22329-a86d-4e7f-812a-f4427cc70dfc","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":55,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"d1702547-2760-4fea-9a05-ed08570431a3","block_type":"box","text":"inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to","page_number":55,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"d5e3f912-8ae5-4d16-9203-6529b76c01f4","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":55,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"f0541b5c-a023-4a9b-b6ff-5f4c5c8034b2","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":55,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"be9850f5-ecc6-40de-903c-e02c77ca9382","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":55,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"eff92164-7cf8-4e6c-af51-0796fa325d90","block_type":"box","text":"Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S. Bureau of Labor","page_number":55,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"bdba6e72-8526-42e2-baf1-1e24746b3daa","block_type":"box","text":"Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing,","page_number":55,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"2b394dc5-4231-4a5e-9452-9ee2991c9236","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":55,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"8b42dbec-2943-4162-9c75-1bd69075f279","block_type":"box","text":"reflect a comparable inflation index, calculated by that government. There can be no assurance that the CPI-U or any","page_number":55,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"e7a8b0cb-6767-4c55-a916-9f96d0fb0cfa","block_type":"box","text":"foreign inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover,","page_number":55,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"7ac7f392-b886-466f-807a-972c1fd98315","block_type":"box","text":"there can be no assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":55,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"138eec5b-0c6c-40fe-b601-013177308ce1","block_type":"box","text":"United States.","page_number":55,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"44cf8fba-ec06-408f-bcbf-702af076bc78","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":55,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"8ea4976f-fc11-41bb-b987-a882bebd479b","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":55,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"76409619-b471-4382-aae0-6b99b80e3621","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":55,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"347f80c0-66f4-43dc-b783-c1884a47fc43","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":55,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"f23191e9-366a-4238-8876-f69c5065da4e","block_type":"box","text":"securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent quality by a Fund’s","page_number":55,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"7afec4da-6735-469c-bb3e-d2d0df5cd26b","block_type":"box","text":"Manager. Cer tain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":55,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"473c1974-1332-4e3c-ae75-2c509ecb1f67","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":55,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"c57f9e95-cfc1-414e-90cc-b87d3b07b428","block_type":"box","text":"i.e.","page_number":55,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"2027a1cb-93e0-4761-8020-c1dbce04d514","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":55,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"019684b7-0668-4229-b2d4-0fa7b05ba116","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":55,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"18abd1f6-cabb-404f-a81c-e9e5c3f9d004","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":55,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"a8b156d8-7334-49e0-9d44-13d14da837ba","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":55,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"8531669d-10b4-40a4-b815-ab837c04d160","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":55,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"15f2b906-4e7a-49ea-b3bf-7c45f5ec137f","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":55,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"b0d33ecb-ebf5-46a1-8486-932c3d69518f","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":55,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"b16db2f0-337d-4ed0-9185-8f94204e4baa","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":55,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"2346ac27-e838-469c-9e36-751e1d9ff962","block_type":"box","text":"“junk bonds” are debt securities that are rated below investment grade by the major rating agencies or are securities","page_number":55,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"615c73cf-8bc2-43c0-b74b-621156ca4369","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":55,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"3ff3a0ea-13a6-4eb8-9262-1ffdbaeb1f3c","block_type":"box","text":"for gain, non-investment grade debt securities may be subject to greater risks than securities which have higher credit","page_number":55,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"ace15cc5-b74e-4645-9979-dcc09f5921c4","block_type":"box","text":"ratings, including a high risk of default, and their yields will fluctuate over time. High yield securities will generally be","page_number":55,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"e9509f84-296b-4998-bb9e-40722b0c1b40","block_type":"box","text":"in the lower rating categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P)","page_number":55,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"645e26c5-73d9-41bd-97e4-56d233ab23ce","block_type":"box","text":"or will be non-rated. The credit rating of a high yield security does not necessarily address its market value risk, and","page_number":55,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"da092e04-ac3e-45a8-9ba5-97e405460b3a","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":55,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"17a7d6f5-7215-4d61-9872-79b41849a2e8","block_type":"box","text":"condition. High yield securities are considered to be speculative with respect to the capacity of the issuer to timely","page_number":55,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"7097e0f5-00b3-492c-a5cd-71c8e02dfaea","block_type":"box","text":"repay principal and pay interest or dividends in accordance with the terms of the obligation and may have more credit","page_number":55,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"3b6f5ae1-4d48-4a66-b577-1f2ae3218e90","block_type":"box","text":"risk than higher rated securities.","page_number":55,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"6c228701-0137-4675-833e-b350fb1d4ae5","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":55,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"c156f469-6878-4d84-ad38-c972a9107445","block_type":"box","text":"•","page_number":55,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"a0578a1f-9965-429c-91e3-97477eb88199","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":55,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"e13ee271-01c8-4896-bd1d-4e3989ebb6ea","block_type":"box","text":"in the issuer’s industry and to general economic conditions. Issuers of junk bonds may be unable to meet their","page_number":55,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"eb6b1346-6d3d-47ac-b61e-b15dd1ba5b28","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":55,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"e55abe4a-a5fb-40b0-a5cd-653d625af0ad","block_type":"box","text":"unavailability of additional financing.","page_number":55,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"104390a2-4a98-45e1-af02-6625f759870f","block_type":"box","text":"•","page_number":55,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"62e0221c-0f39-47fa-a6d1-62e85f7aa52a","block_type":"box","text":"The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of","page_number":55,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"efe1261b-72e9-4fe6-a412-6076ae0b0bdd","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":55,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"85bacf04-abf8-467b-a5a8-56f253440157","block_type":"box","text":"The issuer’s ability to pay its debt obligations also may be lessened by specific issuer developments, or the","page_number":55,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"d124868c-ecb1-440e-b02b-22e431dc7dca","block_type":"box","text":"II-10","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5dbae891-7331-4ec8-a43f-8394db9d0e77","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ac47d204-6cc0-4795-b412-610a79d7c7aa","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":56,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"ebfdb81f-45f3-422f-8246-e944343f4ee5","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":56,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"b5070026-de67-491b-bb4c-a466b70740b3","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"70867dd2-ffbc-4f33-9736-b073aa039283","block_type":"box","text":"Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its obligations, the","page_number":56,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"d3348783-4aa7-47ee-a069-b95444b5ea2c","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":56,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"34dd5d7d-c0bf-4cf3-8a08-9b2c1be5fb36","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":56,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"a7ef16df-3c17-4cf4-8f0c-261aa92d79e4","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":56,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"8a16b3f3-de4d-45fd-8550-9551d7f9bcbe","block_type":"box","text":"investors in higher rated securities.","page_number":56,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"6fd0d45f-2706-4edc-9794-e5461fdca858","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"96bf60b6-1a27-4ea9-a45c-4af32fd3c9a2","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":56,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"56c86ee8-8b68-423a-97cd-eaa57348e7e3","block_type":"box","text":"before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the proceeds in bonds with","page_number":56,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"1f32a7b8-5de4-4350-a972-a7ab9ab4bb19","block_type":"box","text":"lower yields and may lose income.","page_number":56,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"8e40a5df-dde7-4440-9081-67cab3e3fd74","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"b8ae228a-551c-41ed-90bb-ab95eb499477","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":56,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"d17fb4ed-ed75-47f7-954c-8b50cd03cfbd","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":56,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"8e2bea97-8548-4db0-94a7-61cd70fd7a92","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"cbb587df-12bb-4bf3-a0b2-9ae7d2bdb281","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":56,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"4f2e1534-73c4-4a3b-b6a0-bccaaa67c638","block_type":"box","text":"Under cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield","page_number":56,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"764cc915-a5d0-4d62-8918-2097fa971aed","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. There are fewer dealers in the junk","page_number":56,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"5b756737-9efc-4021-9b27-450bc4fa38b3","block_type":"box","text":"bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers, and","page_number":56,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"4c792730-2deb-4d60-843c-0c0e6bfdd62c","block_type":"box","text":"such quotations may not be the actual prices available for a purchase or sale. Because junk bonds are less","page_number":56,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"6e9fdd61-8711-45a7-b1de-37ef5c430747","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing cer tain of a Fund’s por tfolio securities","page_number":56,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"351d876d-c546-4c80-876f-a866dc135398","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":56,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"fbd0b760-7984-4299-820e-9996b3227243","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"fbf69b40-4f36-44bb-81d4-7a1d33e4cdc7","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":56,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"55ac73fd-004e-4011-993d-8001fd593fe7","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":56,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"8472233c-e36a-41f9-8649-d00fbbd1e155","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":56,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"e99b08f2-28a3-41c3-aee9-58590572a9e3","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":56,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"02a10adb-2059-4622-89ce-c5972a3c889f","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":56,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"a4b3e2d1-ba1c-4245-9e11-261270f682e5","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":56,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"90975bc8-2095-495b-87e5-835c631065db","block_type":"box","text":"cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield securities","page_number":56,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"4f2a8661-6535-417d-bd1f-f0da7c049615","block_type":"box","text":"due to the limited number of investors in that sector of the market. An illiquid secondary market may adversely","page_number":56,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"12b451f8-f2b1-47fd-8e19-04aaa028f73a","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the par ticular","page_number":56,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"732af9d8-ccbb-486d-b710-227731900c64","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":56,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"e814d730-e308-445d-9d70-1f54f5d27f23","block_type":"box","text":"on high yield securities are available only from a limited number of dealers, and such quotations may not be the","page_number":56,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"5060b8a7-ecf8-4b0d-93f0-1cab144b799d","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":56,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"506ba0c8-d941-435d-97e8-bf897171488b","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":56,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"a1a38cc1-c3c0-42e9-bea5-7c3f4610f293","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more impor tant","page_number":56,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"ecc4657e-9d01-4f7a-96a8-1ecc51b89bc4","block_type":"box","text":"role in determining such valuations.","page_number":56,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"19b8ef75-2940-4877-bdab-88cc80d97caf","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"32c387b8-329c-400f-8fd2-39bbe99b9d4d","block_type":"box","text":"A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with","page_number":56,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"bbf6caa3-1d81-44c9-844b-8ab928e56b53","block_type":"box","text":"a defaulting issuer.","page_number":56,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"b05be5c5-9553-4b05-9893-72e31b1893f7","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"9cc67dd4-72fc-433d-87be-295c1c2e26e2","block_type":"box","text":"The junk bond markets may react strongly to adverse news about an issuer or the economy, or to the perception","page_number":56,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"42ce92d9-1993-4872-9293-6e7cfb7cb282","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":56,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"2de6fa82-0bd2-4a7c-b1d4-91c24ad37272","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":56,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"546096de-a883-4514-bc89-d5fe5407544c","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":56,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"734b5a38-d1aa-4b11-9aae-6c18f6f3fc6c","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":56,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"2d55b357-89f0-4b9c-a154-fbd898faa16b","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":56,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"51df01b4-6f28-46ce-8cf2-88909176d634","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by cer tain","page_number":56,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"96b1aed2-8e33-4b86-bfc8-d3efc1116d9c","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":56,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"75d3f0ac-8895-4283-9c58-b75b0ff3cda2","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"913313b0-da5f-4658-9087-c25c92feedeb","block_type":"box","text":"The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of a non","page_number":56,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"bbfcd35a-b06b-4927-9820-1fb6b47b2886","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":56,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"aed968f7-9c91-47d1-b396-56370dd83e56","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":56,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"2d2dc7d9-6d18-4363-9709-518716e99d06","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":56,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"8e3e3b60-c960-40bb-85f8-8c53b8c3f5c3","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":56,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"4fb0f186-014a-49da-8491-8b0cc06c47e2","block_type":"box","text":"depend more on the Manager’s or sub-adviser’s own credit analysis than in the case of mutual funds investing in","page_number":56,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"2a63e302-269a-4b58-80c7-eb5daf217877","block_type":"box","text":"higher-rated securities.","page_number":56,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"1254db91-114b-408e-bfad-9b01592929c3","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":56,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"7e470e01-9a6d-4ec0-82fd-4c680ff3dd46","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":56,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"4efbfb78-08b8-4627-a958-c6e8e0532d05","block_type":"box","text":"the securities and the diversity of the Fund. The Manager or sub-adviser continuously monitors the issuers of non","page_number":56,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"4874c664-081c-44c7-a115-14a24108966c","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":56,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"614d0ab4-c7a3-487a-b551-93545607c3b3","block_type":"box","text":"II-11","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"23b2a359-71c4-4c8e-8e48-c65ff5bffd93","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"41232925-9047-448e-982f-0334aa2d5141","block_type":"box","text":"well as in an effor t to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":57,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"239e40c6-03d1-4c2a-ad34-766f43bdabe3","block_type":"box","text":"is reduced below the minimum credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will","page_number":57,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"98bf90b6-177c-4c01-98c4-aceb607487b1","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":57,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"1857a8dd-82bc-4ced-b8c8-90da75523ac9","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":57,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"8c50f880-ee9d-4b20-8086-8c7549835627","block_type":"box","text":"the Fund could be forced to sell its holdings without regard to the investment merits, thereby decreasing the assets","page_number":57,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"5715405a-561a-4095-9b08-d14d656b7b52","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":57,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"5cb18faf-fb93-4ff7-985d-0655f5a2188a","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":57,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"3f885fdf-a151-4668-8af4-948008f57fce","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":57,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"3c972b18-57f4-4976-8c9c-d8840ec94dec","block_type":"box","text":"Mezzanine Investments.","page_number":57,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"7f8f9bd7-9689-4d63-9b0c-66c60b202e31","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":57,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"69a08c25-0230-4c63-9190-3fd169e7bcfa","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":57,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"381f3f16-2418-436a-9b5f-2988df91c7c8","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":57,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"96b752c2-2b3d-433e-a66d-42717c11b726","block_type":"box","text":"e.g.","page_number":57,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"2d2ae89a-070c-413e-943b-0e9ccd8be436","block_type":"box","text":", with","page_number":57,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"c0045709-663b-4049-b48d-4eda1b3bf346","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":57,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"58be8f81-4689-4de7-94a6-e0bd5523f1a9","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":57,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"4c6e7ef6-fd58-44d7-8e45-bf90e0466ec0","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":57,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"e01f47e2-435a-4b2c-ba83-2103162eb986","block_type":"box","text":"other obligations of the issuer.","page_number":57,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"27702279-cdef-48b9-981a-d4981dcfde40","block_type":"box","text":"Pay-in-kind Bonds.","page_number":57,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"a0256c1f-9d61-41eb-8c72-3a32c7334291","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":57,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"90fbc2f0-df40-4d1c-8eee-bc545dc05611","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":57,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"61f4c3e8-4170-4d9b-9578-6b619c0578b7","block_type":"box","text":"bonds also carry additional risk as holders of these types of securities realize no cash until the cash payment date","page_number":57,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"baa144a9-c8b6-4e6c-a728-0c20db6250c0","block_type":"box","text":"unless a por tion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":57,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"2718368d-b13e-4e25-9594-5135c0eab388","block_type":"box","text":"investment. The market price of pay-in-kind bonds is affected by interest rate changes to a greater extent, and","page_number":57,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"8d63c6db-a662-450a-a492-1ae9c9e8cd2e","block_type":"box","text":"therefore tends to be more volatile, than that of securities which pay interest in cash. Additionally, current U.S.","page_number":57,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"05ed9f02-af1f-42be-9c71-70e4db7536fe","block_type":"box","text":"federal tax law requires the holder of pay-in-kind bonds to accrue income with respect to these securities prior to the","page_number":57,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"af92eddd-7528-420b-87b5-18c2a637e02d","block_type":"box","text":"receipt of cash payments. To maintain its qualification as a regulated investment company and avoid liability for U.S.","page_number":57,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"6020f667-c1b3-4397-af83-486c9d6f627a","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":57,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"bc265f62-1203-4efd-a051-a43eb3cafaab","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":57,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"89591661-da31-49fc-a3c1-91b557cac3c6","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":57,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"4333d193-02ad-43c3-9942-2d14015b4060","block_type":"box","text":"Supranational Entities.","page_number":57,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"aa749e11-0dc5-48a7-a5b9-940244a97c1e","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":57,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"91fe297f-f7a5-44c5-9df4-ceb660dc4046","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":57,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"eae37740-781a-4489-9431-c7a0ccc8f1f7","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":57,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"96def15f-0482-4ce7-a6d7-9bb308e5c6b4","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":57,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"d44c015a-a094-4aab-9b10-789000ad3814","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":57,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"9d4cc56f-68c8-4f80-bbf0-255b7577634f","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":57,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"11bf3197-0538-46c9-b70a-1e371235c996","block_type":"box","text":"additional capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay","page_number":57,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"96ac2168-c405-4cb1-b51d-09aa38ef609d","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":57,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"6b196074-14e4-4d6d-bc7b-8f46d8a3b12f","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":57,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"286bd833-3e94-4009-b2cb-3fe7f53b7eb1","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":57,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"d1af8b4e-cc1b-4238-8a52-d7df154a7582","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":57,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"7376072a-75a7-4ef0-ab04-12192a46b9f4","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":57,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"9c8bfccd-5584-4628-b390-3f7975881211","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":57,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"dceb44e8-48d5-4d45-86f4-93f64d6ecb33","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":57,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"7445b287-07c5-480d-a38a-b08fdc6983aa","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":57,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"7757102a-764b-473c-abca-f01e5a071580","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":57,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"fd832133-8178-434a-bc65-f155eadb7f4b","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":57,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"c41c435c-f0b1-4484-8510-dba8cc77064b","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":57,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"b610c648-74fc-46b4-926b-6ca0e743f8ba","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":57,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"e9d47c2b-f7e7-4d0b-b965-f868e35d0c39","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":57,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"619fbc5c-e72f-4530-ab7e-4308150a95c7","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other par ties with whom the depository bank","page_number":57,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"f44a77d0-49f9-41e7-9022-5d7a42808b72","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":57,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"80d31bf7-c09e-4971-8a76-8b178b5237bf","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":57,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"5775f95e-0fe5-4adc-be3f-1aa6a1db0c82","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":57,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"00972fd0-7616-4275-af9a-2a01d3ceb579","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":57,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"dea09355-9c36-49a6-b74c-e84999cd0ea1","block_type":"box","text":"Available information concerning the issuer may not be as current as for sponsored ADRs, EDRs and GDRs, and the","page_number":57,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"e01e92da-26ab-49f6-af52-ece0e9edbbed","block_type":"box","text":"prices of unsponsored ADRs, EDRs and GDRs may be more volatile than if such instruments were sponsored by the","page_number":57,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"335c7269-66f8-4eb3-ab83-94fcaf9b0c2a","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":57,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"c70e21bb-40eb-4db2-838f-3edd3fd97944","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":57,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"dd2eef12-b955-4d9c-9b34-937d5018196b","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":57,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"1bb50514-6809-43d8-86c6-5389d74949e7","block_type":"box","text":"II-12","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b92f5407-0078-480d-9273-0c35bc45dd19","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b4d82476-60ff-4317-aeea-0593eae4e499","block_type":"box","text":"Derivatives.","page_number":58,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"8730d32a-9354-4534-917e-269bec6d019b","block_type":"box","text":"General.","page_number":58,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"e17d2ef2-6b1b-409a-bd1c-81e1a4ff58b1","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":58,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"514c212a-10a9-4142-97cd-a08031076925","block_type":"box","text":"their value from one or more securities, commodities (such as gold or oil), currencies, interest rates, credit events or","page_number":58,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"c930f7f8-89f0-45c9-85a6-dfd37f4ff0ba","block_type":"box","text":"indices (a measure of value or rates, such as the S&P 500 Index or the prime lending rate) or other reference asset.","page_number":58,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"8a1c2062-b20b-49ad-bbfb-105af66e237c","block_type":"box","text":"Derivatives may allow a Fund to increase or decrease the level of risk to which the Fund is exposed more quickly and","page_number":58,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"0b6ad71f-8b4b-4713-99a5-fdcedf6b21f9","block_type":"box","text":"efficiently than with other transactions. Cer tain Funds may use derivatives to maintain a por tion of their long and","page_number":58,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"34eecb24-2091-4172-8221-be32e853feb1","block_type":"box","text":"shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":58,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"871444e8-cfd4-47f9-bc0a-a8f60f8147ee","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":58,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"a18d3667-1aeb-4c64-9ce5-69c670442b60","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":58,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"41cff79a-3b21-42c3-a393-2328257300da","block_type":"box","text":"i.e.","page_number":58,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"ac0b34ee-82d7-4cf5-9820-36055bb0c900","block_type":"box","text":", the payment","page_number":58,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"61a79337-c7f4-4032-8d4a-cc22b25249dc","block_type":"box","text":"obligations of derivatives contracts are netted against one another with the Fund receiving or paying, as the case may","page_number":58,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"b09e420d-5774-4616-a081-79725423b00d","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":58,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"286737ea-0234-4f69-8f64-11b8cb654b97","block_type":"box","text":"Hedging.","page_number":58,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"d34c4605-4828-4397-9e61-b8671f22f507","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":58,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"ec129414-0d55-4040-af27-aa662847de73","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":58,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"c3381660-fec9-4d7d-bc20-8cbe9b393074","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":58,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"dd38423d-1371-4e7e-8296-5254f5aff1e9","block_type":"box","text":"reduce or eliminate gains. In addition, hedging may cause losses if the market moves in an unanticipated manner, or","page_number":58,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"04a3d0ff-9347-410a-8ecc-a9540eec0856","block_type":"box","text":"if the cost of the derivative outweighs the benefit of the hedge. The effectiveness of hedging may be reduced by","page_number":58,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"4c645e16-1eaa-4260-9d9e-ac7b099a8fbf","block_type":"box","text":"correlation risk,","page_number":58,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"80677488-67a2-4b5e-9507-0eb68408cf9f","block_type":"box","text":"i.e.","page_number":58,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"da24e414-700f-47cd-b309-1e9fceb5e48e","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":58,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"e9dfb111-7aa0-4cf2-8fce-e3112f389473","block_type":"box","text":"hedged as expected by a Fund, which may result in additional losses to the Fund. The inability to close or offset","page_number":58,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"b028536b-8883-4e91-8d5b-940b6a9d32d8","block_type":"box","text":"derivatives could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging will","page_number":58,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"cbc8eb08-e539-4d5b-a0d8-b69c152646f1","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":58,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"3d07b0af-6c21-4f12-b250-1a8a9b7d405c","block_type":"box","text":"Speculation.","page_number":58,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"eafd2ea8-2af5-41a1-8b67-d83b122d7855","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":58,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"5e0bddbd-2048-4e56-8524-0706c454b137","block_type":"box","text":"use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather than offset the risk of other","page_number":58,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"b024b829-581d-407f-a119-a08c1da31e59","block_type":"box","text":"positions. To the extent a Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the","page_number":58,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"9527c462-42f1-4bc3-9d93-2ddaa011d45b","block_type":"box","text":"risks of loss of that derivative, which may sometimes be greater than the derivative’s cost, and the potential for loss","page_number":58,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"c4d14668-9893-4293-aca9-9dfb3ff01041","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":58,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"eee3a73d-8d80-472f-8e91-9f581e4ac0a7","block_type":"box","text":"Regulation of Derivatives.","page_number":58,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"4c2e191f-c989-4f8e-86ed-6c0c31f5aee3","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":58,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"590e5886-6eb6-476c-ab6c-0ce4f97dc680","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":58,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"82c5be8a-5f72-4643-b5b5-61b6fcf3bc0b","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":58,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"415dd531-a725-49a4-9cdb-a8031ce70a4e","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":58,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"1f7c0ca3-fe85-4446-aa01-a32bc8a4d6e9","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":58,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"ec58c851-d407-4a40-ba6c-79c3b0d01505","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":58,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"d32cb7a6-835a-4ba5-9344-9df5faf45977","block_type":"box","text":"coverage”).","page_number":58,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"2174d516-a7c5-4923-b332-fe42752a09c4","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":58,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"119b7dfd-0540-4a45-8575-19b760592cb4","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":58,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"8a5a1e5d-e728-4ec9-b94f-aacb6b7829de","block_type":"box","text":"of the foregoing, or any similar instrument, under which a Fund is or may be required to make any payment or delivery","page_number":58,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"43b14adb-2b0a-4a5d-8eca-a17079668521","block_type":"box","text":"of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or","page_number":58,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"e5cbd6aa-0fa8-4f61-949c-4b764d09fbe1","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":58,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"1f22e699-af04-40ae-ad83-e05145088225","block_type":"box","text":"financing transactions (","page_number":58,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"10031db7-7033-4b04-8b5a-a673fbf3cf02","block_type":"box","text":"e.g.","page_number":58,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"172c8f26-6124-49cd-b235-1d51407d37cb","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":58,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"33eea206-2617-4323-98f9-a55d5939f10d","block_type":"box","text":"treat all of these transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":58,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"5ce9e5f3-4358-4534-8d36-c2039abad426","block_type":"box","text":"securities (","page_number":58,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"8cc1d53d-80b0-4104-ac97-69f5055dfd3a","block_type":"box","text":"e.g.","page_number":58,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"eecb68a4-3729-49c6-a1a4-2079b3ca5164","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":58,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"df0681ed-e920-4f0f-8ff3-d636c52a44d2","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":58,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"72f1c4be-711c-4a1b-8db6-566ca4ef0829","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":58,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"ae767b69-e7bf-407a-b9e2-5665e3d06269","block_type":"box","text":"Commitments”).","page_number":58,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"d9e662a8-c9d2-42aa-add8-bc778b9f84f9","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must comply with","page_number":58,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"5e111bbc-89ea-4e9b-9d01-a5947d670304","block_type":"box","text":"Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things, requires a Fund to adopt and","page_number":58,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"c8132c8a-3be8-46e0-a99e-63e7102cd3c8","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":58,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"70dd848c-d3a0-48f4-9622-7203e48d8db8","block_type":"box","text":"absolute limit on Fund leverage risk calculated based on value-at-risk (“VaR”). The DRMP is administered by a","page_number":58,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"badaee51-8df9-4387-9429-fb7b2a454ed2","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":58,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"6f36442a-2e01-419e-a281-9c3230c90adb","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":58,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"5836cc59-7a2d-49d5-9451-e5c35ac9413d","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and cer tain other requirements if a Fund’s","page_number":58,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"524147e7-2b51-481d-8668-ff9f50baf659","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4) and the Fund","page_number":58,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"74c0ca74-3bea-4148-b506-7acba25d7c50","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":58,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"6174c8a8-1f41-4246-a741-22fc806253dc","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":58,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"dad50607-055f-43b9-9661-f6151ffd78bb","block_type":"box","text":"II-13","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e6be33cd-1ff2-441c-a7b1-e9ae70e0301e","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eaa7a5c7-cada-436d-9d84-3a971ccd35c5","block_type":"box","text":"Dodd-Frank Regulations.","page_number":59,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"bacd48e0-e61a-4c60-bae0-15b2e244da08","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":59,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"b48cc7b3-202e-42fa-9888-2543e7b98886","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":59,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"be400b2c-2e8c-44fd-aa15-9d05680376ac","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":59,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"fe2cf6a8-bae7-4972-a733-4977422bc444","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":59,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"8c06f641-864e-4b15-ad4b-45691cf19aa3","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":59,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"4c0893ff-c31b-4600-9870-781b327301f1","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the SEC as","page_number":59,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"9e5fb928-0e77-494a-967d-95789da1c67a","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":59,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"541dc733-c4f5-447f-985e-81a817685478","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":59,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"98c78278-add7-4ec8-b548-f22253140568","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":59,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"1f80fa72-be5f-455b-9af1-04c7126619d9","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":59,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"8bf61f7c-53b5-4323-b260-e6a0ddaedc83","block_type":"box","text":"The CFTC requires that cer tain interest rate swaps and cer tain credit default swaps must be executed in","page_number":59,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"6854b039-fc85-4a96-9322-528d4a815a80","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":59,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"18219b8a-8d83-4951-bf49-80b7e2d0a80c","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":59,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"7877c84e-e8fa-4741-b6fd-a98c62fcc873","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":59,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"9833098e-d7f4-47c2-a3b5-4881a62c9425","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":59,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"3182d313-19a1-453e-8088-dea12fbc8d0c","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":59,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"e2bcbc34-8be2-400d-a996-b5cdda805f0f","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":59,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"4251cc88-4292-4768-a973-6be98df4c3f6","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":59,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"6b62079b-b84d-4582-b504-2f3f5020e8ce","block_type":"box","text":"the FCM and the customer. These regulatory requirements may make it more difficult and costly for the Funds to","page_number":59,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"46b7893d-3e4d-48c4-9e7d-b69fd3876f69","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":59,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"47459488-71dc-42ae-891b-bc5311c1ed73","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":59,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"747c5548-1d3e-4f90-b0a7-f6e1a90bce4a","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":59,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"bf1e0316-9c29-4e1b-9f20-85dc702b6d6f","block_type":"box","text":"member FCM or as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":59,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"1c625489-f54c-4eed-bcf9-dc596f38816c","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":59,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"f62477fb-ac25-4185-b816-b8854cdfc327","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not face a","page_number":59,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"1fe99920-5aeb-43a7-a0ae-7a04823361c8","block_type":"box","text":"clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/or SEC and that acts","page_number":59,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"8aeb21c7-388a-4a0c-b008-7daba5e31564","block_type":"box","text":"as a clearing member. A Fund may face the indirect risk of the failure of another clearing member customer to meet","page_number":59,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"21924562-0751-43d5-88c6-902e25583db5","block_type":"box","text":"its obligations to its clearing member. Such scenario could arise due to a default by the clearing member on its","page_number":59,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"d34cf4f9-6e28-441a-b8e7-bd57830fb130","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":59,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"e9d1ccb9-781f-4a52-b12d-c51e0c4b0ed9","block_type":"box","text":"member.","page_number":59,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"1afbb5cd-2d25-40b3-9b43-bd7d87447a8c","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":59,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"a1fce442-c4c1-49f6-9fb2-192322280e69","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":59,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"a792545c-e261-45b2-9825-177f8bf3787f","block_type":"box","text":"was widely permitted for OTC derivatives before Dodd-Frank. While an FCM may require its customer to post initial","page_number":59,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"3b16b53e-f27a-4e96-ba06-60916f7cbcf7","block_type":"box","text":"margin in excess of clearinghouse requirements, and cer tain clearinghouses may share a por tion of their earnings on","page_number":59,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"f41dd8bb-2917-4847-9c49-e131969d0c1c","block_type":"box","text":"initial margin with their clearing members, some por tion of the initial margin that is passed through to the","page_number":59,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"cbdba1ad-db74-4cfd-a24c-8ff2402434ae","block_type":"box","text":"clearinghouse does not generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on","page_number":59,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"5f662a04-8108-4da1-afa1-33d7b65df824","block_type":"box","text":"initial margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives may cause","page_number":59,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"ae8b2095-385a-49a0-8e54-4b76991d33fc","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":59,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"40e4532b-bab5-48f5-9753-8c917d2f27cb","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":59,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"3060d62f-415a-4787-bfe6-6f3c499c761e","block_type":"box","text":"payable to FCMs with respect to cleared OTC derivatives, which may raise the cost to Funds of clearing as compared","page_number":59,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"42de2f48-68e1-464c-8616-5fd93c209842","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":59,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"43d1dda2-d971-4e20-be43-db0d64e02bde","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":59,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"6db8dfbf-203e-4e9c-a19c-e907b7229951","block_type":"box","text":"exchange variation margin with a Fund and may be required by applicable regulations to collect (and in some cases","page_number":59,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"f47ac5dd-cfd6-4877-9ccd-b1fc00455341","block_type":"box","text":"exchange) initial margin with a Fund. Both initial and variation margin may be comprised of cash and/or securities,","page_number":59,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"91aaabfd-4199-4525-a0a3-6a47ccab68c9","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":59,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"36e1dfa3-0a56-42eb-81cf-644e7a71f4fe","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":59,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"0d9e0e3a-fcb8-46e5-8476-c3a4c1808891","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":59,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"8a5d9dce-6c1d-43cc-adaf-d0c9c15fbbc5","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":59,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"a0d3a541-287b-4919-92a5-b61865428bc3","block_type":"box","text":"group of persons acting in concer t, may hold or control in par ticular contracts. In addition, U.S. federal position limits","page_number":59,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"7323dcde-de30-4fb5-8b9a-9064fa0c47e3","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":59,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"4da19bed-4f58-4beb-b9eb-0d1a34e2cde1","block_type":"box","text":"commodities. All positions owned or controlled by the same person or entity, even if in different accounts, must be","page_number":59,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"8e5cf630-1366-476d-b8de-cf8117f5b342","block_type":"box","text":"aggregated for purposes of complying with the speculative limits. Thus, even if a Fund does not intend to exceed","page_number":59,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"e962450d-9229-4010-a38a-f3c587f05441","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":59,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"ce018579-01a1-4c60-9344-3e50a140cbb6","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":59,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"f04d78e9-6ba4-4ccb-8f8b-e56791a0f8e3","block_type":"box","text":"held by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions or the","page_number":59,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"fea1265b-b8c6-4e03-b3b2-2aa05245c96a","block_type":"box","text":"II-14","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ca56aae0-12ea-4fc4-8833-fe69a1d87122","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"beab0321-1095-438c-ba27-e5c6c9c92691","block_type":"box","text":"elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A violation of position limits","page_number":60,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"256d9402-a57a-45d4-9c77-62dcd73b2210","block_type":"box","text":"could also lead to regulatory action materially adverse to a Fund’s investment strategy. A Fund may also be affected","page_number":60,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"3fca7156-902e-4cf9-a72b-9d0f05f995c4","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":60,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"ea4882fb-d0ea-45e2-9f5a-054938e46a70","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":60,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"6b30c932-92f0-4ddf-a6fb-6577ee02cdd2","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":60,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"9a1229cd-15c1-4029-a125-8ef9219eb54d","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":60,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"84072a4c-8f5c-4c0e-abd7-72cf5d9d065d","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":60,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"dd639832-f989-428b-bb9e-e265dc5165c0","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":60,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"6e693157-3b39-4b0e-b8b0-2f1c7949de50","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":60,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"f3f8eafb-27a2-4de3-9742-a52e9e3bf054","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":60,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"8e15863e-e54e-4f4f-b22c-4878c62f4491","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":60,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"28792497-59dd-4349-8272-1dd37e43d33f","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":60,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"93c10735-ef50-4f5c-9d3a-2a65ef3bfb63","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":60,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"2387be76-7c2d-4b8c-a1d5-91fe720b2434","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":60,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"dbf500bd-24b1-44d5-b640-d7a78ebd3863","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":60,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"f7d10e8a-3ede-49eb-bbeb-edcd23557ab7","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":60,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"0c1b49e7-d092-470e-abc8-9ab75431c0cb","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":60,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"484fc7e8-2a0f-4b10-a004-bb4080e298a6","block_type":"box","text":"Member States to apply position limits to the size of a net position a person can hold at any time in commodity","page_number":60,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"a91976e8-1b8d-4677-9747-fe4ecaa6b1e2","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":60,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"11700e76-2142-4c1c-add6-3f5145c20c62","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":60,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"98faa03a-7241-4e60-b9ff-6bd180d65fea","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":60,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"afae49b1-ffa6-42d3-b78e-c7b47f6d937a","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":60,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"67d64f1d-b8c1-42db-b5b2-5b96792aed3b","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":60,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"ac2dedd7-9a92-4a36-895c-123109dd69c0","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":60,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"1d44aae0-745a-4a0c-aa5c-a714dbe7430b","block_type":"box","text":"transfers of credit suppor t in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":60,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"05be2bcd-f87d-4c84-b8c1-d2a8027bc5f2","block_type":"box","text":"cer tain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":60,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"18e72e47-5f9a-47ee-a2fb-ef0d30c095d9","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterpar ties located in those jurisdictions. In par ticular, in the United","page_number":60,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"864a7f58-084a-4d82-bcae-5985a5d73e7e","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":60,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"160f06b6-f2eb-4797-973c-88969e35f80b","block_type":"box","text":"to a Fund of a counterpar ty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":60,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"fc66a110-6931-4832-a2de-d86273ca1c0d","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":60,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"287c825d-9a90-48fd-8c50-740c92a59dec","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":60,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"27b5fa48-1c19-4f79-9d52-42ff23a19812","block_type":"box","text":"collateral received under such contracts.","page_number":60,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"129fdc3e-a8ed-446a-b911-d3a8238caec3","block_type":"box","text":"Risk Factors in Derivatives.","page_number":60,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"7e439a14-dc87-43de-ae58-b3ed34fc1e50","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":60,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"14576253-77d7-4694-9f86-b826e903793b","block_type":"box","text":"Correlation Risk","page_number":60,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"a7360e22-df70-403c-ae45-202c1350bc22","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the value of","page_number":60,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"b92170a7-c73b-4974-ba84-4ec24fb15a88","block_type":"box","text":"the por tfolio holdings that are being hedged or of the par ticular market or security to which the Fund seeks exposure.","page_number":60,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"2f688e10-b357-4660-b413-e1bedf0c2e1f","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":60,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"a6bc6f99-2437-4988-aeae-1186b3a577de","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":60,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"a8a0343a-5f91-4599-9843-e4f044b5d74f","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":60,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"5e759856-e59b-4185-82e0-83b8b725f586","block_type":"box","text":"Counterpar ty Risk","page_number":60,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"f7e5c27d-c438-41c9-8bff-a83c387aba9f","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":60,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"9564e732-2a35-44de-9af0-b643d2ee6b78","block_type":"box","text":"payments or otherwise honor its obligations to a Fund and the related risks of having concentrated exposure to such","page_number":60,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"888e8c7e-821f-45e5-a980-1d36eb5e4f1a","block_type":"box","text":"a counterpar ty. In par ticular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":60,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"7ac8a034-b118-47ce-bb26-ce8a3a8398c7","block_type":"box","text":"corporation and often do not require payment of margin, and to the extent that the Fund has unrealized gains in such","page_number":60,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"df832067-2ba5-49d9-bcb1-254c46ca5d7b","block_type":"box","text":"instruments or has deposited collateral with its counterpar ties the Fund is at risk that its counterpar ties will become","page_number":60,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"ed0f87fa-3e7c-4060-990a-c46a250c85bb","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterpar ty risk by","page_number":60,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"d28e8390-e9b4-4063-910b-b70e451a5d7e","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":60,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"a8bafc1e-9634-4749-9e98-74180283f773","block_type":"box","text":"provided the Fund with a third-par ty guaranty or other credit suppor t. When a Fund enters into a derivatives","page_number":60,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"118d7332-80c5-4b6c-a48b-2c1a69b79d8a","block_type":"box","text":"transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is subject to the credit risk of the","page_number":60,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"3a83ce8f-9ca4-4259-ba09-99d323876693","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market par ticipants","page_number":60,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"582581b0-29ba-42f9-a45e-f14923a3614c","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":60,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"087b54fd-4ecd-40d2-b580-bc132f80e0f1","block_type":"box","text":"clearing members. It is not clear how an insolvency proceeding of a clearing house would be conducted and what","page_number":60,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"f49410f7-f419-4174-b49d-380972e74b98","block_type":"box","text":"impact an insolvency of a clearing house would have on the financial system. Also, a Fund will not be fully protected","page_number":60,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"834460f8-d2be-4d5a-8343-7fe1d2c2603e","block_type":"box","text":"in the event of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":60,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"38db3358-8d6e-4688-b537-cd48331dc1c0","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for cleared","page_number":60,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"a3867986-f48a-4041-acf5-fc352976aaf3","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":60,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"66a459bb-28fa-4a4a-b6a9-56abf2192c9b","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":60,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"aa349475-e421-4354-af17-9e44e4f4511b","block_type":"box","text":"II-15","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"800be0c8-8215-478f-8be6-ada7e44b5e65","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"909d4a1b-fc1e-47b2-87aa-580da2d8a9fd","block_type":"box","text":"applicable regulations, or in the event of fraud or misappropriation of customer assets by a clearing member, a Fund","page_number":61,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"a6fd038b-e257-44e0-9b83-baca94d57063","block_type":"box","text":"could have only an unsecured creditor claim in an insolvency of the clearing member with respect to the assets held","page_number":61,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"5979db60-12b2-4ea3-b273-4d1701367440","block_type":"box","text":"by the clearing member.","page_number":61,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"609ddc42-79c6-4ecf-b958-38eccf999c40","block_type":"box","text":"Credit Risk","page_number":61,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"4aa80410-443c-4cf5-bde4-c07f42a4020b","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be able to","page_number":61,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"b8eb3ffa-48bb-430a-ad21-39be330d94cc","block_type":"box","text":"honor its financial obligations.","page_number":61,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"77d326cc-8f0e-4fb3-8664-f637214cef7b","block_type":"box","text":"Currency Risk","page_number":61,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"6aa809b2-cb60-4090-95d2-b57529663535","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":61,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"22c4a2dc-21dd-4789-8179-13ba52fd08ef","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":61,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"cb1365fb-e0d4-4ed6-aab3-9793a81f8414","block_type":"box","text":"Illiquidity Risk","page_number":61,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"a79eccf0-728b-4d66-b5ae-b0dd9a1c7fde","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":61,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"55480517-1d5b-492c-9fa9-5175e29c705c","block_type":"box","text":"or at the price desired by a Fund in connection with payments of margin, collateral, or settlement payments. There","page_number":61,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"035db789-68b9-4b9e-86cd-75e8a57456f9","block_type":"box","text":"can be no assurance that a Fund will be able to unwind or offset a derivative at its desired price, in a secondary","page_number":61,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"e368b459-c205-4bfb-a9c1-827a4cacf12d","block_type":"box","text":"market or otherwise. It may, therefore, not be possible for the Fund to unwind its position in a derivative without","page_number":61,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"059113cf-4e86-4d43-86bb-6c64519a16e1","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":61,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"d1e38573-5ebb-4cbe-af8f-8cf81af94fee","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascer tain a market value for such derivatives. A","page_number":61,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"b4f3f435-9fa5-4330-972f-7dd50e3887c1","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":61,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"35ca6d16-945a-40f4-8868-d41568a57703","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which the Manager","page_number":61,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"e2b98e8f-8927-4302-a5c9-a4d40e383be3","block_type":"box","text":"anticipates the Fund can receive on each business day at least two independent bids or offers, unless a quotation","page_number":61,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"1cc9b21a-ba5d-4a30-a2a0-5b88e65b265c","block_type":"box","text":"from only one dealer is available, in which case that dealer’s quotation may be used. The illiquidity of the derivatives","page_number":61,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"7dc6b8f1-fbc4-4728-b4e4-741e1132d279","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":61,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"77d0dc82-84de-47cc-b786-0535d6b92162","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":61,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"de0ce079-6a11-4956-8fd5-1930fd4472ef","block_type":"box","text":"failures. In addition, the liquidity of a market in an exchange-traded derivative contract may be adversely affected by","page_number":61,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"8cb278db-f10d-434e-9686-933d529720d0","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":61,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"b5f62661-a872-4881-a351-6923f1bf468c","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract, no trades may","page_number":61,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"ce4b7764-2f71-44b2-863b-cd82a4c8a991","block_type":"box","text":"be entered into at a price beyond the limit, thus preventing the liquidation of open positions. Prices have in the past","page_number":61,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"d8888e46-33dd-4a7f-8fac-b17c72861ede","block_type":"box","text":"moved to the daily limit on a number of consecutive trading days with little to no trading. If it is not possible to close","page_number":61,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"507eb36d-b9aa-435d-ba8b-82b6faa9dd53","block_type":"box","text":"an open derivative position entered into by the Fund, the Fund would continue to be required to make daily cash","page_number":61,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"fdd04e80-6a44-4cbe-b9c8-11a1e415a541","block_type":"box","text":"payments of variation margin in the event of adverse price movements. In such a situation, if the Fund has","page_number":61,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"fd195419-fdec-4ad1-96f2-3bc42153cced","block_type":"box","text":"insufficient cash, it may have to sell por tfolio securities to meet daily variation margin requirements at a time when it","page_number":61,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"1698e8a5-72a6-41f3-98f6-3618e0584f6f","block_type":"box","text":"may be disadvantageous to do so.","page_number":61,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"415eae9b-7658-4e8e-9645-044187a63301","block_type":"box","text":"Index Risk","page_number":61,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"83a34caa-68c9-444f-9d83-84a8b1b4ef2b","block_type":"box","text":"— if the derivative is linked to the per formance of an index, it will be subject to the risks associated","page_number":61,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"c090f9ca-aa2d-4dbe-8f75-39f8f90cac3b","block_type":"box","text":"with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a","page_number":61,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"ed4814bb-7bf4-44b5-bb60-dcaf4b27cdc3","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":61,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"de280886-5e62-45c2-90b4-2893353e1901","block_type":"box","text":"Legal Risk","page_number":61,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"08d9a7e1-b18a-40e0-9220-2d2a37f94517","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":61,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"9d60d3de-97eb-405c-abd5-6fb7938df353","block_type":"box","text":"or enforceability of a contract.","page_number":61,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"e2ea8924-d8eb-4e98-a0f9-b1272a851ef8","block_type":"box","text":"Leverage Risk","page_number":61,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"cfcc5e57-c58d-490b-b35d-bec6bdac7669","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":61,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"ba1b626c-d90c-477a-a72c-73d21928da3c","block_type":"box","text":"Relatively small market movements may result in large changes in the value of a derivatives position and can result","page_number":61,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"0e35941a-543a-4860-be0a-748b6cf85159","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":61,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"16d0dfd9-66c1-4300-bd2b-778bbf82ddf8","block_type":"box","text":"Market Risk","page_number":61,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"7506f65a-f261-4b41-bf06-b96898b50a70","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to the value of","page_number":61,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"aef76353-e46c-4ec5-923b-9ea71d463c24","block_type":"box","text":"the underlying asset will adversely affect the value of a derivative. In the event of an adverse movement, a Fund may","page_number":61,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"b797f72c-ee28-48fe-86be-32dcd2f553df","block_type":"box","text":"be required to pay substantial additional margin to maintain its position or the Fund’s returns may be adversely","page_number":61,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"904ab872-ef85-4015-9b25-374660abdaaf","block_type":"box","text":"affected.","page_number":61,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"6e395d25-0590-401b-a4d1-4a173d929ba1","block_type":"box","text":"Operational Risk","page_number":61,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"ed622e46-ab26-48a0-a58c-2e794c6e948b","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":61,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"89287749-4d4a-4e61-a26e-9f2c39b36653","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":61,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"822cdca7-3db1-40e8-8598-b87e0e1d85d5","block_type":"box","text":"Valuation Risk","page_number":61,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"7e2b434b-e449-45aa-bf35-ff42b128cac4","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":61,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"8b62f004-8b2d-4be6-875b-2000b5e45cd2","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":61,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"a3956513-4d94-4587-aff2-273a60412006","block_type":"box","text":"complex instruments or quote prices for them.","page_number":61,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"4de50db4-159f-42ea-847a-e8571fd18bfd","block_type":"box","text":"Volatility Risk","page_number":61,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"a0ec5f03-ebff-4175-9ecd-c4245a4e0e47","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":61,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"f26770e9-b94b-4026-b95a-2d705944fdd7","block_type":"box","text":"Types of Derivatives Transactions.","page_number":61,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"ff37a68f-25cb-4749-9aca-65f45aebc25f","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":61,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"344b6abb-1431-4f8a-8b3f-d3b5ee0036bb","block_type":"box","text":"including the following:","page_number":61,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"c73ce181-ee18-42c9-8f74-97f641e96bfb","block_type":"box","text":"Futures.","page_number":61,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"7d29c391-bf4b-4c1d-9d50-2d58eb9e7172","block_type":"box","text":"II-16","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c246e521-dff9-4219-8add-2f42c79938b5","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c61bf9ff-bff5-4b2a-8d41-60c61a7a7ba3","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":62,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"86c445ad-5c89-4c5c-b87f-545ac28dd8b8","block_type":"box","text":"exchange-traded contracts that require a purchaser to take delivery, and a seller to make delivery, of a specified","page_number":62,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"5151dfce-48dd-414d-b87b-79c3b1fb1467","block_type":"box","text":"amount of an asset at a specified future date and price. Upon purchasing or selling a futures contract, a Fund is","page_number":62,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"fd48993b-9534-457c-a087-fcf6deb4c412","block_type":"box","text":"required to deposit initial margin equal to a percentage of the contract value. Futures contracts are marked to market","page_number":62,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"c05b307e-840c-4e89-aa00-4febbe93cc4b","block_type":"box","text":"daily for the duration of the contract, and the Fund will either post additional margin or be entitled to a payment, as","page_number":62,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"555db28e-46cc-41dc-8038-25f60e0533e4","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":62,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"cd593829-e1c2-4d8d-8246-79acf22dce23","block_type":"box","text":"A Fund may sell a futures contract prior to the completion of its term to limit its risk of loss from a decline in the","page_number":62,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"86ed1274-bfde-45a2-9401-760b7c078916","block_type":"box","text":"market value of por tfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":62,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"7b6d2397-faee-4260-aab6-8cf9d66f90ff","block_type":"box","text":"por tfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":62,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"6111faff-4d37-406e-9cdb-23011ce6f869","block_type":"box","text":"the futures position and a lower return on the por tfolio holdings than would have been realized without the purchase","page_number":62,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"0aedc081-435d-4d2b-bc0d-cbdb5fa751be","block_type":"box","text":"of the futures contract.","page_number":62,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"7ace248b-69f0-4582-b06b-8942ccb8c50b","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":62,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"7e7ac16c-7782-487f-a8bd-58faa080491c","block_type":"box","text":"commodities directly. In the event that such securities or commodities decline in value or a Fund determines not to","page_number":62,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"fe599989-c85b-4990-b997-a4f6b95c2de2","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":62,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"294aa390-e97a-4229-b8b4-d4ed273722e0","block_type":"box","text":"relating to the futures position.","page_number":62,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"8c204b82-dfad-49df-aa54-339eb8e189ed","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may be","page_number":62,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"011310f3-8d87-44f8-b6dd-d1b47999a28e","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":62,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"68206994-ab0f-481f-9487-36ee15c91983","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":62,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"c4fa0396-c009-4bab-aa3c-92bb64946bea","block_type":"box","text":"Regulations” above.","page_number":62,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"dcda5b7b-2070-4873-a720-50b95d20585f","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including financial futures","page_number":62,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"5ffb5528-976d-4e43-8922-5f1e60739bed","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":62,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"58231269-8d73-4e89-9e51-ac111a75cfde","block_type":"box","text":"(","page_number":62,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"c3c2284a-924b-4b61-9119-853b8a778d08","block_type":"box","text":"i.e.","page_number":62,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"814f82fd-6dff-4047-a3b5-1851e56f7d13","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":62,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"468dace7-4fae-4301-a230-435976a104a6","block_type":"box","text":"may purchase put options or write call options on futures contracts and stock indices in lieu of selling the underlying","page_number":62,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"d88b0cc7-1d0c-4030-b3e1-ea6e24b49ac0","block_type":"box","text":"futures contract in anticipation of a decrease in the market value of its securities. Similarly, a Fund can purchase call","page_number":62,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"48a5ab64-daad-4b47-b8c5-8ed313c59c30","block_type":"box","text":"options, or write put options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":62,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"4a2512af-a7ab-4d09-897d-cee106b84d5f","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of securities which the","page_number":62,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"d1043dbd-db44-49cb-a067-7b742bff3cf6","block_type":"box","text":"Fund intends to purchase.","page_number":62,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"98451ebc-452c-4a83-af5c-64a8a527006c","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":62,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"6323feed-720a-4c58-a843-38ee7b4c684b","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":62,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"ff5925eb-3610-4438-a65c-fd5469f6edba","block_type":"box","text":"determined by reference to the value of a security, an index of securities or a commodity at a future point in time. The","page_number":62,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"64cbe4c5-6772-4415-b7a1-24d58e473ac5","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":62,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"30a93504-aaf5-4dab-99c3-16aa3866bf50","block_type":"box","text":"illiquidity.","page_number":62,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"a95fceea-fb2d-4ca7-a7f2-da8517f149b4","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":62,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"828fc7d8-4054-4a5b-ac33-d4cb49fc14a8","block_type":"box","text":"illiquidity risk, market risk and counterpar ty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":62,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"9498c22b-01ee-4b80-ba40-2dc73c0be4a8","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":62,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"8648d37f-8d33-4454-b93d-8948cd8c6455","block_type":"box","text":"Cer tain Funds may invest in futures based on carbon “allowances.” Under cer tain regulatory regimes, a limit is","page_number":62,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"9323d630-ad8f-4daa-ad99-4576aa5129e5","block_type":"box","text":"set by a regulator, such as a government entity, on the total amount of specific greenhouse gases, such as CO2, that","page_number":62,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"78b9735b-ca7b-475a-9c5a-3b2a3defb8c1","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":62,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"5201f20d-9ba6-4980-86d5-7688819d4193","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":62,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"50b56ee0-efa8-49e3-8a1e-af595c1e323e","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":62,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"2f956f0b-23fd-4da3-b15b-e14ac34e726b","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the demand","page_number":62,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"4d02e0be-c3b5-4041-b003-9eeefa36705e","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":62,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"e73568c0-91bb-4c7b-b0b3-2334579b8eea","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":62,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"0d72023d-b7a8-460f-8425-8ed249bf06d6","block_type":"box","text":"for carbon futures contracts is still developing and may be subject to periods of illiquidity. During such times it may be","page_number":62,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"b9cf9708-25bf-42d4-9823-86bfe190f9dc","block_type":"box","text":"difficult or impossible to buy or sell a position at the desired price. Market disruptions or volatility can also make it","page_number":62,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"397d6b61-d475-4cf9-84fd-4a58a8a1ff76","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":62,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"95965ae8-525e-4b91-bbe3-411bc4f63a63","block_type":"box","text":"Swap Agreements.","page_number":62,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"02033e91-bae6-49bf-bdd0-a6e88cc41f6c","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":62,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"d414c2c1-1847-44e1-adc2-040cbcf0776d","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":62,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"56ac5ba8-8ea6-4ced-82ea-dbca6af26c6b","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":62,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"e66e7acd-516a-4495-8a4f-d1c4a402786c","block_type":"box","text":"earned or realized from one or more underlying assets or rates of return, which may be adjusted for an interest","page_number":62,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"f7991d6f-bd7c-44d6-acea-08222b7dad30","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the par ties are generally calculated with respect to","page_number":62,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"24772218-fc09-4a00-a43a-526978fcfdc0","block_type":"box","text":"a “notional amount,”","page_number":62,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"6c5d7760-53ba-41ad-a7b0-165df09772b8","block_type":"box","text":"e.g.","page_number":62,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"89e1b5ab-a6c2-416f-8a40-e7f1f15bf4aa","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":62,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"cb5bd935-68f9-45bc-96b7-a189bea917f1","block_type":"box","text":"II-17","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bebeece7-4e7d-40e4-8467-0fe22f6895d0","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f3e62795-ad0b-4023-9b5d-99692d930d01","block_type":"box","text":"interest rate, in a par ticular foreign currency, or in a “basket” of securities representing a par ticular index. The","page_number":63,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"150e5dff-6b38-4fb8-943f-6d245fc880b5","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the par ties to a swap","page_number":63,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"1733bb54-b87c-4a79-b9c9-9dbe35fb3353","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will generally be equal","page_number":63,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"6937c8e8-16ed-45ca-8023-2f26af557d27","block_type":"box","text":"only to the net amount to be paid or received under the agreement based on the relative values of the positions held","page_number":63,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"9f9dfaa5-bd5c-496a-9e5a-88924c978dcc","block_type":"box","text":"by each par ty to the agreement. Swaps that are not cleared involve substantial counterpar ty risk. A Fund will typically","page_number":63,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"2c4a34df-de2f-495a-ac60-ea7815c93c6e","block_type":"box","text":"attempt to mitigate this counterpar ty risk by entering into swap agreements only with creditwor thy entities that have","page_number":63,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"b7d8e582-7dd2-4622-b83e-9e295e769c07","block_type":"box","text":"substantial capital or that have provided the Fund with a third-par ty guaranty or other credit suppor t. A Fund’s ability","page_number":63,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"8770ccea-eb2e-4d09-bc30-3220a4c7cbf5","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":63,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"fb0da96a-3f1a-41fc-ab1b-1aef5aa02050","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":63,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"41d5bfd3-601c-47cb-8736-382ff2b13ac1","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":63,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"6083adaf-6052-49bb-8727-3d718d63cc4b","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":63,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"24e7b695-4a80-421f-a21d-c9dfd71e2dfa","block_type":"box","text":"“seller” an up-front payment, or a periodic stream of payments, over the term of the contract, provided generally that","page_number":63,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"e2eda656-58c8-486a-be4a-45e88df49d51","block_type":"box","text":"no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the","page_number":63,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"5b6cd1e9-b371-4a47-a27e-a70e7277cd18","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a por tfolio of securities issued by","page_number":63,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"8caa4b4b-031d-4770-9731-9a0968dd5a18","block_type":"box","text":"the reference entity. A Fund may be either the buyer or seller in the transaction. The Funds may enter into credit","page_number":63,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"4bf84543-9285-4745-ae65-73509af17fad","block_type":"box","text":"default swaps that reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that","page_number":63,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"7f732efd-40c5-4948-9a17-93e141ab6478","block_type":"box","text":"make up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name CDS and","page_number":63,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"385d18f3-bbf1-4df3-ac79-96e88dbc4618","block_type":"box","text":"index CDS.","page_number":63,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"90ad53a8-2d98-44c4-88e0-a5ddcee53184","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not currently held by","page_number":63,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"f2163c6c-4963-4b4e-aeee-8f6bb783dc74","block_type":"box","text":"a Fund. In circumstances in which a Fund does not own the securities or loans that are deliverable under a credit","page_number":63,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"bc8eaf8a-45cf-440c-93cf-65e05f95a82c","block_type":"box","text":"default swap, the Fund is exposed to the risk that deliverable securities will not be available in the market, or will be","page_number":63,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"54e416a5-1418-42c1-b9d0-213426e78261","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “shor t squeeze.” In cer tain instances of","page_number":63,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"8db4adab-b06c-4a1a-b7b4-d9eb823498a0","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":63,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"28f8da74-58af-4960-8d6c-3c7348d9d7a6","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":63,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"44396c00-d093-4839-a201-2602dc167d16","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":63,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"05984c15-7b40-4c3d-83ac-0b2d99be0e30","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":63,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"e394d994-ef27-4cf4-b09c-f9e7940eb569","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":63,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"a24b6739-c1d5-4f39-a4c2-cfae7f5f23fb","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":63,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"140083ed-f716-4525-a2db-d0ee8638744f","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":63,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"b9f0b39b-4f82-4604-8a33-bfc7fd368fef","block_type":"box","text":"uncer tainty as to the occurrence of credit events and the risk of a “shor t squeeze” by providing that the ISDA Credit","page_number":63,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"83cab4fb-8740-4460-8c83-2e13670bbbf2","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":63,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"6685da25-4510-4db0-a63a-e34ec62b2c82","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":63,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"02257115-af5c-4032-a54e-ae20bae279f6","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":63,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"4fba32f2-11a5-4e6a-b9d5-e22304909522","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":63,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"0971541b-b815-412f-8524-1941591a3d1b","block_type":"box","text":"respect to a “credit event” or otherwise does not establish a cash settlement auction, a Fund may not be able to","page_number":63,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"261cc869-14b0-40af-9332-5d09e5b7a19e","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Fur thermore, a Fund may enter","page_number":63,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"accf8c1b-802c-41e0-bd02-ef160bedcae2","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":63,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"41e121b4-0aae-4c7e-81a2-4c3c828f7611","block_type":"box","text":"If a Fund is a buyer, it will lose the payments made under the terms of the credit default swap and recover","page_number":63,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"8f8e9d72-cecc-489a-bb48-a2e5422bfd07","block_type":"box","text":"nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value of any deliverable","page_number":63,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"c93c1ecb-e6d2-43fa-920a-9f01f2f11854","block_type":"box","text":"obligation received by the Fund or the amount of cash settlement received by the Fund pursuant to the relevant cash","page_number":63,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"4d72ae74-f4e2-4f2e-99e1-0c78cb678cb6","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":63,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"e05c2a55-9152-4612-a2f0-4cf01a8305c1","block_type":"box","text":"it pays to the buyer, resulting in a loss of value to the Fund. A Fund that sells credit default swaps incurs leveraged","page_number":63,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"535e2ab9-55b4-44f0-8ffb-e08b52c3b753","block_type":"box","text":"exposure to the credit of one or more reference entities and is subject to many of the same risks it would incur if it","page_number":63,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"3d28ea34-0d6b-4d36-a18e-1e8653373500","block_type":"box","text":"were holding debt securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":63,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"80b518c1-8633-4588-8683-64b029035fdf","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt obligations. In","page_number":63,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"116a5648-465c-4c71-b436-e4cfb12c373d","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":63,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"519d7645-919a-41ed-9d3a-943a574033c0","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":63,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"a8695921-e734-4139-a849-f801b7d85a7c","block_type":"box","text":"which of the reference entity’s debt obligations to deliver to the Fund following a credit event and will likely choose","page_number":63,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"27d11852-9f43-4b4c-84ed-7a4e8bd3f198","block_type":"box","text":"the obligations with the lowest market value in order to maximize the payment obligations of the Fund. In addition,","page_number":63,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"2c9ad88a-b15c-4e52-bac2-52ca6273772a","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":63,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"c0194d52-ef63-4af6-b906-0a8e0bc784ce","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":63,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"aae17f54-d5b0-4119-8d92-5408676f3687","block_type":"box","text":"conditions.","page_number":63,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"445c2f11-e718-4354-9e1d-84c8aa15febe","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":63,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"4ddfd671-921c-487c-b159-7490f355ec9a","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":63,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"009feca8-07a3-4d93-bfe5-dce2c0df5e7c","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":63,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"6212680d-124d-45a5-97ee-4dab8c8b7443","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":63,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"e419a424-f233-4921-a16d-d028f8628deb","block_type":"box","text":"clear some, but not all, of the other credit default swaps not subject to mandatory clearing. The Funds face","page_number":63,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"c3c55d87-2753-4163-842a-a1bf26174d47","block_type":"box","text":"II-18","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"36bff520-fd98-488e-b300-0b5430e2acc2","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae69bfdb-e20b-44fc-958a-d944807a1763","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":64,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"7a5e1357-e55e-4c9b-a470-fecee67cd65a","block_type":"box","text":"CDS. The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared credit default","page_number":64,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"4c0aa261-e7e7-4a60-beec-9acc91969d66","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":64,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"8f74e0a5-6366-437b-89dd-566e969bf889","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":64,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"033ceff6-4800-4026-bb13-82526cd01cc2","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":64,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"8e790952-108b-4cd1-bd6c-5707dc1d6769","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":64,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"ddb7b0fa-9953-4693-9469-221a3fcffc7d","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":64,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"89333510-f402-4423-94da-0a5799cfc6ad","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":64,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"995a6d5f-50d8-4239-865b-5f9a38b683f3","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":64,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"cb667d68-0da9-464e-83dd-f30749968829","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":64,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"8fe14d12-5c67-4988-ae75-c1d6f58caa9e","block_type":"box","text":"underlying security or loan to or by the Fund rather than by way of cash settlement, and there may be a wider range of","page_number":64,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"4dfa68b4-c145-41a6-8fd2-126152f9b00e","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":64,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"7dda6d41-1dac-4cd0-ac9e-5fc90d992e4c","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":64,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"133da504-bd29-42c4-a23f-9d7cffea016c","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":64,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"c1dff4ba-43e2-43ff-9a25-8ad5e3ecbe11","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":64,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"fcd878c3-0a0b-476b-94fe-d511d23c5e03","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":64,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"a34b97c6-f9db-467e-8ee1-242d3b291d3a","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":64,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"a00535b2-353a-4e51-b81b-025a28d76031","block_type":"box","text":"swaps and interest rate caps and floors. As described in fur ther detail below, a Fund may enter into these","page_number":64,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"88a72000-13cf-404a-9ac8-617793ebb32a","block_type":"box","text":"transactions primarily to preserve a return or spread on a par ticular investment or por tion of its holdings, as a","page_number":64,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"9421d17c-ec0f-4b2e-a594-ad6932577385","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":64,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"2ae6ac82-e73d-4b98-9bcd-92c5f2daa752","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":64,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"307c5399-deeb-4aac-9bd9-e72da0df0bdd","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":64,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"9bdc8ad4-9b7c-4187-9028-bf4d3b2cfbc0","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":64,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"9dcc9e35-34c3-4427-95ee-450f288b5753","block_type":"box","text":"interest rate swaps are permitted, although not required, to be cleared. Most of the interest rate swaps entered into","page_number":64,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"3b73caf2-60fd-4256-a80d-a59b5187e836","block_type":"box","text":"by the Funds are cleared. The Funds face counterpar ty risk with respect to the clearinghouse when entering into","page_number":64,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"d98aac20-ec7c-4d58-a67f-79385a0bba11","block_type":"box","text":"cleared interest rate swaps.","page_number":64,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"b0b6b95b-a6d6-4d76-bdaa-94d6016a1587","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":64,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"9fc1dfe4-100a-4f76-87ca-a6b2ad99b144","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterpar ties for a Fund’s non-cleared interest rate derivatives","page_number":64,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"1d8bde5b-22ff-4efc-b2b4-e298423fa7b2","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":64,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"f25993c9-06c4-4005-9a9d-d06950a543c2","block_type":"box","text":"Fund with a third-par ty guaranty or other credit suppor t. If the Fund’s counterpar ty defaults on such a transaction, a","page_number":64,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"909dd088-ccb6-4109-9c3c-7b30f5f5b63d","block_type":"box","text":"Fund will have contractual remedies with respect to the transaction but there can be no guarantee that the Fund will","page_number":64,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"555435da-f9f1-4cc9-a21e-fc801a627db6","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":64,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"68cd0dcc-122e-4f3f-b660-8c75aef248d6","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into cer tain","page_number":64,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"656034bf-4f24-4a47-a22b-d553ee09f7d2","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":64,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"2143ab3e-5b65-48b6-ad7d-511e29aef64b","block_type":"box","text":"Interest rate swaps are transactions in which each par ty makes periodic interest payments based on a fixed or","page_number":64,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"d004170c-0cf8-4c75-8d92-bfe48aa60fb6","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterpar ty based on a different fixed","page_number":64,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"c9b900d9-5416-4879-afb3-46ca0bf98657","block_type":"box","text":"or variable interest rate, index or asset.","page_number":64,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"940830f0-a048-490b-88c5-525990a46452","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a","page_number":64,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"0ed860fd-1436-43af-a705-31e1300e674d","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":64,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"d85e2ab6-9d71-40db-8bdc-1096a76f452a","block_type":"box","text":"such interest rate floor.","page_number":64,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"725e01e8-0b84-4d82-9634-335dcdaf45bb","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises above a","page_number":64,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"af423d62-e2d9-460e-a73a-86d22bb764b1","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":64,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"1bac2143-cfd7-4e2e-a8d6-4b81ad52361e","block_type":"box","text":"such interest rate cap.","page_number":64,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"ab36e9ed-3837-481e-b5a9-0aa828221521","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":64,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"94edb2ba-c7cd-4f3a-b933-866204fa42dc","block_type":"box","text":"commitments to pay or receive interest,","page_number":64,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"a387b3c5-267c-47d0-8b46-1b8c9ce7add7","block_type":"box","text":"e.g.","page_number":64,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"a3e16f7f-7918-4a85-ad61-4e2964220173","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":64,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"f2fdea3d-e365-46de-b1d4-191dea8600ee","block_type":"box","text":"example, if a Fund holds a mor tgage-backed security with an interest rate that is reset only once each year, it may","page_number":64,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"db136433-47f1-498f-a757-7c3e1921187f","block_type":"box","text":"swap the right to receive interest at this fixed rate for the right to receive interest at a rate that is reset every week.","page_number":64,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"815c02b5-8d76-4f03-aeb9-9cec20033ef3","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mor tgage-backed security due to rising interest rates","page_number":64,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"b37c82be-bec3-4a43-bb5f-9f15a8fa33ad","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mor tgage-backed","page_number":64,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"b94bd8cb-f6c8-43dd-8448-7c4ab3864f00","block_type":"box","text":"security with an interest rate that is reset every week and it would like to lock in what it believes to be a high interest","page_number":64,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"082894ed-829f-4569-89a7-d463ad38826d","block_type":"box","text":"rate for one year, it may swap the right to receive interest at this variable weekly rate for the right to receive interest","page_number":64,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"76da3d91-1694-4c98-b28b-8ee2282996f6","block_type":"box","text":"at a rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to falling interest","page_number":64,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"bfc1906a-0d23-422a-9f32-c0f4b424bf2c","block_type":"box","text":"rates and may permit the Fund to enhance its income through the positive differential between one week and one","page_number":64,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"547f9760-6391-43db-8756-dacb1e5f6bdb","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":64,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"f95d283f-5143-4abc-9e27-4d5503cc3a70","block_type":"box","text":"II-19","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2d8e9392-0302-461d-86a3-fb377663245c","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cae58ecf-f5fe-4123-bc0e-fedb65cea362","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":65,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"355de989-90b7-411a-8689-afe12cdd6c89","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":65,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"26f97e21-6ef1-4a68-b207-a65c087b1797","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":65,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"50019239-0779-4e96-8db1-81f5b8deb859","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":65,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"55061dda-8e0c-4848-9bbb-03f3f1b8c643","block_type":"box","text":"Total Return Swaps.","page_number":65,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"04d0d2ed-b071-430c-b6b3-afac552ebbc0","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":65,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"29fdb1c2-e2da-430c-9af8-649be9448123","block_type":"box","text":"the other par ty based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":65,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"b120713d-a361-41af-8e92-0565a9d28799","block_type":"box","text":"a fixed or variable interest rate or the total return from different underlying assets. The return of the assets","page_number":65,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"83063d20-b1bc-4626-adb1-df04f1539349","block_type":"box","text":"underlying the contract includes both the income generated by the asset and the change in market value of the","page_number":65,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"d2a9e9fa-882e-4ff9-a865-f1c2beb0adbd","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":65,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"e0897959-7014-4be3-aa45-5d63d27357ef","block_type":"box","text":"Total return swaps on a specified security, basket of securities or securities indices may sometimes be referred to as","page_number":65,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"647cf6e3-01bd-4523-8184-9a238bc1e0cc","block_type":"box","text":"“contracts for difference.”","page_number":65,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"3f593bae-034b-4321-a0c5-df0cbb08a8da","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking physical","page_number":65,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"ac8b27c1-0b72-451b-b9b8-f33c8fef539f","block_type":"box","text":"custody of such security or investing directly in such market. Upon entering into a total return swap, a Fund is","page_number":65,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"84a555bb-e377-4c49-b95a-c2504463191e","block_type":"box","text":"required to deposit initial margin but the par ties do not exchange the notional amount. As a result, total return swaps","page_number":65,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"4fe4c6ad-abfe-46f3-8412-73343d203ac0","block_type":"box","text":"may effectively add leverage to the Fund’s por tfolio because the Fund would be subject to investment exposure on","page_number":65,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"102a7ec5-43ad-4a22-8116-f58a911b1de0","block_type":"box","text":"the notional amount of the swap.","page_number":65,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"edccc4ea-e27e-46ee-95e4-38443f3a2f7e","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":65,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"726daf37-5488-4466-a7dc-e6eba1e825f3","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":65,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"53cbdc42-1f70-4748-85f7-69903aad3460","block_type":"box","text":"Options.","page_number":65,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"04fdb32d-3285-4af3-b9d6-7b978dd96301","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":65,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"baaa89b0-2e1b-4a83-a4fd-c612d8ab044e","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":65,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"cb3f0d5c-43c2-4246-a686-f5869c86f469","block_type":"box","text":"securities, baskets of securities or securities indices, or par ticular measurements of value or rates, such as an index","page_number":65,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"83957761-9925-4ad0-ac26-28d4a4f82156","block_type":"box","text":"of the price of treasury securities or an index representative of shor t-term interest rates. Such investments may be","page_number":65,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"0dff2200-1bdf-42ec-9963-174387ecc400","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":65,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"41a48ca6-6cac-4712-93da-3cb02f754095","block_type":"box","text":"and expiration dates and require the par ties to post margin against their obligations, and the per formance of the","page_number":65,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"13ebd4d7-0ade-4803-b023-e6382d096ce6","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":65,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"a73ea7f6-26f9-4bc7-ba8c-bab6ece391bf","block_type":"box","text":"OTC options have more flexible terms negotiated between the buyer and the seller, but are subject to greater credit","page_number":65,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"37b5b4a6-fd85-4bb8-adf5-56c98edec5a8","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":65,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"063c9051-07cf-40eb-a843-91071b248474","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":65,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"5d7c9da5-6def-4385-9df9-c829b50dae60","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":65,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"c0fc6b9b-d516-4c21-be5c-fc490b14eb68","block_type":"box","text":"exotic options that can only be exercised (or automatically expire) if the price of the underlying asset reaches one or","page_number":65,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"db83666d-7f79-4f61-9093-645745b8184d","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":65,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"a42edf83-7bce-40ba-a463-531904237633","block_type":"box","text":"a fixed all-or-nothing payout if one or more predetermined conditions are met. Exotic options are typically traded in","page_number":65,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"0178bb50-71b4-4049-a264-147843d6fb99","block_type":"box","text":"OTC markets.","page_number":65,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"cec8cd24-4470-4480-bc1c-4ea241343ed8","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":65,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"926aa14f-728b-4857-bdb1-e1d39c79f1fd","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":65,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"01549c22-951a-4495-926a-666ef4f48bbc","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":65,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"4e6a4c84-6224-4468-8391-67f01946ad16","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":65,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"cbe07559-b5d8-4067-a908-e95cb798a94a","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":65,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"ab7ea795-b01e-4d61-a138-5bc8b9a1eed4","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":65,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"7585f072-ff37-4bc9-bc52-91611f4fce3e","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":65,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"da8deafe-2813-42d9-bfe8-cd8b1c737cf4","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":65,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"acaf3e3f-b73b-4e6f-a829-6c6173c994c5","block_type":"box","text":"Options Clearing Corporation may not at all times be adequate to handle current trading volume; or one or more","page_number":65,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"0ec92065-0b58-45ab-a2cd-284a7fd1368d","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":65,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"ccf6c0ce-740a-481c-b12f-ab96a01ad4a7","block_type":"box","text":"trading of options (or a par ticular class or series of options), in which event the market on that Exchange (or in that","page_number":65,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"8fe388a7-189e-4e21-8e86-3e8cea2db180","block_type":"box","text":"class or series of options) would cease to exist, although outstanding options that had been issued by the Options","page_number":65,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"ec07b508-3523-4640-80b6-e04eecd8a5de","block_type":"box","text":"Clearing Corporation as a result of trades on that Exchange would continue to be exercisable in accordance with their","page_number":65,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"77bc525c-5a8b-43ee-98b7-cf019cffd068","block_type":"box","text":"terms.","page_number":65,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"989774e7-3928-4b29-b66d-26d196deca39","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":65,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"bbdd18cb-fd1c-42b2-8514-dff220f57302","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concer t with others","page_number":65,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"f69117bc-8c2a-48b4-a2ac-1ce287197dbe","block_type":"box","text":"(regardless of whether such options are written on the same or different exchanges or are held or written on one or","page_number":65,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"99caca79-e2f4-4c47-8450-025ddbd96bfe","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":65,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"6291989d-a119-4dc4-acce-0e96d14645d9","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":65,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"aeec1edc-3cbf-4c80-ab15-33f4b99b523e","block_type":"box","text":"II-20","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b3bc6d9b-00a7-414e-97dc-38ea62ca2de7","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"66d48830-359f-44d2-8fb7-c480d54bbed5","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":66,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"772550a6-0a40-43b8-ad1a-29a06d64c0f6","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":66,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"de588cf9-78a6-4029-91d1-946115d7030e","block_type":"box","text":"Call Options.","page_number":66,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"d140a22e-d02b-45d5-85f3-a50a1f9fd34c","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in which it may","page_number":66,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"98a58152-3f84-4a93-a43f-54306c444fc2","block_type":"box","text":"invest. A purchased call option gives a Fund the right to buy, and obligates the seller to sell, the underlying security at","page_number":66,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"bf3a4292-08b2-49d9-967f-21cb6ad73cab","block_type":"box","text":"the exercise price at any time during the option period. A Fund also may purchase and sell call options on indices.","page_number":66,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"0cf80136-22e4-4991-ac0b-5896881a0d90","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":66,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"5e35853e-254b-4aa7-8f25-be3e35aa3e30","block_type":"box","text":"underlying the option at a specified price upon exercise, an index option gives the holder the right to receive cash","page_number":66,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"6f24482d-23aa-449c-a9ca-d16aed7a4db3","block_type":"box","text":"upon exercise of the option if the level of the index upon which the option is based is greater than the exercise price","page_number":66,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"1a622f8c-d9f4-4286-ba63-b305a069bdde","block_type":"box","text":"of the option.","page_number":66,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"b769b2ca-515c-4d89-944a-005def19515c","block_type":"box","text":"A written call option is covered if a Fund holds a call on the same security or index as the call written where the","page_number":66,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"3f6138e7-00ba-43b5-bd10-879e39fa5c5e","block_type":"box","text":"exercise price of the call held is (i) equal to or less than the exercise price of the call written, or (ii) greater than the","page_number":66,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"7fe42358-2039-4ae2-b6be-fa754d18fe74","block_type":"box","text":"exercise price of the call written provided the difference is maintained by the Fund in assets which are not considered","page_number":66,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"cac4d5da-2718-4945-9530-a1949d1167cf","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":66,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"ea6ac337-9d04-4616-8473-2eee76ef9aa0","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":66,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"c97b5a50-ed4c-4df2-9647-25401f2ddbbf","block_type":"box","text":"A Fund may write (","page_number":66,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"caad1bd5-93ff-4022-a65f-e6323a9a3543","block_type":"box","text":"i.e.","page_number":66,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"14823a86-b374-499c-9eb4-56aa0c48d329","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":66,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"d6b31450-23a8-4846-ae69-2a12ec4ebfc3","block_type":"box","text":"enter into closing purchase transactions with respect to cer tain of such options. A covered call option is an option in","page_number":66,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"f889ab04-66b6-4052-baa4-8f30df5d7dd1","block_type":"box","text":"which a Fund, in return for a premium, gives another par ty a right to buy specified securities owned by the Fund at a","page_number":66,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"85c5cd1a-a80b-4183-ac81-2da17c615a7b","block_type":"box","text":"specified future date and price set at the time of the contract. The principal reason for writing call options is the","page_number":66,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"f62653ac-914a-4fdc-ab13-579713cf86e2","block_type":"box","text":"attempt to realize, through the receipt of premiums, a greater return than would be realized on the securities alone.","page_number":66,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"421287f9-0c75-43a5-91cd-6590b5ef4694","block_type":"box","text":"By writing covered call options, a Fund gives up the oppor tunity, while the option is in effect, to profit from any price","page_number":66,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"e5ae0606-7a89-4edd-a420-c846eca0ed01","block_type":"box","text":"increase in the underlying security above the option exercise price. In addition, a Fund’s ability to sell the underlying","page_number":66,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"37c6d671-4f47-4538-8028-8dc55d224868","block_type":"box","text":"security will be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":66,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"3faf949b-edd9-4295-b22b-2fa5658a41f1","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an offsetting","page_number":66,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"3d504c20-3ff0-4484-931f-56c7114e1c55","block_type":"box","text":"purchase of an identical option prior to the expiration of the option it has written. Covered call options also serve as","page_number":66,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"55b08e0f-575c-43e0-bea3-c27457abdbb7","block_type":"box","text":"a par tial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":66,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"212e14ac-1abd-4c9c-ad97-e9d763d7e19e","block_type":"box","text":"A Fund may write","page_number":66,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"e8bb1fb0-bfa8-4ce5-9bef-49bbcd594ef3","block_type":"box","text":"(i.e.","page_number":66,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"abf7d614-0e70-4b23-9d18-0c85f4871fc0","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":66,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"b37842e8-02b7-428f-9aa9-ec39d5acc9e2","block_type":"box","text":"are not currently held by the Fund. The principal reason for writing uncovered call options is to realize income without","page_number":66,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"8f3568d9-f6f2-451a-a086-389ec69514cc","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":66,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"bf08e9c3-a350-4e02-9877-77ff03f0ade7","block_type":"box","text":"a Fund must deposit and maintain sufficient margin with the broker-dealer through which it made the uncovered call","page_number":66,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"43fc0351-4c43-4d3c-80fa-adeb84f55a57","block_type":"box","text":"option as collateral to ensure that the securities can be purchased for delivery if and when the option is exercised.","page_number":66,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"2a88107e-1405-407e-b309-d3b73bb3709e","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":66,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"08d9bcc8-e59c-4b86-9ab9-f83795396f4b","block_type":"box","text":"strategy to increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls because","page_number":66,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"0ffd691d-46b9-48e6-baa6-2a7157401771","block_type":"box","text":"there is no underlying security held by a Fund that can act as a par tial hedge. Uncovered calls have speculative","page_number":66,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"80e9f59f-e242-412b-9701-edae4089ae0d","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":66,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"367d9ed7-491c-469e-94a3-9afcb9fb4474","block_type":"box","text":"the underlying security to meet its call obligation. There is also a risk, especially with preferred and debt securities","page_number":66,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"424b731d-5404-4d48-9e03-69415d3c478a","block_type":"box","text":"that lack sufficient liquidity, that the securities may not be available for purchase. If the purchase price exceeds the","page_number":66,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"84b58ccf-89c2-4cbd-a17e-d76cab7723e6","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":66,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"90574448-11af-4716-8269-c2cebb1754dc","block_type":"box","text":"Put Options.","page_number":66,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"569a79f5-cab2-4178-a13a-0917ca2eb8ae","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its securities or","page_number":66,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"01a5c403-d171-4669-8b04-609feb43e3e2","block_type":"box","text":"to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying securities or instruments","page_number":66,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"03e132d9-f9f0-465d-bef9-6d9f0c47f257","block_type":"box","text":"at the exercise price, thus limiting the Fund’s risk of loss through a decline in the market value of the securities or","page_number":66,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"573b317a-2034-421c-8d02-6332de01b4df","block_type":"box","text":"instruments until the put option expires. The amount of any appreciation in the value of the underlying securities or","page_number":66,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"9b620cc8-2dcd-424b-b14f-0f95950536c6","block_type":"box","text":"instruments will be par tially offset by the amount of the premium paid for the put option and any related transaction","page_number":66,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"b2ed9f01-c580-4a06-8854-621488c3b4c3","block_type":"box","text":"costs. Prior to its expiration, a put option may be sold in a closing sale transaction and profit or loss from the sale","page_number":66,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"453ac3de-cc39-44e5-b326-8515dca0a7e1","block_type":"box","text":"will depend on whether the amount received is more or less than the premium paid for the put option plus the related","page_number":66,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"2a0a4d10-87ac-47fb-9106-76cfd53c6bac","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an option by means of","page_number":66,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"628ab792-adf5-44f8-b8b0-9140d79f2a07","block_type":"box","text":"an offsetting sale of an identical option prior to the expiration of the option it has purchased. A Fund also may","page_number":66,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"18d59e88-05a0-4f8d-b56e-0ea3e1e0d053","block_type":"box","text":"purchase uncovered put options.","page_number":66,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"11489e96-12a1-4967-ac0a-67085e22b355","block_type":"box","text":"A Fund also may write (","page_number":66,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"27ebe68c-6aa5-4a27-871e-9bc0f33f0643","block_type":"box","text":"i.e.","page_number":66,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"859ec3ab-6410-41a9-9a00-3deedc4e214f","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":66,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"f0a2e149-2ccd-4d33-aacf-63e3db1b6017","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":66,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"e91ab5ea-5fc7-415c-bef1-1f3fd6ca2851","block_type":"box","text":"A Fund also may write (","page_number":66,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"0044eacc-b0d5-4e46-a12a-0c86201fe6fd","block_type":"box","text":"i.e.","page_number":66,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"6c7b4011-2d56-4b80-90ed-a860faab5613","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":66,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"04872766-306e-4f61-99c3-47ff02b35017","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding shor t position or has not deposited as","page_number":66,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"2f433f35-523f-4bea-b0de-b53971fb40f2","block_type":"box","text":"collateral cash equal to the exercise value of the put option with the broker-dealer through which it made the","page_number":66,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"6183a1cd-ba73-4f08-87dc-77956ea1a70c","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":66,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"997b0ea3-5ad6-4ef1-b793-c19a8b5a4583","block_type":"box","text":"acquire such securities or instruments at a net cost below the current market value. A Fund has the obligation to buy","page_number":66,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"5167f257-86c1-452c-9d73-e96bfcc28a12","block_type":"box","text":"II-21","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5ca1262b-86b5-42a7-af3c-2525141e17c0","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"696cdf1b-1d61-4f39-91b6-6fbd67a3f9cd","block_type":"box","text":"the securities or instruments at an agreed upon price if the price of the securities or instruments decreases below","page_number":67,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"6a43dd9b-10da-4105-bc27-1471457f3913","block_type":"box","text":"the exercise price. If the price of the securities or instruments increases during the option period, the option will","page_number":67,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"03b7a26e-b407-4c94-bc74-5a7f4ec3c039","block_type":"box","text":"expire wor thless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":67,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"8ca19024-f35b-421f-8ba2-dbad67ad7bd4","block_type":"box","text":"the exercise price.","page_number":67,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"b395b95a-d8c2-40e5-9cbb-8c4f3f32607f","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":67,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"f16f607b-bdd7-4d55-be78-0c160d8d5db2","block_type":"box","text":"The following information relates","page_number":67,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"32c34b87-1244-4153-b83a-09836316d175","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":67,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"2c4f22fa-39f9-4b06-92a6-82aa7bf91cd0","block_type":"box","text":"Cer tificates declines each month as a result of mor tgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":67,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"88332734-2e82-41b7-b8bd-30fdcb0e0a33","block_type":"box","text":"Cer tificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Cer tificates","page_number":67,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"0488092d-3d53-42fe-93f6-0faebce5348e","block_type":"box","text":"it holds no longer have a sufficient remaining principal balance for this purpose. Should this occur, a Fund will","page_number":67,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"f832708d-256d-4ca9-bc2c-9b51401519e6","block_type":"box","text":"purchase additional GNMA Cer tificates from the same pool (if obtainable) or other GNMA Cer tificates in the cash","page_number":67,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"381a6a08-a649-4625-8365-cab0180d54de","block_type":"box","text":"market in order to maintain its “cover.”","page_number":67,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"8e8abc13-6861-48d7-8e01-a410bf18bf24","block_type":"box","text":"A GNMA Cer tificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":67,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"9e243a76-f9a8-44a7-89d6-8f3506fb9d0b","block_type":"box","text":"to represent cover for the option in the event of a decline in the GNMA coupon rate at which new pools are originated","page_number":67,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"9d5899f6-575c-4a39-8d96-76a2281fca74","block_type":"box","text":"under the FHA/VA loan ceiling in effect at any given time. If this should occur, a Fund will no longer be covered, and","page_number":67,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"a4916940-ea4c-4975-8de3-be404dbefc13","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Cer tificate with a cer tificate that","page_number":67,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"14454bc3-6546-45e7-9864-86e67b915e64","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Cer tificate, it may realize an unanticipated loss","page_number":67,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"d4c4c755-4780-480e-9f69-bdf4927b1489","block_type":"box","text":"and incur transaction costs.","page_number":67,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"e915b370-3e7d-48f6-836d-0d87e8ca3d48","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":67,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"ccb7e517-7bd7-421f-b30b-e19f3415e75b","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":67,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"b5cc8f8d-1cca-4180-8e8e-6de0901374eb","block_type":"box","text":"a new swap agreement or to shor ten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":67,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"a1a5dcb7-be8c-487f-8285-6a4b1d745d98","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":67,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"340e4631-b516-4d7e-9279-6df0c3aac45f","block_type":"box","text":"i.e.","page_number":67,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"5610490a-e2ec-434e-88c7-cd90d13226d3","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":67,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"91849d87-f34a-4d84-86ef-72482e9f4c00","block_type":"box","text":"Depending on the terms of the par ticular option agreement, a Fund will generally incur a greater degree of risk when","page_number":67,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"c11ddcad-b03c-4813-820b-a3e858066379","block_type":"box","text":"it writes a swaption than it will incur when it purchases a swaption. When a Fund purchases a swaption, it risks","page_number":67,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"09ae4646-9ab7-4f09-aa0e-619b259ee9db","block_type":"box","text":"losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However,","page_number":67,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"d02f04e7-baea-44b9-8f17-4a0521097b23","block_type":"box","text":"when a Fund writes a swaption, upon exercise of the option the Fund will become obligated according to the terms of","page_number":67,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"ecedc1ee-aeea-4e85-960d-24e820b2376a","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":67,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"7f4d110e-9d4f-4a66-a08a-2c1bdc193f95","block_type":"box","text":"required, to be cleared.","page_number":67,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"c94415a7-1f35-4bc3-a8b9-d09a48f076b0","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a par ticular investment or","page_number":67,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"56241eb7-cdd8-4bb1-b059-34478e784ebb","block_type":"box","text":"por tion of its por tfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":67,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"9c9a2348-b810-4024-9cb3-c61e578825e3","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":67,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"7bd3c2b5-ae64-4ca5-ba09-de20d8e7ac15","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":67,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"5bbb747a-b920-4872-986f-c9058e51a306","block_type":"box","text":"Derivatives” above.","page_number":67,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"b9cb480f-92e2-4bcc-a4b9-8f0131607989","block_type":"box","text":"FLEX Options.","page_number":67,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"671f5b42-ff6a-4fc3-8289-74296f14536e","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":67,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"8e4ba894-4155-4419-961e-53f4eb4f7958","block_type":"box","text":"are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX Options are listed on a U.S. national","page_number":67,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"9182a718-acf9-4218-94d0-fa1eef941d9b","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":67,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"e55b26b7-6bcf-4ff0-a106-ddc6c11ded81","block_type":"box","text":"exercise prices, exercise styles (","page_number":67,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"8c6f5eb0-9336-4cbd-90f9-e2906d257d1a","block_type":"box","text":"i.e.","page_number":67,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"3a44a7b4-248b-49cd-abba-1c4dc0d6f32b","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":67,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"dae7ab6b-82c1-4c86-86b0-0a4090cbc62d","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":67,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"97eedb6e-9968-40d0-b73a-67428e7ea110","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":67,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"294d58b9-459c-408f-95e3-9bc73ab22e83","block_type":"box","text":"option contract entitles the holder thereof to purchase (for the call options) or sell (for the put options) shares of the","page_number":67,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"5b6de00c-0109-42fd-b6f7-6aeeb23dcca7","block_type":"box","text":"reference asset at the strike price. A Fund’s por tfolio may include several types of FLEX Options, including both","page_number":67,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"125fe544-21ce-463c-88da-108d0c4dbfc0","block_type":"box","text":"purchased and written put and call options (as fur ther described below). The FLEX Options are all European style","page_number":67,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"b88254b9-f6a1-4989-b8f5-0c88696a8736","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":67,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"0513a3f3-4e25-4b22-8c90-929fe8668e8b","block_type":"box","text":"FLEX Option’s expiration date.","page_number":67,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"5ccdc017-13d6-4399-aa90-b28609894fcc","block_type":"box","text":"The OCC guarantees per formance by each of the counterpar ties to the FLEX Options, becoming the “buyer for","page_number":67,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"3d0abb36-ca33-4c67-8575-034259171142","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":67,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"2d730a5b-11bb-4e83-aacf-94f5c63cdc1f","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterpar ty risk with the OCC and","page_number":67,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"3d299d9c-fdee-42c6-8f76-880ac21b5c45","block_type":"box","text":"subject to the risk that the OCC may fail to per form the settlement of the FLEX Options due to bankruptcy or other","page_number":67,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"54b3abe1-d446-4af4-a83e-e1f78603b4f0","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to per form its obligations under the","page_number":67,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"eba829e2-512b-4bf9-932e-855489dace7a","block_type":"box","text":"FLEX Options contracts.","page_number":67,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"f2aef32a-8376-4e07-a9de-33c2f385e8f8","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":67,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"f2e65eb4-dd08-4a2c-ad48-0a8ce06b8c9d","block_type":"box","text":"Options for cer tain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: cer tain stock","page_number":67,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"0b8e4a93-64c4-4623-bb45-77c68974e921","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":67,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"abc7c9fe-6097-4fef-b2eb-70b809cfe509","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":67,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"05c20d65-14ba-47f5-8c85-21bfe147cb3c","block_type":"box","text":"liquidation of the issuer of the underlying security. According to the OCC’s by-laws, the nature and extent of any such","page_number":67,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"ca614775-72de-4102-a2d2-7f6f65e1d9ba","block_type":"box","text":"adjustment is to be determined by the OCC’s Securities Committee, in light of the circumstances known to it at the","page_number":67,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"2cfc71fe-d72d-4b78-a9d8-00f4566164a8","block_type":"box","text":"II-22","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"11266a5f-388d-40ce-b623-2c13b84c8a1b","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"61a6359d-d9fc-4435-9786-7b29d2bea069","block_type":"box","text":"time such determination is made, based on its judgment as to what is appropriate for the protection of investors and","page_number":68,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"22404e74-da7c-49ba-a20d-16ffe12aaa6a","block_type":"box","text":"the public interest, taking into account such factors as fairness to holders and writers (or purchasers and sellers) of","page_number":68,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"c5e73ea7-3dcd-4ddf-8ebb-877635120cfe","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":68,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"f3e2fed6-c6c1-4caf-b38b-a935070c3444","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":68,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"d86ff826-43bf-4ac3-9942-7cc21bfaf1e9","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":68,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"a2a156bc-b09e-483f-8636-7d85bb3f9d6d","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":68,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"5ea7d713-f6bd-43a2-8676-0c9cf15e6cd1","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":68,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"69928120-4802-4142-b5a3-1a3fd191c5a4","block_type":"box","text":"on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a “Reference Asset”). As","page_number":68,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"841d4992-a149-49bb-820d-6ae38a721abd","block_type":"box","text":"such, the value of a Fund’s FLEX Options will fluctuate with changes in the value of the securities held by the","page_number":68,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"172d7ad2-09ce-4255-9d0a-d1602ca73954","block_type":"box","text":"ETF, and thus the ETF’s share price. In addition to the value of the ETF, the value of an option, in general, will","page_number":68,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"cb81f9b5-d067-4312-bcdc-c3bf071bca9a","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":68,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"76d8257a-01b6-416d-a4a1-120dbd973fdb","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":68,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"98422019-540a-42b8-b8c9-686d043bbdc4","block_type":"box","text":"expire unexercised have no value.","page_number":68,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"273dce36-2736-4cbd-bbc8-3277616c8231","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase (for a","page_number":68,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"da2578c1-e9f9-425b-8500-b5ca19c18c7f","block_type":"box","text":"call option) or sell (for a put option) the Reference Asset at a predetermined specified price (the “strike price”).","page_number":68,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"c3b1ebb0-0bfe-462d-91cf-d68fda598dfd","block_type":"box","text":"When a Fund writes a call on the Reference Asset, it receives a premium and agrees that the purchaser of the","page_number":68,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"aa500650-21e8-4a86-8fc1-1decc8f07508","block_type":"box","text":"call, upon exercise of the call, will receive from the Fund the delivery of a specified number of shares of the ETF","page_number":68,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"9253d508-b367-4d01-8fdc-57799d70e506","block_type":"box","text":"in exchange for the strike price. When a Fund buys a call on the Reference Asset, it pays a premium and has the","page_number":68,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"9ddb69b3-1e2d-4a4c-921b-9c02094b56e0","block_type":"box","text":"same rights to such call as indicated above. When a Fund buys a put on the Reference Asset, it pays a premium","page_number":68,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"b24f804c-4958-4e93-911f-81056f776a4a","block_type":"box","text":"and has the right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":68,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"2df78d34-221c-425f-ae32-9e14bd3003d6","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the Reference Asset,","page_number":68,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"6cb1eea5-7aac-444a-b13e-b382341c4d6b","block_type":"box","text":"it receives a premium and the purchaser of the put has the right to require the Fund to deliver the specified","page_number":68,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"42b3adad-480e-47bf-a152-47cab28b753d","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":68,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"40fe3842-0e74-4061-9e1d-b2ee6974ca73","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":68,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"f52bc394-95d3-4896-9c6b-29b60fc4f838","block_type":"box","text":"FLEX Options that are cash-settled. Cash-settled options give the holder the right to receive an amount (or owe","page_number":68,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"908d1beb-df37-461d-8101-8e5684f5a72a","block_type":"box","text":"an amount) of cash upon the exercise of the option. Gain or loss depends on changes in the value of the ETF’s","page_number":68,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"61712fa2-520d-410f-99d8-c24c525daf3f","block_type":"box","text":"share price relative to the strike price for a given option contract. The amount of cash is equal to the difference","page_number":68,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"4ba1dd33-317e-4c24-9580-4f7fedd4c8d9","block_type":"box","text":"between the closing price of the ETF’s share price and the exercise price of the option contract times a specified","page_number":68,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"f3040995-282b-4a15-8eaa-45205a94365e","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":68,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"b76c96a3-4988-4c51-9b34-9ca8e5f2b9f4","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":68,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"f6ac3897-faec-4746-9f4f-ec1496593f82","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":68,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"d0dd5ce8-5cdc-43f3-b378-9c81a615c045","block_type":"box","text":"closing value for that day is available, it runs the risk that the level of the Reference Asset may subsequently","page_number":68,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"447f63e5-1f85-4315-9b3d-e1104ed438aa","block_type":"box","text":"change. If such a change causes the exercised option to fall out of the money, the applicable Fund will be","page_number":68,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"b95b86f0-cbad-4870-afb1-2c7f38d0d3cb","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":68,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"e660886d-c24a-46e1-a053-ffe22a3feccf","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":68,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"090ccf1c-c71b-4682-95f6-df14cdd56554","block_type":"box","text":"Foreign Exchange Transactions.","page_number":68,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"7fa19d2f-c98d-4728-bd03-ede5a740b9b3","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":68,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"6fbc2733-1926-4a2a-b20f-4cd88c453a4a","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":68,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"1779e556-6552-48db-9053-835aef5625c0","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its por tfolio","page_number":68,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"5bb82412-3f42-4321-8e32-f1516e6c5e16","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to cer tain Funds, to seek to enhance returns.","page_number":68,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"ca3c35b1-c71a-4ff2-807f-0231c6aab372","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":68,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"37245711-b86d-491f-9b96-31b447c024e1","block_type":"box","text":"Fund, sold by a Fund but not yet delivered, or committed or anticipated to be purchased by a Fund. As an illustration,","page_number":68,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"f7a1b927-6346-464e-b5d8-bd4d01b0c43d","block_type":"box","text":"a Fund may use such techniques to hedge the stated value in U.S. dollars of an investment in a yen-denominated","page_number":68,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"9a24a22f-f339-4fe3-8ced-3f156dcdd98c","block_type":"box","text":"security. For example, the Fund may purchase a foreign currency put option enabling it to sell a specified amount of","page_number":68,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"631a7aa9-e9ff-488b-81c9-272d3ad7c1d9","block_type":"box","text":"yen for dollars at a specified price by a future date. To the extent the hedge is successful, a loss in the value of the","page_number":68,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"6e5b9410-9b6e-4e4d-a7d7-90393b32a4d7","block_type":"box","text":"yen relative to the dollar will tend to be offset by an increase in the value of the put option. To offset, in whole or in","page_number":68,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"c5a33d98-7635-4549-a080-f95f79c6b257","block_type":"box","text":"par t, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":68,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"ff8c1673-22ff-4ea4-a6e6-a03963b6c3de","block_type":"box","text":"sell a specified amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":68,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"d72b7be5-8852-4b52-b4c3-6205b8b51b70","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the oppor tunity to profit without limit from increases in","page_number":68,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"7193e59f-5943-490f-9e15-52d99d6d69f7","block_type":"box","text":"the relative value of the yen to the dollar. “Straddles” of the type that may be used by a Fund are considered hedging","page_number":68,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"734d350c-7dee-4614-8983-cc5b121856d3","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":68,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"800a0d4c-0992-4781-9096-42ee84a90865","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":68,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"58f27e59-0ec0-420a-8da9-8afb02f81361","block_type":"box","text":"use of Currency Instruments to effect hedging strategies is intended to reduce the volatility of the NAV of the Fund’s","page_number":68,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"53feded9-7d77-4abd-a81c-7f112bd69eeb","block_type":"box","text":"shares; however, the use of such hedging strategies will not prevent the NAV of the Fund’s shares from fluctuating.","page_number":68,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"2f715e69-1632-47b9-a1d6-8bee6f795d32","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":68,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"421673af-2248-4673-8cd6-c93f472f4fd3","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":68,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"5f7729c7-efe9-465f-93ae-2df2ebd3c7bb","block_type":"box","text":"II-23","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5c19a71c-b039-41ea-8669-70e9a242323f","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"faa900ec-c8a5-4f4f-8b12-02f9382a2f63","block_type":"box","text":"accurately predicted and that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges","page_number":69,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"6a0a5da9-61fb-4381-8d72-b66580a32db7","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":69,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"86567c28-5d68-44a6-a39c-cdc0dfd901ea","block_type":"box","text":"Fur thermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":69,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"bf3693f6-0d4b-44ed-87dd-a8a1260e7456","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":69,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"61d49c30-3541-461f-95fc-6f882dadb696","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":69,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"022a6caf-fbd0-448b-b353-481f4724a7e4","block_type":"box","text":"domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified amount of a","page_number":69,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"4ed9bf01-34a3-4163-8161-351a843f8888","block_type":"box","text":"par ticular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":69,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"2be343cf-2200-4d74-a973-3c168458768d","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which cer tain banks","page_number":69,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"0874cea5-ea52-4fe5-803c-324e93d0fd6c","block_type":"box","text":"or dealers have refused to quote prices for such forward contracts or have quoted prices with an unusually wide","page_number":69,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"9ad2b66d-e231-4bfa-9b9a-0e2ca5df888b","block_type":"box","text":"spread between the price at which the bank or dealer is prepared to buy and that at which it is prepared to sell.","page_number":69,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"e105cf69-0e5c-4ede-86fc-ff725c84b9e8","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":69,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"55655461-b63d-4a7c-b2ad-45ae4b3bad1b","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterpar ty risk. Any such failure to per form by a counterpar ty","page_number":69,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"588deef6-55c2-42ce-91a1-5429778243dc","block_type":"box","text":"would deprive the Fund of any profit potential or force the Fund to cover its commitments for resale, if any, at the","page_number":69,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"3a33ca8b-d6a5-4cd1-8b91-6fe3b00dbe99","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":69,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"a055e0f7-8381-4934-8628-5d83532a96dd","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":69,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"9784264a-872d-46e3-9d72-c1a62284e730","block_type":"box","text":"anticipated, in the event that (i) the currency exchange rate movement is so generally anticipated that the Fund is not","page_number":69,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"93978ca5-5418-4b26-b7f7-fb69d5601147","block_type":"box","text":"able to enter into a hedging transaction at an effective price, or (ii) the currency exchange rate movement relates to a","page_number":69,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"707d4052-3cc8-430d-8c1b-e7ef8fb9b548","block_type":"box","text":"market with respect to which Currency Instruments are not available and it is not possible to engage in effective","page_number":69,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"34a5ffce-522a-4153-b6e2-a4466dc2f8a7","block_type":"box","text":"foreign currency hedging. The cost to a Fund of engaging in foreign currency transactions varies with such factors as","page_number":69,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"eb32382f-6b47-4943-82cc-0afc0752f264","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":69,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"4eba34d9-8331-4a0c-b949-d2efc10d0a4f","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":69,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"d80e0c15-db95-46b8-aa2d-53d2031580ad","block_type":"box","text":"involved.","page_number":69,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"3ca3f3ca-5fb0-424f-b821-226969021e96","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns (including","page_number":69,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"af5e8d5a-d4cc-4511-b3ee-413c3a871df3","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":69,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"a36a38a3-398e-4b52-bd7a-3745ae9b3791","block_type":"box","text":"denominated in such currency.","page_number":69,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"f91349ec-ea82-42d3-830f-2e25aedf33fb","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":69,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"ef280c76-6363-4cf8-ba0e-34a44cddb686","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":69,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"68562b6e-f790-4b43-909a-d11a7804322e","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":69,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"d6df4e97-7ce9-4c75-9cf0-d10102904881","block_type":"box","text":"transactions are similar but are settled in the current, or “spot”, market. A Fund will enter into foreign exchange","page_number":69,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"ed915f80-3a6a-4f2c-9255-69af940376e6","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a por tfolio position, or, with respect to cer tain","page_number":69,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"7d9eb367-ea00-4003-bbea-158a1348f16e","block_type":"box","text":"Funds, to seek to enhance returns. FX forwards involve substantial currency risk, credit risk and liquidity risk. A Fund","page_number":69,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"b9f3a8c8-d6a9-4cd2-91e6-91032a3a3ba9","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":69,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"4931d530-c074-468f-9374-438e6c43904f","block_type":"box","text":"purchasing a currency needed to settle a security transaction or selling a currency in which the Fund has received or","page_number":69,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"719de085-5cae-4045-9621-05fe4a4d02c9","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":69,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"036f8064-be23-47f4-bcc4-bf7498ebff38","block_type":"box","text":"hedging a por tfolio position by selling forward a currency in which a por tfolio position of the Fund is denominated or","page_number":69,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"93d09ee2-c1b2-433a-ba0e-ed938096ca4d","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a por tfolio position in the near future. A Fund may","page_number":69,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"91fe825a-7e31-417e-998e-6bf44b179421","block_type":"box","text":"also hedge a currency by entering into a transaction in a Currency Instrument denominated in a currency other than","page_number":69,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"09308560-f7e0-4005-94df-0284b855fcce","block_type":"box","text":"the currency being hedged (a “cross-hedge”). A Fund will only enter into a cross-hedge if the Manager believes that","page_number":69,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"35b0e62f-df31-4edc-8ec1-786ead187586","block_type":"box","text":"(i) there is a demonstrably high correlation between the currency in which the cross-hedge is denominated and the","page_number":69,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"76fab063-fe86-4117-9a50-cdbfeb802aa9","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":69,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"107f5301-622e-4055-8c8d-93a1902ea7aa","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":69,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"508d49a0-69af-40e2-94ab-d6bbc3206e0a","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":69,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"765ddce0-e877-4b18-b575-7a7af1d80e1b","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on the value","page_number":69,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"aa0c2cfb-16f0-4bf0-8bfb-66933e6306f4","block_type":"box","text":"of existing or anticipated holdings of por tfolio securities. Proxy hedging is often used when the currency to which the","page_number":69,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"153d7693-7e06-4e59-a7eb-3238164f5561","block_type":"box","text":"Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar. Proxy hedging entails entering into a forward","page_number":69,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"d6fd2abc-82d1-4eb6-83a6-f6b2f3148f44","block_type":"box","text":"contract to sell a currency whose changes in value are generally considered to be linked to a currency or currencies","page_number":69,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"b1893abb-e772-4685-89d2-5e9a714f5de6","block_type":"box","text":"in which some or all of the Fund’s securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy","page_number":69,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"a0be6a4a-a325-4cfb-9650-7421f0ba46e1","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":69,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"7359eb01-fcc8-461a-83ba-7fa54dd6fd1d","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a degree or in a","page_number":69,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"e1fc58c7-b3ef-4f8e-aa5c-53055994ad9c","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":69,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"9f3dd174-d2a5-4cf7-ae3a-867be7777f84","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":69,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"af8a0ae9-1139-4a4e-80d3-1cf0253e0e43","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more currencies that","page_number":69,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"2e305380-2d4a-46be-8da6-05f56d3e7a82","block_type":"box","text":"are expected to decline in value relative to other currencies to which the Fund has or in which the Fund expects to","page_number":69,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"dd8654f4-9008-49bc-b1bd-2ac66790e8c4","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":69,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"84003447-c719-431d-bc4b-11204ea7d9b7","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":69,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"d1ed1399-b9a0-4725-b2d8-44a63cb15162","block_type":"box","text":"Fund would sell Canadian dollars to reduce its exposure to that currency and buy Japanese yen. This strategy would","page_number":69,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"1bc068c8-3c03-4b6f-ad58-3fc6fb5c569f","block_type":"box","text":"II-24","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3327285f-b48d-4f69-acca-db3e4a1fbe8d","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5261ff4e-f237-4e9b-bd92-fcf131865ac2","block_type":"box","text":"be a hedge against a decline in the value of Canadian dollars, although it would expose the Fund to declines in the","page_number":70,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"0bcf4381-9023-426d-ace9-002f93d0bc2a","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":70,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"27d4c7bf-290e-41ea-bafd-c57e79b15c57","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as non-deliverable","page_number":70,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"18b8dfd4-ad7e-4d12-90a4-dda05ac303a2","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, shor t-term forward contracts that may be thinly traded or are denominated","page_number":70,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"208f153d-81b9-4992-8ecd-8208905ea124","block_type":"box","text":"in non-conver tible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":70,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"067f2cf2-33b2-4033-b8c2-31cffd9ac4f2","block_type":"box","text":"the difference between the agreed upon exchange rate and the spot rate at the time of settlement, for an agreed","page_number":70,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"de858b55-c5e1-4127-946e-05d134cf7485","block_type":"box","text":"upon notional amount of funds. All NDFs have a fixing date and a settlement date. The fixing date is the date at which","page_number":70,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"e2aa77ee-965d-4510-8280-8cebe900b05c","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":70,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"c6660040-f5f2-4d24-89ce-5cf1ee01c2cc","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the par ty receiving payment. NDFs are","page_number":70,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"87cf6f71-c5d1-4fcd-a959-bfba61b9bd5e","block_type":"box","text":"commonly quoted for time periods of one month up to two years, and are normally quoted and settled in U.S. dollars.","page_number":70,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"beefb54e-77ca-4208-9660-efd5f17357d6","block_type":"box","text":"They are often used to gain exposure to and/or hedge exposure to foreign currencies that are not internationally","page_number":70,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"0df42d8e-0111-4d6a-bef7-1c2a320901fc","block_type":"box","text":"traded.","page_number":70,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"47ea53cc-725a-4ca4-b745-a677921dc2c6","block_type":"box","text":"Currency Futures.","page_number":70,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"2b2d4611-3df1-47e0-b0da-297b01872b08","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":70,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"31c1945c-427f-4468-b0cc-fae75dfef7fe","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":70,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"ba81702d-f7df-4496-a5d3-c42cb2e94da5","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":70,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"0bf5239e-d65c-45f8-9bd4-17d8e32b44cc","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":70,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"afc78061-3512-43b0-bf21-34a2c0629143","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":70,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"e9e9af11-fe6f-4104-9a47-22653fe40e17","block_type":"box","text":"Currency Options.","page_number":70,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"cb7b647e-def3-4c3c-ac07-2f3d4f98be86","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":70,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"f724820c-9961-4556-81a7-18461fa038b0","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":70,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"be79618f-b132-4f07-898b-800483fc64d4","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":70,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"f2e39c7f-55d6-4702-b059-a8bedddfbd0c","block_type":"box","text":"securities. For example, in consideration for an option premium the writer of a currency option is obligated to sell (in","page_number":70,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"e613db15-fb39-468b-87cb-4daceaa98627","block_type":"box","text":"the case of a call option) or purchase (in the case of a put option) a specified amount of a specified currency on or","page_number":70,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"5ccb1d0f-182c-4348-a29f-93e845e5649f","block_type":"box","text":"before the expiration date for a specified amount of another currency. A Fund may engage in transactions in options","page_number":70,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"5c55f863-2e1c-437f-be65-3f9e66b1dbf5","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":70,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"bb6a0e4b-7055-40c7-824a-a080c54270ea","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":70,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"61d4bd73-05f2-47dd-a324-112e8fe1f23e","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered call options","page_number":70,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"b32916c3-24cf-49f8-aba5-a178a29cfebc","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":70,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"44f4e261-07d4-420c-b0dc-b159c6c173c0","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":70,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"8bd5a104-54c2-4271-b038-405804dbefe0","block_type":"box","text":"Currency Swaps.","page_number":70,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"ae62c53d-597b-4f16-b992-2b6bd2661bee","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":70,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"3c4b9ce9-819d-4a77-bba8-0b02d758ab62","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":70,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"f02f0eed-2944-41fa-bbe1-871197108e77","block_type":"box","text":"second currency on a spot basis and sold for the second currency on a forward basis. Currency swaps involve the","page_number":70,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"19c3839d-fd9c-4a16-8eb6-661d80c407bb","block_type":"box","text":"exchange of the rights of a Fund and another par ty to make or receive payments in specified currencies, and typically","page_number":70,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"c2511e8c-ab94-4297-8d2d-7f41ff549371","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":70,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"7cb65061-dbd4-4e0a-9850-089712e2db6c","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other par ty to the","page_number":70,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"7eb61ca8-305c-48b6-a1c6-537404f11394","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":70,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"0272c4a3-4711-4b6a-ba16-ff8d0d25da63","block_type":"box","text":"Distressed Securities.","page_number":70,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"a08e4f34-dd1b-4f19-94e7-8a5f9d8b6432","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":70,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"6a2d6636-d2ce-4f74-9b99-8adf9eb7e272","block_type":"box","text":"are the subject of bankruptcy proceedings or otherwise in default or in risk of being in default as to the repayment of","page_number":70,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"78543ddb-a0aa-4871-9d33-3bd298589784","block_type":"box","text":"principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one","page_number":70,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"cd456464-90b8-44f5-be33-a805df8506df","block_type":"box","text":"or more nationally recognized statistical rating organizations (for example, Ca or lower by Moody’s and CC or lower by","page_number":70,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"f0fcb560-efda-4e95-a196-c8046327d179","block_type":"box","text":"S&P or Fitch) or, if unrated, are in the judgment of the Manager of equivalent quality (“Distressed Securities”).","page_number":70,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"b492c9de-01ac-43f6-b82f-bafae99a5df6","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":70,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"bc539d8a-80f2-4fba-b7e0-a975abbb6907","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":70,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"2db03568-743b-48d0-8b5b-d0a9d1126c89","block_type":"box","text":"issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan of reorganization","page_number":70,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"ac5628f7-74d7-49db-b253-9f92334870d9","block_type":"box","text":"pursuant to which the Fund will receive new securities in return for the Distressed Securities. However, there can be","page_number":70,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"57d28aee-bfe9-461a-8be5-487fc025304f","block_type":"box","text":"no assurance that such an exchange offer will be made or that such a plan of reorganization will be adopted. In","page_number":70,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"f565547c-aa01-4f53-961a-cd714d526ff9","block_type":"box","text":"addition, a significant period of time may pass between the time at which a Fund makes its investment in Distressed","page_number":70,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"fdce14f2-5d1d-4976-8d7d-815f20a41f99","block_type":"box","text":"Securities and the time that any such exchange offer or plan of reorganization is completed. During this period, it is","page_number":70,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"12ec6c0c-e982-47fe-84f6-0a49144549d4","block_type":"box","text":"unlikely that a Fund will receive any interest payments on the Distressed Securities, the Fund will be subject to","page_number":70,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"31d95b1f-e03f-46fd-870d-8c5b2153aa24","block_type":"box","text":"significant uncer tainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":70,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"70feaec3-c5c7-40d8-8818-5444874ee5fd","block_type":"box","text":"Fund may be required to bear cer tain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":70,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"e3744a82-ac2f-4054-8452-6844ace9e26e","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":70,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"f7fcb2bc-5a54-40f1-b91b-43b8203d90f8","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncer tainty as to","page_number":70,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"c62cb420-fd3d-4e99-afda-2984e5c5c2fd","block_type":"box","text":"when and in what manner and for what value the obligations evidenced by the distressed securities will eventually be","page_number":70,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"40b7c921-8d55-4a57-83b4-bf526e0148de","block_type":"box","text":"satisfied (","page_number":70,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"b517a3de-1c10-4cc1-bac9-d82019403787","block_type":"box","text":"e.g.","page_number":70,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"7e23e71d-67df-4b96-977e-38dd36473f18","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":70,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"1007448c-7af2-493b-8e4e-fc1b7b68bbe7","block_type":"box","text":"distressed securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":70,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"aeb5151c-0763-4aa7-be15-8e962c1483ea","block_type":"box","text":"II-25","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a7ddf93d-7a5c-4d4c-8724-5248efc2776d","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"68825002-711a-4e48-861e-1b5afd846ef8","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there can be no","page_number":71,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"8c5ad98d-e947-444c-a87a-15f6446eb3b4","block_type":"box","text":"assurance that the securities or other assets received by a Fund in connection with such exchange offer or plan of","page_number":71,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"c5ce3268-31d4-40e8-8c2b-414683c3e715","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":71,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"bdfade8a-ac76-4850-870a-46a4ea41116a","block_type":"box","text":"was made or no value. Moreover, any securities received by a Fund upon completion of an exchange offer or plan of","page_number":71,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"276313c3-7c50-44a9-aa36-9dfe5fbdff2b","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund par ticipates in negotiations with respect to any","page_number":71,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"fcfd07cf-3adc-467f-aae8-80808e6236e8","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":71,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"4aca878f-65b7-4d2c-b58d-6104de51c57c","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":71,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"03158ecd-e150-496e-9196-4297902d1a0d","block_type":"box","text":"Fund may have a more active par ticipation in the affairs of the issuer than that assumed generally by an investor. The","page_number":71,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"d1654cdc-5c67-45a5-9654-a6d61f1322d8","block_type":"box","text":"Fund, however, will not make investments for the purpose of exercising day-to-day management of any issuer’s","page_number":71,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"d340954f-d340-4796-b25d-d600ba4d7891","block_type":"box","text":"affairs.","page_number":71,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"bad695f5-ed74-4a69-98d2-af41e3d7e31a","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":71,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"cd4b0432-13f4-40e4-b0d8-6d64e2e64e84","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":71,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"f00ad163-7039-431e-8918-250b285b0896","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":71,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"9d02a94c-36f1-4150-b6f4-3705060c881d","block_type":"box","text":"consider ESG factors as par t of the investment process for the Fund. Fund management views ESG integration as the","page_number":71,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"74af7bab-9a94-43f2-81db-02af66a7d302","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":71,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"4f6af3b3-13c0-4c33-bd21-17f45465138b","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":71,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"b35ca009-71de-44d3-9d2d-1f4d28d07cba","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":71,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"6a7804f8-7165-4e4d-afe9-b06a03f9d42b","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":71,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"b7ad8fde-08b9-4b1b-ba31-13fc0ce3c18e","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":71,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"b8834914-594b-4e06-905a-e014eb979bbd","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":71,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"091fd74c-d817-4ff1-8bd2-19a0f831e1c8","block_type":"box","text":"Cer tain of these considerations may affect a Fund’s exposure to cer tain companies or industries. While Fund","page_number":71,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"dfcc6e6f-9739-4412-8880-8f2771efcebd","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":71,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"d4864425-551d-4ccc-9419-2336665f9732","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":71,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"04245833-2d6e-4420-87eb-831b079c7d2e","block_type":"box","text":"Equity Securities.","page_number":71,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"2bdf0705-51c1-4087-9fc8-ec4f7de678aa","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":71,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"8b42b67e-cd88-4337-9c1b-b80f93440307","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":71,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"1484c28a-bbf8-4da9-af15-6aab45ef1340","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":71,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"c28449f8-7d64-4991-b5a1-e4c935eaa8c8","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a por tfolio","page_number":71,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"8be45fad-0b39-4867-b8e4-9f72b4a5c1b7","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":71,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"1c848970-113e-4c85-b16b-2b07c91060e1","block_type":"box","text":"and overall market and economic conditions. The value of equity securities purchased by the Fund could decline if the","page_number":71,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"7f162af4-9520-4c0f-b0cb-4dff11fe33dd","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":71,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"cfa7eb3b-50f7-4c5f-b1c2-1fce66bec6a1","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a par ticular industry or industries, such as labor","page_number":71,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"3a62530d-439c-4891-a7e7-8c3996ed9a83","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":71,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"792efc97-c82e-4beb-a97c-c45bd2bfa962","block_type":"box","text":"due to general market conditions that are not specifically related to a company or industry, such as real or perceived","page_number":71,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"b503937b-1ca0-410a-ae4a-7ccdc5a9e5ad","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":71,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"e8e2e700-1230-4389-b9b5-841246a45aa3","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":71,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"74821745-1783-4ad8-acf1-1523428c31d6","block_type":"box","text":"From time to time cer tain of the Funds may invest in shares of companies through initial public offerings","page_number":71,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"72c79f18-916b-404e-a9ee-c92ff8621973","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for cer tain Funds. There is","page_number":71,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"0b799783-703a-464c-b8b2-4312baba0f62","block_type":"box","text":"no assurance that any Fund will have continued access to profitable IPOs and therefore investors should not rely on","page_number":71,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"5a66c726-8773-4ad9-9b59-d050331eee2b","block_type":"box","text":"these past gains as an indication of future per formance. The investment per formance of a Fund during periods when","page_number":71,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"9858a716-2ac7-4a28-8f01-133429cef649","block_type":"box","text":"it is unable to invest significantly or at all in IPOs may be lower than during periods when it is able to do so. In","page_number":71,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"38955e22-3272-4f51-9259-676422d4e57a","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its per formance will generally decrease. Securities","page_number":71,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"054510b4-c0d4-4855-9237-ed3550fa7552","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":71,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"4425d8e5-66e6-41c4-8798-7c7c64fbc893","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":71,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"899d355a-e7d9-4710-a55e-b5ecec14dfb6","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shor tly after the","page_number":71,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"5772490a-d74b-4f9f-8489-1858006f69a4","block_type":"box","text":"initial public offering.","page_number":71,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"2658f258-74a9-4f94-9585-56ce332a0070","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":71,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"e0d148c7-8019-4ebd-bb08-545d27ed64f6","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":71,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"6a2c975d-1b3c-4efa-b6b4-8d901b80643e","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":71,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"9e43527d-575a-407b-8413-66203159a57e","block_type":"box","text":"companies, which tend to be less well known, have shor ter operating histories, do not have significant ownership by","page_number":71,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"1353d4ca-648c-4bcd-9a21-6e830642519c","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":71,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"affe7e08-1f7f-4a83-8253-32f18d1f971a","block_type":"box","text":"are often traded in the OTC markets and may have fewer market makers and wider price spreads. This may result in","page_number":71,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"7c772892-4091-4e57-acbd-856cb87d34d5","block_type":"box","text":"greater price movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":71,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"83303b3f-1fca-4b47-984f-333e263d3afb","block_type":"box","text":"more established companies.","page_number":71,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"00694cdc-6e67-4941-91e4-186e3dd80ce1","block_type":"box","text":"II-26","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6ac8a5fc-30a1-43f3-9631-c343c5c7bd26","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"abfb8b0c-50a9-4259-9097-bcd96b24ee28","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks associated with","page_number":72,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"8f1ec12a-f3dd-42ec-bd64-2a0778489f05","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Cer tain of the Funds may also invest in shares of","page_number":72,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"3c77da65-da53-48a5-977b-de76777a53ef","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":72,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"0f968703-c5e9-4ee5-b1f5-bb6f6d616c42","block_type":"box","text":"below.","page_number":72,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"71af555e-5515-41a3-a878-0a16f6fa5200","block_type":"box","text":"Real Estate-Related Securities.","page_number":72,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"3d51f207-729d-4e93-a7b7-b002056f874c","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":72,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"377189de-fec8-4427-ba43-93a05e6cc51e","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":72,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"50f18f9f-45e5-4ef3-b2e4-de6a57a9b400","block_type":"box","text":"cer tain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":72,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"be77bd62-7b0c-40d7-b513-42c924fb2a54","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":72,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"a7ce74cc-89f2-40a3-8a7a-fceb908a446a","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":72,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"407a8334-e755-4028-9c9f-a1839de77b03","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":72,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"bdb2e747-b5b1-46db-8e8a-7001e615b860","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":72,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"a42b52e8-7c42-4f42-a2f3-f1d93db652ef","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":72,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"a8e59227-7ed0-4dfa-9bcc-c5356730f9c9","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":72,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"51a754ef-2761-4b91-8682-bbdee0257d66","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":72,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"34687b42-aeb1-4a6d-afc2-dd0888493226","block_type":"box","text":"rents; investment in developments that are not completed or that are subject to delays in completion; and changes in","page_number":72,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"ff2f7ff5-5122-4e24-9e51-8d32bc3c42ed","block_type":"box","text":"interest rates. 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The securities","page_number":72,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"0142990c-fff6-4287-bcd9-96ae602075c1","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":72,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"31131490-da9e-47ec-90d7-c27acbb9fe23","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":72,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"d7a94060-ed02-4581-b173-1e6f3740ae61","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":72,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"2679635e-af59-4f0f-9ed4-d26277c30194","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":72,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"9fef6db1-af6e-4f6d-a6f0-a454a23e7474","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":72,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"382e4775-a6cf-41fb-bbff-e5176c8c0a38","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional securities","page_number":72,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"d33107c6-c112-40ea-be9f-6f2a7ec9377f","block_type":"box","text":"exchange and may not be traded every day or in the volume typical of trading on a national securities exchange. As a","page_number":72,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"a8ee0170-d63c-4179-ab8f-2469c86d5e73","block_type":"box","text":"result, the disposition by a Fund of por tfolio securities to meet redemptions or otherwise may require the Fund to","page_number":72,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"498d0141-50cc-48fa-b33a-eb8f27dac8bd","block_type":"box","text":"make many small sales over a lengthy period of time, or to sell these securities at a discount from market prices or","page_number":72,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"db4fc6b0-9d7b-4c36-b4ec-6eb50985d1c7","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":72,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"74f46543-d5cf-4ecf-b6c9-55bbd1f9346c","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":72,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"c3d9ab08-7ec1-45d7-9256-b6277c716912","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":72,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"75bee428-aca0-4784-b718-10a6c2839ab3","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":72,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"761edd0e-91c2-4a91-ac32-608bef02b710","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":72,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"86370844-577e-4ea7-b9b5-cfdfe6b8791f","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":72,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"941c8101-5808-4114-9508-e18eef077eec","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":72,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"a2574e9d-188b-47a5-b10b-819c32778e73","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":72,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"94e04d60-3b13-4776-9ff7-e02b8474b244","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":72,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"1db2b45f-ea04-41cd-a59d-17a5bc9107dc","block_type":"box","text":"appreciation during varying por tions of economic or securities market cycles, as well as during varying stages of their","page_number":72,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"839f5a8a-9b1d-4965-83f0-ecfe40b34a60","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":72,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"a2103029-6cca-4b3a-ae47-093aa539e43f","block_type":"box","text":"cycles.","page_number":72,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"e5adb0ac-1fe6-43f5-8eb2-f38e0b0ec5ef","block_type":"box","text":"Tracking Stocks","page_number":72,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"05640cd6-0d5b-4749-9dc8-b35cdc3f9139","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":72,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"cc8ddabd-8a93-48e7-8012-3f9eb92eaedb","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the per formance of such","page_number":72,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"468251a6-6dab-4849-b013-4e8ffceffb55","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":72,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"66aaaf1c-6a4b-4c73-927c-206dd8a8d2ec","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":72,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"a3c04af5-7779-4ef8-9136-b4a6855e9ba1","block_type":"box","text":"holders of the tracking stock may not have the same rights as holders of the company’s common stock.","page_number":72,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"dd714f3b-fb40-4413-8e9a-ab490d088b3e","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":72,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"0d774c41-3f64-411d-9cad-eacffbb9eee8","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":72,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"bbee145a-087a-4c97-adb4-854e2913dced","block_type":"box","text":"debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and ETFs. An ETN’s returns","page_number":72,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"78464cd7-26b3-4e59-a338-e5cb632e00a6","block_type":"box","text":"II-27","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f6f1aac9-869b-468a-8ae5-4cbc57f6c3ea","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"63dadf9b-babb-4bbf-a5b7-e8f62e43a04b","block_type":"box","text":"are based on the per formance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":73,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"3937e6ca-d55a-4e0e-a7ed-cffb3dc1d76f","block_type":"box","text":"expenses. Similar to ETFs, ETNs are listed on an exchange and traded in the secondary market. However, unlike an","page_number":73,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"1e843b80-e49d-4434-97c2-679837a6b88d","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the per formance","page_number":73,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"470060fb-1c37-40b4-9d22-4d8068d3b096","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus cer tain fees. Unlike","page_number":73,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"2023edc1-d82b-4793-b993-a6ea2bf2ab54","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":73,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"7402e0f7-10b3-40bf-b926-114c55c13ab4","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and demand for","page_number":73,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"252cca86-7b2a-4164-90ec-2a1420b8a4df","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":73,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"9d78d019-56dd-4e70-860f-8fb0ffb27bc4","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":73,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"38426003-3a29-4f81-ae52-e9dfe53bf3e0","block_type":"box","text":"geographic events that affect the reference instrument. ETNs are subject to credit risk and the value of the ETN may","page_number":73,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"07aa4f70-49a9-4216-b934-4f690e8d4f24","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":73,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"0eff8bc7-3374-4347-87a7-a633bb2acd50","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its propor tionate share of any fees and expenses borne by the","page_number":73,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"8a9e5bb0-23e8-4fa7-b295-1c96e7f89ebb","block_type":"box","text":"ETN.","page_number":73,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"396b2e2e-de5d-419b-9cf1-c5f1afee7981","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the per formance of the reference instrument.","page_number":73,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"e72b9ebd-08b6-462c-abdf-7ec41764c868","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":73,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"bfdb1e16-8f74-4225-9c24-76e7efd8980b","block_type":"box","text":"may, at times, be illiquid and may be difficult to purchase or sell at a fair price. Levered ETNs are subject to the same","page_number":73,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"806a0bfb-3229-485d-9912-af09afc395f5","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":73,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"21a56adb-b58b-4100-ae6d-de24dbf84a2d","block_type":"box","text":"potential for loss is also greater. Finally, additional losses may be incurred if the investment loses value because, in","page_number":73,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"cd79e301-01c9-4f50-974c-71b8692f026d","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":73,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"f5418f4b-39a4-4cb4-832f-c83cae347035","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its obligations, the","page_number":73,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"70071dd5-cf5e-4064-a16b-7885b61625c0","block_type":"box","text":"value of the ETN may change due to a change in the issuer’s credit rating, despite no change in the underlying","page_number":73,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"7069e3c9-aa28-42fc-ab3b-b25885879967","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":73,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"e64ed560-0c0e-4807-a7ba-3fb6e8a561ed","block_type":"box","text":"difference in price may be due to the fact that the supply and demand in the market for ETN shares at any point in","page_number":73,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"edca3907-1d42-4432-ae44-5412384da244","block_type":"box","text":"time is not always identical to the supply and demand in the market for the assets underlying the reference","page_number":73,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"2dc85a95-d70d-43da-892c-eb66030f9c99","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":73,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"7df258fc-7233-45f8-8933-c321137b22fe","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally meant to","page_number":73,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"b46d6e7a-7814-4012-b779-90ff0b3ddd2c","block_type":"box","text":"be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the availability of a secondary","page_number":73,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"a618de04-be75-47c4-8ec2-87316b586fe5","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":73,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"801ba965-45c8-411d-896b-f3f6984db104","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a cour t may not","page_number":73,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"c18315c5-bda4-427e-adf6-feed034d9d53","block_type":"box","text":"uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and character of income and gains","page_number":73,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"7bfd13c8-babb-4217-900d-b2b675fe0970","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":73,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"9c1cdd2c-a744-46b6-a845-4d25a840b86a","block_type":"box","text":"Foreign Investments.","page_number":73,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"1c4f71fe-7b47-4c2f-8714-2a8f3bb16933","block_type":"box","text":"Foreign Investment Risks.","page_number":73,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"c1f9cca7-f07c-4e13-8bf1-4fd805b72b7e","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":73,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"d8ec2535-cf91-440e-8f36-34b805462d0d","block_type":"box","text":"located in emerging market countries. These securities may be denominated in U.S. dollars or in a foreign currency.","page_number":73,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"1836b472-f7c3-4447-aa11-d757daf0a85a","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":73,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"113f92ee-b56f-43d8-9c08-feeb8a9a4e7c","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":73,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"a9345337-ee18-4912-bae2-832095522dcb","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":73,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"13830b08-bcc2-48db-9e97-63e447e09349","block_type":"box","text":"securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are conducted from the","page_number":73,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"f0fc0344-c357-445a-82c5-f757d698e22e","block_type":"box","text":"U.S., (ii) the company’s equity securities trade principally on a U.S. stock exchange, (iii) the company does a","page_number":73,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"f4df1014-f6e9-44bb-9ce2-9f999344b919","block_type":"box","text":"substantial amount of business in the U.S. or (iv) the issuer of securities is included in the Fund’s primary U.S.","page_number":73,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"292f54c4-00ea-4f4e-9936-2dbb24defc9f","block_type":"box","text":"benchmark index.","page_number":73,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"1b2cac8d-3e05-4e6e-a464-46ae7cf7a2a8","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":73,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"cd215120-1b1e-4642-9130-515284d7109a","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":73,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"ff976eb5-2a95-4a96-873a-1a955dbaa78b","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":73,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"92171211-6355-43c4-b0f9-dfdd17d4bb14","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":73,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"22eee790-9e51-405e-a5a4-24230ec8ee29","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":73,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"c8024aae-7098-4953-9b32-a25aef35a216","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":73,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"2cea5534-a88a-44b5-9211-3f0e9ec6c776","block_type":"box","text":"securities and zero-coupon securities.","page_number":73,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"08d5f0a5-08a0-4668-9dfc-b57e5a879755","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":73,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"818d24b2-f0c1-4aaa-8274-58d0bf0b8e8b","block_type":"box","text":"taxes.","page_number":73,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"ce62ae91-3f99-491d-b230-8e9a75e6936f","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign exchanges or in","page_number":73,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"213edf34-4bc6-475a-9dd8-151a48a60460","block_type":"box","text":"foreign markets that are closed when the securities exchange on which the Fund’s shares trade is open, there are","page_number":73,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"4925c1ea-3b6e-4406-94a7-c45b7c057262","block_type":"box","text":"likely to be deviations between the current price of such an underlying security and the last quoted price for the","page_number":73,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"75ee759a-542f-4a07-9e69-f7dfc0125151","block_type":"box","text":"II-28","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e0f9d003-6372-4da8-97a5-1b9d2175f689","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d6081736-c751-491c-80fc-2ed1d8aeba3a","block_type":"box","text":"underlying security (","page_number":74,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"ccb00611-aacc-44ac-aa9d-665738c78950","block_type":"box","text":"i.e.","page_number":74,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"6823a80e-667d-44e8-a9e9-22f7b2696729","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":74,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"5af32086-c794-4068-bef0-a7cd0a9a6fae","block_type":"box","text":"Fund is likely to be greater where a large por tion of the Fund’s underlying securities or other instruments trade on","page_number":74,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"e85fff5a-3c16-4e9d-b713-8c681f448944","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":74,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"3712ffc4-33c2-4610-923b-c6e36a292b52","block_type":"box","text":"result in premiums or discounts to cer tain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":74,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"1e4b5240-4e7e-4825-8b17-87a1fac3f5cf","block_type":"box","text":"Foreign Market Risk.","page_number":74,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"0a956405-f0ca-4e99-9021-45d11cee979c","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":74,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"84b3a45d-0831-41a7-bf8f-fd885e720cd5","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":74,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"97514da7-3752-4558-9342-f2e81dc9ff41","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":74,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"b68a8e2a-d3ec-41ec-9a7e-c607a02ed275","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In par ticular, a Fund","page_number":74,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"eb753ab3-7b86-4ca1-b788-5eb7b86b1988","block_type":"box","text":"is subject to the risk that, because there are generally fewer investors on foreign exchanges and a smaller number of","page_number":74,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"85e0c82a-6010-4303-b680-c7850def2333","block_type":"box","text":"shares traded each day, it may be difficult for the Fund to buy and sell securities on those exchanges. In addition,","page_number":74,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"92b73269-8a0d-4b76-9c3e-e46631bc986b","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":74,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"b020b6e4-ee70-4556-862e-fa0238e61da0","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":74,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"e94d2d11-8e0f-44df-b610-4582652a34ee","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":74,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"055dd67c-34bf-42c0-9d1f-20232e5345d8","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of cer tain countries, or the","page_number":74,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"82cc3bc4-83cf-4c81-9f59-ed17088ba186","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":74,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"e5160e66-2d6b-46cd-9f7b-f64aa41e2f0b","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or cer tain industries in those countries. Capital","page_number":74,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"672d1a57-2af8-4601-8b96-48bccefd6364","block_type":"box","text":"controls and/or sanctions may include the prohibition of, or restrictions on, the ability to own or transfer currency,","page_number":74,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"0df28e7e-8de4-451c-a543-0bd7bb58d6ba","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":74,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"bb2957bc-19f1-489f-85e9-672b56d9abab","block_type":"box","text":"government, such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":74,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"fe8b703e-f3ba-41bc-8006-95bb370169ea","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":74,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"70884ad3-e127-4039-bcf6-a8011e3c1322","block_type":"box","text":"transfer the Fund’s assets or income back into the United States, and could negatively impact the value and/or","page_number":74,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"31cce732-4905-4c0a-80a1-af7fc28d257c","block_type":"box","text":"liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the Fund to decline in value. Other","page_number":74,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"0022c2af-b96a-4201-b5a5-27322aace1a3","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":74,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"df64f79f-bf89-4139-8fe9-0ec7b69871e2","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":74,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"ba1a7195-6309-45b8-85e9-148ad2138c8f","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":74,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"5f7aadeb-d789-482f-b832-e69f8c870fd9","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":74,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"47b5d464-2a47-4027-970e-4518b70a1acb","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":74,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"0c05e396-c9d1-4275-9bf6-93be0bff5232","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":74,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"c1b39082-5fdd-43e6-ae08-29802940e6cd","block_type":"box","text":"or abroad could result in appreciation or depreciation of por tfolio securities and could favorably or adversely affect a","page_number":74,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"f9f56dd7-38ff-401c-a9dd-f6cf493327f6","block_type":"box","text":"Fund’s operations.","page_number":74,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"857acb9f-e91a-439e-a465-6cb44080c77a","block_type":"box","text":"Foreign Economy Risk.","page_number":74,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"e70ae46b-f6c0-4a9d-843b-cbcf76046a57","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":74,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"ac47dabc-eb0c-4ddf-89ec-96c3548acd5b","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":74,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"1da351f6-402e-4e25-8ce0-3c62d7112a69","block_type":"box","text":"and balance of payments position. Cer tain such economies may rely heavily on par ticular industries or foreign capital","page_number":74,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"101944b7-2211-4fe4-b03d-1bde3ff8ef57","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":74,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"4a6848a7-2c1b-483b-a880-db7103847fce","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":74,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"52fd3fc4-8634-4d5e-ac5e-7b06b90e2b65","block_type":"box","text":"measures.","page_number":74,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"4d215719-0afb-420f-a868-debaf554a491","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":74,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"86d5d7b9-ddb1-46a3-a5e5-a6ac95a01b03","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":74,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"652061be-bf4f-48b6-8aa3-022880eab5b1","block_type":"box","text":"interest in foreign currencies, the value of a Fund that invests in foreign securities as measured in U.S. dollars will be","page_number":74,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"fafafa76-353c-4ddc-af35-7a32445c30cc","block_type":"box","text":"affected favorably or unfavorably by changes in exchange rates. Generally, when the U.S. dollar rises in value against","page_number":74,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"10b641c2-2ec2-42bc-a315-6e69cdbd196c","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is wor th fewer U.S.","page_number":74,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"514a6200-1a7e-4783-9c1f-e32049152caf","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":74,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"74fdea1b-7c05-40bf-8caf-f65fecf05cf9","block_type":"box","text":"that currency gains value because the currency is wor th more U.S. dollars. This risk, generally known as “currency","page_number":74,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"3e7a7024-6b86-4ac0-b09b-89650d76637c","block_type":"box","text":"risk,” means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will increase","page_number":74,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"9b020376-6929-49f8-b772-04b4193d67fe","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":74,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"602d3c49-3794-43af-809f-2cb0660ad0e5","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":74,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"739518d8-3ad6-4aca-8a9a-b76680475395","block_type":"box","text":"United States or abroad.","page_number":74,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"5426614c-230d-402c-b328-657785edd268","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":74,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"47da6149-43fb-4c98-902b-01df8b7e4ce0","block_type":"box","text":"Many foreign governments supervise and","page_number":74,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"7f830513-f514-488a-a442-4e54c5ce9cb5","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":74,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"11c5372c-cc8d-4d5b-b090-5312bd1dc668","block_type":"box","text":"not have laws to protect investors comparable to the U.S. securities laws. For example, some foreign countries may","page_number":74,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"4f0743dd-25e8-4872-8391-e691392f8ae2","block_type":"box","text":"have no laws or rules against insider trading. Insider trading occurs when a person buys or sells a company’s","page_number":74,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"33736b17-27db-4fb3-bbbe-2988fa620f90","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":74,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"183846e1-0aee-46ad-a096-1899fcb3000a","block_type":"box","text":"necessarily the same as in the United States. If the accounting standards in another country do not require as much","page_number":74,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"f8a1aa30-fd8d-4567-b208-6cb9853e64e6","block_type":"box","text":"detail as U.S. accounting standards, it may be harder for Fund management to completely and accurately determine a","page_number":74,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"eae603b6-b05a-4a80-8a7d-f1ae8df6e447","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past imposed","page_number":74,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"b1939406-fbfe-4daf-bc59-4234bac7d709","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":74,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"b188e53d-fb99-459c-afb7-9ad26b47220a","block_type":"box","text":"restrictions should be reinstituted, it might become necessary for the Fund to invest all or substantially all of its","page_number":74,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"d22982a5-1355-4ab4-b5ec-2e9e0a6423d2","block_type":"box","text":"II-29","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"562c989b-a565-4765-bf11-0ccbcbc449fb","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0f4d7b4f-effa-4773-bcf6-c7ad0fabcb01","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":75,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"f00a972b-7183-47d3-95b2-f93a47ca8caf","block_type":"box","text":"higher in foreign countries than they are in the United States. This reduces the amount the Fund can earn on its","page_number":75,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"8387cd7b-6e8c-4137-aa08-b77e05581f46","block_type":"box","text":"investments.","page_number":75,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"0d291066-68ba-4051-bb72-b4b88d559190","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":75,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"33ef0ab7-1088-4ff0-88e2-a35440f83eb5","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":75,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"bb6ce5c8-44c2-4577-b258-8efb86e67d79","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":75,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"426c5e2b-da28-4684-95dd-a036962dd8ff","block_type":"box","text":"organized or new to the foreign custody business. In addition, there may be limited or no regulatory oversight over","page_number":75,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"51138167-ecc6-4107-8ac1-490f504abe49","block_type":"box","text":"their operations. Also, the laws of cer tain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":75,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"4665f793-dfb0-41f2-97e1-cdc400a7b614","block_type":"box","text":"bank or depository or issuer of a security or any of their agents goes bankrupt. In addition, it is often more expensive","page_number":75,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"83410b26-03ae-4af5-9df0-098529a5c06c","block_type":"box","text":"for a Fund to buy, sell and hold securities in cer tain foreign markets than in the United States. The increased","page_number":75,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"03019644-b148-45d2-b8a8-09c54c155835","block_type":"box","text":"expense of investing in foreign markets reduces the amount a Fund can earn on its investments and typically results","page_number":75,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"1a064334-be52-4f25-a7b0-79db53c72f81","block_type":"box","text":"in a higher operating expense ratio for the Fund as compared to investment companies that invest only in the United","page_number":75,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"30e16088-5be3-4e42-a267-d092d9d56b67","block_type":"box","text":"States.","page_number":75,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"9d180dd9-a04d-4a31-af32-085b4c04d2b2","block_type":"box","text":"Publicly Available Information.","page_number":75,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"1b0d45a6-f53c-4fb8-a2c6-503aa4eb6299","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":75,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"e235fb4d-2d09-4c08-8a21-72d69d08f1f8","block_type":"box","text":"than is available with respect to U.S. companies. Most foreign companies are also not subject to the uniform","page_number":75,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"2feadd55-b130-4593-bbfc-678a50ff4d97","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":75,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"68beae16-19c7-41fb-9c42-d28e0b64f41d","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":75,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"fdc42315-29e9-4d1d-b28e-3ef081f83924","block_type":"box","text":"the New York Stock Exchange. Accordingly, a Fund’s foreign investments may be less liquid than, and their prices may","page_number":75,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"9ff2ece8-e6e6-448a-be79-5a6f7286ae60","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":75,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"22373566-cf4b-48a9-a5da-c2d38fc51f27","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":75,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"511e744b-df3c-453f-96f6-4a3e72817ade","block_type":"box","text":"United States.","page_number":75,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"84bc7794-4e79-4902-a98d-eb86b48ef09f","block_type":"box","text":"Settlement Risk.","page_number":75,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"d8944ff0-cfe2-4134-b7b0-d13b35a6ec92","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":75,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"b89196ba-db41-41f1-bc93-2305d426fb2d","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":75,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"2967d55e-45dc-4e71-a892-aeaf42e0bdcd","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":75,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"abd71efc-8ad2-49f2-a1f0-f0e2848cd2e9","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":75,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"a5a60991-4ec0-4b46-bc09-8e6a6544f4b4","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":75,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"e3e37eb4-f0f2-45ac-a331-72e368416344","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":75,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"22ef5ff4-aa09-4205-bc5f-c26c7efa9700","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":75,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"bb28a489-f1e6-46a1-9a71-e834220971e7","block_type":"box","text":"these problems may make it difficult for a Fund to carry out transactions. If a Fund cannot settle or is delayed in","page_number":75,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"65d941f8-a0f4-4cec-b913-4b9cf89759da","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment oppor tunities and cer tain of its assets may be","page_number":75,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"ff487c04-2c9e-46f4-9d59-0e95c2948f8b","block_type":"box","text":"uninvested with no return earned thereon for some period. If a Fund cannot settle or is delayed in settling a sale of","page_number":75,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"ced4b5e4-1f22-4892-b214-5ffc44ab9553","block_type":"box","text":"securities, it may lose money if the value of the security then declines or, if it has contracted to sell the security to","page_number":75,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"f48efbc1-640f-4b9e-b61b-2f7a5d6055f7","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":75,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"604bd247-fdf7-4ae4-ad7a-a8fc2bf2ab26","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":75,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"680539ea-6e18-4e2d-9f8b-e7d049d84aeb","block_type":"box","text":"arise in respect of securities held by or to be transferred to a Fund. Compensation schemes may not exist or may","page_number":75,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"81923629-39c4-4eba-a24d-2d4927b3b4c3","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":75,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"a47446f7-2a65-4057-aec9-28e8984cecc3","block_type":"box","text":"Sovereign Debt.","page_number":75,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"5dacfd32-f296-4f40-98a2-cd699d562df4","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":75,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"0db1a1df-ff2b-47ce-ac04-62c902d5f881","block_type":"box","text":"controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in","page_number":75,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"b34890d4-1b08-47f7-bd27-98075d619ac7","block_type":"box","text":"accordance with the terms of such debt. A governmental entity’s willingness or ability to repay principal and interest","page_number":75,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"98af7ead-56c9-4185-aceb-2134582acc71","block_type":"box","text":"due in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign","page_number":75,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"dfcc9945-9c36-48a3-8210-f630e115e7f7","block_type":"box","text":"reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt","page_number":75,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"41b8e89a-600c-49de-afe2-9aaf1f5e236e","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":75,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"24020040-c1f0-45c8-8277-24d5489a4e8b","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":75,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"e36e9bef-5b31-4920-8706-19185057c7a6","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":75,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"a3eab02c-14b0-442f-9474-a42552a31e08","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":75,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"f74f7bc3-458c-4a6c-857a-ddadcc5272fe","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":75,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"e7482818-baff-46f4-a88c-a318c8abc68c","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":75,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"90260043-9ce1-4bcd-be02-342b63fa46e6","block_type":"box","text":"achieve such levels of economic per formance or repay principal or interest when due may result in the cancellation of","page_number":75,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"150e2af2-8fe1-4eb2-81a4-3977626d069c","block_type":"box","text":"such third par ties’ commitments to lend funds to the governmental entity, which may fur ther impair such debtor’s","page_number":75,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"fb1a410f-869a-45c4-b75e-260fc7f946cb","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":75,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"43407e6f-5532-4191-8100-41963248dc39","block_type":"box","text":"debt.","page_number":75,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"3df6814f-a379-4cf2-b4fe-7eece3c3a700","block_type":"box","text":"Holders of sovereign debt may be requested to par ticipate in the rescheduling of such debt and to extend fur ther","page_number":75,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"a7cf26c4-2649-4341-ae03-e4abb5af70e2","block_type":"box","text":"loans to governmental entities. In the event of a default by a governmental entity, there may be few or no effective","page_number":75,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"f04cac89-8b24-47e6-bc54-e1b20c9897cd","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":75,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"24c3646a-6941-41a5-99e3-3422bc5544d4","block_type":"box","text":"II-30","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"16a17a8a-1ec9-4562-87ce-6d2c7ae68f22","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bdc2db1e-a86c-46c2-9e2c-3e88d7f388f8","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":76,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"d6393a6e-e95c-4565-ba96-10cff12d7c15","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":76,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"38ae86c4-10e7-42ee-893c-5687ad78bf2c","block_type":"box","text":"interest income (if any) received from issuers in cer tain countries and capital gains on the disposition of stocks or","page_number":76,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"1b6a8c49-2f91-4987-b403-2e7d93f9e46a","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":76,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"333cef1b-0b92-43da-a376-752f039d476a","block_type":"box","text":"refund is within the control of the tax authorities in such countries. Where a Fund expects to recover withholding","page_number":76,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"1babf437-b0aa-48d8-84a3-f0afdfbdd306","block_type":"box","text":"taxes, the net asset value of the Fund generally includes accruals for such tax refunds. Each Fund regularly evaluates","page_number":76,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"d2e94e83-11e2-4e73-bfa7-2bbb9abd809d","block_type":"box","text":"the probability of recovery. If the likelihood of recovery materially decreases, due to, for example, a change in tax","page_number":76,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"398ac301-3bfc-416d-a308-182c5edd387b","block_type":"box","text":"regulation or approach in the foreign country, accruals in a Fund’s net asset value for such refunds may be written","page_number":76,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"fbcc4694-49f6-4541-942b-b4307235e39c","block_type":"box","text":"down par tially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":76,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"764b981f-c53d-4055-9c9b-5ffad18e67dc","block_type":"box","text":"accrual is written down will bear the impact of the resulting reduction in net asset value regardless of whether they","page_number":76,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"e400eccc-dd87-4889-a99e-476ba32fbd9e","block_type":"box","text":"were shareholders during the accrual period. Conversely, if a Fund receives a tax refund that has not been previously","page_number":76,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"2cfb4547-972e-442a-9717-ed67273b2432","block_type":"box","text":"accrued, shareholders in the Fund at the time of the successful recovery will benefit from the resulting increase in","page_number":76,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"d00fb099-0488-47c7-bdd0-23b02a370836","block_type":"box","text":"the Fund’s net asset value. Shareholders who sold their shares prior to such time will not benefit from such increase","page_number":76,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"a57714c9-aa99-47d9-868c-e63f61d53659","block_type":"box","text":"in the Fund’s net asset value.","page_number":76,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"7c0f63f7-ee3c-4333-8202-36f65180e4a3","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":76,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"548f170f-79c0-44c2-89ba-af615a677fc6","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":76,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"8af32174-85e6-424a-9c62-1cc583364211","block_type":"box","text":"trading par tner of, or foreign investor in, cer tain countries in which a Fund may invest. As a result, economic","page_number":76,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"8f6b143b-0025-4635-bb99-10b57bde9655","block_type":"box","text":"conditions of such countries may be par ticularly affected by changes in the U.S. economy. A decrease in U.S. impor ts","page_number":76,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"59f08c04-05ab-4b19-ac92-76f29b4400d5","block_type":"box","text":"or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":76,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"e7d515aa-262c-49ff-b34e-9ba929f696b3","block_type":"box","text":"slowdown in the United States may have a material adverse effect on a country’s economic conditions and, as a","page_number":76,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"d8426415-583d-4ba1-b01b-9256b911af3d","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":76,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"21c10bc0-0959-4d31-98d1-13b0f14503ad","block_type":"box","text":"of interest or principal on U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment","page_number":76,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"7afb188a-8048-4562-9d3f-09f4bc3dc0f4","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":76,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"efc4cefa-360c-43cb-b182-e86958815944","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":76,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"c629c962-3a1c-4c36-ae81-7591c32e48bd","block_type":"box","text":"allies, such as cer tain European countries, and historical adversaries, such as Nor th Korea, Iran, China and Russia.","page_number":76,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"7ae522cc-f2f4-409d-a0dd-d3782a2b6125","block_type":"box","text":"If these relations were to worsen, it could adversely affect U.S. issuers as well as non-U.S. issuers that rely on the","page_number":76,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"7242a6b4-3e06-4d5f-8700-b7ab2892a784","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":76,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"ed596e74-b289-4e16-a96a-d8f9aa495ae6","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":76,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"54608003-1e35-4d44-9a75-a05ee7705e3b","block_type":"box","text":"Fund may invest.","page_number":76,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"905ab827-e744-455d-8256-4016cba77638","block_type":"box","text":"Funding Agreements.","page_number":76,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"0bd9263b-9fd3-4c1b-908c-6dc8047a14ac","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":76,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"79b73dc7-a5ed-4931-9483-a104b6ab1c24","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":76,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"5684133c-7280-4272-b96c-f6e8d0eb2317","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":76,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"bf7595fe-dff9-4552-a74f-7900eed329a8","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":76,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"36ec6108-de7d-49d8-a2bf-5ae275998ade","block_type":"box","text":"not be less than a cer tain minimum rate. The purchase price paid for a funding agreement becomes par t of the","page_number":76,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"23e7f6c1-aae0-4dc1-a5bc-ca24cc0b028c","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":76,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"dba9606a-0050-4dad-a6bf-ac178dc012db","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":76,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"572cd35f-ced1-4f92-9c34-536b662d3929","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":76,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"fd2a587d-4e09-4f2c-861e-429e95f86f37","block_type":"box","text":"Guarantees.","page_number":76,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"6b45b9a4-5dff-41b8-9378-9453647cdb63","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":76,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"7b1e4858-7479-4a93-8719-301be4815b33","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":76,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"4569ce1f-a557-4c2a-a7f8-d24bf3d45647","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":76,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"d0f81fdc-ff11-4514-ac69-32fb1e087caa","block_type":"box","text":"Illiquid Investments.","page_number":76,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"5628f1bc-5e2f-418f-a860-aae1010b5c08","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":76,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"30dbece3-ec99-495b-bded-e07fd8137793","block_type":"box","text":"Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any","page_number":76,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"0520f776-8c4c-49ce-b8c9-7a07ed3df4fa","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":76,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"baaa13cc-938e-49ff-9594-d3e1bf1bb837","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":76,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"be9b6864-5614-42d2-9dce-4649f7113d9b","block_type":"box","text":"investments may become illiquid after purchase by a Fund, par ticularly during periods of market turmoil. There can be","page_number":76,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"39646168-66fb-4ac3-ae64-e92b45d1e6e4","block_type":"box","text":"no assurance that a security or instrument that is deemed to be liquid when purchased will continue to be liquid for","page_number":76,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"dcd218a4-786c-49af-b645-e8d53d5807d5","block_type":"box","text":"as long as it is held by a Fund, and any security or instrument held by the Fund may be deemed an illiquid investment","page_number":76,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"a3a03810-6748-49f0-82bc-621ba1b4dc4f","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":76,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"c5861b33-6e73-4e78-a59d-232c207a5a80","block_type":"box","text":"the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. In addition, if a","page_number":76,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"6a095ae5-0a28-45e3-8dfa-54f738e16521","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":76,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"9d6190c6-e3c6-41f2-aa52-bb6442df6718","block_type":"box","text":"selling their shares, or the Fund’s net assets otherwise shrink, the Fund will need to dispose of liquid securities to","page_number":76,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"59f51d75-4e3c-4880-abd4-39ed13bbb54e","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger por tion of the Fund’s holdings. If illiquid","page_number":76,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"e41b2596-df11-4a01-b062-845a4203e433","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":76,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"eb8849fa-06ff-424c-bc9c-c46855d7dc12","block_type":"box","text":"defined below) will require that cer tain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":76,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"12755468-4c4f-4559-8c8a-908cd7c60afa","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":76,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"7e0be8b0-9613-4389-903b-e38c977480ec","block_type":"box","text":"Fund to dispose of its investments in a timely fashion and for a fair price as well as its ability to take advantage of","page_number":76,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"697230af-af1b-4a82-9dca-2a1e88a63ba8","block_type":"box","text":"market oppor tunities. The risks associated with illiquidity will be par ticularly acute where a Fund’s operations require","page_number":76,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"3b5fbc37-5bcc-4cfd-ba7f-cb6767d9b4d1","block_type":"box","text":"II-31","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0bc7668f-dd87-44b1-8a23-42a741061937","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"44074c59-6f28-42cb-b8fb-879eba7b4217","block_type":"box","text":"cash, such as when the Fund redeems shares or pays dividends, and could result in the Fund borrowing to meet","page_number":77,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"f0e3c2cd-595b-47e2-983a-1b619ae35666","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":77,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"af047e8f-a599-40cf-a958-028315280d28","block_type":"box","text":"Index Funds.","page_number":77,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"f5be9c3a-d629-4cf8-9ec5-d166a4544f6e","block_type":"box","text":"Cash Flows; Expenses.","page_number":77,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"8a169512-f010-4cd7-9796-e6c72e14133b","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":77,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"2e90a079-875c-401d-aba2-1e8dcfbf0c75","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":77,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"992f6a75-c215-4653-a302-39d53922f3e3","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":77,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"d96113cf-f979-4e56-9199-4c20323425da","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":77,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"22aef9fd-fddc-4f61-8b6b-b5fdbcdd6da7","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":77,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"7290e9ad-f916-472b-9915-e0b8199e4a56","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":77,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"1d89f693-fedf-4c3c-8ded-4942bf78f648","block_type":"box","text":"(","page_number":77,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"2827bf41-f219-468f-8606-a4c36b155aba","block_type":"box","text":"e.g.","page_number":77,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"b6dc05ae-5b6a-4e78-9324-ea84d6906985","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":77,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"242e06d6-f6bc-41d9-91ef-148170241e3b","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":77,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"1f55db1a-61e8-479f-9e44-3be6c5aedc21","block_type":"box","text":"par ticular security as an investment.","page_number":77,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"5f041ff5-c0b0-4300-b1d9-9d02439c5b7e","block_type":"box","text":"Tracking Error Risk","page_number":77,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"c8df339a-36e8-4f26-9d30-9240561e9ca6","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":77,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"f3782bff-4e43-4962-ae1e-06477c50e6f1","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":77,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"20d43f65-4ea7-438b-9fc6-8d90d7925f48","block_type":"box","text":"instruments held in the Fund’s por tfolio and those included in the Underlying Index, pricing differences (including, as","page_number":77,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"304a566d-9307-45df-938f-dbf3d83b7dff","block_type":"box","text":"applicable, differences between a security’s price at the local market close and the Fund’s valuation of a security at","page_number":77,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"578d1d56-adbf-4d1e-90d0-fc33b5c62be7","block_type":"box","text":"the time of calculation of the Fund’s net asset value), differences in transaction costs incurred by the Fund, the","page_number":77,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"1fc47141-f033-4f84-981f-0602e12e1a74","block_type":"box","text":"Fund’s holding of uninvested cash, differences in timing of the accrual of or the valuation of dividends or other","page_number":77,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"10a5eeba-e90c-4e8d-ada0-753a56b41f2f","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":77,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"8c39c6ce-a011-4efe-a4f8-ec6a67572adf","block_type":"box","text":"minimize the distribution of capital gains to shareholders, changes to the Underlying Index or the costs to the Fund of","page_number":77,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"e78c6e3b-505a-46b5-9f85-d00f8ba23a3a","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":77,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"d5626d1b-7581-4111-968d-02b3f3c4a5cb","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":77,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"121a99d8-5db8-4bca-9aeb-ac97856ec92e","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":77,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"9287585c-a9e8-4125-8ea3-262a7d4380d9","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":77,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"4b8ce935-1a69-47da-ae9d-0d0b515dbbd5","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":77,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"be50d29f-a25e-4ace-92fb-dbc9c3aa130a","block_type":"box","text":"price growth that does not appear to be suppor ted by publicly available information on the business and assets of","page_number":77,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"0a04bb84-b902-4701-9804-8263d2e14c65","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":77,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"40413df8-c54a-438c-b8ad-babd6fd728a1","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":77,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"8dd27dd3-5a3b-477d-9c6a-211fda961c91","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, aler t the index provider as to the alleged issue. The","page_number":77,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"cd630a55-18b5-42c0-a744-6f662166bd4d","block_type":"box","text":"index provider has sole discretion for the determination as to whether to continue to include the issuer’s securities in","page_number":77,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"382c63da-8f54-418b-a09e-13cdace78a22","block_type":"box","text":"the rebalancing of its index. If the securities continue to be included in the index, the Manager may underweight or","page_number":77,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"5a8483f9-f844-40d5-83d8-84456bb0af72","block_type":"box","text":"exclude such securities from a Fund’s por tfolio and, if it does so, such Fund will be subject to increased tracking","page_number":77,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"ec4e80ef-e39b-4ab4-9bba-725145d96637","block_type":"box","text":"error due to the divergence in the securities included in its por tfolio from its underlying index. The application of the","page_number":77,"box":{"x":69,"y":559,"width":825,"height":11}},{"id":"d9eb4d5c-60cd-47ab-be52-0a2938a8f892","block_type":"box","text":"abovementioned analysis and screening to a Fund and its Underlying Index is in the sole discretion of the Manager","page_number":77,"box":{"x":69,"y":574,"width":818,"height":11}},{"id":"2d7c8884-3c43-4d0e-91f3-ee63aea2f089","block_type":"box","text":"and its affiliates (without any guarantees). The analysis and screening may not exclude any or all high risk securities","page_number":77,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"261baa74-cde6-4292-9f15-71707f8eb81e","block_type":"box","text":"from an Underlying Index or a Fund’s por tfolio, and the inclusion of such securities will result in an adverse impact to","page_number":77,"box":{"x":68,"y":604,"width":835,"height":11}},{"id":"fbba8afb-1cd7-4182-bd4c-73befa094d6f","block_type":"box","text":"the Fund’s net asset value if one or more such securities declines in value.","page_number":77,"box":{"x":68,"y":619,"width":536,"height":9}},{"id":"39470c2c-a0e6-4ff7-8eaa-d51a2cadfc2b","block_type":"box","text":"S&P 500®","page_number":77,"box":{"x":102,"y":642,"width":64,"height":9}},{"id":"5e6bf996-12e2-4015-82a2-dec03891bff3","block_type":"box","text":"0®","page_number":77,"box":{"x":166,"y":642,"width":6,"height":5}},{"id":"ac0d53ab-8ac5-4042-9e46-f73a569cd254","block_type":"box","text":"Index (“S&P 500”).","page_number":77,"box":{"x":178,"y":642,"width":134,"height":11}},{"id":"7b73d63b-4d01-4d9e-8812-2f52dc41e782","block_type":"box","text":"“Standard & Poor’s","page_number":77,"box":{"x":320,"y":642,"width":136,"height":9}},{"id":"8837cfac-1461-4996-8e87-3643a81c86eb","block_type":"box","text":"®","page_number":77,"box":{"x":457,"y":642,"width":6,"height":5}},{"id":"a96ca6f3-e1fc-4b1d-ace8-d5cac7dff50c","block_type":"box","text":",” “S&P","page_number":77,"box":{"x":465,"y":642,"width":53,"height":10}},{"id":"21dc57e2-0a3f-4be8-9dba-ee57c95f77d4","block_type":"box","text":"®","page_number":77,"box":{"x":518,"y":642,"width":6,"height":5}},{"id":"5b698f42-9b59-467e-a180-80a948c66198","block_type":"box","text":",” “S&P 500","page_number":77,"box":{"x":526,"y":642,"width":87,"height":10}},{"id":"a658a7f0-9e7e-43ee-9e5a-80cb628a97d9","block_type":"box","text":"®","page_number":77,"box":{"x":614,"y":642,"width":6,"height":5}},{"id":"574a82f2-27d2-47a8-a84a-d74fad4bba83","block_type":"box","text":",” “Standard & Poor’s 500,” and “500”","page_number":77,"box":{"x":621,"y":642,"width":280,"height":10}},{"id":"c0b5f7e5-d7cf-41a6-b08a-1bd62c431855","block_type":"box","text":"are trademarks of S&P Global Inc. and have been licensed for use by cer tain mutual funds sponsored and advised by","page_number":77,"box":{"x":69,"y":657,"width":837,"height":11}},{"id":"b69114cd-ad9b-450e-82cc-6f51306ce491","block_type":"box","text":"BlackRock or its affiliates (“BlackRock Funds”). No Fund is sponsored, endorsed, sold or promoted by S&P, a division","page_number":77,"box":{"x":70,"y":672,"width":836,"height":11}},{"id":"38bc1621-0861-44c6-ac8f-d0bd22456c1c","block_type":"box","text":"of S&P Global Inc. S&P makes no representation regarding the advisability of investing in any Fund. S&P makes no","page_number":77,"box":{"x":69,"y":687,"width":818,"height":11}},{"id":"52a6298b-156f-47c9-84ee-12b4728b41c3","block_type":"box","text":"representation or warranty, express or implied, to the owners of shares of a Fund or any member of the public","page_number":77,"box":{"x":69,"y":702,"width":783,"height":11}},{"id":"591f3752-b5bb-44bd-88e1-f473bbb73af6","block_type":"box","text":"regarding the advisability of investing in securities generally or in a Fund par ticularly or the ability of the S&P 500 to","page_number":77,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"f2c4078f-a0f3-4c30-9cdb-12e197efecb2","block_type":"box","text":"track general stock market per formance. S&P’s only relationship to cer tain Funds is the licensing of cer tain","page_number":77,"box":{"x":68,"y":732,"width":769,"height":12}},{"id":"e2140e04-facf-4c00-9cf5-bd955b68f44e","block_type":"box","text":"trademarks and trade names of S&P and of the S&P 500 which is determined, composed and calculated by S&P","page_number":77,"box":{"x":68,"y":748,"width":804,"height":11}},{"id":"87606582-c5a9-4040-8c2d-32feeacd9372","block_type":"box","text":"without regard to the Funds. S&P has no obligation to take the needs of a Fund or the owners of shares of a Fund","page_number":77,"box":{"x":68,"y":763,"width":811,"height":11}},{"id":"e0709f2e-2acd-494e-b204-a1b409ad5c38","block_type":"box","text":"into consideration in determining, composing or calculating the S&P 500. 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A Fund may also invest in so-called “inverse floating obligations”","page_number":79,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"e7101b30-e374-4dd8-b1d0-7932b1f91d4a","block_type":"box","text":"or “residual interest bonds” on which the interest rates vary inversely with a floating rate (which may be reset","page_number":79,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"b3ca654d-1c79-4c03-bdb5-a0f7aec1244f","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a shor t-term tax-exempt interest rate index). A","page_number":79,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"9e820ccc-0986-45d0-aa89-5551b8311ef8","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":79,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"fa34a4c7-c320-4d8e-97a1-090b8fadbeb1","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":79,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"1f16f990-37e3-4c4e-b665-4781c9a706b5","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":79,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"54faa331-739b-40e6-ab5c-e5a1770639ee","block_type":"box","text":"increase or decrease in value in response to changes, as an illustration, in market interest rates at a rate that is a","page_number":79,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"b6407d62-9007-4c93-a3d4-26a7d8fc1053","block_type":"box","text":"multiple of the rate at which fixed-rate securities increase or decrease in response to such changes. As a result, the","page_number":79,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"a59ba64e-247f-45cc-a3f0-d8f0a34ff357","block_type":"box","text":"market values of such securities will generally be more volatile than the market values of fixed-rate securities. To","page_number":79,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"90e522c4-3a51-4365-928f-f5618b809a20","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shor ter-term","page_number":79,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"a802e08a-4654-4b58-91f0-9fa42252b51d","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Cer tain investments in such","page_number":79,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"341f495c-6ef4-462b-a656-401de014cf44","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":79,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"d1fc0986-bb63-4989-b985-815c4b9ea22d","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":79,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"e30b6f45-160c-4901-8e4f-988e8d2a78fe","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":79,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"d173863b-93e9-4f38-8034-fe5a7d6bb217","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":79,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"ed83b28e-bc1f-46e7-b5fe-4be4f6f3e4f8","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":79,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"07912da3-730d-4ee1-a908-28e0bd501646","block_type":"box","text":"includes a contingent liability, in the event of an adverse movement in the underlying index or interest rate, a Fund","page_number":79,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"77c432bc-45f9-470b-8898-e4f50104208a","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":79,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"6dd14afc-69b9-421c-bb87-909660103179","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":79,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"ee18d21b-d764-4a38-ad50-e1c662699fad","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":79,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"fd5b8986-cbb3-4f2e-99cd-07c21dd7ac5e","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when shor t-term interest rates increase and increase","page_number":79,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"842317c9-2f97-43f2-89a5-b5ac76cb1fe4","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":79,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"0a84b7e3-9fa5-498e-8246-af8fdf937d52","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":79,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"0e9d5d5d-f536-4c0a-aa91-d4007f508458","block_type":"box","text":"Inflation Risk.","page_number":79,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"1211103a-7470-4ae3-9c3d-c3ea21317740","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":79,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"c56475bb-a20d-488d-8381-672838b9e814","block_type":"box","text":"value of assets or income from investments will be less in the future as inflation decreases the value of money. As","page_number":79,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"5fb9fca8-a9f8-480a-a5ab-a34f13f4c685","block_type":"box","text":"inflation increases, the present value of a Fund’s assets can decline as can the value of a Fund’s distributions.","page_number":79,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"10d3ebbe-5658-4971-a029-f60b5b458c9b","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":79,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"a84b77dd-00b3-4c70-a6aa-960d8f4e8148","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":79,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"f359059b-6a18-4a62-802c-e3cf4fe9bf56","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":79,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"5b247a88-62b4-49db-9b4f-563a34a2b938","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":79,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"626d2238-d5aa-4da9-a81d-29aec4d9ce7e","block_type":"box","text":"the secondary market are affected by the per formance of the stock market overall. If IPOs are brought to the market,","page_number":79,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"e6018c74-fd45-4643-a1a2-6b14f15d9aec","block_type":"box","text":"availability may be limited and a Fund may not be able to buy any shares at the offering price, or if it is able to buy","page_number":79,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"3119b948-d24f-433a-9de8-d2c4d61c9db5","block_type":"box","text":"shares, it may not be able to buy as many shares at the offering price as it would like. In addition, the prices of","page_number":79,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"49a964d0-9002-40ad-b26f-dbfef3896394","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":79,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"141ae522-1b2b-4041-9875-85385550f8d6","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a shor t","page_number":79,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"aeebdfd6-d284-4c60-aad1-f50e908233ff","block_type":"box","text":"period of time given possible price volatility. This may result in increased por tfolio turnover and expenses, such as","page_number":79,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"28c39096-fb91-4b80-bf31-d8d3187f7ad2","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":79,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"ae69087e-0239-4d6c-b89b-47a02ffe58a8","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":79,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"e38157cd-0a4a-434c-8ffd-dbd741220892","block_type":"box","text":"II-34","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1c1e93f2-74f7-490c-9849-53e361cfa469","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fe67406b-fd11-442e-944d-1c9522a02e88","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future per formance. The investment per formance of a","page_number":80,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"7173c7dd-ee1a-4c5a-bfc2-85d1d5b700ef","block_type":"box","text":"Fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when it","page_number":80,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"f1712819-9e7e-4886-8290-64a9af888b76","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its per formance will generally","page_number":80,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"d08bd471-6cb7-4081-9eb2-3c000192a01a","block_type":"box","text":"decrease. Securities issued in IPOs are subject to many of the same risks as investing in companies with smaller","page_number":80,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"61a54e6b-0553-4bbb-aeec-a45034debac5","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":80,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"26a668c5-e90e-49d0-bb2c-6eb0630b539c","block_type":"box","text":"be available for very limited periods.","page_number":80,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"7469234e-0a0c-40d9-b147-25b8b829a0ee","block_type":"box","text":"Investment in Emerging Markets.","page_number":80,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"71c14be3-9548-466f-b74b-6d4a9ca4a61c","block_type":"box","text":"General.","page_number":80,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"2efcffd0-6b71-48a9-acb0-b09a25673728","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":80,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"c8832ca2-70f3-4aad-a403-f216fe7ba9f5","block_type":"box","text":"markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital market is any country","page_number":80,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"74404329-0ba0-4f0b-af78-08763de95044","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":80,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"a2143453-b7e2-4a71-8d7f-77cdcdf6a1f2","block_type":"box","text":"the International Finance Corporation, or determined by the World Bank to have a low, middle or middle upper income","page_number":80,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"9482744c-7b58-4ac9-8a3c-3cc5790567b5","block_type":"box","text":"economy; (ii) classified by the United Nations or its authorities to be developing; and/or (iii) included in a broad-based","page_number":80,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"d4cb52a3-2a52-4f60-aaa3-69030f931e7c","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":80,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"ca803410-a7f4-4330-b008-04f8a6352ec0","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":80,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"e711c336-83bc-4238-9142-3fc0814f518b","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":80,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"e198b36a-0fd3-4fa8-adde-b44abc8790f9","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":80,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"1986f0b2-d531-4ecb-a6b2-39ae31808216","block_type":"box","text":"such as (i) low or non-existent trading volume, resulting in market illiquidity and increased volatility in prices for such","page_number":80,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"0dc13675-a28a-4dab-aeec-6a47395d232d","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":80,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"63e4ee2f-c725-4c0b-bfdb-f067d212e083","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":80,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"5a5ff96c-7423-411c-911d-cab1b4b3f900","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":80,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"ad08a562-5115-489a-8292-587b04999523","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":80,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"28f9f38a-61dc-4b8c-9c74-8bad92a5c2b1","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":80,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"78a605dc-6505-4e22-b21e-195b20e248f9","block_type":"box","text":"policies that may limit a Fund’s investment oppor tunities such as restrictions on investment in issuers or industries","page_number":80,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"b5e92c00-f7eb-4fee-aa09-0df19d51a7f1","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":80,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"1932cd7b-1105-46ea-b3d7-1dd179a0b9d7","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":80,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"2deb2c83-6a57-4846-840c-76653deeb808","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":80,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"cbd430eb-b131-4e05-b993-c93a3d8ddbbd","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":80,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"7900fa7b-1e8b-4654-9ddd-fa152c6d99a4","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":80,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"36f1603e-833f-4c3a-b75c-fa74f6277351","block_type":"box","text":"developed countries. In such a dynamic environment, there can be no assurance that any or all of these capital","page_number":80,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"3b642951-dc94-4b3f-b0b5-e267a3a5efcd","block_type":"box","text":"markets will continue to present viable investment oppor tunities for a Fund. In the past, governments of such nations","page_number":80,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"60278e33-4a1e-4d3f-828f-fbcf0b004b55","block_type":"box","text":"have expropriated substantial amounts of private proper ty, and most claims of the proper ty owners have never been","page_number":80,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"fabb5e4f-b34d-494f-b9eb-6a21d52056f2","block_type":"box","text":"fully settled. There is no assurance that such expropriations will not reoccur. In such an event, it is possible that a","page_number":80,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"c6592ec0-4642-4871-a6d4-bf19ac7db1bf","block_type":"box","text":"Fund could lose the entire value of its investments in the affected market. As a result the risks described above,","page_number":80,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"a075698d-362d-4efd-a253-1afac17da6d4","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":80,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"71192acb-4b0e-4a55-986b-84ca9f158ff9","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":80,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"96b0e02c-602f-4c23-ace8-bc09b885bbfe","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":80,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"300cd79c-9ff8-44a4-a600-492d2f178e0e","block_type":"box","text":"the limited volume of trading in securities in these countries may make investments in the countries illiquid and more","page_number":80,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"4c94dd41-b3a0-4b57-926d-df20c0e80ef9","block_type":"box","text":"volatile than investments in more established markets.","page_number":80,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"8e34cd13-f9e0-420a-a1eb-5298478710eb","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":80,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"98248d15-f373-4666-837f-b48ee82c3df9","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":80,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"e7e9ae52-db90-48b9-b894-876324f57c42","block_type":"box","text":"financial repor ting standards and requirements comparable to those to which U.S. companies are subject. In cer tain","page_number":80,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"2613ecca-7e17-4f07-a9bd-fd6c1740e801","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":80,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"17e69625-cc27-4fad-907d-17e84da02d3c","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":80,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"35253b6f-dc93-4530-923d-33a9b906c55e","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":80,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"105c395a-2174-401b-af5d-ce73d4c6f379","block_type":"box","text":"shares may be held by a limited number of persons. This may adversely affect the timing and pricing of the Fund’s","page_number":80,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"3139b659-f1ef-40f9-b4a6-78436faac64c","block_type":"box","text":"acquisition or disposal of securities.","page_number":80,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"7ba1ce9c-b8f1-4800-860f-d751bf01d7bf","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":80,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"5d1f24b8-0b32-40c3-8155-85d8b1d9abfd","block_type":"box","text":"in developed markets, in par t because a Fund will need to use brokers and counterpar ties that are less well","page_number":80,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"26293727-c953-4e28-b1cf-5c40afcc0297","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":80,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"3f761b31-396c-4ccc-bf90-9ba10e87b749","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":80,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"2f7839a9-3a7d-41a7-84ac-534e39490006","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":80,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"4c95e106-19a2-463b-aabb-ae0a8efdbab3","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":80,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"0645d1b0-0e9b-43be-983d-f532cd049682","block_type":"box","text":"II-35","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"52d2c504-e03f-45be-915c-17acdc765165","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"933492c5-667b-4b8d-b714-30973b3c7278","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":81,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"cf832ab7-f432-4724-a087-5acb95aacf14","block_type":"box","text":"countries may be on either a currency hedged or unhedged basis, and the Funds may hold from time to time various","page_number":81,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"c0d02c64-5aec-473f-8341-b279295666a4","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":81,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"901095e2-e932-471c-a5c3-8b99188eb4ac","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":81,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"fc5dc5fe-9997-4ddb-9b8a-abc6d5575e4b","block_type":"box","text":"to seek to protect against changes in the level of future exchange rates which would adversely affect the Fund’s","page_number":81,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"32349bc6-23ac-4bde-b4e4-ae4a8a14127d","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":81,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"6a1d189b-c969-4a78-905a-c02453d20307","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":81,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"71bb8b0b-ad49-49de-88ea-ff83e50245ff","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":81,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"bb4db862-b8ea-4fb2-9fbf-5ef7f2bce074","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":81,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"fdfc8ba5-0335-488f-871c-07211b4c742b","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to cer tain","page_number":81,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"43b6e229-4617-43c9-b70d-2612df70c850","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":81,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"46d3dc4a-b239-49a8-9105-37039d2683ca","block_type":"box","text":"these markets, there is a high concentration of market capitalization and trading volume in a small number of issuers","page_number":81,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"c52165ce-07ab-4271-973f-df63db1fcab0","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":81,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"be0e1a9a-1eb3-435e-afbf-9fcc57cd650a","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":81,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"f5e6b3ea-ce98-4b65-a38f-182a3a4b7ecd","block_type":"box","text":"region such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are fewer in","page_number":81,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"51aefa65-2b3d-4d5e-b340-b204ce3df7dd","block_type":"box","text":"number and less well capitalized than brokers in the United States. These factors, combined with the U.S. regulatory","page_number":81,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"6cee2ecd-c48d-475a-8bc1-ae55df61564b","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":81,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"97a0b76f-c654-4574-955f-b8a4118c1e8e","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":81,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"837219a1-3cda-4c92-b88c-390ce2f6a60a","block_type":"box","text":"per formance of the Fund.","page_number":81,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"0aeb4f47-9823-47fd-a81d-4400b63aa132","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":81,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"b8d00089-74ef-44c7-92f2-9e6af50768ca","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":81,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"2acff87d-4df4-4dd9-b2a1-faa8ad3ec78d","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":81,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"28438038-2a75-46cc-9a82-aa9f9d961e68","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":81,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"94a7acb2-c5ad-49e7-a9f0-22ec78a32352","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":81,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"89162c23-0f35-43b6-bec0-18003bf327d4","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":81,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"33bfcc51-ed2c-4b3c-9d51-d0714e7b4474","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":81,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"6481d2ea-662e-426d-bc09-d3bbf3240a59","block_type":"box","text":"common to most such countries is that the economy is heavily expor t oriented and, accordingly, is dependent upon","page_number":81,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"f7b1198a-cc12-4142-a389-a68ec0c19ed2","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":81,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"1b45386b-766c-424f-9b5e-92dd0de23cd1","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":81,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"22cdba95-50ed-48a5-9bf2-2314a69e3b68","block_type":"box","text":"expor ts of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":81,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"159af278-6cfe-41f9-879f-df47701945da","block_type":"box","text":"affected by a variety of factors.","page_number":81,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"e3b1c324-cbfd-458a-9153-2bf3c342f81a","block_type":"box","text":"The legal systems in cer tain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":81,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"01e9bbe3-494e-485a-816e-19b5c97b5c7c","block_type":"box","text":"Fund. For example, while the potential liability of a shareholder in a U.S. corporation with respect to acts of the","page_number":81,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"ada98771-6d62-4289-a7aa-03e6a9bc01b5","block_type":"box","text":"corporation is generally limited to the amount of the shareholder’s investment, the notion of limited liability is less","page_number":81,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"1d6c38c1-a6b2-4bb5-a271-d0cbd74fd809","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":81,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"09f30317-75be-4921-af11-8e80f440cde6","block_type":"box","text":"Pacific companies may be more limited than those of shareholders of U.S. corporations. It may be difficult or","page_number":81,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"f31ea835-72b6-4208-8390-112cf96f2032","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":81,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"cf13db3b-3cf6-41df-a0fa-53546148a80e","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":81,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"b67221e3-2e39-4434-8f71-f98358633d39","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":81,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"4ba2491f-30d8-429f-abb9-0eae7c0dde14","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":81,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"fee6eca9-8ea6-48a3-af33-fa60814717b7","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":81,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"ecfd4e2d-a78d-4ec7-9a95-4ffe3e6a8f28","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s por tfolio. In addition, economic","page_number":81,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"6599b5b8-a230-49c2-a56b-7121a8ffccfa","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":81,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"f0f3915c-587d-4b1c-805f-4df7507c45d1","block_type":"box","text":"nations.","page_number":81,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"4dfc96b8-5b99-4c38-8d4e-f9fa8d089951","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":81,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"a90f9985-e2fc-458c-abb7-ff02394d20da","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":81,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"67fcfb48-4527-40a2-a103-fe48194d8175","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":81,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"1a5bd625-2e12-426e-b25a-6a168f2f0f4b","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":81,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"0b48bea8-6a12-4ab1-a808-2f6011b4c149","block_type":"box","text":"cer tain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":81,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"4895feba-b933-4a83-888f-ef7eb1b9e610","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":81,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"96a868a4-7491-4393-9cf6-d6a716ff7f06","block_type":"box","text":"market Asia-Pacific companies.","page_number":81,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"6e45f701-ba5f-4a6a-8a68-fcbd764ada11","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":81,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"81a478e9-460d-46d5-80ef-3b320dfefc77","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":81,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"308b1c3a-2788-4815-a8e7-4b3aa4f763ac","block_type":"box","text":"services for such securities outside such countries.","page_number":81,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"d6de22c0-d0b9-42c3-9afd-8805e96511a1","block_type":"box","text":"II-36","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7f3a53f3-ba4d-46d3-bee9-272ba07f1c7f","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3b97f432-c246-4f00-ab20-858451a9f266","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":82,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"9a41d6df-85fd-4907-8019-ac8027cd23d5","block_type":"box","text":"to commercial banks and foreign governments.","page_number":82,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"1f50ca0e-0426-40d9-8c97-344816698f56","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":82,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"8cf3d4ab-5e4c-43c9-8293-c77ad308af1c","block_type":"box","text":"on a Fund’s investment por tfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":82,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"30a24162-5b23-4134-b627-1cb2f6e518ae","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":82,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"3f16d77a-383a-40e4-b122-ede2da4b036e","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":82,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"8496a971-77e1-4322-be7a-6e677c883b2f","block_type":"box","text":"practicable or appropriate to invest in a par ticular developing Asia-Pacific country. A Fund may invest in countries in","page_number":82,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"cb3c9439-2117-49b4-888a-f7ad8542c682","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":82,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"d33ba65c-be22-4260-9fde-a4e76970ac99","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":82,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"9ec2aabb-eb63-405f-9419-e07c02a2dbad","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":82,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"ea2b4729-ae87-4790-9c7b-1e58d5095a4e","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":82,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"e71c78e3-54b6-4a8f-8ebe-aecd23379e66","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":82,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"d7291c57-7ce2-4fab-89c3-2bf7bdc16a88","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a par ticular company or limit the investment","page_number":82,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"85bb850f-093f-4afb-a014-70a8e7b27c2a","block_type":"box","text":"by foreign persons to only a specific class of securities of a company which may have less advantageous terms","page_number":82,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"73b3f296-3712-46ba-8d31-83beb49e5abc","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":82,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"3e59c325-4987-477a-a24c-59170c1f70fe","block_type":"box","text":"be no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In addition,","page_number":82,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"e611d00c-f5c0-4ac7-ac47-228cbe58ca9a","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":82,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"cbb52abc-c6ed-4baa-adef-e430fc621717","block_type":"box","text":"have an adverse effect on the value of such shares. Cer tain countries may restrict investment oppor tunities in","page_number":82,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"e159b8d8-9c58-44d3-8835-ae193f48fb08","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":82,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"6b54ff81-9ef5-48fb-a96a-2f0e5ca69b33","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":82,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"7333c670-28ab-4ca7-8191-406661290287","block_type":"box","text":"well as limitations on such investments, also may have an adverse impact on the operations of a Fund. For example,","page_number":82,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"8b030ce3-d0eb-488d-87b1-2cda3b8f3178","block_type":"box","text":"a Fund may be required in cer tain of such countries to invest initially through a local broker or other entity and then","page_number":82,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"f3f34e8d-3b11-4aea-baf8-f50aab0f9439","block_type":"box","text":"have the shares purchased re-registered in the name of the Fund. Re-registration may in some instances not be able","page_number":82,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"2ceadb74-9903-4843-a9d0-25826e4108c5","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied cer tain of its rights as an investor,","page_number":82,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"9e8471d9-012d-422c-b081-59286e85fd15","block_type":"box","text":"including rights as to dividends or to be made aware of cer tain corporate actions. There also may be instances where","page_number":82,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"aa0798ce-691d-4c30-b1d7-f4a81ebfe5cb","block_type":"box","text":"a Fund places a purchase order but is subsequently informed, at the time of re-registration, that the permissible","page_number":82,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"e4d32d5f-36c4-43cc-a99e-c33dfd39d35e","block_type":"box","text":"allocation of the investment to foreign investors has been filled, depriving the Fund of the ability to make its desired","page_number":82,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"af44abcf-dd30-4a91-ab44-7d77fd2c1010","block_type":"box","text":"investment at that time.","page_number":82,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"58081488-741d-41aa-93e5-78b1c6648fb0","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":82,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"85cbe970-75de-4a5d-ba74-69624e338606","block_type":"box","text":"income, capital or the proceeds of sales of securities by foreign investors. A Fund could be adversely affected by","page_number":82,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"d349044e-bf7b-4b27-87e2-80642f327e4a","block_type":"box","text":"delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the","page_number":82,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"ffae172e-f375-4652-a050-99ed7029438f","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that cer tain countries may impose currency","page_number":82,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"7b59e87c-b0f9-4a0d-9e0e-53b682204789","block_type":"box","text":"controls or other restrictions relating to their currencies or to securities of issuers in those countries. To the extent","page_number":82,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"67db2ea2-daae-4665-8594-44cedf31cab3","block_type":"box","text":"that such restrictions have the effect of making cer tain investments illiquid, securities may not be available for sale","page_number":82,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"1bd8dc25-c586-416d-84c8-e57eb09a5116","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s por tfolio subject to","page_number":82,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"4a83689f-35a8-48ba-9a98-50b3598e89c9","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the por tion of the Fund’s assets","page_number":82,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"db52450c-2aa6-46ba-ac98-78d6a6538276","block_type":"box","text":"that may be used to meet redemptions may be fur ther decreased. Even where there is no outright restriction on","page_number":82,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"16b5d2a0-e4bf-4795-b920-1cba93027da0","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect cer tain aspects of the operations of a Fund (for","page_number":82,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"b266d5bf-e439-4932-b820-170338dcdfbd","block_type":"box","text":"example, if funds may be withdrawn only in cer tain currencies and/or only at an exchange rate established by the","page_number":82,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"2f284b35-048a-4dfb-8daa-efb61c8865ee","block_type":"box","text":"government).","page_number":82,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"a1ab6319-e02b-4217-b1fc-eab8feab75ef","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":82,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"1d5ba158-6243-4c92-bcf4-130931068ecf","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":82,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"4d4a46de-6478-4993-a6b8-6cf4f2724824","block_type":"box","text":"securities of an issuer that, in its most recent fiscal year, derived more than 15% of its revenues from “securities","page_number":82,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"4a339d46-4d11-4ee6-bf45-bb9d79312a32","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in cer tain","page_number":82,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"b1206210-92f2-467f-a151-c12c4dd49e49","block_type":"box","text":"foreign banks and other financial institutions.","page_number":82,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"28091a7c-639a-4064-b205-0d2e3618967d","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":82,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"4ace4332-1003-4176-ba0d-495a2ef11325","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":82,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"64055652-a116-475d-a1d4-540a53d13cc3","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private proper ty rights and","page_number":82,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"4427ee07-2edf-40fc-a2d3-91de4c4cd47a","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":82,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"2694f628-af08-4f8f-aeb1-a4f870b6c960","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":82,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"f7197892-fbe4-44ca-a71f-cd07902a0e3c","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":82,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"e9e457a1-1891-4147-a818-64785c004192","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":82,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"6d1e4bb8-7fa4-4878-9d8f-300efe2b8d6e","block_type":"box","text":"cer tain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":82,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"5082c48c-897e-4656-8fc4-af2ddc222ad4","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":82,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"fc1e7bfc-6338-4f32-bceb-8bc1ff93a38c","block_type":"box","text":"II-37","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c046d0ee-d06e-4a6c-9b98-6656357fad2f","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8d11f044-0a80-4501-aa68-a17873d82fb4","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":83,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"e7edfdec-ed90-4ba3-bf53-07a12edfe3d6","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":83,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"681facc7-9a19-459b-a0e3-d0e118d17275","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":83,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"13b398a0-11eb-4d1a-a35f-af4d1f7e529f","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":83,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"9cc9158d-a421-492b-ae55-caee6ba97b12","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":83,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"f7154dfb-8707-46a2-9a43-7b69dbee5a27","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":83,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"796d34a3-8839-4abd-969f-bfbd51098b54","block_type":"box","text":"foreign securities.","page_number":83,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"396393dc-0e82-4538-9085-c3ffa9f0abd2","block_type":"box","text":"Risks of Investments in Russia.","page_number":83,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"bec41967-a336-47d4-b688-f789b7c6a638","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":83,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"c7982011-56ab-4881-9127-328617a3ff0d","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":83,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"f159107c-6890-48d0-a366-83edfb6e8c66","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":83,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"380601bf-afe5-4bf8-afc1-d016e55bdc58","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":83,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"6001cad5-d2d9-4d7a-b71c-e5a94385296c","block_type":"box","text":"The inexperience of the Russian securities market and the limited volume of trading in securities in the market may","page_number":83,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"540b2b15-7597-4a52-a1dc-df48a12c3f99","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":83,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"1796e9ab-3524-421d-8f34-0cb857e31ae7","block_type":"box","text":"developed markets.","page_number":83,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"81df9b0e-f763-4524-b41a-813a5f4cd2ed","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":83,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"fce0aaaa-6841-457c-9037-eebc04b8e42b","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":83,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"839c9fed-7ed6-47e5-b358-c5dd92798ed2","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":83,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"480923a1-89c2-4efa-8a5d-f0e814917dbb","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":83,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"e8dcc36f-8b84-4f5e-a69b-3d19f769b278","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":83,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"299f250c-549c-4759-94d4-d6330b3aa508","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":83,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"6adcb5f0-12ee-4530-a559-dd6788aea8f3","block_type":"box","text":"through the NSD is now based on the records of the NSD and not on the records of the local registrars. Although the","page_number":83,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"1efdeb49-f53d-4c62-b427-4ce72a17a6d2","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":83,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"da3cdb46-e0c8-460f-b76c-db9092d864da","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":83,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"e4026a23-423d-471f-9ba1-fc80c9c4c646","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":83,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"8a276fff-b0fd-4d9c-96c9-22a25e4913ef","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":83,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"4451deed-378a-45ac-a2de-aba0b4d80aef","block_type":"box","text":"respect to the completion and submission of corporate action elections. To the extent that a Fund suffers a loss","page_number":83,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"770a2344-aabb-4f67-89fd-580083932031","block_type":"box","text":"relating to title or corporate actions relating to its por tfolio securities, it may be difficult for the Fund to enforce its","page_number":83,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"094cf01e-dae5-4f2d-a144-d20f4da98db1","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":83,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"22431fb6-8df8-4608-a1d0-320ebc61da82","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held on behalf of","page_number":83,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"254a96da-2f27-4abe-820b-a0faa46be629","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":83,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"57d2528c-b0a4-4b33-a1cc-a367f4a822b4","block_type":"box","text":"In addition, Russia continues to asser t its influence in the region through economic and military measures, as it","page_number":83,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"c6e6959f-5100-44fe-90a6-857b7dabc029","block_type":"box","text":"did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia launched a large-scale invasion","page_number":83,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"81816e33-1d32-4915-9396-d64bc0a180d6","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":83,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"d9e2c1b0-8ff8-49c7-960f-403bf6af09bf","block_type":"box","text":"future market disruptions, including declines in its stock markets and the value of the ruble against the U.S. dollar,","page_number":83,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"7524f33a-147d-444c-8523-10d33d0cf53c","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":83,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"bafdc7e6-071d-4dfb-9ce3-3bdda16a9324","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":83,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"64d2af88-a7fe-422d-a229-7b1c33ad2f65","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":83,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"c26982d0-4127-4298-baaf-9a38dfb1f62e","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":83,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"f24e5855-7ded-4be5-826a-4b4ad380ca09","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":83,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"4d05ee7b-2ce5-4527-9382-172a54f95d4e","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":83,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"2d61e3ca-5273-4645-ae1d-5bf3050edf0c","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":83,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"846d3afe-7414-4e6a-824d-bbd544d4530c","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":83,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"46081d2a-7d9e-43a4-8d6c-96620ee07d27","block_type":"box","text":"oil and natural gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":83,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"80148ce7-6985-4520-8a59-483f7e1d8152","block_type":"box","text":"sectors globally.","page_number":83,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"d5f12ae6-ee7a-4d60-9e99-2e06418597cd","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":83,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"3b4bbb94-025f-4712-ac9a-9d3f20369e6b","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":83,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"ca9f8782-eb34-490a-80d5-2d3b4ea42f5d","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":83,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"8b3e1936-255b-4598-ae02-fa1d4cfa7e59","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":83,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"6c57a407-b2b9-4667-ac76-ba9441ee6f72","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":83,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"733ab2eb-19d0-486f-8955-05acb160f3e2","block_type":"box","text":"payments. These sanctions, or even the threat of fur ther sanctions, may result in the decline of the value and","page_number":83,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"70045ba4-7a71-4091-9e82-966ea3594929","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":83,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"a4c831c6-39a8-48e4-b254-9c0afdc5e7ff","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":83,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"45098168-d03d-4c7a-a20f-08ffeaf05aeb","block_type":"box","text":"funds invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities","page_number":83,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"f9313424-def0-4d20-9cad-bd4b23e869b7","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":83,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"7bfef0f8-7541-4f6a-bde1-188eff161303","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":83,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"04880327-e872-4985-9429-5eb9be21890f","block_type":"box","text":"II-38","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e98e096f-0d37-4f75-b73a-780cd798409d","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1417a4eb-b11b-4682-a591-e84498c85383","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":84,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"ae2ae94b-7ae0-4aeb-872b-32a9c1fa9dd7","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":84,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"bf7662f6-d4f2-4ecc-8a8e-99098ec0c9c4","block_type":"box","text":"issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian government at any time,","page_number":84,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"6c0f063b-3ea4-443c-a91e-75c78bf35cea","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":84,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"401882a2-89dd-450c-be71-01a991eca5e4","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":84,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"752f8f6b-c65d-4997-9c5e-00da08f4fb48","block_type":"box","text":"including a limitation on a Fund’s ownership of any single issuer listed on the Saudi Arabian Stock Exchange, which","page_number":84,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"9369760f-7370-4c76-ab15-5a451bc29ffc","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":84,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"644cd94a-f3b6-44db-9f7e-21bb551420b7","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":84,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"de92a55e-b2c8-4065-b404-774bbfcebe02","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain or maintain any","page_number":84,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"1004314a-c303-423d-83a7-cd8ce0b6774f","block_type":"box","text":"such licenses or approvals and may not be able to buy and sell securities at full value. Major disruptions or","page_number":84,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"3f0635cb-5a05-4919-98a4-2a8ab89285c5","block_type":"box","text":"regulatory changes could occur in the Saudi Arabian market, any of which could negatively impact a Fund. These risks","page_number":84,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"231d1674-008a-43b4-a384-1dbe0e9db619","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":84,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"640d6127-b2fd-4b0d-99c1-7f122f62d4e0","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":84,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"e6d71990-5c60-4c57-8348-19aec93f00e7","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":84,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"a6a2e3d3-d29b-41fe-9888-5f2d9c7bc5ea","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":84,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"7eb60870-c38b-4388-ac3c-c4ceaac9869c","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":84,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"4677e035-56b4-4035-bba9-af2533d7b2b3","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":84,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"0d26953e-0c10-4a64-8c86-a4cb2e69ed81","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":84,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"f0aacd89-591e-47f1-bd6e-9eec1d592c58","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":84,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"6ae4a1e9-c4f4-454a-bfa8-3d2787f904ba","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":84,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"c6253ce9-1025-4669-806c-9de463c8ef15","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":84,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"6745343a-7fe9-4ff5-82a2-1532e236fef4","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Fur ther,","page_number":84,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"ca1e3e67-23ad-404c-82d7-e90eb2473aac","block_type":"box","text":"under income tax laws imposed by the Depar tment of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":84,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"384ee417-1ba7-43af-b605-9bf6c3d49899","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":84,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"7339ad5c-76d5-4195-8f93-50d5d3bf1182","block_type":"box","text":"to an applicable treaty). Saudi Arabia is highly reliant on income from the sale of petroleum and trade with other","page_number":84,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"146531a7-12a5-4c9f-a5d3-36cee99518ec","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":84,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"70412f92-f772-4733-a409-2cf0bde0333b","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":84,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"ffcd9ade-efa5-4406-bd40-3688cf793dce","block_type":"box","text":"impacted.","page_number":84,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"7e82ac5a-71d2-4afe-8f99-d5ad2f364eae","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":84,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"9ae68c27-9a09-4983-ab4c-372de67bd87a","block_type":"box","text":"many aspects of the private sector. Although liberalization in the wider economy is underway, in many areas it has","page_number":84,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"76e7d306-4aed-46be-a5b4-048a467d4961","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":84,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"3bbb0f58-0a49-4850-addb-ba6f9042cca9","block_type":"box","text":"key industries. The situation is exacerbated by the fact that Saudi Arabia is governed by an absolute monarchy. Saudi","page_number":84,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"1d650da2-560b-4565-b001-250926f6dacb","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":84,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"40174038-12e8-4941-a041-8fcb26211bc7","block_type":"box","text":"the Middle East due to geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security,","page_number":84,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"43d945e9-fd74-474d-bd51-fcbca40d7823","block_type":"box","text":"including terrorism, may cause uncer tainty in their markets and may adversely affect its economy and a Fund’s","page_number":84,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"fad3cb65-46f4-40e4-80fb-a082fcf8b3d2","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":84,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"ef9ba9c4-ec97-43a7-883d-ddfb081577c1","block_type":"box","text":"Arabia, which could affect private sector companies and a Fund, as well as the value of securities in a Fund’s","page_number":84,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"ada1cae3-8f48-4a58-b994-b75af95c5524","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":84,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"f14a9b53-2343-49f0-9c4f-64e7b00f1f58","block_type":"box","text":"of sanctions, may result in the decline of the value and liquidity of Saudi Arabian securities, a weakening of the Saudi","page_number":84,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"beb8752d-b3ef-4b05-8e8d-4b055902226a","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":84,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"fcae9f25-711d-4f77-a478-c9c2e7949754","block_type":"box","text":"on cheap, foreign labor, and changes in the availability of this labor supply could have an adverse effect on the","page_number":84,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"42d31ca2-48d0-434e-a372-fe8cd50e6560","block_type":"box","text":"economy.","page_number":84,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"85da86ad-3d47-4e1f-ae82-054443c05424","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a result,","page_number":84,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"7bfb5436-aae7-476c-9c90-7557df91dac8","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":84,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"a3d3dc88-9b79-436d-b516-1706bb7adece","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":84,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"c9e5cf38-cf16-497e-8a46-67ddf45cb473","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":84,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"2ab4909d-cf6b-44ca-ad50-882851ae134b","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":84,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"1032c42f-4acc-4375-9d1d-d561db032ec0","block_type":"box","text":"infrequent trading may adversely affect the pricing of these securities and a Fund’s ability to sell these securities in","page_number":84,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"e2ae4033-2c97-4589-b5ea-aa274378d6f4","block_type":"box","text":"the future. Current regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":84,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"24c019b4-3044-4994-89f1-285b18e0a37d","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a Fund than is","page_number":84,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"37570ac2-c4c5-40be-a016-589701326d7d","block_type":"box","text":"typically the case for investment managers.","page_number":84,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"f7498476-9fac-4b69-ba5d-41de4a64abf2","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":84,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"0a3f56cb-caa6-4955-bc9d-143d47975a82","block_type":"box","text":"instability, and there remains the possibility that the stability will not hold in the future or that instability in the larger","page_number":84,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"61496159-e117-4013-9166-9099495d9c23","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":84,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"f62a9a2c-e31c-40cf-8eaf-f28da9def14b","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":84,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"84b92a6a-b206-41e3-ae2a-09b4d30f54d4","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":84,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"ec1cc773-c967-45fa-8254-832099efbcf9","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":84,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"2d46645a-03b4-4caf-9c6f-238f316021a3","block_type":"box","text":"II-39","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7f5de8ac-b6b0-4911-b487-1296bbf44957","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a517a778-15ff-4032-839d-6282819f8450","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S. is a","page_number":85,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"6fc0f2c3-f716-495a-85ba-57b1891f5094","block_type":"box","text":"significant, and in some cases the most significant, trading par tner of, or foreign investor in, Saudi Arabia. As a","page_number":85,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"ece3b681-b808-439b-80c7-06fa3b8583b0","block_type":"box","text":"result, economic conditions of Saudi Arabia may be par ticularly affected by changes in the U.S. economy. A decrease","page_number":85,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"58716e86-ba0b-43d1-a3be-7314b0eab72f","block_type":"box","text":"in U.S. impor ts or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":85,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"c8a74398-6949-457c-b720-23579e09bf51","block_type":"box","text":"an economic slowdown in the U.S. may have a material adverse effect on the economic conditions of Saudi Arabia","page_number":85,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"0462ef8c-7399-41eb-97c2-25bf2cc5f3cc","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in Nor th Africa and the larger Middle","page_number":85,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"8d33ff7d-d01f-473a-aaf3-2923022d6d87","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":85,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"7da3c778-b1e7-481b-8487-a90dafd73200","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":85,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"a4385e30-56b2-4f9f-a555-82238dce7337","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":85,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"0c2ae5f3-986e-45fc-b7b1-7879f5d6372c","block_type":"box","text":"and/or embargoes imposed by the U.S. Government and the United Nations and/or countries identified by the U.S.","page_number":85,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"81dbb44c-b7bb-456b-89e2-c72729528ca2","block_type":"box","text":"Government as state sponsors of terrorism. As a result, an issuer may sustain damage to its reputation if it is","page_number":85,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"1b5efea3-f16f-46f6-9273-a47003b68b2f","block_type":"box","text":"identified as an issuer which operates in, or has dealings with, such countries. A Fund, as an investor in such issuers","page_number":85,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"65ffd1f1-90b2-406e-af15-3b90ef19e03f","block_type":"box","text":"will be indirectly subject to those risks.","page_number":85,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"94ca8299-b9ae-4580-bcc4-67cea30ffb58","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":85,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"e24e849e-5ef8-4233-88c5-400acd427bef","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":85,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"17f258cd-4ecb-48d8-850e-0033444fb775","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":85,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"13b5628b-5027-4094-86a5-824e0a884e44","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":85,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"90cbb480-c8dd-4fd9-9b27-519590e392cd","block_type":"box","text":"on expor t of natural resources to key trading par tners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":85,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"8dc8eb7b-4f65-424e-962b-edede41758f5","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":85,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"5bc3b09d-ebc7-4a49-94ed-7a0e610b6e78","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":85,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"4ff62f4e-97b5-422e-899c-79720ad6883b","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":85,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"f403ba61-f4be-4a6a-8c47-8ed314eebed7","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":85,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"df5f9b29-d419-438d-8b65-d8d8ff07ea71","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":85,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"0b51002e-8768-4434-940f-f9977e834dac","block_type":"box","text":"governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions, which consist of asset freezes","page_number":85,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"8219cb9d-9b08-4d5d-b784-63ef94e7bd36","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":85,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"663f9bd3-0d66-45b8-ab4f-2530e07207a6","block_type":"box","text":"government. The U.S. could also institute broader sanctions on Venezuela. The U.S. has also taken military action","page_number":85,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"9df05061-b463-4f7d-95bd-0686a0c45401","block_type":"box","text":"against Venezuela in an effor t to effect regime change. Military action, sanctions, or even the threat of fur ther","page_number":85,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"6e8786fe-85fd-43a8-8f7e-63f0a4649de3","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":85,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"c73a8298-89b3-48f2-a064-d4f83434de63","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":85,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"ee2e4757-e6dd-4f4b-bd0e-6dd89dfbb04e","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions against Venezuela","page_number":85,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"03aece04-95b8-4a99-b4a7-78a228179e5f","block_type":"box","text":"may in the future be imposed by the U.S. or other countries. These factors, among others, can have a negative","page_number":85,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"055c6b1f-e75f-4d8a-952f-f6a225f96abf","block_type":"box","text":"impact on a Fund’s investments.","page_number":85,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"b14e32b1-b0ed-4d2c-af01-d766d223c652","block_type":"box","text":"Brady Bonds.","page_number":85,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"64b2fda7-b789-49a8-8242-467cabc52571","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":85,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"d7689a6f-7ef9-4925-a8c2-0d3445de0fa8","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":85,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"5d74412e-9177-427b-8264-fc4c8adb7291","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":85,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"2e3d8c5e-13ff-45b1-b1d6-f5dda2fc4a34","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":85,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"09134271-f954-456d-8fdb-d03fac8fbf99","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":85,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"0527e7bc-e650-4eec-854f-8b20606e84ec","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":85,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"361247f0-5183-4cbc-bdd9-4ea5892d0e85","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":85,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"78fa4244-26db-4ba0-ac30-f7f1edb7eaad","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":85,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"b7f0b7e4-434f-41ac-815c-8f3bd323ad46","block_type":"box","text":"Venezuela.","page_number":85,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"39914e6b-ee69-4a7b-8045-3b3bf039d7d8","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":85,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"76b992c2-0ef6-4745-a24e-6922f4ab9561","block_type":"box","text":"and are actively traded in the OTC secondary market. Brady Bonds are not considered to be U.S. Government","page_number":85,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"1b480e28-785a-4a85-9b5f-ad9477556f11","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":85,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"455e03f4-4bf4-4e73-862a-d9011be25265","block_type":"box","text":"discount bonds, are generally collateralized in full as to principal by U.S. Treasury zero-coupon bonds having the","page_number":85,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"96471be1-7283-4337-a6cb-b7273474e7a0","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":85,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"2d958fb5-bbe7-4bf6-9bbe-f2822b6611e7","block_type":"box","text":"year or longer rolling-forward basis by cash or securities in an amount that, in the case of fixed rate bonds, is equal","page_number":85,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"b0fae394-b1bc-4887-83a4-63839c079ebc","block_type":"box","text":"to at least one year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s","page_number":85,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"200dc836-599d-4a61-8db3-0eb4539b8f63","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":85,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"6f4eb38b-d75f-4b98-9584-11bcc20cf671","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":85,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"a084b348-900c-439f-9c47-6c00fd2b2272","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":85,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"fccb717f-2871-41ed-b490-cb601746ad63","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":85,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"13071662-e80f-49bb-bac4-b1d8676fcf7f","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":85,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"1aec3392-3122-4236-9284-c59d70734238","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":85,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"0dd4cff5-a06a-4496-b6b9-2e1828264d8a","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":85,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"4eebcbb3-1679-4228-9d22-1ecd54fdb9e6","block_type":"box","text":"the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady","page_number":85,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"b0bf6218-c240-4b09-9559-3afeae4e2f87","block_type":"box","text":"II-40","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"465f3101-181f-4b14-bdd5-392fd870e5a7","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7272833d-8977-47b0-a78d-f7442dc0eb25","block_type":"box","text":"Bonds. In light of the residual risk of Brady Bonds and, among other factors, the history of defaults, investments in","page_number":86,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"6c5a6f57-3e00-4c0f-bc7a-3b1de3debbb4","block_type":"box","text":"Brady Bonds are considered speculative. There can be no assurance that Brady Bonds in which the Funds may invest","page_number":86,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"cfa6f070-c3c9-4cc1-b28f-267a9c1f5323","block_type":"box","text":"will not be subject to restructuring arrangements or to requests for new credit, which may cause the Funds to suffer a","page_number":86,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"d5d3d97d-53a1-45b6-be7b-1df4b2e42601","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":86,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"e42582cc-5d46-4cda-ae59-46e0703ddb0b","block_type":"box","text":"China Investments Risk.","page_number":86,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"d0a60f5a-c453-4918-80d1-da1c363c162e","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":86,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"0826b95c-b77c-49f2-90ee-0ab0333eb121","block_type":"box","text":"including cer tain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":86,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"71cf1aa7-5338-4533-a1bf-67515643a3f9","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":86,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"1ceefa32-2697-461f-a199-d2f0551f0946","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":86,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"0dcf3767-e841-4836-bcd5-0cc028517546","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":86,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"0f75a845-5e6c-4516-a23a-551c34aa1c3a","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":86,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"7289dee0-2212-4c43-8d39-359499a38d66","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":86,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"dd7d4f3c-5608-49a9-bb96-4fead2b4f027","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":86,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"bc4e2cc4-59a6-4fe8-8823-ffb43654eab6","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":86,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"fa4305b8-fc26-4d3e-93c2-80410de17283","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":86,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"be480225-8f5c-41a2-b83a-e5955e90a225","block_type":"box","text":"even fur ther. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":86,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"59709bda-7e9a-4a03-be8c-d8811f0e3ce3","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":86,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"6ce5ebdb-ac96-49ae-bd7d-9017d25ae1b7","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":86,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"9b1c8c57-4ffe-4ab6-a3ff-17cda913e6fb","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":86,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"bf645242-e681-47bb-b57d-dd64fce6ad3b","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in cer tain","page_number":86,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"f43ba989-3061-4d06-ac57-2d608165a1bb","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":86,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"7109b0f5-4047-4821-b1f3-ff2077e8a51f","block_type":"box","text":"hostility between China and Taiwan would likely have a significant adverse impact on the value of the Fund’s","page_number":86,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"9cd6c63b-82d6-458a-b1ed-6988fb363828","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":86,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"f4d6e67d-c306-46a0-b606-f5f4e219ddba","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":86,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"2bcdce35-9e89-46e8-9342-6619a6be35d4","block_type":"box","text":"Frictions between China and the Philippines in the South China Sea pose a risk of escalation potentially leading to","page_number":86,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"199fd132-20ba-4e71-a2cf-0d4a523cc70e","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":86,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"446acf6a-225e-4fe0-94a4-bf07ad778077","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":86,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"07d1e029-e542-4af6-b471-86d9dd8a2052","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":86,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"9928fc78-932e-4521-bf1e-8753fc0fd24b","block_type":"box","text":"companies, may impact China’s economy and Chinese issuers of securities in which a Fund invests. China could be","page_number":86,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"68227aa2-0fcd-4fac-8fb1-97ba7e0fdb85","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":86,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"aad56056-430a-47a5-b973-818140d56b37","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":86,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"9a520ec3-7806-442b-802f-453cf260c610","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":86,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"152a740e-f6d5-485d-abb4-aa31cce0ce7a","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":86,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"08e678a6-08b6-4220-8646-981659c930c5","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":86,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"6acb8b1e-7627-488c-990f-c5815901e863","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":86,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"67580eb3-8d0a-4855-a9e7-8b9a8a9e40f4","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":86,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"486634ea-da94-4ff3-aaa4-387ddf384067","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":86,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"77c0ec8d-02f0-4a4e-8cc5-10fc040ec459","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":86,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"c1de33c9-8223-482b-9b65-120e69f19a5e","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":86,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"6db38c90-2a13-4965-92f7-2d02a6431f7f","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":86,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"ce04ca65-a2fd-4282-997e-65eb51ed1743","block_type":"box","text":"restrictions, a ban on “naked” shor t selling or the suspension of shor t selling for cer tain stocks. This may affect","page_number":86,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"9cdb98ac-f4f4-4ef8-909d-8361f45e2563","block_type":"box","text":"market price and liquidity of these stocks, and may have an unpredictable impact on the investment activities of the","page_number":86,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"a06364ec-8136-4abb-9056-5fb71e9852e1","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":86,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"c79aaf40-2ff9-4a56-b9ee-909207fd6652","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":86,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"a8e95145-16fa-45e2-88cd-6d818ebda5fc","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":86,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"8a51dfd2-91ed-4a56-8baf-591c5e4315f7","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":86,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"e86be250-6432-4a8a-a584-30a35effeddc","block_type":"box","text":"Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulation as are U.S.","page_number":86,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"149c7b1b-964e-4646-8c86-6838f94fdc93","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":86,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"c8035b0f-fc68-42a5-8a4e-d7d723ccab85","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":86,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"d29ef5ec-e42b-4cf1-8c20-fc90c4e8e00f","block_type":"box","text":"information. Securities markets in China are in the process of change and fur ther development. This may lead to","page_number":86,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"ff31c712-d0ab-4d3c-bdb6-4f794e069dcc","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":86,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"6d4b0481-6e5f-447e-bc37-23449fe2a274","block_type":"box","text":"the relevant regulation. Custodians may not be able to offer the level of service and safe-keeping in relation to the","page_number":86,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"cb4de10b-18a3-4276-9591-ac74cdbb9e8c","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":86,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"185e8cd2-4700-429a-93a2-4e14dbfd8b68","block_type":"box","text":"there is a risk that a Fund may not be recognized as the owner of securities that are held on behalf of the Fund by a","page_number":86,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"f949efae-b05b-439e-b7ff-e57f222e660e","block_type":"box","text":"sub-custodian.","page_number":86,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"eba7914c-773f-4f17-81e5-d12a51250e0a","block_type":"box","text":"II-41","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c6103496-ac1a-41c5-bcb4-1ade55ef29ae","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"27759230-b3de-46d4-b578-afbdc44bb092","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":87,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"4be66b8d-2b79-45c0-8b4c-bb4a0432c0c6","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":87,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"219d311d-277c-4e50-8da1-fb187dc10147","block_type":"box","text":"on investor protection considerations.","page_number":87,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"acfd4dcc-7087-4d95-93ee-7f5c82fab241","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":87,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"595acf32-802b-4752-a5f3-b1456b1eb9d2","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":87,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"476b47b2-a2ad-4b4a-aa55-cfc6b01b41e7","block_type":"box","text":"for compliance with U.S. law and professional standards. On August 26, 2022, the PCAOB signed a Statement of","page_number":87,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"60f25f8f-ac67-43f6-b83b-8c9a34ce94e1","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":87,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"9d024f9e-c562-4ef2-907c-73728304b4f6","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":87,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"b33dfb97-4ec6-4b67-ab68-e58e17258ceb","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":87,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"f46a5c30-55ce-4ae7-bc09-a4fb916fafbb","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":87,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"5e8813ae-06d6-46a1-859f-83887c49e9a8","block_type":"box","text":"per formed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":87,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"9198ff32-2125-4487-8d8f-4234a25dc8dd","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":87,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"b3056125-a5bc-4398-8d5b-4c441c7d7ee9","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":87,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"052e56de-6345-4982-b521-7aa81f36cbe4","block_type":"box","text":"2020, which requires that the PCAOB be permitted to inspect the accounting firm of a U.S.-listed Chinese issuer,","page_number":87,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"87b33716-255a-4b26-828f-d48fef5a87d0","block_type":"box","text":"Chinese companies with securities listed on U.S. exchanges may be delisted if the PCAOB is unable to inspect the","page_number":87,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"f26524c9-c9e8-48c0-a522-409833e84d87","block_type":"box","text":"accounting firm.","page_number":87,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"468e1a34-1a22-40bc-9502-0fb83a124546","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":87,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"e9c6abef-66f6-48af-b94f-32785f1d36a6","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":87,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"23f14ed3-e2db-42d0-b57f-b03843ddfad9","block_type":"box","text":"negatively impact per formance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":87,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"42870745-1296-41e9-8a77-638713be07d5","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":87,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"56146041-1de7-4f3f-97fe-fe6d75815cde","block_type":"box","text":"capital, as well as by the application to the Funds of any restrictions on investments. Investing in entities either in, or","page_number":87,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"904d7db1-d481-4775-af8c-501faabbb6de","block_type":"box","text":"which have a substantial por tion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":87,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"e0e4ddf1-970d-4157-aa6f-d50b7c3d8840","block_type":"box","text":"seek local government approvals or take other actions, each of which may involve additional costs and delays to the","page_number":87,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"be33af6e-42b7-4980-ba54-0575a4a9c502","block_type":"box","text":"Funds. The Fund may also incur costs in connection with conversions between U.S. dollars and RMB, as well as in","page_number":87,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"6f474d04-2cdd-4e03-9ae5-9f32a06ab20b","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":87,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"71b752b4-e854-4467-bc8c-fe43178cfbfa","block_type":"box","text":"RMB (“CNH”).","page_number":87,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"bc32a7aa-3e30-404d-aa0c-1a3837c01c37","block_type":"box","text":"Many Chinese companies listed on U.S. exchanges use variable interest entities or “VIEs” in their structure as a","page_number":87,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"18d15307-ae35-4928-94b2-080fea1cc432","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":87,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"de0bc977-0a12-4eba-a206-db3eb952b10c","block_type":"box","text":"in another jurisdiction to issue stock to public shareholders. When a VIE structure is used by a Chinese company to","page_number":87,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"dcb1b594-2875-4863-a3e6-956e7113187a","block_type":"box","text":"list its stock in the U.S., instead of owning the equity securities of the Chinese company, the U.S.-listed shell","page_number":87,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"21546ffa-e6a8-4452-b8bd-25429ace8c20","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":87,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"8af4ef1e-21e1-4b72-8095-e04d0cf65e39","block_type":"box","text":"contracts provide the U.S.-listed shell company with only economic exposure to the Chinese company and do not","page_number":87,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"9e205264-8a27-42a9-8ace-29bca01edc04","block_type":"box","text":"represent equity ownership in the operating company.","page_number":87,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"e42ddd88-3100-4bf6-b687-c6d5c4fa2459","block_type":"box","text":"While VIEs are a longstanding practice that is well known to Chinese officials and regulators, they have not been","page_number":87,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"b11288c1-3540-4f7a-8928-9cac9f7ee20a","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":87,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"986085ab-4fa2-4060-bbd4-8a900c210586","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":87,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"a1e1423e-829d-4679-8c08-9f2c1856fba9","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":87,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"0e1176fc-a2a9-48d5-b971-80b398e738df","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":87,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"d1f00616-bd42-4fe6-b999-46147e45c4fe","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":87,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"08acd3ea-2671-4d80-bbcc-f8516bb2689a","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":87,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"7ae3b3d5-de58-4e1a-91ae-bcad4d0a22e1","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":87,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"6ef644ba-d064-4ba8-bce5-28dce18f7f6c","block_type":"box","text":"company and the value of the U.S.-listed stock. Fur ther, the VIE contractual arrangement would likely be subject to","page_number":87,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"53b319f8-de08-4d6f-8bfc-6fe34c65d211","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncer tain and could be","page_number":87,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"040c0461-7d2f-4d82-ae04-ff7946328dac","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":87,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"b0d36961-05d9-4b4c-b94e-98d4b7f3fa93","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":87,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"0550d1f3-0139-47ad-8c1f-d182adfeab93","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":87,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"287df4bb-9790-42f3-a8a7-ba1e9b8d2fee","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":87,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"1e5448bb-b6a9-40a0-92fc-291393b85724","block_type":"box","text":"losses on its investments through a VIE structure with little or no recourse available. Any change in the operations of","page_number":87,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"885c9a18-7848-4e0e-9a77-c9d951855cfc","block_type":"box","text":"entities in a VIE structure, the status of VIE contractual arrangements or the legal or regulatory environment in China,","page_number":87,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"9a30c138-fd0c-4144-a3f3-431649c3e77b","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":87,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"beae10b1-6c9f-4f0f-9f50-1e1e76935b5d","block_type":"box","text":"losses to a Fund.","page_number":87,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"e50975f9-7fed-4eb2-81f1-bf7a9b69c5d9","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":87,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"8fd57501-d0b5-4b3f-a8e4-2d9388f5e93c","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":87,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"8fe61498-9c25-46f5-af4c-894ae4923e5b","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading par tners over its expor ting of its","page_number":87,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"89976953-715f-403b-aa82-df1373bb5717","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":87,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"d3f8da46-6794-49c0-9df4-d8df8a7e6561","block_type":"box","text":"II-42","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e4ec7fd9-fec9-438f-89c8-8d6cb9eafa09","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5478c4c5-6410-451e-829f-98cfab2a7fc0","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":88,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"2b09e8bd-af55-48db-ab8c-7bcf7c136bba","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":88,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"c1bbc936-e4b7-4e1a-b685-ffa40b1636fb","block_type":"box","text":"and the United States or in response to actual or alleged Chinese cyber activity) or a downturn in any of the","page_number":88,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"950fdcbb-0cc0-410d-8124-8f3e9b6dcfcf","block_type":"box","text":"economies of China’s key trading par tners may have an adverse impact on the Chinese economy and the companies","page_number":88,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"3e98746f-3551-4a6c-b62f-c67888044456","block_type":"box","text":"in which a Fund invests. Cer tain Chinese companies (which may change from time to time) are directly or indirectly","page_number":88,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"82301435-19ef-443c-b2dd-2f7d75fa671f","block_type":"box","text":"subject to economic or trade restrictions imposed by the U.S. or other governments due to national security, human","page_number":88,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"195143de-4fde-403d-a232-f04789d3a851","block_type":"box","text":"rights or other concerns of such government. For example, cer tain foreign technology companies are subject to U.S.","page_number":88,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"56f20bd7-1548-4912-b608-106e85782e4c","block_type":"box","text":"expor t controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans impor ts of","page_number":88,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"0da3147d-37db-4470-8155-439132a80fe2","block_type":"box","text":"goods produced in cer tain regions of China or by cer tain Chinese companies due to concerns about forced labor.","page_number":88,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"b5fb3b06-8bdf-481d-987b-d696df5c00b8","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":88,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"073ffbf1-7522-4f5a-84f9-86abe0729861","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":88,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"bbcdabd5-b46d-4cf6-9309-d2999166b24a","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":88,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"1bc9fb34-2855-456f-8fff-319bb9e3d8b0","block_type":"box","text":"restrictions) imposed by the U.S. or other governments due to national security, human rights or other concerns of","page_number":88,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"2b9f9b99-e94b-4c40-a43a-08cf660a32ce","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":88,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"5df84820-cfcc-455c-b67f-b22ce967b276","block_type":"box","text":"such companies.","page_number":88,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"1e50be07-a985-4bce-a53f-e6c6f5b637fb","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":88,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"b777de55-5120-4921-83de-cbc69034ea9f","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":88,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"2a6aa982-7384-450e-a7d7-1ddb7d21a159","block_type":"box","text":"tax authorities are not as consistent and transparent as those of more developed nations, and may vary over time","page_number":88,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"d99ba9b5-7292-4e67-93f4-1a68d38ff6e5","block_type":"box","text":"and from region to region. The application and enforcement of PRC tax rules could have a significant adverse effect","page_number":88,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"99f08a12-9914-4dd6-a9c7-768091dd850e","block_type":"box","text":"on a Fund and its investors, par ticularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":88,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"a5c9233e-684b-4271-a72a-34eb64149192","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":88,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"0041674b-4ccb-4349-a420-0c9b4cf0ab24","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":88,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"f4070af5-96e8-499a-8b52-a2489c776961","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":88,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"2d83fe25-c8a4-4f7b-ade7-0178b7676906","block_type":"box","text":"standards.","page_number":88,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"b0db542b-55f8-4e51-804c-94c571301333","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":88,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"0346c132-2c6e-4730-80c9-e609d6f24b31","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":88,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"47890e29-2a36-4617-95f1-af9ced7225fc","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":88,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"e746732c-407b-4234-b272-508bba0dfae6","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":88,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"12b1bb77-4ce3-4032-9c0d-727bcd4168bb","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":88,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"a3475efa-5be3-4823-a37b-e8f5e519895a","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":88,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"9f571fa3-f525-46cf-b5bb-8f8f9d43c6b1","block_type":"box","text":"General","page_number":88,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"1e230422-98e2-41eb-917f-3458b14b7427","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":88,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"bb8940f2-e0db-4d38-9833-a4b27b9f453a","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":88,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"8c4cdaba-82c1-4df5-b70d-cc3ba574276b","block_type":"box","text":"Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the SSE and SZSE is not permitted, other","page_number":88,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"7674f248-2a86-4616-90ed-7aa860127c49","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":88,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"3196563d-8031-4f39-87db-96dd13c8c185","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":88,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"3f97b93b-fc0a-47b6-b35e-ab020cc023d8","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":88,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"25e52d7d-d316-4d04-9563-d9d7c376c457","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":88,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"3cfb4d45-d66c-4467-b220-345559c051f4","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":88,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"d401a437-e422-41d6-91cb-c63ac6da5d9f","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":88,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"70edf45e-2da4-4c98-982b-5aec87211997","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":88,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"a1870b52-a3b9-48bc-9a87-e69587816007","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":88,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"53528ca2-7ecc-40dc-a6ad-e7c1613c8d41","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on each market","page_number":88,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"a809852b-1e4b-4b77-bd36-bc7c99928654","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":88,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"1f218a58-8d9f-4399-97d5-7e5c90fad0d5","block_type":"box","text":"the SSE or SZSE, as applicable, would be effectuated through its Hong Kong broker and a securities trading service","page_number":88,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"485bf9fd-92d2-479e-9f27-b9fcb9b6f2b4","block_type":"box","text":"company established by SEHK.","page_number":88,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"0447979f-8931-44e2-b0ca-575b9702cd85","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":88,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"19c9b381-1ece-4ea0-85de-3945f54d1612","block_type":"box","text":"through a Stock Connect’s Nor thbound Trading Link is subject to daily investment quota limitations which require that","page_number":88,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"7c99194c-0716-434c-bb75-73a819c45a4c","block_type":"box","text":"buy orders for Stock Connect Securities be rejected once the daily quota is exceeded (although a Fund will be","page_number":88,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"121aed48-d05f-4f5d-b851-52c5fc52de65","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":88,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"b3078533-1acb-4aca-bc43-9c38e3364ced","block_type":"box","text":"investing in Stock Connect Securities on a timely basis, which could affect the Fund’s ability to effectively pursue its","page_number":88,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"bdcbd7ae-b948-4a35-a49c-fb47c1db3125","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":88,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"8be672e7-913a-4dbc-9aeb-939fb1b5c0bd","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":88,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"19fe8961-0fb3-470c-9adc-1224f52347bd","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":88,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"7e325aca-5e42-4567-bb5a-ed286a31d702","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":88,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"928a1309-5e84-4462-881d-e5cef1b6f63a","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a cer tain trading day, there must be sufficient Stock Connect","page_number":88,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"fb023ddf-7fc5-406e-be69-e6ae05974b0d","block_type":"box","text":"II-43","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"309e98c9-4552-4453-88ad-4c50f4ab4c1a","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1a5d5c9c-5f84-4ea5-9efc-2f07a2fbe143","block_type":"box","text":"Securities in the investor’s account before the market opens on that day. If there are insufficient Stock Connect","page_number":89,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"b34945ff-6d40-4de2-95b2-bb259871fcba","block_type":"box","text":"Securities in the investor’s account, the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries","page_number":89,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"53ecf1ff-bf37-4627-b1bb-4202f890deaf","block_type":"box","text":"out pre-trade checking on sell orders of cer tain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":89,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"695e7c45-711f-48ce-b873-dc1efd6ab619","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":89,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"2c0fe6e0-1d86-45b1-9427-22014213501d","block_type":"box","text":"i.e.","page_number":89,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"43b4048e-d0cd-4428-9fb6-53c78287888c","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":89,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"41e3619c-8b9d-4f85-aeae-c9a2d0605ac3","block_type":"box","text":"must be designated as eligible to be traded under a Stock Connect, those shares may also lose such designation,","page_number":89,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"fc478ef4-35df-4632-979c-6c8b721f22d5","block_type":"box","text":"and if this occurs, such shares may be sold but cannot be purchased through a Stock Connect. In addition, Stock","page_number":89,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"132428b7-11ef-4677-bc24-ca825a94d647","block_type":"box","text":"Connects will only operate on days when both the Chinese and Hong Kong markets are open for trading, and banking","page_number":89,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"44087bde-aca4-4af0-9ca2-af7054c98650","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":89,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"787d0c43-b6c8-4545-b800-bc675bd3012e","block_type":"box","text":"Connect Securities through a Stock Connect may subject a Fund to a risk of price fluctuations on days when the","page_number":89,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"1e4212dd-17a5-4315-b1e6-b25de060332e","block_type":"box","text":"Chinese market is open, but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on","page_number":89,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"486ffda2-33a3-4c7c-a5cc-14564158c490","block_type":"box","text":"the Stock Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will only","page_number":89,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"aa17cc2b-ccba-4bc4-bc86-9c6ee2ba23ac","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Fur ther, since all trades of Stock Connect Securities","page_number":89,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"ebb1df56-b49c-42d5-939f-c7625ef005da","block_type":"box","text":"must be settled in RMB, investors must have timely access to a reliable supply of offshore RMB, which cannot be","page_number":89,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"953ba7bd-c15a-4c09-aeb8-ecee3a9f36b3","block_type":"box","text":"guaranteed. There is also no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could","page_number":89,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"31d9d25b-e616-4288-b94f-bc95323b5b72","block_type":"box","text":"adversely affect a Fund’s investments. If a Fund holds a class of shares denominated in a local currency other than","page_number":89,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"1ef192ad-8d72-4b69-a4d4-c08cdd5790c8","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund conver ts the local currency into RMB for","page_number":89,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"22b50afe-2dc5-40e0-a839-38de0566d67c","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":89,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"891a714f-b0b5-4874-8a42-b70ba534d70c","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":89,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"bd16b2ee-ae4d-4c63-8208-a021234eb7f5","block_type":"box","text":"as nominee on behalf of investors. The precise nature and rights of a Fund as the beneficial owner of the SSE","page_number":89,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"38777f2c-e616-4f93-b13a-bea3b0024ff6","block_type":"box","text":"Securities or SZSE Securities through HKSCC as nominee is not well defined under the PRC laws. There is a lack of a","page_number":89,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"80148a5c-044b-4bb8-af2b-2fd66fa5983b","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":89,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"a067679c-8b75-4a0f-845f-a8e12c6c8793","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC cour ts. The exact nature and methods of","page_number":89,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"81f7318b-0673-410c-8d5a-df2c3d9dcb49","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncer tain. In the unlikely event that","page_number":89,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"897abc26-9dec-476f-8797-59ca2f26813e","block_type":"box","text":"HKSCC becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or SZSE","page_number":89,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"081b96c6-8062-404f-97b8-216bf48d86e8","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as par t of the general assets of","page_number":89,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"f709bcb2-0ed8-4939-992b-2e397b24e050","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":89,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"36939f96-0ee8-418a-9780-f4d8217b48cf","block_type":"box","text":"proprietary interests in the SSE Securities or SZSE Securities held in its omnibus stock account in the CSDCC, the","page_number":89,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"5b2a02e2-e9c7-47b5-9949-2eaf4db49471","block_type":"box","text":"CSDCC as the share registrar for SSE- or SZSE-listed companies will still treat HKSCC as one of the shareholders","page_number":89,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"1b7ebd64-f869-4e9d-9182-52bed04de686","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":89,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"a3c2962e-b639-474e-9b0c-0dd247d5a721","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":89,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"cbc376b1-7e5f-4221-80fe-ebaae8f20f82","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":89,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"f07e3ac8-5190-4657-9921-f34823044f74","block_type":"box","text":"order to par ticipate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":89,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"269acf5a-e58c-46af-a423-20d03ca6691f","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":89,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"eb93cd48-4dc7-45ba-ac30-e49c527b5b02","block_type":"box","text":"HKSCC, who will then submit a combined single voting instruction to the relevant SSE- or SZSE-listed company. As a","page_number":89,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"8805b96a-c4bf-423a-8a97-96ea58c6f0ed","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":89,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"5bbf6490-ee07-41e7-b11a-7c147734ff70","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":89,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"81baa3b0-f82e-4715-ae70-c8b7a77254b8","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":89,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"2452c3cd-30cc-44b1-a019-0ac14ad40fd5","block_type":"box","text":"to exchange-traded products in Hong Kong. For defaults occurring on or after January 1, 2020, Hong Kong’s","page_number":89,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"7ec64694-97b9-41d9-8a94-9831d2be78ff","block_type":"box","text":"Investor Compensation Fund covers investors’ losses in relation to securities (i) that are traded on the SSE or the","page_number":89,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"4e825869-5051-40d4-ab58-5a062e167a65","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Nor thbound","page_number":89,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"3b7725fc-59d0-492b-99ae-2b1b6a134afb","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Nor thbound trading through securities","page_number":89,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"230127ce-1e60-4e8b-9928-8bccff713709","block_type":"box","text":"brokers in Hong Kong but not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the","page_number":89,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"0cd66376-b46f-4951-b18e-3374bcaacb83","block_type":"box","text":"PRC.","page_number":89,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"f82f9bf3-edb9-43b7-b985-6f7e2e0a2bc7","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":89,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"fcc2a1ae-ed71-4c72-a650-66008f7f6cc5","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":89,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"81a94804-52f4-44df-ac6f-ea7966c31121","block_type":"box","text":"house. Fur ther, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":89,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"3f83345e-0044-4ba3-af82-abc582647965","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the par t of SEHK and exchange","page_number":89,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"170cd3be-e5ad-491a-be8b-e2e81c16c52e","block_type":"box","text":"par ticipants. There is no assurance that the systems of SEHK and market par ticipants will function properly or will","page_number":89,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"450ae592-1015-419e-b202-01e4c881d403","block_type":"box","text":"continue to be adapted to changes and developments in both markets. In the event that the relevant systems fail to","page_number":89,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"524ef643-ceee-492f-9dbb-25e136700ca5","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":89,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"7be5b028-b2f6-44b4-9b3a-7ebd860c2a4c","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":89,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"3eb1c154-236f-4ab0-ae3c-37b0db29cc66","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":89,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"ef4e42a7-d3f2-4aab-8db5-9f309aaba739","block_type":"box","text":"New or revised regulations may be issued from time to time by the regulators and stock exchanges in China and","page_number":89,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"3defdfaf-8da9-4cf5-91cb-4e3d2922225c","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":89,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"629407a4-2d9e-4cba-ad7e-d5968cf13337","block_type":"box","text":"addition, there can be no assurance that Stock Connect will not be discontinued. A Fund may be adversely affected","page_number":89,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"215f2da7-881a-4f27-b3cd-a342524dc1d2","block_type":"box","text":"as a result of such changes. Fur thermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":89,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"e9933766-679e-4ee4-bf9c-12446a1a0d6b","block_type":"box","text":"II-44","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"db7306e6-2349-4212-8182-f399d58b01a6","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f798e9e3-063f-4685-9f26-191098d5dbf6","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the relevant systems","page_number":90,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"80537759-0803-408a-bf71-b3b92435443b","block_type":"box","text":"fail to function properly, trading in both markets through Stock Connects could be disrupted and a Fund’s ability to","page_number":90,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"adeac9bc-c47d-477c-9ab7-a0d1a627eed2","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":90,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"cbf73e4a-c47f-41f0-aab6-fd70a29af66c","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":90,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"41e68adf-d56a-4b14-884c-779a95452222","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":90,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"8e4aab32-f2a7-4c8e-9fc3-27ddb8a131f3","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":90,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"e593dbce-61db-4747-a7e5-d9e76c6c30ce","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":90,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"167c2033-4ef8-4309-9a6e-431831077a92","block_type":"box","text":"Suspension Risk.","page_number":90,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"b0243516-072c-4572-9a05-2e005bc6b1e4","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":90,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"6baf2990-317d-4324-b7ef-76626a317d34","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":90,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"f8dc1170-4d2c-47b7-8c7f-4ae4ccf754ac","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":90,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"48dd79d9-9ec5-4246-888f-8339f92834bf","block_type":"box","text":"global equity markets. Each of the SEHK, SSE and SZSE reserves the right to suspend trading of SSE Securities and","page_number":90,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"0b9f0277-2209-4415-b129-9148b7ee6a15","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":90,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"d6fc543e-26f6-44b9-b44d-2491f10bc70c","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":90,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"e296284f-d2e9-43ec-8d03-d8a4383c7867","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":90,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"88a1d8ce-18b4-403f-873b-595a5c78140b","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":90,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"9440c79a-f7d0-4d67-a6c3-98effd6fddfe","block_type":"box","text":"Connect is effected, the Fund’s ability to access the PRC market will be adversely affected. Trading suspensions in","page_number":90,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"a1bef468-01b7-4d45-871b-0102bc9a8a5a","block_type":"box","text":"cer tain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":90,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"ed5a9436-742e-4470-8c42-6ead594939cc","block_type":"box","text":"daily price limit, generally set at 10%, of the amount of fluctuation permitted in the prices of the relevant SSE","page_number":90,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"dbd93dbe-cd07-49e4-9b91-331be18530b1","block_type":"box","text":"Securities and SZSE Securities during a single trading day. The daily price limit refers to price movements only and","page_number":90,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"cd47cc98-1f73-4aee-bfa7-2e437d3c5f11","block_type":"box","text":"does not restrict trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":90,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"277371de-334a-4c5e-9386-92ca95a5b3df","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":90,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"ffbc0f14-2db0-4070-bdef-8c8367bb73aa","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":90,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"edf99664-dd18-4274-980c-93c956a9cc40","block_type":"box","text":"A Fund may invest directly in the","page_number":90,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"c60afb97-1fa6-4e38-80c1-a8996891474c","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":90,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"a54b2a75-1392-4825-bde9-525f87ff1d59","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":90,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"08812348-7de7-4e50-b4b8-6aec8cf030cd","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":90,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"d7aa7b2f-12b1-49de-b4ba-9cd516473da7","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":90,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"f1ce02ec-fcba-4dde-adfb-f850b5587dc8","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":90,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"d9fda4e7-664c-45ed-a090-ed003f493927","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the China Interbank","page_number":90,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"34362678-350c-417a-b411-eb9262ca3afb","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":90,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"f79820c1-cdae-4b7b-ad87-1e2e5004a9d9","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":90,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"7f78f1ff-1854-4039-87ce-cef9a59ac430","block_type":"box","text":"turn transmit their requests for quotation to CFETS. CFETS will send the requests for quotation to a number of","page_number":90,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"4a1acd4d-3d42-4ab4-b8f6-b4c0beb073d0","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":90,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"b223a886-c370-408c-be7f-5611a62edbf5","block_type":"box","text":"The approved onshore dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their","page_number":90,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"6af04997-33b4-43e7-9a34-3f8b178ac1c8","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":90,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"d1bb8eea-400c-4a60-884f-a237eca257f7","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":90,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"983e0f31-34d2-44a0-a16f-469258d519d0","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":90,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"049cf3dc-673e-4e02-8e0b-8c74617aaafb","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":90,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"cc35bf5d-f9d0-4bbc-b39d-87a4d021a7bd","block_type":"box","text":"as onshore custodians and clearing institutions in the PRC. Under the settlement link, CDCC or SCH will effect gross","page_number":90,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"ad90b858-6043-45f3-b8d6-c0ea432165da","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":90,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"52d3750c-fb64-4a59-81fc-66dc71d6fb67","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":90,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"26c8a5e1-d07d-482c-adf9-364d84d6fe06","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":90,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"f0153048-c076-4a8c-8275-ed458fab63a7","block_type":"box","text":"carried out simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":90,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"9422eac3-4f92-42ab-ac98-9eb24967c5ef","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":90,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"6827dff6-3af5-4cc0-b755-2ff461a64d28","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":90,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"14a4f763-559b-4c4b-82e4-4167ce112bc4","block_type":"box","text":"i.e.","page_number":90,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"4875e3f0-099c-4daa-8b2c-f9f69ec7c8c2","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":90,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"ddf217b9-4a1e-41e6-a550-b64ac0427604","block_type":"box","text":"eligible foreign investors through Bond Connect will be registered in the name of CMU, which will hold such bonds as","page_number":90,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"e8e0e185-4eb4-4d36-b0be-4a4b0f654dec","block_type":"box","text":"a nominee owner. Therefore, a Fund will be exposed to custody risks with respect to CMU. In the remote event of a","page_number":90,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"82768e24-fd90-4961-bb1c-5dcd734a569a","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing par ticipants","page_number":90,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"051feb37-63bb-4eaf-ae0e-1194fb39d81f","block_type":"box","text":"will be limited to assisting clearing par ticipants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":90,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"4fcffead-f9e8-497f-948f-e08d129fb746","block_type":"box","text":"delay in the recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":90,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"49429a37-c67e-425e-8193-e072050d52d9","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third par ties,","page_number":90,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"9ca05b7a-8de9-4828-a0fd-162cb36d4396","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the par t of such third","page_number":90,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"9cb9f1cf-6292-4c51-a0fb-a7078baf8441","block_type":"box","text":"par ties.","page_number":90,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"5f53848f-38f9-4206-b988-3f4c25e57626","block_type":"box","text":"The precise nature and rights of a Fund as the beneficial owner of the bonds traded in the China Interbank Bond","page_number":90,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"da54a18b-0237-4161-b8bd-4affd1edc986","block_type":"box","text":"Market through CMU as nominee is not well-defined under PRC law. There is a lack of a clear definition of, and","page_number":90,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"aff61bb6-2971-409d-bc98-f28b6c8c7c28","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":90,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"f6e1de36-876a-41d9-8397-d8532e837938","block_type":"box","text":"II-45","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9ce56eab-1a3b-4bb1-b1e2-bf78d36f05f6","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d0d4005e-8e24-4136-958e-c664e71cad7e","block_type":"box","text":"involving a nominee account structure in the PRC cour ts. The exact nature and methods of enforcement of the rights","page_number":91,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"14234db2-ef08-4fae-865b-e777788c9c6b","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":91,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"a59d5cfa-faf6-4248-8187-e06bf40b9cfa","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of cer tain bonds in the China Interbank","page_number":91,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"dc2166c1-4f98-4692-a0ee-e8d6bb9b67a5","block_type":"box","text":"Bond Market may result in prices of cer tain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":91,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"fc49ae9d-fa28-4dcd-8cfa-b2152ba4a545","block_type":"box","text":"such market is therefore subject to liquidity and volatility risks. The bid-ask spreads of the prices of such securities","page_number":91,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"dcda9255-f25c-4b2c-85c1-40aeaca2eea5","block_type":"box","text":"may be large, and a Fund may therefore incur significant costs and may suffer losses when selling such investments.","page_number":91,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"3101de0d-5e2c-41e2-892d-33c4682505e0","block_type":"box","text":"The bonds traded in the China Interbank Bond Market may be difficult or impossible to sell, which may impact a","page_number":91,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"5721c8b8-0a3b-4c77-a33e-ddbde3600d40","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":91,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"d15bed1b-d3db-43aa-9a2f-ec21a96b7d11","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":91,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"bd20d31a-7418-4e2f-8257-17c675caa3a8","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":91,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"6d3c3a5c-02d9-440b-8b1d-05efa03cc639","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":91,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"45144581-0c1d-4569-8917-f4e0f413d161","block_type":"box","text":"systems of China and Hong Kong differ significantly and issues may arise based on these differences. In the event","page_number":91,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"f8ca5a78-07dc-402c-beba-5190ec09065a","block_type":"box","text":"that the relevant authorities suspend account opening or trading on the China Interbank Bond Market, a Fund’s ability","page_number":91,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"4890635f-d3fa-4045-8852-3be126e38aeb","block_type":"box","text":"to invest in the China Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability","page_number":91,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"80d94b25-993a-4251-b2db-547e45f163c2","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":91,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"818cbd04-f853-44fd-8c38-9b340c05728e","block_type":"box","text":"Fund may suffer substantial losses as a result. Fur ther, if Bond Connect is not operating, a Fund may not be able to","page_number":91,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"756980b9-ecf9-450a-94ab-8164e82ef034","block_type":"box","text":"acquire or dispose of bonds through Bond Connect in a timely manner, which could adversely affect the Fund’s","page_number":91,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"bebee516-1717-48b3-afa3-c744929f4d85","block_type":"box","text":"per formance.","page_number":91,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"ba651f30-d122-4cff-ae62-7a39c27ff461","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":91,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"8e6d448d-5089-4b77-a308-24abb9adffd2","block_type":"box","text":"There is no assurance that such systems will function properly or will continue to be adapted to changes and","page_number":91,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"fdb7341f-f6a0-4057-849d-4f018272d96a","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":91,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"b558c378-3880-4f2f-963f-afc77a3d15e2","block_type":"box","text":"Connect may be disrupted. A Fund’s ability to trade through Bond Connect (and hence to pursue its investment","page_number":91,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"275b45e9-1cd0-4fc4-a524-49dcdb1bef32","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":91,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"05c6a728-a80e-4edc-a69c-6c8bda3fb96a","block_type":"box","text":"through Bond Connect, it may be subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":91,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"c24eb570-2299-4026-bc5b-28051269f74e","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":91,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"a1877f67-ea4c-4a01-af31-cca89ae3c397","block_type":"box","text":"conver tible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":91,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"38ba487a-2eff-4d3e-ab56-19100bda03b2","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":91,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"9547e20e-5b0c-4118-962d-52a0b804a152","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":91,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"9e157b6f-513d-4580-ad53-59d17a29ad99","block_type":"box","text":".","page_number":91,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"4c7a9ef4-8099-4cf9-8df1-d00600e0429e","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":91,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"d5884f16-8921-43dd-ae08-9655fd0e8d01","block_type":"box","text":"interests from non-government bonds paid to a non-PRC tax resident enterprise, unless the rate is reduced under an","page_number":91,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"a0f55f0d-8769-4668-ba7b-f4f4a71dbde8","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":91,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"da821ed3-0ddb-4ee9-8b6d-c69431dacb84","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":91,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"395fe346-7cce-4a11-b95c-e2280391a1aa","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":91,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"6b95594c-505b-4825-92a7-6ef40ca5c0ae","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":91,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"94cf4565-015c-449c-98d5-0f9c2ea14c77","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":91,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"cae8ce73-77b7-44b1-9355-d76ec6b4709b","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":91,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"508b83c6-aba2-465a-96cd-354dad8aec30","block_type":"box","text":"(“RQFIIs”) from tax on capital gains derived from the trading of shares and other equity interest investments on or","page_number":91,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"b0ef25f9-931d-44ca-b85d-79e6c60a34cd","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":91,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"44737736-db78-42a4-8525-b2d47d5a2884","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":91,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"42b9652d-4570-4c76-aef0-ffff90ea3513","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":91,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"765c43d7-728b-4ef0-9fe9-52f1618cedf0","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":91,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"5c855835-f701-4722-9d7a-4d8deb4afae8","block_type":"box","text":"temporary exemptions is not stated in the circulars and is subject to termination by the PRC tax authorities with or","page_number":91,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"981ca477-5846-4dbb-9ab8-e9a24cb2ff4a","block_type":"box","text":"without notice.","page_number":91,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"05c59568-925a-4cad-9bc8-69f5706ccab6","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":91,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"c74f044d-022c-483b-932f-45de1a2d5a3b","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":91,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"85744ba9-4937-42ce-b070-de43bb5fe2b6","block_type":"box","text":"the PRC bond market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA","page_number":91,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"67aab83a-0a7b-4a4d-bd40-cd8b929d8473","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":91,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"15392ca1-2bc1-4e82-9825-12fc2c3c9bd9","block_type":"box","text":"January 15, 2026, it was announced via Public Notice No. 5 of 2026 that the exemption was extended through","page_number":91,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"022b73e1-e92d-42e2-a752-e4ae13eb8318","block_type":"box","text":"December 31, 2027.","page_number":91,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"cf2fb6c9-2166-4fd8-89ea-ed24b552c500","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":91,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"47372382-80a7-40b7-8804-051772fd1064","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":91,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"01c76ef1-3f78-4dd8-8cf5-8559f85aba60","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":91,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"e5f06d8f-3527-48ed-a51d-8bfb0ce23a9e","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":91,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"cdf19656-0948-4644-be7f-fb497469766b","block_type":"box","text":"II-46","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3661a426-e2b2-4afd-b499-f81a397fc0bf","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"724245fa-6e2d-4109-8819-e0b53c0e3e29","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares traded on the","page_number":92,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"d66cf067-a3ec-4643-8935-4d9d7797a5d4","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":92,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"a0e62572-1fc8-42eb-98bb-ef80fa3ba422","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":92,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"253a6567-1b9e-4737-b26a-0d9b6e62ff85","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":92,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"4f806de4-fd08-49b2-8a36-d028a0f61089","block_type":"box","text":"market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA jointly issued Public","page_number":92,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"e0e23159-7ce3-41f8-ba9e-fc284b3d589c","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":92,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"123adea5-1fdb-41f4-b469-40bda0fadd80","block_type":"box","text":"July 31, 2025, the MoF and STA jointly issued Public Notice No 4 of 2025, stating that VAT will apply with respect to","page_number":92,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"47a712c7-acf1-4c5c-8ee6-5dfcdca43977","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":92,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"312d37c0-4e4a-4d55-bf45-abbee02ba483","block_type":"box","text":"August 8, 2025. It is understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption","page_number":92,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"1735a85d-6afc-43e5-9964-fde2388cbc43","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":92,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"38a9c67b-eda3-44e0-b251-25c14c2f29d8","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":92,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"3fbae017-483e-4d30-981b-dc9469237572","block_type":"box","text":"tax authorities may result in a loss which could be material to the Fund. There is a risk the PRC tax authorities may","page_number":92,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"ce888b0e-3155-4ad2-a6c3-5c858a4ef801","block_type":"box","text":"withdraw the temporary tax exemptions in the future and seek to collect taxes realized on the sale of A-Shares or","page_number":92,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"d68e4640-b536-4f38-9f36-71299458ea57","block_type":"box","text":"PCR sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":92,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"2b672e9d-0eb0-4f58-bd77-347cd26b87ca","block_type":"box","text":"temporary tax exemptions are withdrawn, any taxes may be directly borne by or indirectly passed on to the Fund and","page_number":92,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"c9b37f5f-5abc-4535-a4ec-491dfe5d3195","block_type":"box","text":"may result in a substantial impact to its net asset value. As with any net asset value adjustment, investors may be","page_number":92,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"4479e560-6134-4488-97a5-f9412558d313","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":92,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"63cd1981-a21c-47a0-a5f1-76a08df87ba9","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":92,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"da8a8acc-d094-4823-b741-690689af7b7d","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from time to","page_number":92,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"28b1aae3-a580-4d44-b232-f19ec8a5902e","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as fur ther clarified by","page_number":92,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"47b50687-7c15-46b1-8af8-cf1a2cc19afc","block_type":"box","text":"the PRC in notifications.","page_number":92,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"d65f1aea-5ac9-4d55-87ed-d5ddb980354d","block_type":"box","text":"Investment in Other Investment Companies.","page_number":92,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"a48fc1d2-0cdb-4039-b83d-9895a0b601ea","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":92,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"d4b1f8a8-e5c8-49e4-9e37-dab37afafdff","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":92,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"b72f0b4b-2ad6-4f01-96ba-096a035fef37","block_type":"box","text":"market funds and ETFs, which are typically open-end funds or unit investment trusts listed on a stock exchange.","page_number":92,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"27770b19-0025-46c2-9f0b-4d427b56f48f","block_type":"box","text":"Under Section 12(d)(1)(A) of the Investment Company Act, however, a Fund may invest up to 10% of its total assets","page_number":92,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"3aefd8f1-a040-436f-a4ec-99d205d20011","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":92,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"2e944fc0-86ff-464a-9615-ffb96c05ee5b","block_type":"box","text":"12(d)(1)(A) of the Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":92,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"6eb5fe08-76e5-4872-9911-16e0feaf97dc","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such investment","page_number":92,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"372b5811-870a-4caf-b793-1cd6be8c7255","block_type":"box","text":"company and a Fund may not invest in another investment company if such investment would cause more than 5% of","page_number":92,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"9788e781-1d3d-4313-97d6-12fc401bf547","block_type":"box","text":"the value of the Fund’s total assets to be invested in securities of such investment company. (These limits do not","page_number":92,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"c56538fa-8390-4a94-9f1c-7e687cce37bf","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Por tfolio.) In addition to the restrictions","page_number":92,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"597e6b5e-91cc-4680-b5ee-63a70439422e","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":92,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"4acd5b33-f587-48c5-beb8-0263b1576190","block_type":"box","text":"Act a Fund may not invest in a registered closed-end investment company if such investment would cause the Fund","page_number":92,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"c25992c6-46f1-4a55-a415-68bdc78f3a26","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":92,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"b4338f0c-23d0-4359-a33a-6360ccf7ac03","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":92,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"b67c50f8-b19c-4a0f-a044-7e54be5ed04b","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":92,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"7f9f89ac-af70-41b1-8221-7094cb2d6315","block_type":"box","text":"cer tain conditions. In addition, a Fund may be able to rely on cer tain rules under the Investment Company Act to","page_number":92,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"76f17613-191e-4ffa-a2c9-9c458bd92ea5","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":92,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"effb6948-d239-42d4-9934-4e4b3ba7cc18","block_type":"box","text":"subject to cer tain conditions.","page_number":92,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"2c0c914f-4a10-4b0d-80cf-4bf81b15786d","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":92,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"c00a2cc3-10ce-4cb1-b8ac-a5e2bbe6b8df","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":92,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"4277e040-6c69-4e3b-905f-cc78b067044d","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":92,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"4ca674f9-8efc-4d8f-9350-a271f43a8ba9","block_type":"box","text":"held by a Fund that trade on an exchange could trade at a discount from NAV, and such discount could increase while","page_number":92,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"9a2fde99-9469-4977-8376-fd65f3c3ff3a","block_type":"box","text":"the Fund holds the shares. If the market price of shares of an exchange-traded investment company decreases below","page_number":92,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"0a270e6d-f48e-4cbf-9910-3175520bfb88","block_type":"box","text":"the price that the Fund paid for the shares and the Fund were to sell its shares of such investment company at a","page_number":92,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"70e677e5-109d-40d6-af59-f26f7e29435b","block_type":"box","text":"time when the market price is lower than the price at which it purchased the shares, the Fund would experience a","page_number":92,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"af6dd9ed-ff2c-4789-bd36-7d6247603620","block_type":"box","text":"loss.","page_number":92,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"b5190eba-4e77-4d4d-8128-19bac3dff027","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":92,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"252a705a-1b1a-41d1-aaff-7e2175058aa4","block_type":"box","text":"shareholders would bear both their propor tionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":92,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"568c5263-7ca3-48ef-ac6c-dea947714861","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":92,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"0f3553c8-97bd-49d3-ad78-b7c1a6806123","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":92,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"4d6826e8-7a06-49d2-9d86-25ae0aa84512","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":92,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"0fb75786-4e02-46ab-9612-3051d4b2d161","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of cer tain countries will not be","page_number":92,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"c06ce08e-09e4-44e5-93b5-8a835030d1a0","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":92,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"2623b021-0ff1-4d19-9b4d-2ff27b4df8d5","block_type":"box","text":"II-47","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8de31c65-396d-4fce-a5b9-7381ac118870","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77d08bdd-13e6-487b-9345-3647a2e90905","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":93,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"fd366dbf-a0ca-4d4f-8f7c-43eac30f8efb","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":93,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"8a5ec375-8392-4d33-b4a6-b36a53444c2f","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a por tion of its","page_number":93,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"547c4fd2-a439-4b02-936a-fe91ca5e32d3","block_type":"box","text":"assets.","page_number":93,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"e18587df-f1ab-4dbe-abf9-c0d25fdc9476","block_type":"box","text":"To the extent shares of a Fund are held by another fund, the ability of the Fund itself to purchase other funds","page_number":93,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"2a683fb7-0082-47b2-b9d9-d311b6c4009f","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":93,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"2269687b-1541-4680-bbad-66fc2cee1010","block_type":"box","text":"e.g.","page_number":93,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"30f7566f-676f-4d39-842b-1d5b887d2be4","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":93,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"aed2ea08-d7a1-459e-a7f7-6ff63efa446d","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":93,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"0b12de24-ffee-42c1-b528-2756d1f0b6d1","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":93,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"fec877d1-6636-4486-9291-5a57c1753682","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":93,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"37d84ccc-8f7b-4b6a-a090-94dc2eb284fc","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":93,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"9e92e6b4-20a5-4807-b033-a22a5bb68fb9","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":93,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"54ff8cdc-c35c-4e25-a2bd-77e09b3935d4","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":93,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"94428893-8744-449c-bf01-73a8ae7de0a8","block_type":"box","text":"investment companies set for th above may limit oppor tunities for a Fund to invest indirectly in cer tain developing","page_number":93,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"7b52f230-135d-4858-9a7e-879bffe8e82d","block_type":"box","text":"countries.","page_number":93,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"bba63aa5-81f9-4398-ac99-93f0c1c82611","block_type":"box","text":"Issuer Insolvency Risk.","page_number":93,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"2d600eb3-aaf9-4c41-846e-12e2a1690f38","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":93,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"3e09ff19-bf90-4afa-905a-07243537eab2","block_type":"box","text":"a high degree of credit and market risk, which may be heightened during an economic downturn or recession. Should","page_number":93,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"7f33f3ce-25f4-4d1a-bd46-b22504776166","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":93,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"fefd3e5c-1d82-4b13-ab73-57bbb223bbd9","block_type":"box","text":"restructuring, a wide variety of considerations make an evaluation of the outcome of the Fund’s exposure to the","page_number":93,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"f1767cd4-6f11-4fbc-bf52-230e3fdd4c14","block_type":"box","text":"issuer uncer tain.","page_number":93,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"b0f7efe4-2388-4ed0-b24e-d0a2e7d9bd9f","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":93,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"c2b3e713-dac1-46dd-85d1-700b75c04a20","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncer tainty as","page_number":93,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"e8aaff9b-b29c-4050-8e9c-10deda00cc34","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":93,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"893d8d56-c814-429f-9600-6aa0f7ccaa80","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncer tainty as to when and","page_number":93,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"f9a34b13-a46b-4a2f-82de-2b26bba26ee5","block_type":"box","text":"in what manner and for what value the obligations evidenced by the securities of the issuer held by the Fund will","page_number":93,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"4bbf72c8-19cc-425f-ae21-2fe370c2aed2","block_type":"box","text":"eventually be satisfied.","page_number":93,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"9f264604-7ea9-4952-b733-13768b500af4","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer held by the","page_number":93,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"ab38a962-04f8-4fd9-877f-e1a03a3922f9","block_type":"box","text":"Fund, there can be no assurance that the securities or other assets received by a Fund in connection with such plan","page_number":93,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"9cd31bd8-e3b7-4e6a-b55e-59ec90e0d2b9","block_type":"box","text":"of reorganization or restructuring will not have a lower value or income potential than may have been anticipated or","page_number":93,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"a99f5708-f803-4fa8-a748-37d92a6aea93","block_type":"box","text":"no value. A Fund may be unable to enforce its claims or rights in any collateral or may have its claims or security","page_number":93,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"b5145bac-1bfa-43a3-aa65-801b8d6931a6","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":93,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"927e9455-26eb-49fb-90e9-13f120bbb486","block_type":"box","text":"In addition, amendments to the U.S. Bankruptcy Code or other relevant laws could alter the expected outcome or","page_number":93,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"42be84bf-25a8-4f34-bd8d-d3cb9c7895dd","block_type":"box","text":"introduce greater uncer tainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":93,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"5b7bed1f-c786-461c-b60e-093e1082bb8e","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be re-characterized or","page_number":93,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"dce2ae5c-2961-408f-ab9c-642da9079584","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":93,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"3e8107ff-019d-4bc3-a810-8db9a4ee3f06","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":93,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"847026e7-7c08-457c-884e-ae090cf90aac","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":93,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"fe487ac4-6a7e-43fd-b9e1-5072bc075f8f","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":93,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"edb164af-c3bd-4ac2-acb9-df11929bcecc","block_type":"box","text":"volatile than those of other asset classes. Holders of equity securities are subject to more risk than holders of debt","page_number":93,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"53831b40-f8ac-4b4b-a1d9-ba73e4f59420","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":93,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"a86eb7b6-1956-4e48-be8e-933c81b8b4c1","block_type":"box","text":"value of equity securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":93,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"427c849b-2e3c-4294-905a-5bb9267610dc","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":93,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"52197172-30e8-494f-b104-5ab04c8e017b","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":93,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"c2bea764-4381-40f4-925e-abaaa861ea2f","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":93,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"cba1bf7e-f0ae-4817-84ea-cd6fcac6ab76","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as par t of a","page_number":93,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"95f1c63e-d526-49b3-9cc5-eb30c114d2f8","block_type":"box","text":"workout agreed to by a consor tium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":93,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"83c34032-9f25-4192-9f84-10a097870c02","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":93,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"6f1f52b1-0c80-4d3c-a576-14b0cb082a2f","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":93,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"749a7aaf-2c21-4f37-a537-4528c779f424","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":93,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"80075d4f-dde6-4ecf-9536-7ae0f74eebf0","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":93,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"81edd6ca-d224-4799-88ef-51e360ce8581","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":93,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"41ef1b7d-1b4a-4af4-a33b-f00f6df77f90","block_type":"box","text":"par ticipates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":93,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"6bb1c9ee-33c1-4166-9970-aae80825a680","block_type":"box","text":"issuer held by a Fund, the Fund also may be restricted from disposing such securities for a period of time. If a Fund","page_number":93,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"43237093-192e-45e0-9946-fe576dcf73fd","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active par ticipation in the affairs of the issuer than","page_number":93,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"35c21cc1-2944-4293-b0b1-df3d57dcbd27","block_type":"box","text":"that assumed generally by an investor.","page_number":93,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"2709f04c-84b5-404e-8d38-c44851b76e36","block_type":"box","text":"II-48","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6209035e-b96d-4ef9-ad16-da91a5263535","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a99fa3c8-dee0-4035-99ce-214a912e2d94","block_type":"box","text":"Lease Obligations.","page_number":94,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"fb049ec3-52f3-4ae0-a77d-c275c75ce5f1","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":94,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"1f621708-110f-4f4d-a558-160c8b61e1b1","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":94,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"e8437290-2066-4b11-82b3-c1d2afbf730b","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":94,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"c2d842db-c994-4c51-a2f9-b62c6d7b087e","block_type":"box","text":"Life Settlement Investments.","page_number":94,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"49db025b-a5ec-47b7-87b9-3023a6cbf90b","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":94,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"4015d880-55d7-4ee1-8d46-710f2bef512c","block_type":"box","text":"Fund, of existing life insurance contracts for more than their cash surrender value but less than the net benefits to be","page_number":94,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"12680b8c-a19e-4c4f-b0f0-e1849d7afec8","block_type":"box","text":"paid under the policies. When a Fund acquires such a contract, it pays the policy premiums in return for the expected","page_number":94,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"740f2b43-0b36-4162-bede-3be2cce9a4b9","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve cer tain risks,","page_number":94,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"b3e9bf09-cf0f-478d-97cc-be9b33c06101","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":94,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"69ffae2b-cd93-40d6-84e4-9478ffd9c6b5","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":94,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"3a30f695-4421-4dc8-b1c5-c2d8d94e7ae6","block_type":"box","text":"secondary market through life settlement agents. Also, in the event of a bankruptcy of the insurance carrier for a","page_number":94,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"305353ea-c51f-4df3-bd3c-1163b0a6273f","block_type":"box","text":"policy, the Fund may receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by","page_number":94,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"65536349-dd9b-4e33-8a50-11b6fe85622d","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Fur thermore, a Fund may encounter","page_number":94,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"7de78314-696c-4a44-8cd0-4d847d36d2d6","block_type":"box","text":"losses on its investments if there is an inaccurate estimation of the life expectancies of viators. A Fund intends to","page_number":94,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"749f4546-6c46-4b4d-9e75-24a3596d8f36","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":94,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"58c64456-70c9-4722-ba4a-241f09435eb7","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":94,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"2297ab1d-72ac-4701-8414-fb73729a5536","block_type":"box","text":"addition, it is unclear whether the income from life settlements is qualifying income for purposes of the IRS 90%","page_number":94,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"8f7fa438-c3b3-4efd-bf94-87d085f0c6ff","block_type":"box","text":"gross income test a Fund must satisfy each year to qualify as a regulated investment company. A Fund intends to","page_number":94,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"c1db1269-b7ad-40de-8786-46bcd329bc81","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":94,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"c648ac2b-15ba-44a9-9b62-5b683d5ca82b","block_type":"box","text":"Liquidity Risk Management.","page_number":94,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"6215800e-497b-498b-b106-bcb175cac015","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":94,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"3520cb97-d1af-4818-a94f-1942a5fec111","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":94,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"3dcff8aa-4d6b-402c-9860-1c362cb2089d","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":94,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"a07fb568-a438-4359-adb7-6d102de80549","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":94,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"03929fb3-70f0-4846-af40-de4aa794a94d","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":94,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"f3be9498-68cd-47c8-ba1d-2995a09e9e5a","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":94,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"bc1a1a40-e77a-4cfc-b9ef-b257b7f45c7d","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":94,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"6f1493c5-0555-44fc-a21f-945835ca80be","block_type":"box","text":"“illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund could not meet requests to","page_number":94,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"cd20d5e1-e35b-417c-aa2f-9590a346d04e","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":94,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"7c853031-df2c-4ebe-9bdf-8d47b281ea6d","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":94,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"ff017420-3054-4bb7-90d9-44bced1e2f12","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":94,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"d95a244b-9e1b-4c98-81a7-23404e483ac0","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":94,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"7b4cef68-9219-43b8-98eb-dbf41c7b0cf4","block_type":"box","text":"Master Limited Partnerships.","page_number":94,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"7f5cfa18-ebda-4dbd-9708-cef60585d3b8","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":94,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"dbb113d4-2693-4ad9-ac1a-4ccac3450f2e","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":94,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"509bff9d-5497-4542-9470-ed8b5177ee73","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":94,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"11070e76-2b3a-442a-9a2a-0090d6acba31","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":94,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"98976a1f-bcf7-49e6-884d-3463e3dfde99","block_type":"box","text":"generally have two classes of owners, the general par tner and limited par tners. When investing in an MLP, a Fund","page_number":94,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"ea47f6f9-4424-4303-93fd-87ca71fb9049","block_type":"box","text":"intends to purchase publicly traded common units issued to limited par tners of the MLP. The general par tner is","page_number":94,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"c1b84196-517a-4fc1-acf0-f51ff420e9dc","block_type":"box","text":"typically owned by a major energy company, an investment fund, the direct management of the MLP or is an entity","page_number":94,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"7735d4a7-5be4-41e0-8cbc-5762c7e8ea63","block_type":"box","text":"owned by one or more of such par ties. The general par tner may be structured as a private or publicly traded","page_number":94,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"f60bfb9f-86ca-4313-9e5d-b8a52e4f2c46","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":94,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"6481ccd1-f154-4db8-9eed-e61039ec2da8","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.","page_number":94,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"fe0ba0f4-08f7-479a-91df-2bd1c04987a6","block_type":"box","text":"Limited par tners own the remainder of the par tnership, through ownership of common units, and have a limited role","page_number":94,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"a035c56d-57c5-481e-95f1-eb4716e59eca","block_type":"box","text":"in the par tnership’s operations and management.","page_number":94,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"664ff32d-fddb-449f-b93d-c02deeffcd45","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":94,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"721c6405-71ba-4987-9575-88553de17ad5","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":94,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"99969abd-9fe4-4139-86ba-44b2caf92faa","block_type":"box","text":"Common and general par tner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":94,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"3abb7f9a-d72d-48d1-ba56-b3e4888f54ee","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":94,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"fa9a2d76-2769-4dee-8d29-6d02fbd0f9c4","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":94,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"e0ff05bc-0d04-4082-b542-472f0138181f","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":94,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"0cbd1231-5cb7-4cd4-a753-bbbb37e13870","block_type":"box","text":"The general par tner is also eligible to receive incentive distributions if the general par tner operates the business in a","page_number":94,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"b6b68277-66d9-4515-974f-aa99fd2246ad","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":94,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"3355077a-6456-49b4-b500-ff09703e1b2c","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":94,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"db860c54-d253-49d5-9912-5bba06e7b645","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":94,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"ecc6b967-9e84-4fea-a851-68f572970d68","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":94,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"c5630d1c-7596-4682-888e-bd9e903c561c","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":94,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"b0ac6c24-770e-4ebd-bdcf-bfa697676b08","block_type":"box","text":"order to increase the par tnership’s cash flow and raise the quar terly cash distribution in order to reach higher tiers.","page_number":94,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"07a42cc0-bb9a-46a3-8193-11fe279a57b6","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":94,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"15493a97-c9f8-46d0-a5d3-cc552a267739","block_type":"box","text":"II-49","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"152cb988-c2fb-43d5-a1c4-06aa196bbd00","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b8902866-c7c6-4c0a-990f-4448160fda4b","block_type":"box","text":"MLP common units represent a limited par tnership interest in the MLP. Common units are listed and traded on","page_number":95,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"97dfc574-cc48-42ce-8e5f-74f9bac3bfca","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":95,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"2da5d94b-60ee-4f84-8d43-462d2867a155","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":95,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"ddb457f6-856d-4dc2-82f1-c99ef2441626","block_type":"box","text":"common stock of a corporation, owners of common units have limited voting rights and have no ability to annually","page_number":95,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"fd12e1d4-d953-48c7-96fb-88f32760746d","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":95,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"dd294369-8b7b-484e-aae2-345af291e039","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":95,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"c199c0be-449f-487f-82f3-52d35fe160f2","block_type":"box","text":"Merger Transaction Risk.","page_number":95,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"cce8b4ab-c47c-43fe-b8f1-fefe7068e5dd","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":95,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"76d90bd5-498a-4c39-954e-d4cb2114046a","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":95,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"9faf6553-6f47-4256-8d46-b763bb92d652","block_type":"box","text":"in cash, stock of the acquiring company or a combination of both) in excess of the purchase price paid by the Fund","page_number":95,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"8cb444c8-ad06-4991-88b1-6d3549146515","block_type":"box","text":"for the target company’s stock. However, a Fund is subject to the risk that the merger transaction may be canceled,","page_number":95,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"896568f6-2fe8-4ae6-ba78-ca2d00a08952","block_type":"box","text":"delayed or restructured, in which case a Fund’s holding of the target company’s stock may not result in any profit for","page_number":95,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"b0eceb41-dddd-4f1b-9b1d-f64b3c26aa90","block_type":"box","text":"the Fund and may lose significant value.","page_number":95,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"8b333924-b9b2-406a-8732-82578a812105","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":95,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"39f6e2b9-b3c2-4134-8dfd-59b79577a3c7","block_type":"box","text":"Cer tain","page_number":95,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"7a261fa1-4fd6-4822-a267-b1e967a7a69a","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":95,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"c2d3ec72-1491-4931-8a20-1825ae3c42c0","block_type":"box","text":"deposits, including instruments issued or suppor ted by the credit of U.S. or foreign banks or savings institutions","page_number":95,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"81a8ad38-92e6-43f2-8d1b-581eaf1c9307","block_type":"box","text":"having total assets at the time of purchase in excess of $1 billion. These obligations may be general obligations of","page_number":95,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"02599b5f-d57e-4f60-8523-e812a507782b","block_type":"box","text":"the parent bank or may be limited to the issuing branch or subsidiary by the terms of a specific obligation or by","page_number":95,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"1a67dcd8-3bf3-4439-9093-924ca8281e8f","block_type":"box","text":"government regulation. The assets of a bank or savings institution will be deemed to include the assets of its","page_number":95,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"fb5ff4c6-1b7f-41d9-ad26-7c10bdee7e5a","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":95,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"7c61f7c6-768d-42fb-8e30-e8185e9858d2","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":95,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"18934dd0-df19-4916-b466-6f5faf690060","block_type":"box","text":"branches of domestic banks.","page_number":95,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"03c39265-abe5-43dd-9daf-eee168b8b15a","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":95,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"67b726bb-3f52-481b-8ab5-ddc0ae96e363","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":95,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"fcdb4922-0989-4b90-bf26-ad6b5924e8eb","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":95,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"3632bba5-ffdf-455a-821e-1fed418a0067","block_type":"box","text":"paper of a foreign issuer.","page_number":95,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"9e36e408-d125-4f00-b837-cf21931f6591","block_type":"box","text":"Money Market Securities.","page_number":95,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"8fca644e-1c73-45b4-863d-342bc87b88ea","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":95,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"91af55b4-2474-46f6-aa45-f7c547d4e730","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":95,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"dfd9d241-1597-4b7a-94ea-952acdb0a6f0","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":95,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"8cd3b9e4-1fc1-489d-8423-7c66a5a4498a","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or suppor ted by the credit of U.S. or foreign banks or savings","page_number":95,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"a39e1069-4ca5-45c0-8b31-adc7ef89efad","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":95,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"b7b62f01-62cb-4401-84b4-8edfb0910b64","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":95,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"1e9081a0-fe36-49e4-8c67-d7ddaa8e92fb","block_type":"box","text":"other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2 or higher by Moody’s or F-2 or higher","page_number":95,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"2b41421a-bfc9-4232-9f76-e51c72b06b9d","block_type":"box","text":"by Fitch, as well as high quality corporate bonds rated (at the time of purchase) A or higher by those rating","page_number":95,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"bdd475a9-2aca-4868-b10e-f289fe7b1d0b","block_type":"box","text":"agencies;","page_number":95,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"7b1fe45a-4dd6-4e83-b93b-ea42741ccc76","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":95,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"5b59dd32-0a05-40ea-afe1-65e5fc190a3a","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":95,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"7ad1bbdd-4f38-47be-a966-42275b8a8618","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":95,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"d89c9381-704d-4bd2-a0ff-154b8f37cf75","block_type":"box","text":"obligations and credit card receivables);","page_number":95,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"8aae75da-cbeb-4ccf-82d8-69a0910b2da6","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its agencies or","page_number":95,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"3dcf9cd8-06ba-4fd2-addb-36350ea0a71f","block_type":"box","text":"authorities and related custodial receipts;","page_number":95,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"27c50e90-b253-4c8c-bfa9-02a2ed545b5c","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":95,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"63754d23-dc29-4396-9292-8debd14108fc","block_type":"box","text":"agencies or authorities;","page_number":95,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"3b20c950-5602-4da3-951b-f1cc726e095b","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":95,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"ab6f1550-9b62-40df-a7e7-b0bee3a997bf","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":95,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"1655c7e5-2c7b-4ba3-9354-73d55cf49c97","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":95,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"2d145645-0ea6-4081-ab14-f17a42325a5f","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":95,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"70b9d46b-6ed5-4475-835f-d58d7a5b593e","block_type":"box","text":"one of its agencies or authorities or which otherwise depend directly or indirectly on the credit of the United","page_number":95,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"53ddc8b0-0411-4eca-89bd-19aeaae9574b","block_type":"box","text":"States;","page_number":95,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"721e6df0-55f7-4544-9106-9603c8516e17","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or higher by Moody’s,","page_number":95,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"ae866532-ebd9-4cae-b34d-5584716db1e2","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":95,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"d38c9b49-b39c-4f5d-81de-d9ed44343503","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by Moody’s, A-2 or higher by","page_number":95,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"668888ee-4973-4659-b3a9-ad73ff019000","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":95,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"b9e136eb-738d-46fb-97f4-08a0f94b0dbe","block_type":"box","text":"II-50","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5c73d528-1aca-4c9f-9639-8bbeafec631e","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a5bb9e17-fabc-4766-bc4b-28327c3f0502","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":96,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"f9399249-4a04-4cb7-a618-5c75e02f6d28","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":96,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"4d09aa15-9692-445a-bbdc-813ed07a3034","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":96,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"70f01b2f-f6f8-40bf-b51e-aed6fc1fab40","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S. Government or an","page_number":96,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"4d21eb79-5130-47e2-a17b-b3dd6f574b9b","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":96,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"9ea957ea-1e2e-405b-8dff-4cc26a5ac7f0","block_type":"box","text":"States.","page_number":96,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"f7828c95-5957-4ee4-8201-ca0d508186d7","block_type":"box","text":"Mortgage-Related Securities.","page_number":96,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"72cfabe4-4c25-486c-8e84-abd9727e1f66","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":96,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"85f248c2-d20d-4595-a7b6-c8635c903808","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":96,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"47da6260-9169-4fca-ae17-7b8b2de75f63","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":96,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"da78fdde-fe75-448f-bb18-5b8cbb00cf6b","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":96,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"69ba6eab-eb39-479b-9978-eab823829f73","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mor tgage-backed securities differ from other forms","page_number":96,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"6ac5f7e5-ffa1-44b1-b733-8bf32e717ba8","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":96,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"51d5b765-3911-4b19-8dd0-407b717faaf1","block_type":"box","text":"maturity or specified call dates.","page_number":96,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"66bf50e6-a224-4416-a05b-69ff123b41e6","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":96,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"f31ccb21-8b62-4830-b738-835468644589","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mor tgages relates declines. In","page_number":96,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"c5fce46c-29d6-4828-bd7a-7c9dd1833787","block_type":"box","text":"addition, investments in mor tgage-backed securities involve cer tain specific risks. These risks include the failure of a","page_number":96,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"ec204250-e5cc-4dd5-a875-fa93c0b4efd5","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":96,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"e92e6360-b087-4607-8a91-eac5ff73bc5a","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":96,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"1d03d907-9163-4e86-b4a0-fc5e01e3cf30","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mor tgages are passed through to a Fund.","page_number":96,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"2dcf4c26-383f-4ef4-8b19-d510e63896f8","block_type":"box","text":"Accordingly, the value of mor tgage-backed securities in which a Fund invests may be par ticularly sensitive to changes","page_number":96,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"0e518d92-04bd-40d7-b1e5-0e1174317b8a","block_type":"box","text":"in prevailing interest rates, and, like other fixed income investments, the ability of a Fund to utilize these instruments","page_number":96,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"6fa8ff18-74b7-463f-ab1b-2a56e4904029","block_type":"box","text":"successfully may depend in par t upon the ability of the Manager to forecast interest rates and other economic factors","page_number":96,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"25cf7afd-e464-4cef-a246-73a7fbd56ba4","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":96,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"8cbef0c4-17d4-419b-b3f6-51620dcdc457","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":96,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"29fbd00c-3583-4c07-b57c-44667caf4bd1","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":96,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"4cc94f10-b4b0-4b2a-a7a9-1d82c1541abc","block_type":"box","text":"for its mor tgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":96,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"d75a2681-84e6-4e71-992e-d351dbb75286","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of prepayment of the","page_number":96,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"947736bf-77b9-4b81-a428-a6fd92673888","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":96,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"f1a4c5b9-026f-47aa-aa20-ceeefd8a83c1","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":96,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"819db393-c055-430c-9120-ace25649b383","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":96,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"8943d1c2-c1f2-47b7-bc0f-e2eb8b057722","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":96,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"6d45c2f7-7afd-47d3-898c-ff7fd108fff3","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":96,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"8d3f1083-1d3b-4c2b-92b1-c2ac994f2f09","block_type":"box","text":"principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such securities at a","page_number":96,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"5130a57a-4eba-4286-a5d2-2ec33e0ab049","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":96,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"052a01d9-9e1c-4645-963b-9cc8b02e7d1f","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":96,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"186af371-ec60-4115-8896-720550ed1cbe","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mor tgages may occur at a slower than","page_number":96,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"6a63dc64-cfef-4131-ae5c-e6c260a8c0a7","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":96,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"1a285968-d710-4ebe-9301-7ab5dfda144f","block_type":"box","text":"considered shor t- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":96,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"e996b995-bafc-4795-b327-fb1e2f40768e","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":96,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"c153d4c9-c1ce-4c02-b1c0-d1b83b61924b","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":96,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"96f32ed8-72e2-4ca3-a80c-c01616490b4a","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":96,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"632b60a0-6ff0-4d3a-8101-db4357ef3ae7","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":96,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"557cc96a-93a6-4da5-b0c0-68aca12343e0","block_type":"box","text":"There are currently three types of mor tgage pass-through securities: (1) those issued by the U.S. Government or","page_number":96,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"fb1769ec-5287-4615-90ad-d22e528d9a4c","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":96,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"6339da65-c900-4cb0-87b4-8daf1a6375ff","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":96,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"c3b5d729-ff6b-41a8-95bd-c539ee69ed3a","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":96,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"e90a7393-3fe0-47a6-a778-c032cd25ab36","block_type":"box","text":"securities issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities; and (3) those","page_number":96,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"32983dd0-5608-42e0-827e-de516fb16c52","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mor tgage loans or pass-through","page_number":96,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"9c34ee15-b16a-4f6e-968f-3144723ee3ea","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":96,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"2b0247fd-4baa-41e7-b517-0a16d65a9141","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":96,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"b147e34d-62f0-464d-a553-d772e619e399","block_type":"box","text":"Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely","page_number":96,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"be907d7e-4593-42ea-840a-c90cbfd7f595","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":96,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"deb4a284-1c4e-473e-879b-557cb0060083","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":96,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"095dec74-2fc8-4fa6-8f62-e3c41ea72f89","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":96,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"f56be9d9-9592-4ab2-8b5b-caa720175788","block_type":"box","text":"II-51","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e8f60d06-ba93-44bc-9c2d-a872dd3132ed","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fae25e63-0761-4379-9000-2eb10dcef633","block_type":"box","text":"guaranteed by Ginnie Mae (such cer tificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":97,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"2fae89d8-6133-4c49-acf7-9db2c2362473","block_type":"box","text":"payment of principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the United","page_number":97,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"b7675588-c466-4d99-b7ae-5630fa924513","block_type":"box","text":"States. Ginnie Mae cer tificates also are suppor ted by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":97,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"971f681f-4df7-4663-9517-262b7bc2b971","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":97,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"3f077676-007d-4894-8aca-bd0f6ce98207","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":97,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"2767c805-7e22-4f5b-879c-afc9799786c2","block_type":"box","text":"guaranteed as to timely payment of principal and interest by Fannie Mae. They are not backed by or entitled to the full","page_number":97,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"3a103d88-47e4-4787-963a-54f11d7929b8","block_type":"box","text":"faith and credit of the United States, but are suppor ted by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":97,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"ee93aee5-7a44-4064-a52d-ed9f9d3b50db","block_type":"box","text":"Depar tment. Fannie Mae was established as a federal agency in 1938 and in 1968 was char tered by Congress as a","page_number":97,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"8d01dab0-9305-4306-a85d-48fa32e8cdc9","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":97,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"6af8686f-47eb-47c0-9976-7979658d5a5a","block_type":"box","text":"Mor tgage Par ticipation Cer tificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":97,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"f87c683e-37ae-4c9c-a32b-8c2d6277bba9","block_type":"box","text":"corporation char tered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":97,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"1cc42674-a128-4928-9c4d-6fca4e699450","block_type":"box","text":"Home Loan Banks and do not constitute a debt or obligation of the United States or of any Federal Home Loan Bank.","page_number":97,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"08cf9fb4-f304-4224-b9ac-431dfaf70204","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":97,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"3ed8bbc4-445d-45ab-b7f0-f134f82071e8","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":97,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"25015d64-30de-4794-95b2-1d3e9ddfb0ae","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":97,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"121928ca-87c3-4c01-b12d-975b689f2d7d","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mor tgage, but","page_number":97,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"148abc62-cbe4-4a02-af94-088e51dfab7c","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":97,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"e3dd0237-ec2c-444b-9682-2612fc2a09e3","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":97,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"5e783ec4-3ea7-44a9-9f50-f52a67d67f7a","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":97,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"e5e5c1c6-2af2-4823-a7f0-2ca588bd671a","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":97,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"45839c11-31c7-45f2-a1b8-9c07512f4122","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":97,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"f797bb57-5ec9-4550-944c-e058b0c5f939","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":97,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"4b4c1525-a2f3-4b2c-a03a-1452b64cc205","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be suppor ted by various","page_number":97,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"d48f04e0-c710-4fce-8efc-166666ec8b97","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":97,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"16ebbd6c-72ce-4e91-ae5e-ad39ad028cdc","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":97,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"a24bc55b-10ba-4b7a-bd51-14d55318a6ee","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":97,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"d70f227c-3906-4d58-815a-79a08aa99783","block_type":"box","text":"a mor tgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":97,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"fb49c486-f203-4efb-9d77-24f22b90985c","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":97,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"a2d8c55a-ea6b-4075-80e0-5e4bb2fe2ebd","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":97,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"c9575a9b-8d5e-494b-9cc3-089472935455","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":97,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"ed0d2615-00b5-4208-9b44-039703942949","block_type":"box","text":"meet a Fund’s quality standards. Any mor tgage-related securities that are issued by private issuers have some","page_number":97,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"65aec853-e1f4-4749-b877-ae57aa777c01","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":97,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"4c679ae7-8f21-451e-8c1f-de74f87569f4","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":97,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"1f32a7be-3111-4272-8bf1-cf075d12e8cb","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":97,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"e949e255-99a1-4b00-a8d9-d841646e4f8c","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":97,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"1bd516cf-47a0-42e3-abfd-4f76d2bc8c6f","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":97,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"0ffd78a4-d3f4-4544-83d5-49d8fab6e71f","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":97,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"098d87ab-2261-4649-aa94-adc65b0f0cbd","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":97,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"c69dd728-22bd-47e6-b1d4-190045089bbe","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":97,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"fbf17c6d-8a63-4f97-b22a-6c95ec01ef2d","block_type":"box","text":"rates and maturities of the underlying mor tgage loans in a private-label mor tgage-related securities pool may vary to","page_number":97,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"5624a22f-c0ea-4579-ae41-e98061904b9c","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mor tgage","page_number":97,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"abc2cdb2-e85b-45c1-b3c3-bcb1a9656383","block_type":"box","text":"loans. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to","page_number":97,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"4b4f3972-d664-403f-b0d4-78b66e09091d","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":97,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"d358e6bb-754f-484e-a89e-07950abf78bc","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":97,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"9dbb4252-cfbf-4529-851d-ebfc9fdf5ad1","block_type":"box","text":"The risk of non-payment is greater for mor tgage-related securities that are backed by mor tgage pools that","page_number":97,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"c7bac6b6-6fc6-46d6-9931-80ac57e3152c","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mor tgage loan","page_number":97,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"1b9a8e9b-8335-4152-9d2a-73cbfa406a0c","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":97,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"8dde9de4-bc2b-4714-bc6f-e10cedb53831","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mor tgage","page_number":97,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"0779e304-35a3-4fc5-a67e-6d050881eab9","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":97,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"6b82ecfd-e19f-48d7-896e-c400518eb250","block_type":"box","text":"Privately issued mor tgage-related securities are not traded on an exchange and there may be a limited market","page_number":97,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"aa6d789c-136b-434c-9fbd-c318f91526b4","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mor tgage and real estate market sectors.","page_number":97,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"92970435-6f20-41bc-901a-0ea97445dfef","block_type":"box","text":"Without an active trading market, mor tgage-related securities held in a Fund’s por tfolio may be par ticularly difficult to","page_number":97,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"8fcfabaf-090c-4ee8-92a0-5e0d25f80989","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":97,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"6159bf0c-7f6a-44eb-888f-e6926075d13e","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":97,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"143e428f-726a-4dcd-bf0b-53f4618ba035","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":97,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"045381e3-7ab4-4c9d-b586-7962f73cba91","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":97,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"fe5edb2f-ed12-4e07-bf2a-e83c21f3c6d3","block_type":"box","text":"II-52","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"73d1b577-88ea-4253-bb1f-fb5833c73f50","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b68aa76d-3fb9-44c7-ada8-e34499adc188","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mor tgage loans or private mor tgage pass","page_number":98,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"98d5e20c-2a65-4496-a78f-b7391ca66e8c","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":98,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"d8bb57b0-6364-40f7-a8ea-f7050a5535ac","block_type":"box","text":"by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer of a series of CMOs may elect to be treated as a Real Estate","page_number":98,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"0860cda3-a74f-497c-a8cd-daf3b2ae1971","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":98,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"8ab5707f-c4ae-4960-9813-7874df595431","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":98,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"17d2d0f3-c288-493d-985b-f752ae417729","block_type":"box","text":"or fixed interest rate, and bearing a different stated maturity date and each must be fully retired no later than its final","page_number":98,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"c898d983-c5a0-4c96-bd7c-337b3d1a9942","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":98,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"a903ac91-3e40-467c-97b0-0c476c718146","block_type":"box","text":"is ordinarily unrelated to the stated maturity date. CMOs often provide for a modified form of call protection through a","page_number":98,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"b60cad6c-7139-4fa4-8bb5-1a6435ccfb30","block_type":"box","text":"de facto breakdown of the underlying pool of mor tgages according to how quickly the loans are repaid. Monthly","page_number":98,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"01fe78ba-0327-43d1-b721-454b2ed25718","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":98,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"368b32c1-03cb-4cb5-8904-82385a189d46","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":98,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"0b79ec4b-d443-4c9c-a092-8c3c68d481a9","block_type":"box","text":"only after the first class has been retired. An investor may be par tially protected against a sooner than desired return","page_number":98,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"cba71395-2bc1-4899-8ffd-004dc7b05e79","block_type":"box","text":"of principal because of the sequential payments.","page_number":98,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"088072c8-b8ef-4816-b12c-dafa181b261b","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":98,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"89ee0e60-5ac2-46c1-9760-7f082d6c65d5","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":98,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"ece16a16-59c5-4c07-9285-41f066741eef","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":98,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"ddc3c296-7e88-40f8-a26a-b292e7458ce5","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in cer tain other qualifying CMOs, which cannot or do not rely","page_number":98,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"e9c093c2-3d64-417b-8684-c6feaab13e5e","block_type":"box","text":"on the rule, are also not subject to the limitation of the Investment Company Act on acquiring interests in other","page_number":98,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"68fb87af-c79c-4f73-8f99-56bdde394b2b","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":98,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"8dbfa3a8-7a2e-4ec5-8de3-9c4a8a179501","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":98,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"2e8ec0d0-4026-44f4-ac98-db63589eb31f","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":98,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"16b61e28-1a6b-428a-b27b-0cda96685235","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":98,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"0d95b8c2-9ab4-458c-be7d-4fc3f82418a0","block_type":"box","text":"To the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above requirements, the Fund","page_number":98,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"252432a9-9fa3-4ba7-837d-fea71055e448","block_type":"box","text":"may not invest more than 10% of its assets in all such entities and may not acquire more than 3% of the voting","page_number":98,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"639ae65e-00d2-43a4-8b6f-d44161b37c11","block_type":"box","text":"securities of any single such entity.","page_number":98,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"a51e0cec-2d26-4e1f-99d8-014bcb380958","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating rate CMOs.","page_number":98,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"e02e120f-15f2-4147-88d6-f9f808b64308","block_type":"box","text":"Parallel pay CMOs are structured to provide payments of principal on each payment date to more than one class,","page_number":98,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"9678f609-e6e7-45ce-9f0d-0c56e1872c71","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":98,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"7e7a3f72-10e6-4a70-9ef9-f36beb2fd0a1","block_type":"box","text":"calculating the final distribution date of each class. Sequential pay CMOs generally pay principal to only one class at","page_number":98,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"0dfe206c-f21d-486c-b173-8618245f3d9f","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Cer tificates may be issued in the parallel pay","page_number":98,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"88376e45-0c1f-4f5e-acc9-48c1d7ba0add","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":98,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"251745ab-b305-4503-925a-c05f607e30c6","block_type":"box","text":"accrue interest at a specified rate until all other cer tificates having an earlier final distribution date have been retired","page_number":98,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"88f1677a-325c-49c4-aeaf-c324cc7ce149","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":98,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"b7ecc0a8-2709-4132-8e7c-5a9d1890fc1e","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":98,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"43ff9d10-f7d2-4d99-9f0a-3b10302cc99a","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":98,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"2f2c69ce-fa77-477b-9be0-4b12115c354c","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":98,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"bfabbea2-2a23-45ab-94dc-21ed60885dd3","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":98,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"f1f05997-88a0-49f9-97ea-6c67c718735a","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":98,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"3079bf0f-ebcb-4e41-a977-19d608817424","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shor tfalls, if any, are added to the","page_number":98,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"a8874e23-df29-4980-985d-d3be7220f371","block_type":"box","text":"amount payable on the next payment date. The PAC Cer tificate payment schedule is taken into account in calculating","page_number":98,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"58ad67f9-b2b0-4058-a197-186ec35756e8","block_type":"box","text":"the final distribution date of each class of PAC. In order to create PAC tranches, one or more tranches generally must","page_number":98,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"52eff5f4-d0a8-4041-bb2f-c8f7cf96c8e5","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":98,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"83703f18-6d6c-4c8a-8715-0a2cf0fff50c","block_type":"box","text":"“suppor ts” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":98,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"302ff420-81eb-4988-a9a3-d200de088fff","block_type":"box","text":"classes.","page_number":98,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"0b8b0d1a-4eb2-4556-9329-e4300ef2d454","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each payment","page_number":98,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"5999386b-9727-4ec9-9b00-414f46a16589","block_type":"box","text":"date to one or more classes of REMIC Cer tificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":98,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"22589396-f341-45d6-939e-7ae91c31deae","block_type":"box","text":"prepayment rates on the underlying mor tgages do not exceed cer tain ranges. In contrast, a TAC provides investors","page_number":98,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"e4fb35d3-e5d0-4247-ad96-ff10d9a86248","block_type":"box","text":"with protection, to a cer tain level, against either faster than expected or slower than expected prepayment rates, but","page_number":98,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"a59ccfdb-a977-4625-b297-e7cd7a7d3fbe","block_type":"box","text":"not both. TACs thus provide more cash flow stability than a regular sequential paying class, but less than a PAC. TACs","page_number":98,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"6edf8c99-312e-46de-bc2e-834d63c75635","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":98,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"0d864535-70ca-46c6-b4be-b808f6688c47","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":98,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"f9c39e48-ed65-49ed-a9d4-518e040a3628","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":98,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"4fb3fd93-8854-466f-927e-17ff62598463","block_type":"box","text":"collateralized by mor tgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mor tgage pool","page_number":98,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"2342feb8-498e-4f06-8232-30ad0676c402","block_type":"box","text":"generally provide for a fixed initial mor tgage interest rate for a set number of scheduled monthly payments. After that","page_number":98,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"92e68f15-086e-4348-aba3-2b7b6fa2ed8e","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":98,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"738ab833-2564-4c6b-8da3-4bc2630b35b0","block_type":"box","text":"to a designated benchmark index.","page_number":98,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"0b696ccf-4a88-42e4-936c-f235efd814e3","block_type":"box","text":"II-53","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8676af84-bc78-4f13-8070-cf1bde28268e","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bf68bfeb-4623-4660-aba9-37f6b6f51a0f","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":99,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"a5b914dd-a049-41b4-8c96-40f4ff9f0899","block_type":"box","text":"lifetime of the security. In addition, cer tain ARMs provide for additional limitations on the maximum amount by which","page_number":99,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"415f29a6-82ed-4933-a24d-ebfa528e812e","block_type":"box","text":"the mor tgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":99,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"54bcba46-738f-4d61-b9d6-d5f0b1cb60f8","block_type":"box","text":"more rapidly to levels above that of the ARM’s maximum rate, the ARM’s coupon may represent a below market rate","page_number":99,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"ec7854ac-fab6-4276-a860-f795c23b6562","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":99,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"8cc1f5d7-9028-4c8d-ae62-201eece67627","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":99,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"38721e84-32fb-40ce-97c5-1e204fd9483b","block_type":"box","text":"payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is added to the principal","page_number":99,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"7bcf6739-f7ca-444f-89c3-2874a9162b44","block_type":"box","text":"balance of the mor tgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":99,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"4d4c954e-cad9-4281-a538-7dc71b417fe6","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":99,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"6ca15052-0e36-46c4-8ef2-0895bd4e2c15","block_type":"box","text":"payment required at such point to amor tize the outstanding principal balance over the remaining term of the loan, the","page_number":99,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"3f3711a8-27dc-4034-b6dc-1802624e8aaa","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":99,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"054101ce-2099-4724-95ba-75c4fd9b0225","block_type":"box","text":"CMO Residuals.","page_number":99,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"9d333c28-56e8-452a-b938-78204af4d94d","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":99,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"81f1faab-ff74-40c1-a40e-e95f8bb773bb","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":99,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"ad2d4aad-352a-46d5-93f9-225975e4c9a9","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":99,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"8dd4c052-f787-4e9b-9560-6c8b342d2ec8","block_type":"box","text":"the foregoing. The cash flow generated by the mor tgage assets underlying a series of CMOs is applied first to make","page_number":99,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"d97ad77f-b7c8-451b-9111-249a06d99b8e","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":99,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"c7edafa7-0d8f-4410-a70b-94ebddf00b87","block_type":"box","text":"any management fees of the issuer. The residual in a CMO structure generally represents the interest in any excess","page_number":99,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"49a20393-fee5-44db-859a-99a9450acaad","block_type":"box","text":"cash flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the","page_number":99,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"aa309030-bbda-4946-b3bb-307050cd162d","block_type":"box","text":"related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a","page_number":99,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"b4a454c4-8a0e-40bf-8f00-7c5005172ed9","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mor tgage assets, the coupon rate of each class","page_number":99,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"b837be50-07c5-457b-be41-ad5a706a6546","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":99,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"bd8292f6-a3ec-47ba-ac00-56f1b563e622","block_type":"box","text":"mor tgage assets. In par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":99,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"fae4dd16-f8a1-4e61-b30a-f000a88da617","block_type":"box","text":"related underlying mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related","page_number":99,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"bd04c9fc-9f26-4880-86ce-a7e9016a3630","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate, the yield to","page_number":99,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"2ab8fd9d-dec7-4dcb-8517-e20af0462f41","block_type":"box","text":"maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which","page_number":99,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"57ec6ab5-98b2-48ce-9c31-45511a274f5c","block_type":"box","text":"interest rate adjustments are based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":99,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"8f847947-1949-4580-9f4c-62a83ff00e56","block_type":"box","text":"a CMO residual.","page_number":99,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"b9100c97-a7c5-41c6-92f9-4586b01eab3b","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":99,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"a9f86eab-6b3b-480a-8e1f-d1d1227888d8","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":99,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"fb1632ee-1a87-4a08-a7b3-5accb27d88b4","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":99,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"4efb1b86-efab-4de0-a262-3c7f9a2afc35","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":99,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"bce5c8cb-1584-4985-b7f5-87119164efb6","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":99,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"cae52afc-c53a-48ba-971f-190931c2532d","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":99,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"54c2dbf7-e792-4c4b-9d08-ef143cf62e3b","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":99,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"1e96b43b-9f4f-4895-9585-24131df4284a","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":99,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"adaeb913-d1dd-4e79-a229-7a8612a6a2ca","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":99,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"36f7774c-93a2-4e62-b486-7951f9a998be","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":99,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"7827740c-724d-404b-8342-aa02d5c172a9","block_type":"box","text":"interest and principal distributions on a pool of mor tgage assets. A common variety of SMBS is where one class (the","page_number":99,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"7309c1a0-b5c0-4aaf-978a-6cff18626be5","block_type":"box","text":"principal only or PO class) receives some of the interest and most of the principal from the underlying assets, while","page_number":99,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"e649e378-6414-4233-bdb6-4f4fd65f5919","block_type":"box","text":"the other class (the interest only or IO class) receives most of the interest and the remainder of the principal. In the","page_number":99,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"276ac110-5080-42d4-92b9-6a46d136a831","block_type":"box","text":"most extreme case, the IO class receives all of the interest, while the PO class receives all of the principal. While a","page_number":99,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"a2884d37-0306-4149-918f-d993424f7979","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO class. The yield","page_number":99,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"70c26d9f-2620-417a-ab8e-943d61145432","block_type":"box","text":"to maturity of an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the","page_number":99,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"e22aaa7b-5e27-4cb5-b361-e2f2d24f9347","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":99,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"cbee23c9-f44d-4c69-82c1-dbfc706fe425","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mor tgage assets","page_number":99,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"192fa8e1-342e-4106-98cd-75c325eb441b","block_type":"box","text":"experience greater than anticipated payments of principal, a Fund may fail to recoup fully its initial investment in IOs.","page_number":99,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"660f3efa-5eeb-41ac-a351-6238168891a6","block_type":"box","text":"In addition, there are cer tain types of IOs that represent the interest por tion of a par ticular class as opposed to the","page_number":99,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"8e72c6b0-8e8c-4ad3-bb83-37c97cbff54a","block_type":"box","text":"interest por tion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":99,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"3df911b5-497a-4d90-a7d4-77db844e4d2c","block_type":"box","text":"because of the characteristics of the principal por tion to which they relate. As a result of the above factors, a Fund","page_number":99,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"6885811d-7ef7-4b69-a06b-01f26591fe02","block_type":"box","text":"generally will purchase IOs only as a component of so called “synthetic” securities. This means that purchases of IOs","page_number":99,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"a4f5b84f-6bfa-4045-b463-73c2bccb803e","block_type":"box","text":"will be matched with cer tain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":99,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"f83b7722-60ad-4fd3-bf41-f8ac8aaf9a5e","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":99,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"a8f178be-7e87-4289-8b2b-07b55324ea61","block_type":"box","text":"effect on a Fund because of its holdings of IOs should be diminished somewhat because of the increased yield on","page_number":99,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"d838ca14-711b-4293-9270-85c6559f896b","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":99,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"cdb4a91f-1f9e-4a3c-b0d3-73147730b830","block_type":"box","text":"Tiered Index Bonds.","page_number":99,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"daa333ae-823a-40a3-af5b-d3fb0fd3b9e5","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":99,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"e11f9bdf-6639-450a-b47e-ce59afbadfe0","block_type":"box","text":"index bond is tied to a specified index or market rate. So long as this index or market rate is below a predetermined","page_number":99,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"94e3100c-8e70-452b-b5c6-2fe3d816c466","block_type":"box","text":"II-54","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f65ffc6f-b672-47c7-84d8-ad56cdf09082","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"482d5612-4502-4fcf-81d4-c760137065af","block_type":"box","text":"“strike” rate, the interest rate on the tiered index bond remains fixed. If, however, the specified index or market rate","page_number":100,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"86c0c4f3-9085-4644-892d-36c90bddeaaf","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":100,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"dbd3d301-f129-4b27-8553-3b36aa8b6e8f","block_type":"box","text":"circumstances, the interest rate on a tiered index bond, like an inverse floater, will move in the opposite direction of","page_number":100,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"b1be644b-9028-4491-a0da-b756d2ed9df6","block_type":"box","text":"prevailing interest rates, with the result that the price of the tiered index bond may be considerably more volatile than","page_number":100,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"7b00f21f-c4b9-4623-8523-8267b0612e9f","block_type":"box","text":"that of a fixed-rate bond.","page_number":100,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"05203f09-1a11-42dd-95c5-f2ebd460ac63","block_type":"box","text":"TBA Commitments.","page_number":100,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"6b660303-cd37-48b3-b137-af963dd466b2","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":100,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"146a7c98-d693-4df9-aa17-2b088f3c907c","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mor tgage-backed securities for a fixed price,","page_number":100,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"3ed7592a-1355-44cc-8c2e-e3658bab945a","block_type":"box","text":"with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not","page_number":100,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"d7403461-d410-4a3b-b0d4-340210681cf4","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":100,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"36ee74f6-6709-4e7b-b5fd-7283184d77b3","block_type":"box","text":"mor tgage terms. When the Fund enters into a TBA commitment for the sale of mor tgage-backed securities for a fixed","page_number":100,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"b075ec59-bdf2-483e-9eee-48cfb2ebbe18","block_type":"box","text":"price, with payment and delivery on an agreed upon future settlement date (which may be referred to as having a","page_number":100,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"1c40463d-632e-44df-9aed-e5394fb58c9d","block_type":"box","text":"shor t position in such TBA securities), the Fund may or may not hold the types of mor tgage-backed securities","page_number":100,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"b39c187e-ff73-4149-82c7-726adf937baf","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":100,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"60c8cd5d-8d6c-456b-a9ca-26c7919c57b5","block_type":"box","text":"below.","page_number":100,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"0c28d143-eac3-44c0-a913-5bfc137da570","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":100,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"9b8e7f39-6b82-4013-a11a-41de5d9f78ec","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":100,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"1610ba96-3a97-493a-9b3d-0c17b6816020","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":100,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"6faf3421-ec57-4a03-9a09-e147610465d6","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":100,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"1318f88c-e83c-4a94-a6bd-e9830fdbb99f","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mor tgages collateralizing those securities may have","page_number":100,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"1ff980bb-7f0f-4657-8b7a-aa5e6ef0b035","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":100,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"c3ddb3bc-1c4e-496f-bedf-d78e73106bb4","block_type":"box","text":"be entitled to receive interest and principal payments on the securities sold. Proceeds of the sale will be invested in","page_number":100,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"249a121c-5f05-4daa-ac3e-b716e2e14801","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":100,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"d6187954-1bac-4901-8a19-06b9383f639b","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been realized on the","page_number":100,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"744c5edf-050c-476a-becc-ff29007b566f","block_type":"box","text":"securities sold as par t of the dollar roll, the use of this technique will diminish the investment per formance of a Fund","page_number":100,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"1ca957ef-b44d-4491-bd6b-4b61421080d1","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":100,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"b116baa9-802f-4ca1-9951-e000259b6745","block_type":"box","text":"Each mor tgage dollar roll transaction is accounted for as a sale or purchase of a por tfolio security and a","page_number":100,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"95eeefff-3656-47d4-891e-12c9aea38415","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":100,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"6a1eb690-27ed-46ff-9b03-3970a5e39754","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":100,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"4cd64c74-9108-4ce7-96dd-1bf3be80a15d","block_type":"box","text":"In the event the buyer of the securities under a mor tgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":100,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"02f5ac0a-9255-47e5-8f02-d939e93069d4","block_type":"box","text":"Fund’s use of the proceeds of the current sale por tion of the transaction may be restricted pending a determination","page_number":100,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"0a5ee66e-8cc8-45d5-8740-1472263d24c5","block_type":"box","text":"by the other par ty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":100,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"2ce87e04-10d9-4025-9a9d-1bb5c29387f3","block_type":"box","text":"securities in the forward transaction.","page_number":100,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"2d7b9a18-450b-4a47-a637-b4081a292269","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mor tgage dollar rolls may","page_number":100,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"f4b3ff72-391d-4ebc-b50e-b9daa507f18c","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":100,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"08fc1332-ab51-47e7-af7a-63ac59d7eb19","block_type":"box","text":"that the market value of the securities subject to a Fund’s forward purchase commitment may decline below, or the","page_number":100,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"238128e1-94e3-4662-a7e4-eeff17d53f48","block_type":"box","text":"market value of the securities subject to a Fund’s forward sale commitment may increase above, the exercise price","page_number":100,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"9ebf2953-af89-43eb-91c1-1ca69338be86","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":100,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"d5fbe0a0-7e15-42e1-9a7f-b1d767f2e534","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":100,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"81e2bcf5-3190-4f48-80e3-a8289447a9cf","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":100,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"3a706791-4a72-4f35-9ea8-46de182f0d4f","block_type":"box","text":"securities (","page_number":100,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"dc1c263d-6ca6-4acb-bba8-25080e7f465e","block_type":"box","text":"e.g.","page_number":100,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"0cfe2cfc-d6f8-45ae-b005-5380d426978a","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":100,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"7f678cc1-0b1d-44e8-a5a4-60c1194fe83a","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":100,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"9de1edd4-6a7b-48f2-b11f-18c4573a7bd8","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":100,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"827864a9-5581-453a-8e4d-0eacadd9e969","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":100,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"9ed1b704-3ad3-42bd-a321-a486e2379331","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":100,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"96992479-5cff-4c84-a966-f5c5fa7e7fa8","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":100,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"b8265aa4-35dd-49b0-90b0-3589d74728b3","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":100,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"c32418b9-0030-49be-8ed0-8704b00e427c","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":100,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"cdcb429e-2be3-4c65-9a2e-0ea74d4a8dea","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":100,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"fb11cacd-333b-4234-993b-d8317cdbcf5b","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":100,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"692f6642-1e72-40f5-aee9-e3d26712adc8","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":100,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"8aa9f566-6d94-4c53-84a4-15431c0eb694","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":100,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"925577c1-7aad-4847-bc75-9c66a2be6ba9","block_type":"box","text":"securities, the yield to maturity on a NIM security is sensitive not only to changes in prevailing interest rates but also","page_number":100,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"efe601ce-d58e-410c-bee4-e37b7fc47dcb","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":100,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"751ad009-6ef1-47f0-85f9-1a5596b3759b","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":100,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"19b3f4af-3482-4b8e-a3d6-c57036e2a0d5","block_type":"box","text":"Municipal Investments.","page_number":100,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"f140c9ce-2cda-47a1-b076-2c84672f47be","block_type":"box","text":"II-55","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cf989b72-380a-4799-a7ce-349f9a6edac4","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7c22d53c-c8fd-4aa8-ba06-ee5321e0f5ad","block_type":"box","text":"Cer tain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":101,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"4cc1f761-774b-44da-8bfa-a05ed0f60f26","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":101,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"51229bee-a704-4cdb-a315-6b56e999e4cc","block_type":"box","text":"payments from which, in the opinion of bond counsel to the issuer, are excludable from gross income for U.S. federal","page_number":101,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"08e545f6-5f7c-4e0b-a25f-14e5867a5e77","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":101,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"da7aa6df-2e27-44e1-874d-e58298058925","block_type":"box","text":"pay interest excludable from gross income for purposes of state and local income taxes of the designated state and/","page_number":101,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"9161ff13-3b19-4bf6-9902-8be23b9015e8","block_type":"box","text":"or allow the value of a Fund’s shares to be exempt from state and local taxes of the designated state (“State","page_number":101,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"354a986e-4200-4cb3-8ddc-83da30e96efd","block_type":"box","text":"Municipal Bonds”). The Municipal Funds may also invest in securities not issued by or on behalf of a state or territory","page_number":101,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"739224fd-896a-46bf-b6e7-eec57ee76ac4","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":101,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"afca060f-338e-4266-9463-bac8c51afaa6","block_type":"box","text":"gross income for purposes of U.S. federal income tax and state and local income taxes of the designated state and/","page_number":101,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"44790f17-b41d-4515-bda4-76c2284cf98a","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":101,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"d0d20e8c-56ca-472c-82aa-16e09e065de7","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":101,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"e4a9afc0-b82e-4840-a5f5-322cda32a6a3","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":101,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"a4e82823-8acf-4696-8de2-056823aa2ec5","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":101,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"32559117-3fc9-4e86-9c0b-7cddf9e92df3","block_type":"box","text":"law. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for U.S. federal income tax","page_number":101,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"fc11130e-c4a8-48e9-b7f6-5597a7c50925","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":101,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"cbd326d8-a715-4a98-9595-f171c8b48c84","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":101,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"56d67266-d165-4e19-8a49-d518b6588d39","block_type":"box","text":"income tax and state and local income taxes of a designated state and/or allow the value of a Fund’s shares to be","page_number":101,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"c6f5bd8f-e278-4df9-b19c-626130f70740","block_type":"box","text":"exempt from state and local personal proper ty taxes of that state will be considered “State Municipal Bonds” for","page_number":101,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"0d6c34be-e93a-4039-ae3c-d36ca3d4f98b","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":101,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"3d91b057-57d7-4fc7-86aa-8894662b04f1","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":101,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"2e409e27-d036-4274-b22d-add3f0238479","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":101,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"ef4b11af-5597-4d0e-aa0a-55ea2f39c228","block_type":"box","text":"The risks and special considerations","page_number":101,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"0fb04f5d-576f-4b27-a409-dc4444a699b7","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":101,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"25c01d19-881f-4a31-8311-efe5c72baea0","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":101,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"7e3207c6-0691-4a5a-8237-5fc249bec84b","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":101,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"56071b52-a6ea-4e37-810d-66da3b8b9ef9","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncer tainties in the municipal markets as a result of","page_number":101,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"d6d0d480-7373-4cc6-a50e-145fbad4cfb1","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":101,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"f40a661b-7f03-46c2-b7fb-e47c6439b756","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and cer tain provisions of the","page_number":101,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"f090a813-9748-4f18-a43a-923854a73f71","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":101,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"b2684ac0-eecb-49dd-a19e-5f7bc24c153b","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":101,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"6bfca14b-f04c-419e-a646-444c775fd8a6","block_type":"box","text":"uncer tainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":101,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"19000969-7cf0-47d5-a6ff-e7db4cfc37ba","block_type":"box","text":"II-56","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"23da106f-b60d-4b85-9df7-5d558612240f","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0251ee36-6689-408d-8954-f1283d708ca5","block_type":"box","text":"Description of Municipal Bonds.","page_number":102,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"4a535509-8626-4963-b011-27be8b5509a4","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":102,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"67ecea0c-582a-4849-a12e-21c1fefd5f35","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":102,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"d363ce86-b2a7-4749-95b3-634d997ec215","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, cer tain types of bonds are issued","page_number":102,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"adbc2581-b7a2-4805-9092-24ee830724b5","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":102,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"c6b89e25-ec74-4e96-ba2c-af37daeddf24","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":102,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"9d677bb8-5a6a-4607-84d9-92b0aaedb486","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":102,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"2a025caf-4236-42cc-a6b1-bd502e85e669","block_type":"box","text":"excluded from gross income for U.S. federal income tax purposes and any applicable state and local taxes. Other","page_number":102,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"44bab23a-6741-4e28-8ec4-0226864af73b","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":102,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"59b03e7a-29b5-4b4e-8fe8-665dba300319","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":102,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"8cf44afb-a2a6-41cb-b7ff-4a9c684d987f","block_type":"box","text":"federal tax laws place substantial limitations on the size of such issues. The interest on Municipal Bonds may bear a","page_number":102,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"1b8a167e-514d-430f-94fa-2e7b6b2dc8e4","block_type":"box","text":"fixed rate or be payable at a variable or floating rate. The two principal classifications of Municipal Bonds are “general","page_number":102,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"4b52e033-e91c-44fc-97c9-90319556fb6d","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":102,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"0c442807-4a3a-4218-97a6-6150e500cc30","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":102,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"141197a7-fb9c-491c-8510-c9b983a571d5","block_type":"box","text":"General Obligation Bonds.","page_number":102,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"1c1e6b9b-b2ba-4dc6-ae43-50a9edb984df","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":102,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"a9f93774-20e2-422c-bdf8-b824436c0c48","block_type":"box","text":"taxing power for the payment of principal and interest. The taxing power of any governmental entity may be limited,","page_number":102,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"3b7babbd-a23f-47d7-b4f0-8a33c0c7bcfa","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditwor thiness will depend on many factors,","page_number":102,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"62a5d221-76aa-43c7-a56b-21f8a7061987","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":102,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"339ddf2a-8dd2-4184-a418-9be696ce40ba","block_type":"box","text":"industrial base or inability to attract new industries, economic limits on the ability to tax without eroding the tax base,","page_number":102,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"297fc1f8-7286-40cd-b311-dbbc97fe800c","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real proper ty taxes and the extent to which the entity","page_number":102,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"bc91121a-1e83-4d7d-a38a-7e80c6e505e7","block_type":"box","text":"relies on federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":102,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"84db71fb-3661-45ea-b914-64ae89e023a0","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest and the","page_number":102,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"0f6ea8d3-4df0-4113-9fd1-4139bb2b7410","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":102,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"d66d7e76-85f5-42be-9d36-84e87397f537","block_type":"box","text":"Revenue Bonds.","page_number":102,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"37acf350-6ef9-4555-97c7-7162dd24ace8","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":102,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"865f248c-3c28-4cc3-a39a-1f94ca642462","block_type":"box","text":"facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source such as","page_number":102,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"0d77d6f7-372e-42cb-b5aa-c3783a4882c4","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":102,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"43e33f57-c611-4900-8751-f49f2c6f16c1","block_type":"box","text":"of principal in accordance with the terms of the revenue or special obligation bond is a function of the economic","page_number":102,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"1d55d3ed-25bd-4583-8c2b-fb32f17c8263","block_type":"box","text":"viability of such facility or such revenue source.","page_number":102,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"ae036c27-03c0-4d43-99eb-4670831f3b61","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":102,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"9227eef0-8c47-41a6-9b7e-2004d7cbf3e2","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":102,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"62e9d129-4adf-4b6a-9c60-c35d3a9c2172","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":102,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"0c5b5efd-6909-452f-ad14-6f3b54629104","block_type":"box","text":"recourse against the proper ty owner, may be junior to the rights of others with an interest in the proper ties, may pay","page_number":102,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"cfae05bd-8509-400a-9d6e-ca4dc3b47a10","block_type":"box","text":"interest that changes based in par t on the financial per formance of the proper ty, may be prepayable without penalty","page_number":102,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"47591740-5d01-4a5c-bdb5-24dd9c434789","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":102,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"bd35574a-9485-46ac-914d-e5a28438da07","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":102,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"d052ec91-a3da-4e6c-97ea-105e34f41ce0","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":102,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"77fb730e-82b1-4bb0-8240-651eb51720b5","block_type":"box","text":"PABs.","page_number":102,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"fc3430dc-7730-48d7-833e-c85f4280ed9c","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":102,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"8be57d18-5ee2-4207-85b3-e7b674e624ec","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":102,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"01e313e6-4c5b-4972-8e83-bf8b12a96689","block_type":"box","text":"construction or improvement of a facility to be used by the entity. Such bonds are secured primarily by revenues","page_number":102,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"f2c5b735-428b-47d2-bfcc-dc1d69b46632","block_type":"box","text":"derived from loan repayments or lease payments due from the entity, which may or may not be guaranteed by a","page_number":102,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"06de2a20-c025-4334-92ee-4d60c233cd93","block_type":"box","text":"parent company or otherwise secured. PABs generally are not secured by a pledge of the taxing power of the issuer of","page_number":102,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"b54dca78-1879-4127-a752-ee032a372a25","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":102,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"a9080385-2d10-4253-bf83-764a6aaa177c","block_type":"box","text":"revenues of a private entity and be aware of the risks that such an investment may entail. The continued ability of an","page_number":102,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"a5ee097f-09c0-4414-a917-f04456eb0773","block_type":"box","text":"entity to generate sufficient revenues for the payment of principal and interest on such bonds will be affected by","page_number":102,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"4ba21ede-7b70-4a03-9581-1a2ff19707d9","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":102,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"d7c6c426-7a5b-4c69-9ba1-7f015cb944dd","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":102,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"e389d96e-66f6-4d3c-80e9-72d9f0835ccb","block_type":"box","text":"the par ticular facility being financed.","page_number":102,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"fbb60653-4a26-438f-bdcc-75c5885fd154","block_type":"box","text":"Moral Obligation Bonds.","page_number":102,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"a34fcff0-0a36-4743-9c01-3ada8e844b21","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":102,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"d84e855c-1bc8-4a96-9d96-0bb6f63cfdb4","block_type":"box","text":"issuer of moral obligation bonds is unable to meet its obligations, the repayment of such bonds becomes a moral","page_number":102,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"9d5c044b-b5ff-423c-b017-24c51c00ba54","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":102,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"fd00e224-35ee-4041-8ff8-e7738432cde0","block_type":"box","text":"that issued the bonds.","page_number":102,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"2d704d99-f586-4609-9815-31a23cb6811b","block_type":"box","text":"Municipal Notes.","page_number":102,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"1235c87f-0a1c-40f1-a809-32794c8f35f7","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":102,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"7acff4f8-4bb8-4adb-9326-ed7bfc3552e1","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shor tfall in the anticipated proceeds,","page_number":102,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"efa813b7-2eaa-44ab-a031-c6cecb07ee2e","block_type":"box","text":"repayment on the note may be delayed or the note may not be fully repaid, and a Fund may lose money.","page_number":102,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"52b8000b-6261-4d0f-b499-111afad697f5","block_type":"box","text":"II-57","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bc46211c-06bc-4933-9dee-9a472d68585a","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9861816e-3447-4060-a187-d377d7352c76","block_type":"box","text":"Municipal Commercial Paper.","page_number":103,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"94bf4ad1-f0e7-451c-b9ea-aacb1a37fe16","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":103,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"22ee6a9e-08c5-4487-ba76-a914e741b675","block_type":"box","text":"financing needs. The lack of security presents some risk of loss to a Fund since, in the event of an issuer’s","page_number":103,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"c219029f-adc2-481c-8bc4-6d7aa487725f","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":103,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"b3855882-78fd-489f-8a54-0564310a43a4","block_type":"box","text":"Municipal Lease Obligations.","page_number":103,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"2692fdaa-e4b7-451f-b943-eea6269b1d2d","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":103,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"640ac5a8-24a0-4ce8-b5d4-d5f57fe94851","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":103,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"3b1e7dc1-21ad-4aea-b6e2-19a0dc8af27e","block_type":"box","text":"equipment, land and/or facilities. The COPs represent par ticipations in a lease, an installment purchase contract or a","page_number":103,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"9570f9a1-d72f-435b-b8fc-8607716114f8","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":103,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"ebff9db0-0967-48a5-9d3d-64a2b988f578","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":103,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"25d6d030-df53-4fc5-97b6-8b1cc958b883","block_type":"box","text":"lease obligations do not constitute general obligations of the issuer for which the issuer’s unlimited taxing power is","page_number":103,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"320be1ed-fc83-4434-91f0-66450c5de1ae","block_type":"box","text":"pledged, a lease obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":103,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"c0ee5317-4df0-4a18-8024-eedca6c4a9d2","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":103,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"0e98eb3b-dc0e-4780-b807-be42c8448de1","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":103,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"0ab16975-4ef3-4e07-a644-aa812340df36","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":103,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"9ef8e699-3c8b-4684-9549-4245ef2848e3","block_type":"box","text":"secured by the leased proper ty, disposition of the proper ty in the event of foreclosure might prove difficult. These","page_number":103,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"50284c31-72fd-47f7-8bab-706afa6f3fd6","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":103,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"2b1ec4b8-6b19-4c8f-9e46-83e70ca9487e","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":103,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"45d9c8b2-12b4-4cd8-8449-9bc5ca731ed7","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":103,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"4f347bcc-1223-4717-831b-ace74dc23950","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":103,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"21f6f0a8-ab75-44a8-a86f-e29b286fe6c4","block_type":"box","text":"and local governmental units. Such non-payment would result in a reduction of income to a Fund and could result in a","page_number":103,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"ce1e9c9c-5992-4d2d-b683-d7e5e509d9ef","block_type":"box","text":"reduction in the value of the municipal lease experiencing non-payment and a potential decrease in the NAV of a","page_number":103,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"207b8361-6306-455f-94d2-24b7bdd999b2","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":103,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"e6bff86d-90d9-4b89-9d8a-33435654ce9a","block_type":"box","text":"such an issuer, a Fund could experience delays and limitations with respect to the collection of principal and interest","page_number":103,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"86910921-f7bb-40da-a403-78b0e87f8d26","block_type":"box","text":"on such municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest to","page_number":103,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"891c789c-3314-4856-905a-4e707940d110","block_type":"box","text":"which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might take possession of","page_number":103,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"e3f88b7e-700f-4c3a-be3d-865e217f7d93","block_type":"box","text":"and manage the assets securing the issuer’s obligations on such securities, which may increase a Fund’s operating","page_number":103,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"b643fece-4303-4068-b6dc-bebc4f78bf5f","block_type":"box","text":"expenses and adversely affect the NAV of a Fund. When the lease contains a non-appropriation clause, however, the","page_number":103,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"65b17545-4e33-4205-8bc4-a5258850a865","block_type":"box","text":"failure to pay would not be a default and a Fund would not have the right to take possession of the assets. Any","page_number":103,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"3f05ee97-9c0b-4dff-9aec-6836f4918f58","block_type":"box","text":"income derived from a Fund’s ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s","page_number":103,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"1b2e5c25-6aa4-41e6-888c-ec9ff5e797a9","block_type":"box","text":"intention to qualify as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":103,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"c367f051-2b6a-465b-8187-9eac365b2b05","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":103,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"73f35155-2bd6-47fd-bf72-7d33443c2f67","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":103,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"8d024d8e-2e45-4b8e-8c51-8313b0e63fca","block_type":"box","text":"Tender Option Bonds.","page_number":103,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"67be1df3-5ed9-418c-882a-e2c48731626d","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":103,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"9957a580-fe0a-4718-a651-54f5e416d164","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":103,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"fbedc1b4-81ed-4387-83d0-669f65a68395","block_type":"box","text":"invest pay interest or income that, in the opinion of counsel to the issuer, is exempt from regular U.S. federal income","page_number":103,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"9e9c63af-d912-4a1f-8db8-659acfffe65d","block_type":"box","text":"tax. BlackRock will not conduct its own analysis of the tax status of the interest or income paid by TOB Residuals","page_number":103,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"932edf47-c25c-47e6-a068-31b46bb9e065","block_type":"box","text":"held by the Funds, but will rely on the opinion of counsel to the issuer. Although volatile, TOB Residuals typically offer","page_number":103,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"bcdd5c07-9be1-4beb-81f7-16bca6436673","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":103,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"d7b1cac3-a410-4ee8-85fb-19525ee4a8aa","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":103,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"87eb3e9d-b35b-4165-8bbc-6825f6728a9d","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":103,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"f7cd4ddf-1f2c-4d69-bc33-994ca2d97538","block_type":"box","text":"Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically issues two classes of","page_number":103,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"67612102-2ad0-4297-810e-9a0746b80657","block_type":"box","text":"beneficial interests: shor t-term floating rate interests (“TOB Floaters”), which are sold to third-par ty investors, and","page_number":103,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"60b2cd69-371a-45e0-aaf5-03f0a8cd4b63","block_type":"box","text":"TOB Residuals, which are generally issued to the fund(s) that transferred Municipal Bonds to the TOB Trust. The","page_number":103,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"78858157-1a2b-4eb3-a292-706ef33e2d01","block_type":"box","text":"Funds may invest in both TOB Floaters and TOB Residuals. TOB Floaters may have first priority on the cash flow from","page_number":103,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"69ba1cc4-ad10-48cb-af85-d3d44690224b","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity suppor t arrangement from a third-par ty","page_number":103,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"09e9c4ec-8716-4941-9fc1-5c3bedeaa5b4","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":103,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"1207ebed-78b7-4167-a8ce-5a913ff756e6","block_type":"box","text":"as a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes the","page_number":103,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"680dbf51-cada-43cf-99f6-f1c7c721a5a9","block_type":"box","text":"Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the TOB Floaters, less","page_number":103,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"231fbc44-1e8e-4814-aef0-a0c72c9d33bf","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":103,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"55503d8f-5349-463c-bf0f-2877928379f5","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a por tion of the TOB Floaters sold by","page_number":103,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"47dcb9d3-f714-4c2a-9d1d-c4d5c00c71da","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a propor tionate amount of TOB Residuals to the","page_number":103,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"ced8905e-c396-4847-a689-3592e6842d32","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":103,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"686ef37e-d177-4a80-a9e8-f62c87540b46","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":103,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"bca1ff65-a374-4ca3-a559-73e801927a9f","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":103,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"027bf57a-5dea-453d-ac34-84d8ad6599be","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":103,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"98ec3fc1-dca3-4783-a047-7857039f6c66","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":103,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"1b11744b-882e-4307-9f4c-20f5830b102d","block_type":"box","text":"II-58","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1d54a37c-8f71-44c4-bfa4-262ee8a180eb","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"de5d00d2-76a1-4860-98c9-f8bae412aaa6","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In cer tain cases, when","page_number":104,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"01603adc-509f-45dc-ad91-cef4b486d865","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":104,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"9cad13ff-465c-4908-bb86-3ffde9740dab","block_type":"box","text":"enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by","page_number":104,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"2573d60b-a488-400d-83dc-b5b6a8dfaf1a","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":104,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"d7a00bed-8984-4e14-b953-ba9502ce1486","block_type":"box","text":"and a Fund, as a TOB Residual holder, would be responsible for reimbursement of any payments of principal and","page_number":104,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"efef01cd-e6c4-49de-9192-01562598de2a","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":104,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"7fd2ddd2-dbab-4b0d-9c9c-545e495dea0d","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a propor tional","page_number":104,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"c8df00ee-8a95-4fee-86bf-8f30e0bdda83","block_type":"box","text":"share of the TOB Floaters to tender their notes to the TOB Trust at par plus accrued interest. Thereafter, the Fund","page_number":104,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"8c47fcf6-c04d-4c4d-b632-2becf230269b","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":104,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"2f4b13d6-f0c8-4076-8905-d9f55272daa5","block_type":"box","text":"exposure for the Fund to the entire return of the Municipal Bonds in the TOB Trust, with a net cash investment by the","page_number":104,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"fe7592a5-cc85-4e24-b4b5-7972d8405c93","block_type":"box","text":"Fund that is less than the value of the Municipal Bonds in the TOB Trust. This multiplies the positive or negative","page_number":104,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"6379b6cc-92ef-42ae-b733-e685736c0277","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":104,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"67942a6b-d8de-4bea-b321-8a94a086d943","block_type":"box","text":"depends on the value of the Municipal Bonds deposited in the TOB Trust relative to the value of the TOB Floaters it","page_number":104,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"79e88ef0-93ff-490d-93da-352685a88ffa","block_type":"box","text":"issues.","page_number":104,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"c5405bb8-2b0c-4e39-81cb-06855b35cd16","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":104,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"7e1e2486-9678-474d-9cf1-bbc9be04ec40","block_type":"box","text":"the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of the principal amount of the","page_number":104,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"4822f210-40f6-4472-89e7-7995e2b5fe67","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":104,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"497f293c-24c5-4ab7-bec3-8432991cadba","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option termination","page_number":104,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"f79644a2-79d8-4492-b5d7-cffceece0994","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":104,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"9c9ddadf-ab1b-438d-ab56-f1d7e1fb9cf7","block_type":"box","text":"include the bankruptcy or default of the issuer of the Municipal Bonds held in the TOB Trust, a substantial downgrade","page_number":104,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"6c37177f-a584-4902-87b3-8d0f020d772b","block_type":"box","text":"in the credit quality of the issuer of the Municipal Bonds held in the TOB Trust, failure of any scheduled payment of","page_number":104,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"52618a6b-0279-470a-8b82-ffd937f1e227","block_type":"box","text":"principal or interest on the Municipal Bonds, and a judgment or ruling that interest on the Municipal Bonds is subject","page_number":104,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"ae45be51-48c4-4d6a-9765-f945f97006b2","block_type":"box","text":"to U.S. federal income taxation. MTEs may include, among other things, a failed remarketing of the TOB Floaters, the","page_number":104,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"d36079df-615f-4a4e-a6ce-a263f1e80d04","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity suppor t agreement, and a substantial decline in the market","page_number":104,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"51bf81f8-1107-496e-bcc2-d505d491ce94","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a TOB Trust would be","page_number":104,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"01c37a66-acc4-4fbe-b1be-09143ef0e74d","block_type":"box","text":"liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the remarketing","page_number":104,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"4e588a4d-e9b9-435b-b389-dd31ebbdcd1e","block_type":"box","text":"agent of the TOB Floaters and the Liquidity Provider (defined below). In the case of an MTE, after the payment of fees,","page_number":104,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"50845a9c-a609-4cd6-9608-17cc4773f4ce","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":104,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"9d082b2b-e3f4-434b-9222-fba88adbb7fb","block_type":"box","text":"i.e.","page_number":104,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"0a3c8ce8-11b0-4a07-8001-68ce66153c6d","block_type":"box","text":", the Fund). In contrast, in the","page_number":104,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"19dcb863-65c9-4126-b525-85cc3e567c97","block_type":"box","text":"case of a TOTE, after payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro","page_number":104,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"28d29762-0243-421c-9b99-ab7f78fcaad2","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":104,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"68a66e66-84c0-49a5-afcc-573efc4a9e1a","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically suppor ted","page_number":104,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"3553b8d5-60fa-484f-9724-051238a4c2c0","block_type":"box","text":"by a liquidity facility provided by a third-par ty bank or other financial institution (the “Liquidity Provider”) that allows","page_number":104,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"7756e6cf-7b86-482f-83c7-d9fec0133ec0","block_type":"box","text":"the holders of the TOB Floaters to tender their TOB Floaters in exchange for payment of par plus accrued interest on","page_number":104,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"72a7421b-92d3-4363-8ccb-4eda59ce9eed","block_type":"box","text":"any business day (subject to the non-occurrence of a TOTE described above). Depending on the structure of the TOB","page_number":104,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"c3bc6193-5aa0-406c-af2c-c50a6aa5e981","block_type":"box","text":"Trust, the Liquidity Provider may purchase the tendered TOB Floaters, or the TOB Trust may draw upon a loan from","page_number":104,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"19aa6dae-308f-466b-9ba7-b6db5f8b72ad","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":104,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"a20a7183-0058-4b14-8436-d487f01e911a","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to make a","page_number":104,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"319926e4-d27f-479b-b4cb-8cf7f02ce1b1","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a por tion of the Municipal Bonds","page_number":104,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"84576fd6-250e-4c8c-b332-8bbc4462094e","block_type":"box","text":"held in the TOB Trust and then fund the balance, if any, of the amount owed under the liquidity facility over the","page_number":104,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"8fd2167e-b4f5-41bb-bb81-68d9cb9814c4","block_type":"box","text":"liquidation proceeds (the “Liquidation Shor tfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":104,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"3a4e9a20-eab5-4985-8dc6-ad571d78e78d","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":104,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"29fecddb-007f-42cb-bf4c-f9708563a7d0","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shor tfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":104,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"f5b5900d-beff-4d8e-be96-b7b54500ab5c","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shor tfall. If multiple BlackRock-advised funds","page_number":104,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"6aae3f82-0a20-4f32-9cf1-ff7cd684859b","block_type":"box","text":"par ticipate in any such TOB Trust, these losses will be shared ratably, in propor tion to their par ticipation in the TOB","page_number":104,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"d51bf213-007c-4d81-920a-d55073b319bf","block_type":"box","text":"Trust.","page_number":104,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"6a8f99ee-2000-4852-8de3-f5da81b96823","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are investments of the","page_number":104,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"02ffd2e9-5ae3-474f-a121-1eff006c73ce","block_type":"box","text":"Fund and are presented on the Fund’s Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust","page_number":104,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"ceef5f7c-2b1c-47f6-b734-772ac5e00469","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":104,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"377a3ff1-f0ad-4ae4-9611-d802930bb7d3","block_type":"box","text":"Municipal Bonds is recorded by a Fund on an accrual basis. Interest expense incurred on the TOB Floaters and other","page_number":104,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"206b18f6-c31d-4bb6-a6d9-0b70b3fd3d09","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":104,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"8285aa55-e7f6-4b89-a1e5-6a91aecbb476","block_type":"box","text":"of a Fund. In addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented as","page_number":104,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"901c16c3-1c39-483c-84c2-9841ce80a11c","block_type":"box","text":"loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s assets.","page_number":104,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"ecb24686-153f-40d9-8362-0c2bf1929bb3","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":104,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"c1520c1c-2d52-4419-a63c-7f54ad899b1b","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":104,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"f8abfcb3-d576-4c7b-8573-e8276ffe0b0b","block_type":"box","text":"II-59","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5cf4381e-49fe-4e28-908e-5f95a7747c35","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"32f7cb1f-c406-4a6f-836c-8d88863d02ba","block_type":"box","text":"Since the tender option feature has a shor ter term than the final maturity or first call date of the underlying Municipal","page_number":105,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"a7cacfbe-cc52-4a1e-b353-4f44e65e0c97","block_type":"box","text":"Bonds deposited in the TOB Trust, the holder of the TOB Floaters relies upon the terms of the agreement with the","page_number":105,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"3ddc9de0-17d8-4a24-9e3c-cb5f0892ad07","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":105,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"9bb1df0b-4858-4565-8811-f235cef2f9b2","block_type":"box","text":"with TOB Floaters, however, may be increased in the current market environment as a result of recent downgrades to","page_number":105,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"d3cff83a-b1df-4815-a7bf-da06bb1181e5","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":105,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"820996e1-0918-4298-b79f-455fa30ac163","block_type":"box","text":"of which sponsor and/or provide liquidity suppor t to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":105,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"013c5306-1381-40c2-8923-fd19bf680862","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":105,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"fa49ecd5-32c5-4f31-a334-357aa41f3377","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":105,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"f9585506-273b-49f3-b1c3-4052695d517e","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":105,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"190e4e72-1dad-41cf-917b-4c50ace09b7c","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":105,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"bf26d769-fdbc-4a57-9d77-4f72262d8bfb","block_type":"box","text":"(i) complies with the 300% asset coverage ratio with respect to such transactions and any other borrowings in the","page_number":105,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"37648b83-3d3f-438f-8779-63b3374e99e6","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":105,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"fa74c1c5-d5ea-4438-b222-5a2ea244cacf","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":105,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"7e992d0b-ff0d-428e-bc9f-bf2ae64fe393","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":105,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"85e1f233-3dbb-4904-b803-ba245d12b21a","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":105,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"cfed176e-a19e-4546-b2ee-56793735d386","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":105,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"d75ae2ce-0f1f-42d9-91bd-d9733c5bc556","block_type":"box","text":"ensure that no banking entity is sponsoring the TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will","page_number":105,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"27518364-03d4-4717-bc9b-d2f90aac2cc7","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, cer tain","page_number":105,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"768f77b6-bfbf-4286-a737-b465cc299c24","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be per formed by, or on behalf of, a Fund. A Fund","page_number":105,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"b22014c7-9bc8-4cee-b48c-ff27a249908c","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":105,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"29be8f2d-48c2-4359-b3dd-4e1c7531136c","block_type":"box","text":"could limit the market for such structured TOB Trust transactions or a Fund’s ability to hold TOB Residuals. Under","page_number":105,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"5a74300d-9987-4151-ade3-11b09a9edcaf","block_type":"box","text":"this TOB Trust structure, a Fund has cer tain additional duties and responsibilities, which may give rise to cer tain","page_number":105,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"8758899a-ef4e-4749-89a0-1325413be94b","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":105,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"ad26651a-d1ff-479f-bc99-83ebd7f28160","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":105,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"14234f8b-3b63-47c4-a6b0-215c82f83be4","block_type":"box","text":"remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual holder. Similar to the","page_number":105,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"c5024a22-667f-40fa-9dcb-d8f6a0dde064","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":105,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"be29b978-d251-43f5-bd78-68675c17d8a8","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-par ty investors, and the proceeds of the sale of","page_number":105,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"6e67d308-3123-45e0-a4c1-73e1617102e7","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":105,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"b7f4429f-8cf2-4b89-aff0-ef4ebadb743e","block_type":"box","text":"i.e.","page_number":105,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"c29c469d-6a54-4306-8153-5f6ddc1e3961","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":105,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"95525c58-8a74-4910-8572-5b2a8aca38e3","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":105,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"b0ebb954-a688-475c-9cd0-120136322762","block_type":"box","text":"TOB Floaters for its own account in the event of a failed remarketing, which may increase the likelihood that a TOB","page_number":105,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"5bc29646-47f7-4177-99de-56e7cab2bfa6","block_type":"box","text":"Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. In the event of a failed","page_number":105,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"5fac142e-6516-428a-989e-f09e73b36ca3","block_type":"box","text":"remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance a loan to the TOB Trust the proceeds","page_number":105,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"75a0e418-393d-4986-9f77-e0878d2c8707","block_type":"box","text":"of which would be used by the TOB Trust to purchase the tendered TOB Floaters. The Liquidity Provider is not","page_number":105,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"d8af542f-3cdf-4c0f-bc59-bf597044285c","block_type":"box","text":"obligated to advance such a loan. The TOB Trust would be the borrower with respect to any such loan. Any loans","page_number":105,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"77261bad-75c4-40ba-a9c8-906185c3e217","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":105,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"d588599b-e260-48e2-9282-1e237fd62c15","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":105,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"c8aabd5b-1280-4963-b8d0-a2c3a72a2280","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shor tfall, there would generally be no","page_number":105,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"8ed7e7dc-835a-48bc-bacb-ee89f96026de","block_type":"box","text":"contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB Residual. However, as described","page_number":105,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"97c9d85a-6ee8-4917-bba7-dba9ee6673f6","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shor tfall if it holds a recourse TOB Residual.","page_number":105,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"472106b6-b062-46e2-8eed-166e44f2a1b9","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":105,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"7931a48f-1c52-406c-be7e-13c711865bb7","block_type":"box","text":"(the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention Rules require the sponsor of a","page_number":105,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"90f69aed-cc98-446c-80dd-3a32c877ace6","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets suppor ting the TOB Trust’s Municipal","page_number":105,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"ed3d21f2-937e-4594-915e-43aaf588d4ab","block_type":"box","text":"Bonds. The Risk Retention Rules may adversely affect the Fund’s ability to engage in TOB Trust transactions or","page_number":105,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"66b24d3a-c77b-4e35-89fe-d5c875bb2dec","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":105,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"7f2213dd-f8fb-4321-90a7-4c555fd72839","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":105,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"faa017d6-3d60-461e-b303-c2dc1fbff6b1","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":105,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"1c6c7bfd-b7ea-40b2-ab61-ff5187e4cbad","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":105,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"7aade77e-4521-459a-a93e-2c5ce4bcde3b","block_type":"box","text":"could adversely affect the Funds. The ultimate impact of these rules on the TOB market and the overall municipal","page_number":105,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"69398004-3976-4cb0-9425-83e820b19398","block_type":"box","text":"market is not yet cer tain.","page_number":105,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"883669c7-758b-40f1-b434-4e81e52966dd","block_type":"box","text":"Yields.","page_number":105,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"0470640f-d76b-4a09-9617-1f006c82adcf","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":105,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"3bf10f1f-6d2e-4d34-914d-0f0aa8b32d82","block_type":"box","text":"money market and of the municipal bond market, the size of a par ticular offering, the financial condition of the","page_number":105,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"10f53cce-83df-4330-bcee-76412d356666","block_type":"box","text":"issuer, the maturity of the obligation and the rating of the issue. The ability of a Fund to achieve its investment","page_number":105,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"d422609b-c70b-452b-b36d-ddf1ec5ecb03","block_type":"box","text":"objective is also dependent on the continuing ability of the issuers of the securities in which the Fund invests to meet","page_number":105,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"9b9d540b-fb58-4782-a20a-32b56191ac52","block_type":"box","text":"their obligations for the payment of interest and principal when due. There are variations in the risks involved in","page_number":105,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"db8d046b-f190-462a-82c1-8a95d7cc8827","block_type":"box","text":"II-60","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1eae5919-177e-4a28-84d1-35c43e31591b","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a6f23016-cc4f-4565-90e6-21e8f454ed09","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":106,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"4042ac74-3640-4180-bf2d-777e04648c9d","block_type":"box","text":"factors. Fur thermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":106,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"9071bb01-105b-470f-94ec-d928cc6a1b14","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":106,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"f238f03c-514e-41ad-a4d6-a7793bfa6b92","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":106,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"62fe2f36-b184-4751-9134-821d4b7d32d8","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":106,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"3702e701-ada3-47b6-8a88-4a9378464e65","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":106,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"44f3ab78-0b4b-4f43-b994-9503966b55b8","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the par t of the holder thereof to receive payment","page_number":106,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"ead49e9b-ed0a-4833-a4a2-c270fe336f87","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a shor t notice period not to exceed seven days.","page_number":106,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"b41ee5f0-7982-4513-8c06-7ecaa9f95b03","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be honored.","page_number":106,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"0a0461bf-6993-4297-8685-56a4af5fa6d1","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":106,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"a6340173-7358-4d50-84ea-231bf3680387","block_type":"box","text":"adjustment formula being calculated to maintain the market rate of the VRDOs at approximately the par value of the","page_number":106,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"8b9241ab-e5ac-4139-966a-41f92c4d6f82","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":106,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"06856146-e00c-4a99-b58b-225916352920","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":106,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"b5c8f2bf-b250-4885-bcbc-6054e7d378ec","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":106,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"907f346c-4089-4cb8-bdf5-1d955bb0247f","block_type":"box","text":"During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its shareholders will forego the","page_number":106,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"53f6d808-a4bb-406d-af62-421cc2ffb757","block_type":"box","text":"oppor tunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":106,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"81c7e28f-02e5-4058-b4d3-f68864f378ce","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":106,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"c44b0ff1-f11a-4376-b3da-94e3daa0c9fc","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":106,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"41942b55-e93e-47d7-8491-93c12bce0277","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":106,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"32c96a08-169c-4830-a712-37e611a0176e","block_type":"box","text":"deal in financial futures contracts based on a long-term municipal bond index developed by the Chicago Board of","page_number":106,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"b96d6a4b-dcdd-4dd9-81a4-9d96fbffbd48","block_type":"box","text":"Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal Bond Index is comprised of 40 long","page_number":106,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"a4b5f3dc-1422-4d40-b901-400f8b41a1f9","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":106,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"2a50173d-a0a7-405f-8ecd-f7062c4b2f8f","block_type":"box","text":"Bond Index must be rated A or higher by Moody’s or S&P and must have a remaining maturity of 19 years or more.","page_number":106,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"23053b98-fe37-4b01-9b2f-6fa84890da87","block_type":"box","text":"Twice a month new issues satisfying the eligibility requirements are added to, and an equal number of old issues are","page_number":106,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"4b90ee9e-a836-4e46-ac60-eab5d6789365","block_type":"box","text":"deleted from, the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":106,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"5ab26507-0db8-4948-ba25-d0fafce414f8","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six dealer-to-dealer brokers.","page_number":106,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"39697f08-c0e6-4158-bba6-e4e5a7e34e6c","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":106,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"8acca40c-4711-4233-ac60-802d40d206bd","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":106,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"76a4abd4-75e7-41b8-8e35-13fd7cf5dda6","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":106,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"d4a01871-0d43-4377-9941-8e0a9cca6342","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":106,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"c2d94ac2-482a-4bb2-b5ca-4de379b0761a","block_type":"box","text":"contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s ability to hedge","page_number":106,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"c4b1b2ab-a94a-43c4-80c1-18db76ef7164","block_type":"box","text":"effectively all or a por tion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":106,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"04e432f9-bcad-42b2-bbe2-17eb02cafba7","block_type":"box","text":"depend in par t on the degree to which price movements in the index underlying the financial futures contract","page_number":106,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"515c69f2-ff33-432e-9644-66586de6c843","block_type":"box","text":"correlate with the price movements of the Municipal Bonds held by the Fund. The correlation may be affected by","page_number":106,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"501e995e-0c09-4a1a-a582-462ea32aecf8","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":106,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"93caa595-d19c-4244-8fd9-0ce400da5669","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":106,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"241d1ee4-bdb9-400e-8cb2-e568e6c64e15","block_type":"box","text":"correlation between movements in the value of the Municipal Bond Index may be subject to change over time as","page_number":106,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"7b645472-0370-40ae-ae54-f0bf0752b68b","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":106,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"fc5e97d8-0126-4c9b-b6c8-40a897bbb282","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":106,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"1ca46ed3-12fd-42f8-8be4-9ff48b3b61a8","block_type":"box","text":"affected by similar factors and the risk of imper fect correlation between movements in the prices of such futures","page_number":106,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"5af8ff61-ecb1-4087-8934-84ebef4db8ac","block_type":"box","text":"contracts and the prices of Municipal Bonds held by a Municipal Fund may be greater. Municipal Bond Index futures","page_number":106,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"c782b383-d514-4d64-b137-87e09bf4ed33","block_type":"box","text":"contracts were approved for trading in 1985. Trading in such futures contracts may tend to be less liquid than trading","page_number":106,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"1f64aedd-14c1-477a-988f-e151b4a1e132","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to cer tain market risks, such as inadequate","page_number":106,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"862bd3cd-964a-4a5c-af02-36a5b0a664fd","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":106,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"e01be3fa-30dd-4fc0-a01e-d015bd32d27c","block_type":"box","text":"Call Rights.","page_number":106,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"052ad2c1-8e5a-4641-a9ef-d499af36ddcc","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a por tion of such Municipal Bond","page_number":106,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"49c998e1-07d2-40a7-b59b-10a1b087b4c1","block_type":"box","text":"for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may exercise such right to require a","page_number":106,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"4b349d3b-8177-4989-a3b8-a9c6cb441f75","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to cer tain conditions. A Call Right that is not","page_number":106,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"b73788de-5e8d-4d33-bbd7-333258c815cb","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":106,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"f2253999-b423-46ad-b1c7-4fd4dc54beb4","block_type":"box","text":"both the Call Right and the related Municipal Bond is identical to holding a Municipal Bond as a non-callable security.","page_number":106,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"e6a6a4db-78e9-41cb-84c2-f19be4799f16","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":106,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"4e0fe885-06b5-4a6b-9a64-72d925c84e61","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":106,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"b049b6dc-ddf4-496d-b635-7cb764172f50","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":106,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"0c400465-71b9-4cb9-bb37-5b8cae9222bc","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such as Municipal","page_number":106,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"9e8be1ff-f116-4494-9368-eba02d7022ac","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":106,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"01a534e3-13b4-4f87-9be4-af9a3ab323eb","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":106,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"7009ee46-3845-414c-9379-279bda62c23c","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a par ticular investment or por tion of its por tfolio or to","page_number":106,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"24c0b2de-271c-4fa5-b7fd-a341201a6ff2","block_type":"box","text":"protect against any increase in the price of securities the Fund anticipates purchasing at a later date. A Fund intends","page_number":106,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"b95a0361-ee12-4402-bffe-7f7aaa52a057","block_type":"box","text":"II-61","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"356fe3ef-d8d1-41df-bfe7-0df96f17deaa","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2a07ef21-612e-4abb-976c-821445a44eed","block_type":"box","text":"to use these transactions primarily as a hedge rather than as a speculative investment. However, a Fund also may","page_number":107,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"6327e4b4-3d2d-4f73-9faf-1a227c1dda63","block_type":"box","text":"invest in MMD Swaps and SIFMA Swaps to enhance income or gain or to increase the Fund’s yield, for example,","page_number":107,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"c3a315bc-3576-4cd9-8906-73aab1f633ec","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":107,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"0dc4d351-ea59-435d-b85c-8da90818140e","block_type":"box","text":"i.e.","page_number":107,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"603eba1a-ffda-433b-bd1e-6ebca6bff153","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":107,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"2493b46a-49df-4341-9308-7dd3fed853ec","block_type":"box","text":"rates).","page_number":107,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"6f436ba6-d7e5-43dd-9286-f44e713f5483","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund exchanges with","page_number":107,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"04b51f78-3000-4333-9135-a6d759ed67e4","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":107,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"cf4d6783-4fb2-4199-a5f7-d6fdf89c177f","block_type":"box","text":"e.g.","page_number":107,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"2ff6e8fe-94c7-4526-b697-6d6a4ce42903","block_type":"box","text":", an exchange of fixed rate payments for","page_number":107,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"8d7744fc-de0c-4561-8924-822e42cffd8e","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":107,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"9fbf7c93-9df7-4439-b3d2-620877b5bdf7","block_type":"box","text":"index, SIFMA Swaps may reduce cross-market risks incurred by a Fund and increase a Fund’s ability to hedge","page_number":107,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"bce154ab-7fdb-4495-840d-852e370a6d3c","block_type":"box","text":"effectively. SIFMA Swaps are typically quoted for the entire yield curve, beginning with a seven day floating rate index","page_number":107,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"d2545727-d1e8-4293-90ee-519f96827f32","block_type":"box","text":"out to 30 years. The duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond","page_number":107,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"6ec945ee-6b4c-4d99-93aa-263bdf68ce7d","block_type":"box","text":"with the same attributes as the swap (","page_number":107,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"7ef68bba-7a1e-4be8-b9b2-7adc01f1f421","block_type":"box","text":"e.g.","page_number":107,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"f910dde7-4905-4753-8d94-d90c8d642425","block_type":"box","text":", coupon, maturity, call feature).","page_number":107,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"5a31ae81-0e48-4cd1-a136-19114e08b68a","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap permits a Fund","page_number":107,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"96d4d862-2be2-4383-a409-2cd1ad26afec","block_type":"box","text":"to lock in a specified municipal interest rate for a por tion of its por tfolio to preserve a return on a par ticular","page_number":107,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"f808698d-2435-415a-807b-2d087ac2827a","block_type":"box","text":"investment or a por tion of its por tfolio as a duration management technique or to protect against any increase in the","page_number":107,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"a902aa26-89cd-48b4-a7a4-9915e31bb67b","block_type":"box","text":"price of securities to be purchased at a later date. By using an MMD Swap, a Fund can create a synthetic long or","page_number":107,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"0a6f78b4-57ec-4995-8e15-9c85cb0b5038","block_type":"box","text":"shor t position, allowing the Fund to select the most attractive par t of the yield curve. An MMD Swap is a contract","page_number":107,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"428bafe5-a4b5-4036-a2a0-48d70725f706","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the par ties agree to make payments to each other on","page_number":107,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"a43dd297-855c-4f76-b371-2b1cffbed803","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":107,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"35b51667-1889-4be5-815b-f628a82f663e","block_type":"box","text":"below a specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and the","page_number":107,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"cb13afc8-22be-40d6-ad6d-ea6a51c2c32e","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":107,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"1be4cddb-93ea-4bea-957e-9166278a833e","block_type":"box","text":"counterpar ty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":107,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"859961c5-0975-4ba9-98d7-661a35a7ffd7","block_type":"box","text":"multiplied by the notional amount of the contract. If the Municipal Market Data AAA General Obligation Scale is above","page_number":107,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"2469932e-7423-4584-88e3-266a7493b937","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterpar ty equal to the actual level","page_number":107,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"36521491-52ff-4555-947d-4b6b830d9f99","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":107,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"e9f507ea-ed85-4724-95d8-73f0c2aaa2b9","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps, there is a risk that municipal yields will move in the","page_number":107,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"c05dd207-2c83-43b0-99d3-3cb3c0d3145a","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterpar ty in","page_number":107,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"4ced04ab-93c7-4c89-b094-d351746ba82b","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":107,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"b115f3f8-c178-40b9-836b-a8fe8021d895","block_type":"box","text":"Insured Municipal Bonds.","page_number":107,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"2aaaaa91-80fe-4dc7-b2d7-d39b44d9834f","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":107,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"c81ad69f-0148-4a41-a909-99a8851217a2","block_type":"box","text":"payments on the bond will be made on time and the principal will be repaid when the bond matures. Either the issuer","page_number":107,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"4e1581ac-c40e-463c-9d42-c5d81462f03b","block_type":"box","text":"of the bond or the Fund purchases the insurance. Insurance is expected to protect the Fund against losses caused by","page_number":107,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"ebe1606f-c58f-4b6b-8b09-085f87bb3d3a","block_type":"box","text":"a bond issuer’s failure to make interest or principal payments. However, insurance does not protect the Fund or its","page_number":107,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"f9df6406-8d85-4fb8-8ad7-afb74a358ac1","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be cer tain that any","page_number":107,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"b5dec9da-a407-4936-b1d2-0a87941c6845","block_type":"box","text":"insurance company does not make these payments. In addition, if the Fund purchases the insurance, it may pay the","page_number":107,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"4798304e-4fe0-4ec0-8328-981052008d58","block_type":"box","text":"premiums, which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims paying","page_number":107,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"f49b4c45-f730-4e2e-88c9-e55bdf670c43","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":107,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"ed35e422-2e34-4747-86ed-2132f2476741","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":107,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"13c8720b-07aa-4609-82c4-7247ef301ddb","block_type":"box","text":"insurance or insured bonds. If a bond’s insurer fails to fulfill its obligations or loses its credit rating, the value of the","page_number":107,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"ae9a7001-70b8-4548-a915-8c83768bb7a0","block_type":"box","text":"bond could drop.","page_number":107,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"434c1918-92cd-4277-8bc7-85651d63224e","block_type":"box","text":"Build America Bonds.","page_number":107,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"1ad3c5ba-76fd-4c10-baa3-a92aab13c2f6","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":107,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"d0f32a13-1cf0-4a07-b673-2f8fefa6e96e","block_type":"box","text":"income tax credit; however, the issuer of a Build America Bond may instead elect to receive a cash payment directly","page_number":107,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"9af33ec4-c06e-4f16-a137-ff9f5058f014","block_type":"box","text":"from the federal government in lieu of holders such as the fund receiving a tax credit. The interest on Build America","page_number":107,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"ec1049b5-5bd7-4b92-a7ce-c9526f0e7210","block_type":"box","text":"Bonds is taxable for U.S. federal income tax purposes. If the Fund does receive tax credits from Build America Bonds","page_number":107,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"997e477f-d708-47d1-8349-96c4842bacd2","block_type":"box","text":"or other tax credit bonds on one or more specified dates during the fund’s taxable year, and the Fund satisfies the","page_number":107,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"64de2e61-0d6c-4f97-831a-b053af647005","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":107,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"0fc71692-47ad-4b25-8055-4b16bc6c3db6","block_type":"box","text":"shareholders tax credits otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond","page_number":107,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"1a6d0123-7e16-4892-a5ec-ab954d52846f","block_type":"box","text":"is defined in the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":107,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"4367f2aa-98f3-426c-aca9-9d968e04503a","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":107,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"474d73c6-35dd-44d4-bc83-fdf7327a255f","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":107,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"408df9b6-cf92-4ae1-9ae6-f8bb67d8abe6","block_type":"box","text":"bonds issued before January 1, 2011) or cer tain other specified bonds. If the Fund were to so elect, a shareholder","page_number":107,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"9350e034-2ea5-451a-9f93-a1b95eec5355","block_type":"box","text":"would be required to include in income and would be entitled to claim as a tax credit an amount equal to a","page_number":107,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"b2cf03bf-c612-418b-b633-ecb3abcdef40","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":107,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"e1ac7382-0f1c-49b3-b3a9-aac53489cb3b","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":107,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"de5482d4-a69d-46c2-ad2f-4adbb57f183c","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":107,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"4354e32d-aafe-49c5-b979-f6b3ba5dcab6","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":107,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"3b637313-232f-4ce6-a6a9-b46a6bd4d46e","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":107,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"beee17a9-ba1f-46b3-8cf4-0f1437c0778f","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":107,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"061e24a7-af99-4c70-9c93-06d14c0028dc","block_type":"box","text":"II-62","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ddf5d704-af4b-4558-a9c8-7592d245c959","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f329a40c-2e1f-4fa2-9c5e-6abd96a9fb4c","block_type":"box","text":"of the structures used by cer tain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":108,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"c5ec9d66-111c-42d0-82a2-2834e274419f","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":108,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"164edd72-ae29-4920-a3a2-afeb799a8124","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":108,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"99b78f4b-1c47-46e8-90fa-40f5fa1ca23f","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":108,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"09088cc9-40d5-43d3-a5a1-dc14c53a73c4","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":108,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"9137bc3b-d4fe-4ce6-8340-c3339d14a0c3","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":108,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"97958b84-fd90-401a-ac83-a3a6e3e81634","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":108,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"f8165413-0d3e-4a0a-ad8d-ad3734eed68b","block_type":"box","text":"their face value to the sponsor (","page_number":108,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"5cb9835a-894d-4dfb-8667-98aaf7883ffa","block_type":"box","text":"e.g.","page_number":108,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"f22c1787-a90e-4afa-aabb-7a53de74aafd","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":108,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"c30f6589-05e3-4ad2-9809-021098065d91","block_type":"box","text":"periodic fees equal to the difference between the securities’ fixed coupon rate and the rate that would cause the","page_number":108,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"28c382de-6ade-4b70-b408-b7e3edb2871f","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":108,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"a4f57586-399d-4cbe-b240-1af721a61066","block_type":"box","text":"A par ticipation interest gives the Fund an undivided interest in a Municipal Bond in the propor tion the Fund’s","page_number":108,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"f2db38e0-594d-42fc-99a6-1116c47bbfb8","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":108,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"64706373-09d6-4872-ac17-946a4535f4aa","block_type":"box","text":"feature for all or any par t of the full principal amount of the par ticipation interest, plus accrued interest. Trusts and","page_number":108,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"38efa76a-9dba-41de-9b61-bc0ec67c0ba1","block_type":"box","text":"par tnerships are typically used to conver t long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":108,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"0636de95-3aab-4451-9adb-ab0943b220ba","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":108,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"7ec798e2-a8f3-4f3d-8779-8734afa43173","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":108,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"c023a2f5-779e-4a8c-88df-4b8d957fe0eb","block_type":"box","text":"which give the holder the right to receive payment of principal subject to the conditions described above. The IRS has","page_number":108,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"19653ee6-6e2f-4f53-a069-06ce7693a556","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of par ticipation interests","page_number":108,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"0aac5441-b026-4146-b30c-a06f10857321","block_type":"box","text":"or custodial receipts is tax-exempt, and accordingly, purchases of any such interests or receipts are based on the","page_number":108,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"efb6b2c0-e5ce-495d-9209-d76eaec2a301","block_type":"box","text":"opinions of counsel to the sponsors of such derivative securities. Neither a Fund nor its investment adviser or sub","page_number":108,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"4e612924-4440-4573-9841-8a7399996d73","block_type":"box","text":"advisers will review the proceedings related to the creation of any tax-exempt municipal investments or the basis for","page_number":108,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"4da983a5-61f3-4a0a-87dd-75cc54d58d79","block_type":"box","text":"such opinions.","page_number":108,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"4d538a73-6025-4647-aa37-1fef1f94d64c","block_type":"box","text":"Operational and Technology Risks.","page_number":108,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"3003fc9b-0141-4df5-8123-b1892d36cece","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":108,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"2f67ad14-66a3-4ca5-9bd7-284b11cecaed","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":108,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"135f59f0-e977-4a8a-95e1-5e8dc7dd5c39","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":108,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"1f4b9b70-9e34-435e-be59-2f413e966cc1","block_type":"box","text":"learning (“AI”), which may result in losses for the Fund and its shareholders or impair the Fund’s operations. These","page_number":108,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"ea8175df-9797-440c-82db-7ccdd0f86c82","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":108,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"6582a8bb-10cb-4739-a68e-ff54e8f12464","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":108,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"9c3274d4-1cfb-4e8f-acc6-7e8c27603e6c","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":108,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"f9377ef5-d75a-4c6b-950b-3134016ce034","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":108,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"660c563b-716f-4735-b627-33c49ba7ec4c","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s investments in such","page_number":108,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"bff093c1-4b55-44e7-8d16-5cd3a000894b","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":108,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"f884b0d6-f59c-4d4f-901e-c31f06a63d6a","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":108,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"e4b90525-fe6c-4c41-8067-1317a09b5963","block_type":"box","text":"Fund invests, the Fund or any of its service providers. They include, but are not limited to, gaining unauthorized","page_number":108,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"c736e1ad-628a-46ce-8171-a4b5a71b4533","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":108,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"4a59e72f-d4e1-403b-bdf3-253774567653","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":108,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"119e2023-a739-485f-be94-c32baf7e0193","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":108,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"9fb9e630-fd25-4d9c-8712-b7ba08a7f150","block_type":"box","text":"any of the following: financial losses; inter ference with the Fund’s ability to calculate its NAV; disclosure of","page_number":108,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"dfd0e61a-09fc-4a5d-b131-d09a89d58042","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":108,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"030a953c-8efa-42d9-96cf-abfa1225ba3e","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":108,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"6caf7319-1adc-4ef9-a237-d7c2da171c5a","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":108,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"d5826b54-55ac-4fde-9509-ce50db861133","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":108,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"60e31d76-5b12-4908-a93e-314ae147f419","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":108,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"3de280ba-f04c-4bb6-aeb1-2395a8a525fc","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":108,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"9fc9a174-8ac0-4bb0-b514-d7a8ef2bdd6e","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":108,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"721b56f1-0d4a-4791-93b9-37df3e8ca9b2","block_type":"box","text":"upon by the Fund or its service providers, as well as market events that occur at a pace that overloads these","page_number":108,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"ea3a334a-b4e6-4fc1-b13f-8a9153e0f5ce","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":108,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"e75a5487-d529-46c0-8cdb-85849afb9d11","block_type":"box","text":"to the Fund and its por tfolio investments. These advancements could harm the Fund and its por tfolio investments by","page_number":108,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"02596cf7-da95-4cfa-903a-2c6f9703a940","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":108,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"0e74ef97-32dd-4ff5-854f-060c1be46f86","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":108,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"47d748b2-5d66-41d7-93b6-7f330cfe9f89","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":108,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"8437ec3d-9902-45d7-b1f3-8788210e72ba","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":108,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"1dda4c0b-c036-494b-9d0f-ed290fd3dc01","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":108,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"0c66f977-9664-4f55-ad36-0d9df34dcf39","block_type":"box","text":"infrastructure assets.","page_number":108,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"e17bc16f-8aa0-4d00-a656-b15be1b46c6d","block_type":"box","text":"II-63","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"50e684ae-18fa-45d2-ad77-09f86ec15ff1","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"200bd89c-3903-4ccf-bdf6-b54d0f89896b","block_type":"box","text":"The Fund and its por tfolio investments could be exposed to the risks of AI technology if third-par ty service","page_number":109,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"0ec7f62d-0ec6-418d-be5e-52bd780fbb28","block_type":"box","text":"providers or any counterpar ties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":109,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"69ec956d-baea-4279-80a0-5f031159b715","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-par ty products","page_number":109,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"077a2e83-06f3-4fdb-ae52-754b40c6e14d","block_type":"box","text":"or services.","page_number":109,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"a25ff259-8006-485b-8547-bea14b9627cc","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":109,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"4d80029f-4b48-4c3a-b03c-926452c38e4a","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":109,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"6ce7df4f-d41c-4497-9732-fc4e2bec10ae","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":109,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"b1d8b152-7e3c-444c-be9f-d552692358fd","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and analysis of large","page_number":109,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"4d4db7a5-574d-4d95-9f92-917f7e7fc928","block_type":"box","text":"amounts of data, may incorporate biased or inaccurate data, and it is not possible or practicable to incorporate all","page_number":109,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"45bc355f-63b4-4409-80f5-cbf9af54804d","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Cer tain data in such models will inevitably","page_number":109,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"039941ae-958e-4b3c-9a4e-d78614e4bc5a","block_type":"box","text":"contain a degree of inaccuracy and error, or could otherwise be inadequate or flawed, which would be likely to","page_number":109,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"49a05785-9f5e-4c7a-bd19-48c70e3b8e4c","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":109,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"dc137674-c83c-492d-a9e2-e8b2540a13aa","block_type":"box","text":"incomplete, erroneous, distor ted, or misleading. Fur ther, AI tools may lack transparency as to how data is utilized","page_number":109,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"8173ebeb-6b71-4f40-929f-214f28aef851","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":109,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"031e009e-34c9-4769-894a-23f431427abd","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its por tfolio investments are exposed to the risks of","page_number":109,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"2ad7c5a5-e37f-4597-9cf9-c45668462398","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":109,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"5d20921a-e1c0-46ab-9f9f-34a0857337ef","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":109,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"3801c4cc-e824-4042-854d-6a6c602135ae","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":109,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"b93e22cd-2206-4fee-9677-70b611ebf714","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":109,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"25271f93-73c3-4d56-a22f-dd3cb3fc477b","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":109,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"07d4289d-8fbb-465a-9336-fa43285d1bef","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":109,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"0531bacf-e10d-4487-bfdb-c9195d0e2507","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Ar tificial","page_number":109,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"96843c8c-e967-4423-943d-47aebcdae9c8","block_type":"box","text":"Intelligence Act, which applies to cer tain AI technology and the data used to train, test, and deploy them, which may","page_number":109,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"dbbe427e-6125-450c-b51c-b462fa81d9e7","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":109,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"0a5e91ae-cd20-497d-8a9d-b0ceffad0614","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":109,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"270193ad-1af7-491e-ad6e-ce35b0fa0226","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":109,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"84579346-eb21-422c-bade-2edf33a31fd8","block_type":"box","text":"and it is impossible to predict the future risks that may arise from such developments. The full extent of current or","page_number":109,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"22d51f0f-44e7-4cbd-94a7-54ae9be88be6","block_type":"box","text":"future risks related thereto is not possible to predict, and the Fund may not be able to anticipate, prevent, mitigate,","page_number":109,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"076da22d-5618-4b87-86c6-a2bab26c4270","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":109,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"6d2e19bb-4bf8-4a6a-829f-650548a540fb","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":109,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"4fae11e3-6f23-4344-be2f-43e3b61c7089","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":109,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"54a0b58a-f803-4908-8cf9-3dad540e96ae","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":109,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"8912aa02-242e-40f2-858d-dd3e49ee7077","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":109,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"5ace448b-75e7-4d62-a48c-b749b71cbb7f","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":109,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"9d4ee073-9503-4e45-8312-c4c003b1678c","block_type":"box","text":"plans and systems, including the possibility that cer tain risks that may affect the Fund have not been identified or","page_number":109,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"4f9cf90e-0ebd-423a-820b-75612b798866","block_type":"box","text":"may emerge in the future; that such plans and systems may not completely eliminate the occurrence or mitigate the","page_number":109,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"0d70a785-045e-4375-8f02-96268494dc4a","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":109,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"fcf990b9-e2cb-4b8c-8e21-3ec3770780e3","block_type":"box","text":"and remediation effor ts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":109,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"cbda5515-efd6-4185-90e0-13312fedba00","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":109,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"e4f29a71-c82a-4ee9-9ec3-0001714942cf","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":109,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"1395179e-0311-4f42-b3f0-ac1ae45158f0","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":109,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"e07145b3-2924-483d-933a-8d86a365f0bc","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":109,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"dee7f979-e7f1-4046-a20d-e5094f5f1136","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":109,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"140dd1f2-044f-478f-92fd-7d80a65038d2","block_type":"box","text":"resources to monitor and implement required changes.","page_number":109,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"a2a4a63c-588e-4920-98e0-fcc47c7cddf4","block_type":"box","text":"Participation Notes.","page_number":109,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"b01776d2-bfa8-4de6-8b1f-e6320ff68e13","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":109,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"c425ed83-b440-44f5-8d87-b49cf671c18d","block_type":"box","text":"Fund to a return measured by the change in value of an identified underlying security or basket of securities","page_number":109,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"26135b0d-dded-4a52-b0ff-aae12652f9f6","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":109,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"568372d7-cdb2-4b36-81e5-0ccc82f22af8","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":109,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"b49664e3-fbf4-4952-abc2-9425f3ead936","block_type":"box","text":"The Fund is subject to counterpar ty risk associated with each issuer. Investment in a par ticipation note is not","page_number":109,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"2386b621-ff6f-4c75-a6a7-e515304f68e9","block_type":"box","text":"the same as investment in the constituent shares of the company. A par ticipation note represents only an obligation","page_number":109,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"99504b90-77ea-4b7e-96c1-8c6046a6e39e","block_type":"box","text":"of the issuer to provide the Fund the economic per formance equivalent to holding shares of an underlying security. A","page_number":109,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"55854a34-fff4-4b9d-a0e3-9460c22031d6","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":109,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"00350cb0-b2d9-44c3-92eb-dcc00c8824dc","block_type":"box","text":"security. In other words, shares of the underlying security are not in any way owned by the Fund. However, each","page_number":109,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"3120c7f8-b3ff-4e41-af3e-ab38f208686c","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":109,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"f88c0f20-7150-4a4c-998a-b90f83364c25","block_type":"box","text":"II-64","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"575dff9c-a9e6-4bf8-ac00-629b4a9052e5","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b9995456-1172-46f6-9495-0bba746ec4f0","block_type":"box","text":"a par ticipation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":110,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"01891094-93b8-46ca-be13-e7117c87a2c3","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the par ticipation note if the issuer fails to per form its","page_number":110,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"141ef915-33dc-492f-8b69-d513a6bec128","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":110,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"9c34c794-62d8-456e-84b6-657c2de730e9","block_type":"box","text":"The counterpar ty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":110,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"45f8e754-4857-4bfc-b6b9-8fcf6cbe9fa0","block_type":"box","text":"obligation. A Fund may, but is not required to, purchase credit protection against the default of the issuer. When the","page_number":110,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"ab9e3e94-dde9-4f4b-a8b9-b69e68a7c8a8","block_type":"box","text":"par ticipation note expires or a Fund exercises the par ticipation note and closes its position, the Fund receives a","page_number":110,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"25934718-9879-44c0-82a8-60748f96ed55","block_type":"box","text":"payment that is based upon the then-current value of the underlying security conver ted into U.S. dollars (less","page_number":110,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"15202cc8-254b-452d-bd01-eb5bfb49a97b","block_type":"box","text":"transaction costs). The price, per formance and liquidity of a par ticipation note are all linked directly to the underlying","page_number":110,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"7417a05a-672f-446a-8c6d-b2bddf086c02","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a par ticipation note generally is dependent on the liquidity in the local","page_number":110,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"2e0a6802-627c-4b5e-9034-854103b2d9c3","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":110,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"6444ac81-ff42-495f-8ec7-49595e87870c","block_type":"box","text":"Portfolio Turnover Rates.","page_number":110,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"cfaa539d-22de-48ee-b170-fc275efa7a0b","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":110,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"2921fe64-69e5-4e08-a8b0-ec425641b2f1","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":110,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"54d2ce7e-357d-4756-9967-b9a27c74970e","block_type":"box","text":"Funds will use an approach to investing that is largely a passive, indexing approach, such Funds may engage in a","page_number":110,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"858e05ac-1a86-4f5b-a09d-6a21633487d6","block_type":"box","text":"substantial number of por tfolio transactions. With respect to these Funds, the rate of por tfolio turnover will be a","page_number":110,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"35b8a02c-20bc-4dc4-9d5e-237c9943b051","block_type":"box","text":"limiting factor when the Manager considers whether to purchase or sell securities for a Fund only to the extent that","page_number":110,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"994dd321-1d92-4e4e-b293-7562ae88642c","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Por tfolio turnover may vary","page_number":110,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"79ddab40-56b0-4886-a159-c89bf02aeb18","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":110,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"62c1340f-b78f-4316-89d6-4d570037c053","block_type":"box","text":"i.e.","page_number":110,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"6e0141c9-8cc9-4cc2-b28f-0861032121f3","block_type":"box","text":", 100% or more) may result in","page_number":110,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"a4612e08-b3fe-453d-8963-a9eb543acdcd","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":110,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"a151675e-c565-4044-8cab-1af27ef7a5d4","block_type":"box","text":"costs on the sale of the securities and reinvestment in other securities. The sale of a Fund’s securities may result in","page_number":110,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"35e358b9-2b9f-4034-ab34-a77ad5a6298f","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be shor t-term capital","page_number":110,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"2209c58b-1abe-4716-9176-92f2108e2b0f","block_type":"box","text":"gain or loss. These effects of higher than normal por tfolio turnover may adversely affect a Fund’s per formance.","page_number":110,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"729f7f33-4292-4982-b6e3-022b3bfb6c18","block_type":"box","text":"Preferred Stock.","page_number":110,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"ef16051e-0a1d-48b9-aba4-af599c5e0aef","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":110,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"5ffc48cb-7bf9-4120-948d-8b7695c504a1","block_type":"box","text":"stock in liquidation (and generally dividends as well) but is subordinated to bond holders and other creditors in all","page_number":110,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"d0d7b5bf-957b-45e7-89ba-1cb87aaf572c","block_type":"box","text":"respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element","page_number":110,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"92eba604-6bfa-4e7d-bdfa-c897571c1e7c","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":110,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"a0875f80-2b1c-45d7-9ea5-affb560ab37b","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":110,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"12272172-7407-43fe-b815-a05926847feb","block_type":"box","text":"other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value","page_number":110,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"95cadbe0-e270-4c2c-96c1-4c662a9efa0f","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":110,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"f9ebdbbe-ee16-467e-8ca6-acafe481a1f4","block_type":"box","text":"payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors.","page_number":110,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"70092b8d-0cd6-4e1f-97b0-4053acb0858b","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":110,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"60d7e149-c2be-416d-9f6f-d503620f9600","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":110,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"71cb2170-f0a1-4cc7-99f0-34cc24ead5f3","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":110,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"57efa649-4402-4867-bd5c-acfb037939ec","block_type":"box","text":"dividends that are exempt from regular U.S. federal income tax. Such funds in turn invest in municipal bonds and","page_number":110,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"6728da36-ad54-4ff3-89b1-99a61dbd3d99","block_type":"box","text":"other assets that pay interest or make distributions that are exempt from regular U.S. federal income tax, such as","page_number":110,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"6955f4fd-0add-4b92-8aac-b3dc49ec6ea5","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":110,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"798e4243-e39d-4342-812a-fe4859b1ee6e","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":110,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"c9d95aaf-e736-4832-9e94-8d5ec6708bcb","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":110,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"184e2ab8-f0f9-42b6-b4a7-c12b2ca1a66b","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":110,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"b1811dcc-7456-4caa-ab89-3fcb71c6bef9","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":110,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"7e08c779-f31a-4078-a93e-baa35028bcda","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":110,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"df09e111-de97-46f9-8071-9557ffee9219","block_type":"box","text":"Trust Preferred Securities.","page_number":110,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"00760f98-d991-43dc-ab67-aa11aed8f95b","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":110,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"a280b5f0-58e4-4af6-bf18-0bd2ecdeaead","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":110,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"de3d7730-5893-4438-a0f8-e23010a11cb8","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":110,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"f2c737a2-593c-4678-9a37-6c29d5e6d0d4","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":110,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"4052d97a-7ade-4fdc-a8b5-905b317b9a74","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":110,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"62ab6629-095e-4d80-8504-356f198d427a","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":110,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"ca517f78-6939-4444-838f-01f133a31692","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":110,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"f980d3d0-f34b-40d9-abc5-417978526d8a","block_type":"box","text":"securities typically permit an issuer to defer the payment of income for five years or more without triggering an event","page_number":110,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"56b4f02c-6501-4aa5-b960-6d7966edcd3b","block_type":"box","text":"of default. Because of their subordinated position in the capital structure of an issuer, the ability to defer payments","page_number":110,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"2684db2d-478a-4fa3-a396-bd1b202a1787","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":110,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"e3f59d44-daec-48ce-8dcc-8ca563bd77e2","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":110,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"daf0ccb2-c94a-453b-b9ba-8d5eb98b96cf","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":110,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"dc20c788-f514-4833-a048-16172ccddef4","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":110,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"14a23e83-85d9-4f1e-9a67-8331a24dcaa8","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":110,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"3af1ff3d-563d-41f3-9c26-7438f138cd1a","block_type":"box","text":"®","page_number":110,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"2241f944-3045-4819-8fe3-6e02a2d8f4d1","block_type":"box","text":"”); monthly","page_number":110,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"56d77128-7218-49e8-90ee-17d5ba8c4210","block_type":"box","text":"income preferred securities (“MIPS","page_number":110,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"08978896-af1d-4d7c-bd59-fb4dd720b507","block_type":"box","text":"®","page_number":110,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"ee6314fb-5bef-4782-ad4c-ac866cf3b3f1","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":110,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"926b6ef7-c24b-44d4-836c-f5a336560657","block_type":"box","text":"®","page_number":110,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"78bcc553-edc6-4fe6-8a0c-8b7441f51784","block_type":"box","text":"” ); quar terly income debt securities","page_number":110,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"d1d4009c-8bf3-4569-874d-94aae2f30ecd","block_type":"box","text":"II-65","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"22d84ace-f23b-468a-879e-cddd63fc8a63","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7cebea71-0807-47c8-ac61-d9da06dbfc8d","block_type":"box","text":"(“QUIDS","page_number":111,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"306125d8-ed4e-48c1-932a-ebe9b7a14097","block_type":"box","text":"®","page_number":111,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"f26adf9e-bc6f-444a-9c10-98248bcda3b8","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":111,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"0cbe446f-20f3-4805-a7c1-9ebe9ac00ae5","block_type":"box","text":"SM","page_number":111,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"b652d8a9-a90c-4f74-a420-0917a624bc3f","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":111,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"05546574-a56c-4b40-9d1c-4700f8741bca","block_type":"box","text":"®","page_number":111,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"65439166-517a-4171-b6c3-db933fb3dfef","block_type":"box","text":"”); public income","page_number":111,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"6bd1d059-e0e1-4e44-b12a-a0654ed39d1c","block_type":"box","text":"notes (“PINES","page_number":111,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"ef54c9cd-709b-4737-af64-fa828ed34bbd","block_type":"box","text":"®","page_number":111,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"6678bff6-78de-46fc-96f8-0c972e0474b6","block_type":"box","text":"”); and other trust preferred securities.","page_number":111,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"62b3d677-a355-4896-ba71-ced1b05b1ef5","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":111,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"8c825b90-eaaf-4896-b9eb-90d77cbd2992","block_type":"box","text":"In cer tain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":111,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"bfe8d177-2e7b-4e1b-a007-3e8dba4c7bc5","block_type":"box","text":"the issuer’s option for a specified time without default. No redemption can typically take place unless all cumulative","page_number":111,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"b3c0fd9a-10f5-4fe0-9620-fc7492bcd617","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":111,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"c1c11493-7048-41cf-8531-1a6b7c84284b","block_type":"box","text":"regard to whether all payments have been paid.","page_number":111,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"adabeac3-37da-4557-b1a6-9a0ee513e13a","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":111,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"f64b5faa-ca57-43cd-ad81-1df1449fa7a1","block_type":"box","text":"companies and are not a direct obligation of an operating company. At the time the trust or special purpose entity","page_number":111,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"464b629c-16f2-4725-8a50-7f4eb0072a37","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":111,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"890f2603-0cfe-4a0f-bf36-df6b873325bc","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":111,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"993b1535-6804-42e7-b3f7-3d0a170a5dc4","block_type":"box","text":"purposes the interest paid on the debt held by the trust or special purpose entity. The trust or special purpose entity","page_number":111,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"639184fc-13e4-44fb-8046-331f9dae13c6","block_type":"box","text":"is generally required to be treated as transparent for U.S. federal income tax purposes such that the holders of the","page_number":111,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"5c65732e-4f65-4b07-9ef0-4c48fab50c38","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":111,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"3207cef4-caf4-48a1-8c8c-8c1cf63c426c","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":111,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"d59d6a52-135c-4084-9ca1-1a475745e6ff","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating company’s debt","page_number":111,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"e5e9a8e5-9145-4c47-a3fa-7bcec9ba0b65","block_type":"box","text":"and would have priority with respect to the operating company’s earnings and profits over the operating company’s","page_number":111,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"9fc2120e-5b98-4a18-b100-98f8212f9255","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":111,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"5bacb4cf-a0d7-49c4-8e6a-d9f0f8b7ead2","block_type":"box","text":"Typically a preferred share has a rating that is slightly below that of its corresponding operating company’s senior","page_number":111,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"22db18b0-7820-431e-804c-e246c7f3c0e7","block_type":"box","text":"debt securities.","page_number":111,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"10e903c2-0fb1-494b-870b-91d4aaa18e8c","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":111,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"69eac7b0-be58-46ef-9c49-6a12d3286d88","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":111,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"a0cee30f-0706-472b-8ab7-4b99ad1fa2a5","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":111,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"23b8b36f-dc6b-4bc1-94c9-efca04f6227f","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":111,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"c3ea165b-4c56-4abd-a801-5e07955ce2ed","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":111,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"23860ac9-2827-4932-82d7-b93b638d1fb0","block_type":"box","text":"i.e.","page_number":111,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"37f8e99e-e9a9-4e9d-8539-680afeb0fdce","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":111,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"fc779c81-15f0-4933-bfcd-371eeb941179","block_type":"box","text":"buildings.","page_number":111,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"a49748a4-7038-4576-a471-1fa52ea8059c","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will bear its","page_number":111,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"537f53de-b3e0-46a7-8932-cf1722bb0fe7","block_type":"box","text":"propor tionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":111,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"e92002b1-6584-4186-bb4c-ffd64d96f997","block_type":"box","text":"Mor tgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":111,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"eb6ead33-e4f8-4806-871a-11017f883bfa","block_type":"box","text":"proper ty, which derive most of their income from rents. Mor tgage REITs invest mostly in mor tgages on real estate,","page_number":111,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"ce8a858b-d09b-450d-bfae-820527473a23","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":111,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"91ed4fed-d7b0-47e1-96dd-5938e1de57bc","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":111,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"d051865f-e1fe-470b-8c5a-526a44abcdac","block_type":"box","text":"Investing in REITs involves cer tain unique risks in addition to those risks associated with investing in the real","page_number":111,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"b5361623-97f4-4aff-9662-ab14573b8a34","block_type":"box","text":"estate industry in general. The market value of REIT shares and the ability of the REITs to distribute income may be","page_number":111,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"af695943-d6d1-4696-8d86-dd4ff832774a","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":111,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"7aa634bc-2a94-4328-b635-5d063f69d13a","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":111,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"6748c735-c1fe-46a3-8715-f3f59a47f089","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":111,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"a34d9f76-a8ec-4265-bd4f-614014a7278d","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":111,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"ae377d32-4d64-4cf1-8231-fd0935ac2452","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":111,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"b5a2ff16-58de-4d8f-a12e-2a04453e2d51","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":111,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"198e2141-d1cc-457a-9208-cc2f56c20706","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":111,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"34945a53-e883-4f03-855b-6221dd2149ed","block_type":"box","text":"zoning laws and other factors beyond the control of the issuers of the REITs. To the extent that assets underlying a","page_number":111,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"c49318c0-d3b8-4513-a60d-585e9063c8b3","block_type":"box","text":"REIT are concentrated geographically, by proper ty type, or in cer tain other respects, these risks may be heightened.","page_number":111,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"dfa8d6a4-6b39-4b2d-93e9-e7c0d28be57b","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or return of","page_number":111,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"7f0d9e1a-c448-42f3-b6de-8fb3dcaba542","block_type":"box","text":"capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating companies, to the extent","page_number":111,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"6c154378-d033-4d29-a597-b16232c7d79c","block_type":"box","text":"application of the Fund’s investment strategy results in the Fund investing in REIT shares, the percentage of the","page_number":111,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"3034d911-9b67-4c00-8d69-c18dc306a80e","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s por tfolio which is","page_number":111,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"d4784864-9688-4410-8a86-2ba45d5ff520","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":111,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"637fb238-910e-43d1-b996-ffecea44bd4a","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":111,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"ea222020-a0ab-4287-b2af-4793bd2c429c","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":111,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"83d90801-4e1a-4cfd-a8e3-f0217714b160","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":111,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"3210c441-2857-4571-942a-03dbcd981c4a","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":111,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"e23118f3-d808-4f78-a45e-31b4582f0702","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":111,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"e4c434c3-e9e3-4cfa-a2fe-764fb9dea95e","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":111,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"0424c454-883d-4c57-9fb2-71d8227d82ef","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":111,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"4e119e17-7914-402f-8171-5aeab3fb5a7f","block_type":"box","text":"investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity","page_number":111,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"d293d7a6-e700-4b6d-97fb-f44e3e618cf3","block_type":"box","text":"II-66","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4bc506cd-4503-4fa9-9303-7106d65f5dad","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e47e8df2-a333-42ea-90d2-1d5846b5eebe","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":112,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"9fd1f44f-a437-47a4-840a-6eb006d71fd6","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mor tgages","page_number":112,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"e9b3b09d-f9f9-47c6-b041-da511da18c5b","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":112,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"10af14e6-ae5f-4b20-b32b-3e736b5ac64a","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":112,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"401ee202-a3b2-4021-a02d-d76c605e1888","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":112,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"0069525b-a06f-445b-9765-e6e1b02329db","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":112,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"c4a21fd0-8a6f-4fe3-875b-8648de1cd0f9","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":112,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"fcafd5d4-6629-4635-a572-fc1036b83dae","block_type":"box","text":"trade less frequently and in limited volume and may be subject to more abrupt or erratic price movements than larger","page_number":112,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"8261929b-12c0-48d8-a8b0-a09d18afcc96","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":112,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"0364ada1-466e-4ce6-8420-10bdc3df67c7","block_type":"box","text":"larger capitalization stocks such as those included in the S&P 500 Index. The management of a REIT may be subject","page_number":112,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"2df89d9a-c0b2-40d9-83c2-12ac271b2748","block_type":"box","text":"to conflicts of interest with respect to the operation of the business of the REIT and may be involved in real estate","page_number":112,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"0a8b6a63-628e-47cf-a9ed-1b56cf118fc1","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":112,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"dd1befad-b1b6-49c0-92f8-285c87731897","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":112,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"53bede8b-3e61-4a5f-afda-0141dc901b1a","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":112,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"8526bb52-e0bc-444e-8bad-0ab5a284c7f4","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":112,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"dc00cdf7-61ae-4be6-b7ca-4511bac329ab","block_type":"box","text":"markets generally or par ticular industries represented in the markets. The value of a security may decline due to","page_number":112,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"624b0878-5830-4578-bc7f-428b41fb1f98","block_type":"box","text":"general market conditions, economic trends or events that are not specifically related to a company or to factors that","page_number":112,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"8e51e8a9-43c8-4bde-b832-1d30af858f98","block_type":"box","text":"affect a par ticular industry or industries, or factors that affect a par ticular issuer or issuers, exchange, country,","page_number":112,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"686b542e-224f-4f39-b629-f4a478ac8061","block_type":"box","text":"group of countries, region, market, industry, group of industries, sector or asset class. The success of a Fund’s","page_number":112,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"69c3920b-78f4-4e74-b31b-98bc4c80e08a","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":112,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"7f612f88-ba00-4c3b-b3dd-5d561a349a39","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":112,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"4cc751fb-06ca-46e9-bebe-da08a63bf2a4","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":112,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"c428ea84-b434-479e-83fc-862539d566d1","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments. During a general","page_number":112,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"31e7b2ae-501c-4e09-af30-5df5c5648135","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":112,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"8e0846d4-45c5-48d4-b28c-3609e6affcb2","block_type":"box","text":"affect the level and volatility of securities prices and the liquidity of a Fund’s investments, which could impair the","page_number":112,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"5e3eee6b-8b7f-4113-9829-c01fb0738f08","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":112,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"94423f00-0283-41c6-897f-9aa7ff7aa881","block_type":"box","text":"affected by the level of volatility in the financial markets; the larger the positions, the greater the potential for loss.","page_number":112,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"9b365b97-b043-4e38-a985-1b5e0d7e39e2","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":112,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"882de1ab-5291-4e8c-a8d0-78b50fc43159","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is impor tant to","page_number":112,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"dadf44a4-a567-405b-aae0-ae151929bc0d","block_type":"box","text":"understand that a Fund can incur material losses even if it reacts quickly to difficult market conditions and there can","page_number":112,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"1edcceef-2827-499b-99b5-3c13cc501f15","block_type":"box","text":"be no assurance that a Fund will not suffer material adverse effects from broad and rapid changes in market","page_number":112,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"5c27cc73-11eb-4268-911d-ee1c21e99882","block_type":"box","text":"conditions.","page_number":112,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"76fe368a-e1c1-4ed9-8ac8-f5e2bb29985c","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":112,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"211a8ad7-fa9f-4e1d-875e-d46b669f9778","block_type":"box","text":"a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":112,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"921be428-cf52-4d88-a0cd-2578e7923141","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":112,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"9a361738-e8ed-4aa5-b79d-4c697a1d9206","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":112,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"c172ce4f-5e81-476e-8395-0c9beef3c8a6","block_type":"box","text":"of these policies is still being considered, but the equity and debt markets may react strongly to expectations of","page_number":112,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"191c7462-71f5-4eae-a27b-76e4b44d7668","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":112,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"15891324-9201-472a-9a5a-967e5c5a8101","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":112,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"0100d5d7-5bd9-4949-902a-82bcfc3db10d","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":112,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"ac5b70b6-3219-4c99-97aa-591ac670f1a2","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":112,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"8b4f2691-bfe2-4db4-8f09-490e58bc64e9","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":112,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"4c590dd7-fb36-4ea3-a980-a6c4fe086c00","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":112,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"71d03ca7-65ef-4231-bec9-55e3742922c5","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":112,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"3c8ba8f8-0044-47b3-8e0b-c6788d3d2ed2","block_type":"box","text":"affected by such events.","page_number":112,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"f85757a5-3ea5-4ff3-8e99-31476e34012b","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":112,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"6c40f150-9782-48ef-99fc-e5deaa1827ff","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":112,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"63c6a39b-3bd0-43db-8212-005c3fb1b43c","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":112,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"6101e18d-67ce-4a7f-9d83-a01e0dbb2ed8","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":112,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"8f6792b3-854d-4cec-a23b-e0d5dc6d1dfa","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":112,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"56e95fa5-a31a-4ee7-88ac-d2863c2b300b","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":112,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"ed8d19b4-7ec2-406f-bc0e-5e2bcc0a1e70","block_type":"box","text":"investment per formance of the Fund. In par ticular, actions taken by the U.S. government in respect of international","page_number":112,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"aa0aae9d-6a02-4193-955b-58118a872ab4","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":112,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"721b1832-0087-4a05-a177-5cfbf346a58e","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":112,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"e1df730d-b37d-4a30-8a46-e9084ed4de0a","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":112,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"9c37304c-f8ca-4605-a6ce-ff91786303f2","block_type":"box","text":"branches of the U.S. Government, the U.S. Government’s inability at times to agree on a long-term budget and deficit","page_number":112,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"dff5fcb6-9c9c-47ae-a6a6-479c87405410","block_type":"box","text":"reduction plan, the threat of a U.S. Government shutdown, and disagreements over, or threats not to increase, the","page_number":112,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"ef2ed750-2397-4760-b3ef-34d0a2c76501","block_type":"box","text":"II-67","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f599c46a-c099-487a-b9e5-6d3d9db18718","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"37fb5060-74c1-40c4-ac0e-eaf303814bf6","block_type":"box","text":"U.S. Government’s borrowing limit (or “debt ceiling”), as well as political and diplomatic events abroad, may affect","page_number":113,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"0f8b25ea-9e02-4485-b86e-b26e5bf8376a","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":113,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"2da254bc-f3f3-4f69-9a7c-116fd9698261","block_type":"box","text":"suddenly and to a significant degree. A downgrade of the ratings of U.S. Government debt obligations, or concerns","page_number":113,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"25cac323-bee1-44e4-bee1-3cc9405727ec","block_type":"box","text":"about the U.S. Government’s credit quality in general, could have a substantial negative effect on the U.S. and global","page_number":113,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"7e908783-d9f0-41c9-adc7-8e50b8134eae","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":113,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"cc529976-ff8d-4963-afb5-3b9122a44c18","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":113,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"bb88a8ef-2fa9-48b6-a0eb-59b221acf700","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":113,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"1d1c1819-5c12-4862-97a4-62445dc46cba","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":113,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"ef087f8f-453a-42e0-873b-30a69f2b796b","block_type":"box","text":"unprecedented event are impossible to predict, but it is likely that a default by the United States would be highly","page_number":113,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"209bfd92-9b46-4561-86bd-e6bbeb158c0c","block_type":"box","text":"disruptive to the U.S. and global securities markets and could significantly impair the value of the Fund’s","page_number":113,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"61240afc-55f3-48fc-9c0d-043648c70535","block_type":"box","text":"investments.","page_number":113,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"8c16764d-78a4-477f-bb5a-deade0e91a5d","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":113,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"748eceb3-1c17-469a-ae9a-92fedf7c09b7","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":113,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"ce562fdf-5aee-4968-bfd3-b9f5c1a6a702","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":113,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"cbe78c7d-367a-4a4b-b0ae-d9544eacbf88","block_type":"box","text":"in the future, could affect the economies of many nations, individual companies and the market in general in ways","page_number":113,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"1a64b553-472b-4bd7-8574-0ed22cad02b7","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be shor t term or long term, and","page_number":113,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"cc1a6765-537d-4329-ab8d-a9d77c89121e","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":113,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"50541123-0dbd-43fc-9d94-d6df3180210b","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":113,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"a292c763-2856-4c59-998b-399ece166d04","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":113,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"c7185ef6-a7f7-41d6-b702-c6a2a53812f7","block_type":"box","text":"Legal and Regulatory Risks.","page_number":113,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"cd59d053-3100-4fbc-a357-3e3ee8011363","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":113,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"c1ccd4f8-02ae-4f79-b87c-8654c558dc9f","block_type":"box","text":"jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some of which are new and","page_number":113,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"5dbd1a97-6eaf-456c-95a1-4d0b8c28b49a","block_type":"box","text":"evolving. As a result, the Funds and the Manager and its affiliates are subject to extensive and sophisticated legal,","page_number":113,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"c2103fe4-78ae-43c8-8307-0c429e9c72ae","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":113,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"0e9760e7-acd8-455d-adfd-f04dc5b751e5","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":113,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"f4dffbf8-b5f6-46fd-9dd9-0fe6b9b64a93","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":113,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"8b8724bd-6b3a-4555-ac98-52d5f1d2dc9c","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":113,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"8e3d215e-45a0-47a4-b7b9-ef34b2350cfa","block_type":"box","text":"changes to comply with current and/or new regulations applicable to the Funds and/or the Manager could have a","page_number":113,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"69088176-e470-4081-b811-5f8ebd2434bf","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":113,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"ac27c81c-79b3-4610-8bb9-befd61b4de2c","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":113,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"62c69869-be8f-44a2-ab9f-8b2a6a219d34","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":113,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"176a74af-0f82-4dc5-90f7-2bfdc39efe95","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":113,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"007dc8f4-6c6d-4a5b-bc94-f5420f417e95","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":113,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"66142576-7dd7-469c-9a70-6a1e80a6f478","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":113,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"d7d9b179-5870-4229-a3a6-d58691f146b2","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":113,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"335d9488-6abb-40cc-bbea-4ed14fbb6e9e","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":113,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"f512bdb9-29c3-4484-b52f-f99a0e776c15","block_type":"box","text":"Union, and the risks associated with trade negotiations between the U.S. and China, could affect the economies of","page_number":113,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"dfb0595c-14e3-476a-a56c-cd986c653b1c","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":113,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"d6de0a39-4bd9-4f0b-a393-2f9314355b76","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":113,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"6dd43bed-1aed-4255-ad22-e4fd7f2d3096","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":113,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"43469fdf-fc34-4d44-bf0c-4f0875f93b2d","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":113,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"f950389e-b7f8-421e-b20d-e079aa080e76","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":113,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"6c612219-b6ef-4fce-84e4-6bc4132dbbbd","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":113,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"8d01ace7-4d9b-4885-9789-66f17180bf1b","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":113,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"e626bb0b-898c-48e5-a164-cd1cef9865d3","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall per formance.","page_number":113,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"92134ece-520f-4fe6-8b80-b67b943bdf57","block_type":"box","text":"Geographic Risks","page_number":113,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"66467715-2396-4047-9c9d-40dd0676d00d","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":113,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"e8522e08-9027-4b0f-a4c9-077f1dcf6d79","block_type":"box","text":"to, par ts of the world affected by natural disasters such as severe heat, ear thquakes, tornadoes, volcanic eruptions,","page_number":113,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"27595bd9-3e62-4f81-9018-482ddf4e0dfc","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":113,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"48c9fecf-797f-44bd-be90-e30b7922f244","block_type":"box","text":"addition, issuers may be impacted by security concerns with respect to a country or region, such as war and other","page_number":113,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"0782b3a5-fd5d-4b60-9015-b3c143595ad7","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":113,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"c2c639db-7b99-4d17-a6de-94c628cdfa6b","block_type":"box","text":"affect the issuers, markets and economies to which a Fund is exposed, which may adversely affect the value of the","page_number":113,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"c5c6ee9a-0e55-4351-9952-0c98f6bb790d","block_type":"box","text":"Fund.","page_number":113,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"bb3ac478-211d-44de-8b9b-0616ea0fc07d","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":113,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"b4c28f9a-ef13-4b02-8ca1-aab201e973ab","block_type":"box","text":"The London Interbank Offered Rate (“LIBOR”) had historically been used","page_number":113,"box":{"x":363,"y":846,"width":514,"height":11}},{"id":"120bff27-409d-4d50-9429-743cfb4e455a","block_type":"box","text":"extensively in the U.S. and globally as a “benchmark” or “reference rate” for various commercial and financial","page_number":113,"box":{"x":69,"y":861,"width":782,"height":11}},{"id":"8acf539c-b92c-4b62-a374-aafb822bfc86","block_type":"box","text":"contracts, including corporate and municipal bonds, bank loans, asset-backed and mor tgage-related securities,","page_number":113,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"66d74054-a1eb-4f00-a8ca-18fbe98d9f6d","block_type":"box","text":"interest rate swaps and other derivatives. Instruments in which a Fund may have historically paid interest at floating","page_number":113,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"4164bf49-f6b9-40af-b761-f471df6b0a48","block_type":"box","text":"rates based on LIBOR or may have been subject to interest caps or floors based on LIBOR. The Funds and issuers of","page_number":113,"box":{"x":69,"y":906,"width":834,"height":12}},{"id":"2b680b85-0250-4e40-8c4d-47acd8ea9db1","block_type":"box","text":"II-68","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"17abf2ea-c049-4776-822f-25f40d1efd6f","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fd3fbf27-888e-4bce-b7e0-b145028e1705","block_type":"box","text":"instruments in which a Fund invests may have also historically obtained financing at floating rates based on LIBOR. In","page_number":114,"box":{"x":70,"y":45,"width":837,"height":11}},{"id":"cdbddd31-215a-4a6a-b2f8-a8ad40e358fc","block_type":"box","text":"connection with the global transition away from LIBOR led by regulators and market par ticipants as a result of","page_number":114,"box":{"x":69,"y":60,"width":783,"height":11}},{"id":"b1a7e590-cda7-474c-be3f-ee10a35336ad","block_type":"box","text":"benchmark reforms, LIBOR was last published on a representative basis at the end of June 2023. Alternative","page_number":114,"box":{"x":69,"y":75,"width":779,"height":11}},{"id":"8d7f2cb3-2089-4283-ae5b-49905d6f46c2","block_type":"box","text":"reference rates to LIBOR have been established in most major currencies and markets in these alternative rates are","page_number":114,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"192c6471-8716-45b9-a904-c24be9779952","block_type":"box","text":"continuing to develop (","page_number":114,"box":{"x":69,"y":105,"width":160,"height":11}},{"id":"02d65ea7-df0a-4670-b566-857d43728259","block_type":"box","text":"e.g.","page_number":114,"box":{"x":231,"y":107,"width":25,"height":9}},{"id":"4264d875-51c5-4a04-b7ca-7f732349526e","block_type":"box","text":", the Secured Overnight Financing Rate (“SOFR”) for USD-LIBOR). While the transition from","page_number":114,"box":{"x":258,"y":105,"width":641,"height":11}},{"id":"9ce53a61-eda4-4fd3-a1ad-6ec416a6c9a4","block_type":"box","text":"LIBOR has gone relatively smoothly, residual risks associated with the transition may remain that may impact","page_number":114,"box":{"x":70,"y":120,"width":777,"height":12}},{"id":"bd1a3a91-fbf9-4881-a0a8-a34a64fe6bff","block_type":"box","text":"markets or par ticular investments and, as such, the full impact of the transition on the Funds or the financial","page_number":114,"box":{"x":69,"y":135,"width":776,"height":11}},{"id":"3a4b395d-0411-490a-912a-9a37e0e19811","block_type":"box","text":"instruments in which the Funds invest cannot yet be fully determined.","page_number":114,"box":{"x":70,"y":150,"width":493,"height":12}},{"id":"5b6c8afa-a44e-481d-a8ef-e6d54ed03de4","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are","page_number":114,"box":{"x":102,"y":173,"width":750,"height":11}},{"id":"8a753506-8427-4714-a2b6-80fb9cc7e020","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":114,"box":{"x":69,"y":188,"width":803,"height":11}},{"id":"8b6db8cf-dabf-4b03-a4ae-caf545b3dbe2","block_type":"box","text":"various sources. For each trading day, SOFR is calculated as a volume-weighted median rate derived from such data.","page_number":114,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"8adca12d-6ccd-4248-a544-0df74cbfbdc2","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":114,"box":{"x":70,"y":218,"width":801,"height":12}},{"id":"9e0662bf-ea4e-4da1-a25e-bbacbc6e2e24","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different shor t-term","page_number":114,"box":{"x":70,"y":234,"width":810,"height":11}},{"id":"23a598bb-01ab-44c5-8ee9-b103e2aa2528","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":114,"box":{"x":69,"y":249,"width":803,"height":11}},{"id":"25223e23-607c-498d-9790-722e7270cb77","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk.","page_number":114,"box":{"x":68,"y":264,"width":825,"height":11}},{"id":"38563bf6-72a0-4345-8db9-80f8e20dea56","block_type":"box","text":"In contrast, SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, it is","page_number":114,"box":{"x":70,"y":279,"width":828,"height":11}},{"id":"cbe0e5a1-fcc2-4e0f-bddc-0cd2baa1d692","block_type":"box","text":"largely insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate,","page_number":114,"box":{"x":70,"y":294,"width":838,"height":11}},{"id":"baeef014-bed7-462a-b281-e3c51a3a42c3","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain","page_number":114,"box":{"x":69,"y":309,"width":796,"height":11}},{"id":"cd428662-094f-4b5e-8371-c2c48602b083","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form","page_number":114,"box":{"x":70,"y":324,"width":836,"height":12}},{"id":"34a18da1-405e-4252-a97f-fb429a9a2ec2","block_type":"box","text":"in the same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based","page_number":114,"box":{"x":70,"y":339,"width":824,"height":12}},{"id":"df004ab5-220d-44ff-95f7-097b49d5b5ec","block_type":"box","text":"rates will be a suitable substitute for LIBOR. SOFR has a relatively limited history, having been first published in April","page_number":114,"box":{"x":69,"y":355,"width":830,"height":11}},{"id":"9a324307-1f62-4bf8-8b84-3f4b207a2a21","block_type":"box","text":"2018. The future per formance of SOFR, and SOFR-based reference rates, cannot be predicted based on SOFR’s","page_number":114,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"3b8ca8d7-aa95-4880-815c-66d7e2a64825","block_type":"box","text":"history or otherwise. Levels of SOFR in the future may bear little or no relation to historical levels of SOFR, LIBOR or","page_number":114,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"9ea7b93d-9ee2-4090-951d-2675b3aa1440","block_type":"box","text":"other rates. There can also be no assurance that SOFR will not be discontinued or fundamentally altered in a manner","page_number":114,"box":{"x":69,"y":400,"width":835,"height":11}},{"id":"87f77450-3214-441e-b408-09951eb3d6ff","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":114,"box":{"x":68,"y":415,"width":384,"height":11}},{"id":"758bbea6-13b1-4205-8834-6cc99c8b3013","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":114,"box":{"x":102,"y":438,"width":782,"height":11}},{"id":"312d9fa3-6636-4308-99e1-487f76f3e865","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":114,"box":{"x":68,"y":453,"width":786,"height":11}},{"id":"9c716a46-38c0-45ca-b486-63d048b653f6","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":114,"box":{"x":69,"y":468,"width":746,"height":11}},{"id":"fc2d0e87-e954-4f0e-8093-6e6f6b34ff29","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":114,"box":{"x":70,"y":483,"width":822,"height":11}},{"id":"2a5e5c22-17da-489c-9ff2-957a99a74656","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":114,"box":{"x":69,"y":498,"width":821,"height":11}},{"id":"02cbf7be-6960-4178-9b46-e8b3cfa9e56c","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":114,"box":{"x":68,"y":513,"width":799,"height":12}},{"id":"426e8cfb-b35b-4bf5-a3fc-ae143bdc9f23","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":114,"box":{"x":70,"y":528,"width":830,"height":12}},{"id":"ad9c28f7-43c7-414f-a0e3-d7038472a112","block_type":"box","text":"in the future, with the result that relevant benchmarks may per form differently than in the past, the use of","page_number":114,"box":{"x":70,"y":543,"width":757,"height":12}},{"id":"996d8620-d08f-45df-afa2-83db5fe7bdf0","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":114,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"c079cb2e-50a1-4ebf-a425-04a9bde5d72c","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":114,"box":{"x":69,"y":574,"width":840,"height":11}},{"id":"c5fba76a-92d6-4af0-ada7-60a6f0db63af","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":114,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"32fb4d1c-7acb-4c6b-aad3-60beb181eab8","block_type":"box","text":"consequences which cannot be predicted.","page_number":114,"box":{"x":69,"y":604,"width":298,"height":11}},{"id":"b01de087-2571-4a86-a455-a3c31dd899f5","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":114,"box":{"x":102,"y":627,"width":432,"height":11}},{"id":"df19a3a5-bd13-4f11-ad15-e2cf7c53e3cb","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":114,"box":{"x":541,"y":627,"width":347,"height":11}},{"id":"24bff777-ec9b-45e9-8e2a-7366138f6ba6","block_type":"box","text":"sale contracts, the other par ty agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":114,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"24ebb32a-e850-439f-8e07-452dd349001c","block_type":"box","text":"the Fund at a mutually agreed-upon time and price in a specified currency, thereby determining the yield during the","page_number":114,"box":{"x":68,"y":657,"width":815,"height":11}},{"id":"a5f2d06c-a5ae-4b26-aed5-d85d6b9caea1","block_type":"box","text":"term of the agreement.","page_number":114,"box":{"x":68,"y":672,"width":164,"height":11}},{"id":"dad2801d-8364-4303-a7e3-f395ad7dcd12","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":114,"box":{"x":101,"y":695,"width":788,"height":11}},{"id":"fe5e455c-8ce1-430c-9161-bf5c5572df49","block_type":"box","text":"that securities are owned by the Fund and the purchaser receives any interest on the security paid during the period.","page_number":114,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"3ddd7444-48f6-4467-b10f-af1eb8e21517","block_type":"box","text":"In the case of repurchase agreements, the prices at which the trades are conducted do not reflect accrued interest","page_number":114,"box":{"x":70,"y":725,"width":821,"height":11}},{"id":"9305d347-1953-4f4f-a404-9ecd51cf3d16","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":114,"box":{"x":69,"y":740,"width":790,"height":11}},{"id":"ea20e9f8-e2ba-4caf-b09e-4a06753b6daf","block_type":"box","text":"accrued interest. A Fund may enter into “tri-par ty” repurchase agreements. In “tri-par ty” repurchase agreements, an","page_number":114,"box":{"x":69,"y":755,"width":827,"height":11}},{"id":"b7a638de-0905-439b-800b-fd223a63cba8","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":114,"box":{"x":69,"y":770,"width":788,"height":11}},{"id":"26d0599a-c89d-4846-b660-2581346588ea","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":114,"box":{"x":68,"y":785,"width":522,"height":12}},{"id":"9518128e-0ef2-40f3-b768-b07ac7a11c10","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":114,"box":{"x":102,"y":808,"width":792,"height":11}},{"id":"9926c49c-b8f0-449f-9bb8-d07c810f89fb","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":114,"box":{"x":70,"y":823,"width":784,"height":12}},{"id":"b86b6abe-8fbe-48a2-a8a9-f5f72cb45c41","block_type":"box","text":"currency fluctuations. However, in the event of a default under a repurchase agreement or under a purchase and sale","page_number":114,"box":{"x":69,"y":838,"width":837,"height":12}},{"id":"a2eff35e-fb4e-4d38-830b-b4ea6bd2cc7b","block_type":"box","text":"contract, instead of the contractual fixed rate, the rate of return to the Fund would be dependent upon intervening","page_number":114,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"f508b57f-5555-4411-b182-fe2ea0bbffc6","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":114,"box":{"x":68,"y":869,"width":770,"height":11}},{"id":"d9295bd1-7a1d-4ebf-9132-55cbe8632e10","block_type":"box","text":"securities. In such event, the Fund would have rights against the seller for breach of contract with respect to any","page_number":114,"box":{"x":69,"y":884,"width":802,"height":11}},{"id":"ba894c9b-a96e-4287-93a7-1c5c86a4d843","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":114,"box":{"x":70,"y":899,"width":430,"height":11}},{"id":"78377393-2a8c-4ab9-a489-ff77e21c4c2a","block_type":"box","text":"II-69","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b194ea00-322a-468e-8db8-f6bae684922f","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"928a2d9c-27f2-4bce-b881-e89823d73232","block_type":"box","text":"Both types of agreement usually cover shor t periods, such as less than one week, although they may have","page_number":115,"box":{"x":102,"y":45,"width":759,"height":11}},{"id":"4360ebab-7788-4788-b83b-1867ec80adb1","block_type":"box","text":"longer terms, and may be construed to be collateralized loans by the purchaser to the seller secured by the","page_number":115,"box":{"x":70,"y":60,"width":765,"height":11}},{"id":"bf17813c-1cf2-429d-9cb7-4a047abf07c8","block_type":"box","text":"securities transferred to the purchaser. In the case of a repurchase agreement, as a purchaser, a Fund’s Manager or","page_number":115,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"c98c5fbe-653c-486e-bc59-649014573ece","block_type":"box","text":"sub-adviser will monitor the creditwor thiness of the seller, and a Fund will require the seller to provide additional","page_number":115,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"cc006551-cc92-4176-b595-90fea7861f9f","block_type":"box","text":"collateral if the market value of the securities falls below the repurchase price at any time during the term of the","page_number":115,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"62f3e7df-5064-43b0-8121-cd40416cf7d4","block_type":"box","text":"repurchase agreement. The Fund does not have this right to seek additional collateral as a purchaser in the case of","page_number":115,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"db3ed8a2-28ba-4836-bc68-0d57cd8f1804","block_type":"box","text":"purchase and sale contracts. The Fund’s Manager or sub-adviser will mark-to-market daily the value of the securities.","page_number":115,"box":{"x":70,"y":135,"width":831,"height":12}},{"id":"bb1507d2-fcd7-482d-ad02-8e10354b3099","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":115,"box":{"x":69,"y":151,"width":810,"height":11}},{"id":"50186e16-1ee0-4649-8d95-79162b67ce7c","block_type":"box","text":"contracts will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury book-entry system","page_number":115,"box":{"x":69,"y":166,"width":829,"height":11}},{"id":"0e8033df-aae0-402e-884c-1a4d80de6da7","block_type":"box","text":"or by another authorized securities depository.","page_number":115,"box":{"x":69,"y":181,"width":329,"height":11}},{"id":"f932ddae-39fe-40ec-b3af-026e8b7ba452","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized loan, the","page_number":115,"box":{"x":102,"y":203,"width":770,"height":12}},{"id":"45efb5f4-b104-4813-bde1-ca8b6e25b19a","block_type":"box","text":"underlying securities are not owned by the Fund but only constitute collateral for the seller’s obligation to pay the","page_number":115,"box":{"x":69,"y":218,"width":805,"height":12}},{"id":"9110da0b-5ad6-45ae-84e4-e23be0538ccf","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":115,"box":{"x":69,"y":234,"width":819,"height":11}},{"id":"c3380f23-805f-4979-b03a-7e9aa0fd7914","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":115,"box":{"x":69,"y":249,"width":778,"height":11}},{"id":"b46ac7bc-4919-447d-ad0f-31dd1551a48b","block_type":"box","text":"applicable bankruptcy or other laws, a Fund’s ability to dispose of the underlying securities may be restricted. Finally,","page_number":115,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"45fe91da-3db5-4a35-be64-5530c19064ef","block_type":"box","text":"it is possible that a Fund may not be able to substantiate its interest in the underlying securities. To minimize this","page_number":115,"box":{"x":70,"y":279,"width":810,"height":11}},{"id":"e5a2afd6-fd60-4e35-b6a8-1dfc49794331","block_type":"box","text":"risk, the securities underlying the repurchase agreement will be held by the applicable custodian at all times in an","page_number":115,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"6f3d5523-bfd9-4d6f-b752-382fa3c0991c","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":115,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"444fd1e6-099c-4906-9a7d-3aba0566d34c","block_type":"box","text":"securities, a Fund may suffer a loss to the extent proceeds from the sale of the underlying securities are less than","page_number":115,"box":{"x":69,"y":324,"width":817,"height":12}},{"id":"79019f2c-e1ab-485c-b343-df4a3cb4eb8b","block_type":"box","text":"the repurchase price.","page_number":115,"box":{"x":68,"y":340,"width":151,"height":10}},{"id":"cfb5ced8-6385-435d-b322-133affc93e85","block_type":"box","text":"In any repurchase transaction to which a Fund is a par ty, collateral for a repurchase agreement may include cash","page_number":115,"box":{"x":102,"y":362,"width":805,"height":11}},{"id":"daefd53e-3963-4f71-bddf-9a54666de694","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For cer tain Funds, however,","page_number":115,"box":{"x":70,"y":377,"width":837,"height":12}},{"id":"18f16dd2-bff5-43a3-bb69-6ec01137f971","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":115,"box":{"x":69,"y":392,"width":788,"height":12}},{"id":"5ab0306a-3428-47c6-8339-4dba5eef266d","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":115,"box":{"x":69,"y":408,"width":767,"height":11}},{"id":"26d89dc8-1334-4525-80af-4ccba7d0477d","block_type":"box","text":"strategies without the repurchase obligation.","page_number":115,"box":{"x":69,"y":423,"width":317,"height":11}},{"id":"c8336ef3-bc4c-43eb-826e-e53ef5725461","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":115,"box":{"x":101,"y":445,"width":782,"height":12}},{"id":"2d2156e9-18f1-42b2-9dca-0dfad05a0d44","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":115,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"6df87712-dbb1-49b7-b6e1-4176a9f69657","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":115,"box":{"x":69,"y":475,"width":799,"height":12}},{"id":"5707470e-9bf4-4320-839a-81372dd13794","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":115,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"1c80111c-d1f2-4bea-a4a1-1c63f6b52db2","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterpar ty’s repurchase obligation, a Fund would retain the","page_number":115,"box":{"x":68,"y":506,"width":825,"height":11}},{"id":"f7cc7fda-47af-44c8-a472-9d2884302793","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":115,"box":{"x":69,"y":521,"width":374,"height":11}},{"id":"722a4ac1-9747-4515-ad16-c72f89ee5fdc","block_type":"box","text":"i.e.","page_number":115,"box":{"x":445,"y":521,"width":20,"height":9}},{"id":"a221a005-62ea-442b-a036-383181972c7f","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":115,"box":{"x":468,"y":521,"width":434,"height":11}},{"id":"f808b4c3-8a32-4352-ae77-798e03369840","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":115,"box":{"x":70,"y":536,"width":813,"height":11}},{"id":"4f488f52-e943-448f-a3a9-c4ed39f20381","block_type":"box","text":"the amount of the shor tfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":115,"box":{"x":68,"y":551,"width":816,"height":11}},{"id":"09a967f1-5c9f-45fa-ba8c-4fbb3258c27f","block_type":"box","text":"and income involved in the transaction.","page_number":115,"box":{"x":69,"y":566,"width":278,"height":9}},{"id":"2a3bc3c0-8ea8-4d8a-82e6-5b9cc7baf8bd","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":115,"box":{"x":102,"y":589,"width":800,"height":11}},{"id":"c73ecda6-a0f8-4817-a35f-8af31f3f4051","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":115,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"c41609ac-5737-4902-a5a2-311bc6686fbe","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements,","page_number":115,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"a348ed24-fd7d-46f5-966c-91c82717f813","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":115,"box":{"x":68,"y":634,"width":790,"height":12}},{"id":"59d6fd7f-f1dc-4e39-b490-724b0bfd29d0","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":115,"box":{"x":69,"y":649,"width":818,"height":12}},{"id":"67e49790-dabd-49ce-9de4-858f2cefe476","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":115,"box":{"x":68,"y":665,"width":783,"height":11}},{"id":"7223859b-afef-401d-bfff-5eca11b2e75c","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":115,"box":{"x":69,"y":680,"width":821,"height":11}},{"id":"d9f34268-53a7-4672-9e0f-31d518cdf46f","block_type":"box","text":"contracts or to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":115,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"bd976223-5aeb-4dff-8678-01eb1f0f78c5","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":115,"box":{"x":69,"y":710,"width":796,"height":11}},{"id":"eb8c6bcd-9773-4164-8e41-e64d6f8b3a1b","block_type":"box","text":"Compliance with these rules is expected to be required by the middle of 2027. Although the impact of these rules on","page_number":115,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"f8aed2e4-989d-4fc7-909c-78b4cb656006","block_type":"box","text":"the Funds is difficult to predict, they may reduce the availability or increase the costs of such transactions and may","page_number":115,"box":{"x":68,"y":740,"width":824,"height":11}},{"id":"ee9ec9df-bdfd-4112-93e2-5652fc3f1cdd","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":115,"box":{"x":69,"y":755,"width":279,"height":11}},{"id":"8c253ffa-2b3a-486e-aaae-13436c36f43b","block_type":"box","text":"Restricted Securities.","page_number":115,"box":{"x":102,"y":778,"width":157,"height":9}},{"id":"6663ab16-8098-4522-b84b-042d9ae53d52","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":115,"box":{"x":265,"y":778,"width":617,"height":11}},{"id":"f103ae1f-4a05-4ee4-9b4f-980a16e5dcc6","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":115,"box":{"x":69,"y":793,"width":801,"height":11}},{"id":"c4b3369d-bedb-4c1f-b482-7b50b8ddc7f8","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":115,"box":{"x":69,"y":808,"width":808,"height":11}},{"id":"714c0687-2124-4e88-af95-4c859afaff81","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":115,"box":{"x":70,"y":823,"width":802,"height":12}},{"id":"1af64832-3ae1-4a0e-b599-6175767924d7","block_type":"box","text":"listed on an exchange nor traded in other established markets. In many cases, privately placed securities may not be","page_number":115,"box":{"x":70,"y":839,"width":834,"height":11}},{"id":"d48df102-8cb3-4672-b314-d18c38e00045","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":115,"box":{"x":68,"y":853,"width":825,"height":12}},{"id":"e04dab3c-5a3d-49fe-b494-cc7759a4e373","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":115,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"5186ffcf-4cc0-4a5b-9d2b-7afdd91ca86a","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":115,"box":{"x":69,"y":884,"width":821,"height":11}},{"id":"7726d6be-f2e4-44e5-86a2-4c01349bab27","block_type":"box","text":"are in restricted securities that are not traded in public markets and subject to substantial holding periods, so that a","page_number":115,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"9ac7de2a-6d04-47fb-a953-5ed83325c20b","block_type":"box","text":"II-70","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"86975577-994d-4cfc-bf53-aa219a576526","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"221df5d0-5300-496d-b3af-e31937b9b678","block_type":"box","text":"Fund may not be able to resell some of its holdings for extended periods, which may be several years. There can be","page_number":116,"box":{"x":70,"y":45,"width":824,"height":11}},{"id":"d8e45673-cd48-43b7-81d5-6dd0bd512a8d","block_type":"box","text":"no assurance that a Fund will be able to realize the value of such restricted securities in a timely manner or at all. As","page_number":116,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"d02230a0-73e9-4579-91da-2f9ebc1238c5","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on cer tain transactions,","page_number":116,"box":{"x":69,"y":75,"width":769,"height":11}},{"id":"c7b05e17-9e33-4c8a-a1a0-f26d6f300e48","block_type":"box","text":"restricted securities may be deemed to be illiquid investments or less liquid investments and may be more difficult to","page_number":116,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"2c323152-a5b4-4fca-88b5-62c691b50042","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":116,"box":{"x":68,"y":105,"width":805,"height":11}},{"id":"3ccd4de8-1947-4830-9e39-69a6cea004bc","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those originally paid by the","page_number":116,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"32798abc-df74-4a80-9af3-c769a06f2c7d","block_type":"box","text":"Fund or less than their fair market value. The amount of any discount may vary depending on the security type, the","page_number":116,"box":{"x":70,"y":135,"width":815,"height":12}},{"id":"64f52efa-853c-4f76-87c6-0c8d1f0cc8bb","block_type":"box","text":"character of the issuer, which par ty (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":116,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"84b688d9-2b5d-44d5-a706-f26d4f8e639f","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":116,"box":{"x":69,"y":166,"width":803,"height":11}},{"id":"b9fdfd2c-26e3-4e98-a737-eac5975c93a6","block_type":"box","text":"listed may not be subject to the disclosure and other investor protection requirements that may be applicable if their","page_number":116,"box":{"x":70,"y":181,"width":830,"height":11}},{"id":"41ab1ac7-d124-48e5-95f8-e5183c57dd42","block_type":"box","text":"securities were publicly traded. If any privately placed securities held by a Fund are required to be registered under","page_number":116,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"f2b0e6de-67e5-487e-93e3-b7bbce6d9dd0","block_type":"box","text":"the securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the expenses","page_number":116,"box":{"x":68,"y":211,"width":825,"height":11}},{"id":"a9dd996f-9fb7-4a62-bb00-b8f894736b94","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":116,"box":{"x":69,"y":226,"width":777,"height":11}},{"id":"5eba4310-d375-4dd5-a47d-fe8f347573d4","block_type":"box","text":"between the time the Fund decides to sell the security and the time it is actually permitted to sell the security under","page_number":116,"box":{"x":69,"y":241,"width":828,"height":11}},{"id":"f168dba9-b6f6-4abc-8cc2-fb02f8172b39","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":116,"box":{"x":69,"y":256,"width":834,"height":12}},{"id":"a27d8ea5-03cb-4ebb-adf9-46e6c6501afd","block_type":"box","text":"obtain less favorable pricing terms than when it decided to sell the security. In addition, the Fund may be deemed to","page_number":116,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"a962a27a-70cb-4525-83b8-a16c12ad6b74","block_type":"box","text":"be an “underwriter” for purposes of the Securities Act when selling restricted securities. If so, the Fund may be liable","page_number":116,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"7a3846e4-1d74-494f-9d39-a3eca5019605","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":116,"box":{"x":68,"y":302,"width":819,"height":11}},{"id":"373954e5-ac29-43cf-a067-077f73278c20","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":116,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"e9418054-6535-45d2-95d0-004845ee2d0c","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Cer tain of the Fund’s investments in","page_number":116,"box":{"x":69,"y":332,"width":798,"height":11}},{"id":"83f28918-bafa-436a-8023-59c3d5cf74a6","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":116,"box":{"x":70,"y":347,"width":780,"height":11}},{"id":"417e185b-86d8-496e-aec2-b46e62c661d2","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":116,"box":{"x":70,"y":362,"width":773,"height":11}},{"id":"c211efd4-9f17-4c86-abc9-90c16b7e1f45","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":116,"box":{"x":69,"y":377,"width":784,"height":12}},{"id":"22f6e5ef-57e3-4034-8bba-9087e9f4f9a5","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":116,"box":{"x":69,"y":392,"width":816,"height":12}},{"id":"273439c7-5d7e-4d9c-bb3e-93852e229bf0","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":116,"box":{"x":69,"y":407,"width":828,"height":12}},{"id":"ca504ae3-be86-42df-99d0-18d40629b9ec","block_type":"box","text":"operations of such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":116,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"5bdd25fe-9224-47f4-9b69-b017e60a4f53","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited product lines,","page_number":116,"box":{"x":68,"y":438,"width":804,"height":11}},{"id":"6fa949b6-4392-4086-9af7-8e848e5c138f","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":116,"box":{"x":69,"y":453,"width":647,"height":11}},{"id":"d7ef92f6-47d0-44cd-aade-e68179350a55","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":116,"box":{"x":102,"y":476,"width":714,"height":11}},{"id":"c45e4cca-4237-496b-8045-ca7a8544c20b","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":116,"box":{"x":70,"y":491,"width":823,"height":11}},{"id":"d2ccc9c7-37e5-41a8-9e37-7c9381333e88","block_type":"box","text":"Fund’s net assets grow from new or additional investments made in the Fund by other shareholders. The issuer of a","page_number":116,"box":{"x":70,"y":506,"width":826,"height":11}},{"id":"5bb5fade-06bd-4493-8fc2-aba2775651fa","block_type":"box","text":"private placement may later register those shares for public sale in an IPO, but there is no guarantee that an IPO will","page_number":116,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"b50977b5-972e-4f1b-8c53-c9853363b187","block_type":"box","text":"ever be completed. Even after an IPO, there may be a limited trading market for securities of that issuer, including","page_number":116,"box":{"x":69,"y":536,"width":812,"height":11}},{"id":"135483df-9cc3-4022-92fb-d0ff9b3be0c4","block_type":"box","text":"any direct investment by a Fund, or the Fund may be subject to contractual limitations on its ability to resell its","page_number":116,"box":{"x":69,"y":551,"width":787,"height":11}},{"id":"41dab2fb-cd8b-4ecf-a636-db1aa95382b5","block_type":"box","text":"existing securities following an IPO. The inability of an applicable issuer of a restricted security to complete an IPO or","page_number":116,"box":{"x":69,"y":566,"width":833,"height":11}},{"id":"ce6bb8ec-14af-4343-a430-c6b2c79f98b4","block_type":"box","text":"offer other liquidity oppor tunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":116,"box":{"x":69,"y":581,"width":759,"height":12}},{"id":"8fc4cf60-452c-4294-9c58-7e7debe3185e","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":116,"box":{"x":70,"y":596,"width":833,"height":12}},{"id":"4b7e17a7-3c8d-4c80-9bec-495b7db5d728","block_type":"box","text":"such securities, a Fund may obtain access to material nonpublic information, which may restrict the Fund’s ability to","page_number":116,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"c2ae7381-ea1f-4cd9-8487-81ad410b5411","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":116,"box":{"x":69,"y":627,"width":827,"height":11}},{"id":"3ce6ff51-a190-4b55-be31-e36d90080e40","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncer tainty. A Fund will be","page_number":116,"box":{"x":70,"y":642,"width":804,"height":11}},{"id":"57ca6708-7bf1-4c25-9daa-9f24ad795a1c","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":116,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"5472bd87-7c99-4b19-9d11-6afeb1b478df","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":116,"box":{"x":70,"y":672,"width":835,"height":11}},{"id":"827a85bc-462a-45d0-8395-be55c5a7ee71","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":116,"box":{"x":69,"y":687,"width":768,"height":11}},{"id":"c83d476d-a5b0-4db6-b2e7-b551841c1fb3","block_type":"box","text":"investment oppor tunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":116,"box":{"x":70,"y":702,"width":815,"height":12}},{"id":"da0a77da-2404-463a-a62f-257ba925018c","block_type":"box","text":"especially as that Fund grows in size.","page_number":116,"box":{"x":69,"y":718,"width":264,"height":11}},{"id":"c94202c5-71cd-4597-8663-9c245a053a4d","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in par ticular, restricted","page_number":116,"box":{"x":101,"y":740,"width":762,"height":11}},{"id":"04072a61-f98d-48e4-b641-df517437710f","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":116,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"82dcefea-18d8-4e7d-a1be-577dac6703b2","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":116,"box":{"x":69,"y":771,"width":751,"height":11}},{"id":"fe8f2719-e752-415d-8b29-cad28cce90f9","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":116,"box":{"x":70,"y":785,"width":755,"height":12}},{"id":"ce7c1bfa-49e5-42d0-9747-058732a62c67","block_type":"box","text":"determining the fair value of investments that do not have a readily available market value, the fair value of a Fund’s","page_number":116,"box":{"x":69,"y":801,"width":830,"height":11}},{"id":"b140c14c-fbaa-49a9-9fd9-18a808ae3bd8","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":116,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"a31b315c-7b2c-48e7-86e3-2af89f422462","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":116,"box":{"x":68,"y":831,"width":766,"height":11}},{"id":"4c4c88eb-805f-4e92-8963-40a0605f5ce1","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":116,"box":{"x":69,"y":846,"width":792,"height":11}},{"id":"010e373b-8e50-4258-85f8-f989984959a9","block_type":"box","text":"Fund’s shareholder transactions being effected at a NAV that does not accurately reflect the underlying value of the","page_number":116,"box":{"x":70,"y":861,"width":821,"height":11}},{"id":"a24ec17d-cd9e-4572-b09f-2872d4dec8a5","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":116,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"f5db02b5-dcfe-4435-8d31-c9e1e67e3b97","block_type":"box","text":"shareholder arbitrage. The values used by the Fund to price its restricted securities may also differ from those used","page_number":116,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"96753dbd-30bb-4a0a-b035-b99bf06e1e16","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":116,"box":{"x":69,"y":906,"width":790,"height":12}},{"id":"19e2f9f0-7f4a-454b-9c4a-bb641ee1ca6d","block_type":"box","text":"II-71","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cb4f3944-4980-40b7-b4fd-25e0bcf5d619","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a7f5eae1-6dd2-4871-975e-8165a3c7ddda","block_type":"box","text":"changes in the market environment and other events on the fair values of a Fund’s investments that have no readily","page_number":117,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"1bbbb09a-b7ed-4893-8362-f44d7af6b3a2","block_type":"box","text":"available market values may differ from the impact of such changes on the readily available market values for the","page_number":117,"box":{"x":69,"y":60,"width":810,"height":11}},{"id":"b228698b-5b7c-4d40-b63f-d524108e86b1","block_type":"box","text":"Fund’s other investments. A Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair","page_number":117,"box":{"x":70,"y":75,"width":818,"height":11}},{"id":"4036880a-235c-442b-88c5-c5223d8cc04a","block_type":"box","text":"value of the Fund’s investments were materially higher than the investment’s actual market or fair value or the values","page_number":117,"box":{"x":68,"y":90,"width":839,"height":11}},{"id":"04a9630f-1a05-4504-b266-c1665bd3d58d","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":117,"box":{"x":68,"y":105,"width":514,"height":11}},{"id":"728ba306-270e-4098-b321-0d393f19a212","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":117,"box":{"x":102,"y":128,"width":385,"height":11}},{"id":"7d7a5228-585e-44cc-9d9e-b60dd70f1b8a","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":117,"box":{"x":102,"y":151,"width":246,"height":11}},{"id":"44d4556b-fa00-477e-9ffd-7250e01bef23","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":117,"box":{"x":354,"y":151,"width":548,"height":11}},{"id":"44f6fd87-6761-49b2-8964-336caa45c64b","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":117,"box":{"x":68,"y":166,"width":830,"height":11}},{"id":"5cb6e324-ebf5-488b-8060-7fe5b50bf4c6","block_type":"box","text":"to another par ty and agrees to repurchase them at a par ticular date and price. A Fund may enter into a reverse","page_number":117,"box":{"x":68,"y":181,"width":793,"height":11}},{"id":"4bb7baa9-2a40-443a-8369-182bc690c577","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":117,"box":{"x":69,"y":196,"width":784,"height":11}},{"id":"5ed0aaf2-8b44-4c7c-a366-d62a949f1e22","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":117,"box":{"x":70,"y":211,"width":591,"height":11}},{"id":"7d65e36b-a70c-44b2-94fc-77e89a18a9ca","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":117,"box":{"x":101,"y":234,"width":730,"height":11}},{"id":"d3a40364-3d92-4893-a054-d9af9f0531b0","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":117,"box":{"x":70,"y":249,"width":822,"height":11}},{"id":"577e68b8-9c5e-4ce8-a9d4-a4d065016047","block_type":"box","text":"of the proceeds will be less than the interest expense, (ii) the market value of the securities retained in lieu of sale","page_number":117,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"58e94af1-b997-4dcb-9e4c-f4c2780a56bc","block_type":"box","text":"by a Fund may decline below the price of the securities the Fund has sold but is obligated to repurchase, (iii) the","page_number":117,"box":{"x":69,"y":279,"width":801,"height":11}},{"id":"a7b432bc-8644-4ea0-a2a3-af88a7b75878","block_type":"box","text":"market value of the securities sold will decline below the price at which the Fund is required to repurchase them and","page_number":117,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"72ad9f63-74d4-42b8-a2df-c8f1e9b1d5d2","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":117,"box":{"x":69,"y":309,"width":354,"height":11}},{"id":"9180f014-7063-4d4c-aef6-be55706c4ac4","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":117,"box":{"x":102,"y":332,"width":769,"height":11}},{"id":"05eaa1c9-c2f8-42bd-a3e5-921587903c9d","block_type":"box","text":"insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce a","page_number":117,"box":{"x":70,"y":347,"width":815,"height":11}},{"id":"a02ef78e-eaa7-4d0f-a35d-28742c5b06fc","block_type":"box","text":"Fund’s obligations to repurchase the securities and the Fund’s use of the proceeds of the reverse repurchase","page_number":117,"box":{"x":70,"y":362,"width":782,"height":11}},{"id":"78719e29-49a9-4b23-bc9d-2855a1bf9337","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":117,"box":{"x":69,"y":377,"width":449,"height":12}},{"id":"ec3ba69f-7d9e-45d8-83f4-7782b77b6eca","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":117,"box":{"x":102,"y":400,"width":794,"height":11}},{"id":"43e67ec4-8f17-430b-a10a-d7280182dddb","block_type":"box","text":"similar financing transactions (","page_number":117,"box":{"x":69,"y":415,"width":218,"height":11}},{"id":"918cdbfb-5159-47bf-b781-7b99334f9439","block_type":"box","text":"e.g.","page_number":117,"box":{"x":289,"y":417,"width":24,"height":9}},{"id":"cc72c20a-b5cf-474c-a5e1-8b9eb5b98196","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":117,"box":{"x":316,"y":415,"width":594,"height":11}},{"id":"7ab238ad-3c39-47ff-9fa6-318ff5d67b2e","block_type":"box","text":"the limitation on the issuance of senior securities in Section 18 of the Investment Company Act, provided that the","page_number":117,"box":{"x":68,"y":430,"width":813,"height":11}},{"id":"ed1e4801-198c-4996-a175-350f1de7c0a3","block_type":"box","text":"Fund either (i) complies with the 300% asset coverage ratio with respect to all such transactions and any other","page_number":117,"box":{"x":70,"y":445,"width":789,"height":12}},{"id":"377e10cf-7b49-441e-ad96-283618996ab8","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":117,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"64d70f06-191f-49fa-923a-a1ed27d472f3","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":117,"box":{"x":70,"y":475,"width":824,"height":12}},{"id":"45afa028-226e-47fb-968b-14e121beeebe","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":117,"box":{"x":68,"y":491,"width":758,"height":11}},{"id":"74508eb8-26de-4888-b7d0-617489a99d91","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the middle of 2027.","page_number":117,"box":{"x":69,"y":506,"width":822,"height":11}},{"id":"6d4a95df-c347-4c06-9d82-a2a397277c4d","block_type":"box","text":"Although the impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":117,"box":{"x":68,"y":521,"width":838,"height":11}},{"id":"a0cb4db0-5919-4efb-b42b-550ef1024088","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":117,"box":{"x":69,"y":536,"width":538,"height":11}},{"id":"5b76b1cb-98ce-4941-ac8c-ab265d60f9dc","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":117,"box":{"x":101,"y":559,"width":780,"height":11}},{"id":"52f6973e-f1d0-48b1-97ca-149eb1c493bd","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":117,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"495ccbb5-320b-412a-9337-8b282eb7185f","block_type":"box","text":"terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements, take","page_number":117,"box":{"x":68,"y":589,"width":775,"height":11}},{"id":"b498eed2-8522-4dac-b4c3-4bbd36a3c475","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":117,"box":{"x":68,"y":604,"width":754,"height":11}},{"id":"e672ef9c-d539-479f-951a-cbf929149e75","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":117,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"a906996e-a844-475d-96eb-cd53286b72ff","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":117,"box":{"x":68,"y":634,"width":783,"height":12}},{"id":"9e7f784e-a111-49d0-a9e1-8a327bb58853","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":117,"box":{"x":69,"y":649,"width":800,"height":12}},{"id":"757c7a0b-1776-44aa-8d77-7e438aa4aa70","block_type":"box","text":"amounts to be received under such agreements.","page_number":117,"box":{"x":69,"y":665,"width":345,"height":11}},{"id":"45664d58-b3d0-4963-a3da-0c06abd4200e","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":117,"box":{"x":102,"y":687,"width":316,"height":11}},{"id":"5bc64cfa-0ace-4d07-8188-4c59e927f246","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":117,"box":{"x":424,"y":687,"width":481,"height":11}},{"id":"991db9ba-5fc7-4aba-bd72-6e084a4491ec","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":117,"box":{"x":68,"y":702,"width":822,"height":12}},{"id":"90b4281e-09c0-447c-86d9-e64db3291bff","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":117,"box":{"x":69,"y":717,"width":776,"height":12}},{"id":"827d9201-3450-4ec8-92e1-5b2eee8dc1e6","block_type":"box","text":"normally have a shor t life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":117,"box":{"x":69,"y":732,"width":817,"height":12}},{"id":"48d50be9-35c8-4f7d-a548-11ff4de331bf","block_type":"box","text":"lose the purchase value of a right or warrant if the right to subscribe to additional shares is not exercised prior to the","page_number":117,"box":{"x":70,"y":748,"width":833,"height":11}},{"id":"74944659-128b-447c-b69a-18d507fa3953","block_type":"box","text":"rights’ and warrants’ expiration. Also, the purchase of rights and/or warrants involves the risk that the effective price","page_number":117,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"9062f7d1-7f0e-49a2-bb51-c61390d101ac","block_type":"box","text":"paid for the right and/or warrant added to the subscription price of the related security may exceed the value of the","page_number":117,"box":{"x":70,"y":778,"width":821,"height":11}},{"id":"96aa07f1-0416-4f8c-8b5a-899adcf49916","block_type":"box","text":"subscribed security’s market price such as when there is no movement in the level of the underlying security. Buying","page_number":117,"box":{"x":69,"y":793,"width":830,"height":11}},{"id":"a682d28e-92b6-4167-a158-d33f10eca91b","block_type":"box","text":"a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder has no voting or","page_number":117,"box":{"x":69,"y":808,"width":777,"height":11}},{"id":"ec75193e-8fa5-4fd8-8f99-a5fd3df9cc2f","block_type":"box","text":"dividend rights with respect to the underlying stock. A warrant does not carry any right to assets of the issuer, and for","page_number":117,"box":{"x":69,"y":823,"width":839,"height":12}},{"id":"408ac0c0-d3a0-4330-ae17-da296096f242","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":117,"box":{"x":68,"y":839,"width":708,"height":10}},{"id":"a3fe410c-e693-4076-9460-8ecdf7ebe4f7","block_type":"box","text":"Rule 144A Securities.","page_number":117,"box":{"x":102,"y":861,"width":159,"height":9}},{"id":"80525b58-7e8b-4488-9020-19a966e0d747","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":117,"box":{"x":266,"y":861,"width":560,"height":11}},{"id":"e930e271-0ae6-49dc-8219-75b42d956ef2","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":117,"box":{"x":70,"y":876,"width":741,"height":11}},{"id":"2b7040d0-fa13-485e-9fa6-dc6417ef67f3","block_type":"box","text":"II-72","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d86f3cc2-b191-4661-9efc-73b8b113aeaa","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3fec6652-0850-43db-b0a5-99b012e7e9f6","block_type":"box","text":"Securities Lending.","page_number":118,"box":{"x":101,"y":45,"width":139,"height":11}},{"id":"1af84441-77c8-42f1-974f-0e95f045a088","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":118,"box":{"x":247,"y":45,"width":645,"height":11}},{"id":"efc0d2aa-931f-422b-b9db-514d301d1820","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":118,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"334206f7-987d-4c93-b4b0-0c74caf2d53e","block_type":"box","text":"an amount at least equal to the current market value of the securities loaned. No securities loan shall be made on","page_number":118,"box":{"x":69,"y":75,"width":817,"height":11}},{"id":"51989880-8df0-4fa9-a280-a3aaf2fb4d62","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the par ticular Fund exceeds one-third of","page_number":118,"box":{"x":69,"y":90,"width":831,"height":11}},{"id":"974549da-7ee6-455b-882d-4ec5efa0d10c","block_type":"box","text":"the value of such Fund’s total assets (including the value of the collateral received). A Fund may terminate a loan at","page_number":118,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"4e26391e-c2fc-41e6-98c3-8849b1a76281","block_type":"box","text":"any time and obtain the return of the securities loaned. Each Fund receives, by way of substitute payment, the value","page_number":118,"box":{"x":69,"y":120,"width":829,"height":11}},{"id":"6dda6013-475c-4a25-8ac8-2bada914c3f5","block_type":"box","text":"of any interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise received if","page_number":118,"box":{"x":69,"y":135,"width":838,"height":11}},{"id":"19a0824d-a994-4009-a295-c970d7daa7c1","block_type":"box","text":"the securities were not on loan.","page_number":118,"box":{"x":68,"y":151,"width":225,"height":8}},{"id":"6eba43d5-f34e-49f1-a373-9806344c2bcb","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee based on the","page_number":118,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"3efab0e3-a65f-4dea-921b-d9ce658d1e59","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":118,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"55568237-8bcc-40ae-b6db-5fef3fcebb20","block_type":"box","text":"reinvestment of cash collateral and the fee paid to the borrower. In the case of collateral other than cash, a Fund is","page_number":118,"box":{"x":69,"y":203,"width":824,"height":11}},{"id":"d35a1197-ae80-4069-81b2-b1d43e2e7e54","block_type":"box","text":"compensated by a fee paid by the borrower equal to a percentage of the market value of the loaned securities. Any","page_number":118,"box":{"x":69,"y":218,"width":821,"height":12}},{"id":"68aa575d-a405-4c59-bfcf-07f4668f52d4","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in cer tain shor t-term","page_number":118,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"3a3e7075-2837-441f-a3d2-a4c3a88eff77","block_type":"box","text":"instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds,","page_number":118,"box":{"x":70,"y":249,"width":789,"height":11}},{"id":"477e7b38-3291-43de-bcb6-be1310dd7d15","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":118,"box":{"x":70,"y":264,"width":643,"height":11}},{"id":"88f3e298-ddd5-41a8-b182-93a299f435d5","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":118,"box":{"x":102,"y":287,"width":568,"height":11}},{"id":"2df1c262-10c9-41b6-81b6-096c34894cbc","block_type":"box","text":"i.e.","page_number":118,"box":{"x":672,"y":287,"width":20,"height":9}},{"id":"4c90bc52-1ee5-433a-8852-2519e6a52793","block_type":"box","text":", the risk of losses resulting","page_number":118,"box":{"x":695,"y":286,"width":198,"height":12}},{"id":"27d836b8-0c19-434c-9546-8bfd7d80180d","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":118,"box":{"x":68,"y":302,"width":501,"height":11}},{"id":"944bc3dc-927d-41cb-a1d6-39598a560d19","block_type":"box","text":"i.e.","page_number":118,"box":{"x":571,"y":302,"width":20,"height":9}},{"id":"8b2b8b19-8194-4d2e-a989-cb06b7f30927","block_type":"box","text":", the risk of a mismatch between the return","page_number":118,"box":{"x":594,"y":302,"width":307,"height":10}},{"id":"7640e108-39d2-415b-9910-3257d26fc775","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":118,"box":{"x":69,"y":317,"width":794,"height":11}},{"id":"e96b49fc-80aa-4664-9579-9cbae528574a","block_type":"box","text":"i.e.","page_number":118,"box":{"x":865,"y":317,"width":20,"height":9}},{"id":"8d357f06-87a4-4102-81bf-222b595da818","block_type":"box","text":",","page_number":118,"box":{"x":888,"y":324,"width":2,"height":3}},{"id":"edd6099d-a386-4a79-81a4-e43fb77d8ab8","block_type":"box","text":"the risk of a shor tfall at default when a cash collateral investment is denominated in a currency other than the","page_number":118,"box":{"x":68,"y":332,"width":788,"height":11}},{"id":"3764dfaf-e32a-4227-80a4-e81e96f7fe49","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterpar ty and","page_number":118,"box":{"x":69,"y":347,"width":837,"height":11}},{"id":"5ca2e267-98cd-46c9-bf32-5de1063bd50b","block_type":"box","text":"market risks (including the risk that market events, including but not limited to corporate actions, could lead a Fund","page_number":118,"box":{"x":69,"y":362,"width":822,"height":11}},{"id":"29b96fe8-cd5c-417f-a2e1-8f318df9ec07","block_type":"box","text":"to lend securities that are trading at a premium due to increased demand, or to recall loaned securities or to lend","page_number":118,"box":{"x":68,"y":377,"width":811,"height":12}},{"id":"15068587-e959-4aa9-9ca1-0478f05f9366","block_type":"box","text":"less or not at all, which could lead to reduced securities lending revenue). If a Fund were to lend out securities that","page_number":118,"box":{"x":70,"y":392,"width":820,"height":12}},{"id":"e7cd4b22-2521-4b81-8f53-be6da03214f3","block_type":"box","text":"are subject to a corporate action and commit to the borrower a par ticular election as determined by the Fund’s","page_number":118,"box":{"x":69,"y":408,"width":790,"height":11}},{"id":"026f217c-4c0b-4c81-bbd9-02a3783b4287","block_type":"box","text":"investment adviser, the benefit the Fund would receive in respect of committing to such election may or may not be","page_number":118,"box":{"x":70,"y":423,"width":820,"height":11}},{"id":"f79fc959-ca3d-4871-8ad7-2c6031eed7ed","block_type":"box","text":"less than the benefit the Fund would have received from making a different election in such corporate action. If a","page_number":118,"box":{"x":70,"y":438,"width":805,"height":11}},{"id":"62e60933-717f-4fff-8d94-0d902d0e43ae","block_type":"box","text":"securities lending counterpar ty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":118,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"ca29038d-2875-42cd-9838-972752e80437","block_type":"box","text":"collateral or in recovering the loaned securities, or to a possible loss of rights in the collateral. In the event a","page_number":118,"box":{"x":69,"y":468,"width":775,"height":11}},{"id":"b3530d55-473f-4454-b134-dd433f24f38e","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to par ticipate in a corporate action event","page_number":118,"box":{"x":69,"y":483,"width":821,"height":11}},{"id":"3265544d-9ead-48b9-ab53-f8e7113b1606","block_type":"box","text":"may be impacted, or the Fund may experience losses if the proceeds received from liquidating the collateral do not at","page_number":118,"box":{"x":69,"y":498,"width":838,"height":11}},{"id":"d52da82d-755c-48e5-8956-dfa3460ed306","block_type":"box","text":"least equal the value of the loaned security at the time the collateral is liquidated, plus the transaction costs incurred","page_number":118,"box":{"x":70,"y":513,"width":837,"height":11}},{"id":"038d9ca7-ba6b-4e4a-8f07-5ed24cfdb563","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":118,"box":{"x":70,"y":528,"width":808,"height":12}},{"id":"98cbafee-4093-49ea-bee7-cd0d1f7c2d1b","block_type":"box","text":"could lose money if its shor t-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":118,"box":{"x":69,"y":543,"width":839,"height":12}},{"id":"72266c58-3d59-42ba-be56-b4380c532520","block_type":"box","text":"payments received by a Fund representing dividends paid on securities loaned out by the Fund will not be considered","page_number":118,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"6e0c262e-e00e-464a-b723-08022c8e4e0a","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":118,"box":{"x":69,"y":574,"width":801,"height":11}},{"id":"790771cc-1515-4be6-9a42-44e53d862ef4","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":118,"box":{"x":69,"y":589,"width":823,"height":11}},{"id":"a1a35674-b12e-473d-8a99-7aeb0e3a355e","block_type":"box","text":"REIT securities loaned out by the Fund will not be considered qualified REIT dividends, and distributions by the Fund","page_number":118,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"0e930dca-13d4-46e2-b740-5856dc05f39a","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":118,"box":{"x":69,"y":619,"width":812,"height":11}},{"id":"44af9755-3a31-41b7-9a87-d880c38ea87b","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":118,"box":{"x":70,"y":634,"width":814,"height":12}},{"id":"888dc9f5-631b-490d-9e43-bd16cad1ef91","block_type":"box","text":"will take into account the tax effects on shareholders caused by these differences in connection with a Fund’s","page_number":118,"box":{"x":68,"y":649,"width":787,"height":12}},{"id":"3262c224-9364-4598-9697-a1fc865a496c","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":118,"box":{"x":69,"y":665,"width":828,"height":11}},{"id":"4b38d8e2-ad20-4923-ba09-4b55aab462b3","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":118,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"5a32163a-4d41-40c3-b521-a89ea489bcbe","block_type":"box","text":"regulations, that may impact the regulatory or tax treatment of loaned securities and could, for example, result in a","page_number":118,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"02ab9088-79bc-4ae6-ab2a-29e56229f47c","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":118,"box":{"x":69,"y":710,"width":731,"height":11}},{"id":"ff0db746-4ff5-4be6-bcd9-4c257ceade02","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":118,"box":{"x":102,"y":732,"width":800,"height":12}},{"id":"efcfa551-a342-4d86-ad9f-9575872cf329","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":118,"box":{"x":68,"y":748,"width":802,"height":11}},{"id":"9a8f619b-b8b0-4576-897a-31a788ad8fef","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":118,"box":{"x":69,"y":763,"width":783,"height":11}},{"id":"7a006708-350f-48d5-b6ad-fca2d41ddb73","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit suppor t in the event that the counterpar ty and/or","page_number":118,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"806a0c88-3aae-465a-beb6-bba83b3fc28f","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":118,"box":{"x":70,"y":793,"width":747,"height":11}},{"id":"99b69057-3cc3-4253-8acb-6b59e31a1ee6","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":118,"box":{"x":69,"y":808,"width":806,"height":11}},{"id":"2bd6a9de-bf79-46e4-b5a1-3b1ab225d78d","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":118,"box":{"x":69,"y":823,"width":808,"height":12}},{"id":"09c5efb7-14fb-4049-a986-0e8221a08388","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":118,"box":{"x":69,"y":838,"width":839,"height":12}},{"id":"6b494fb9-5603-4e45-b331-3803359a1103","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Cer tain Funds expect to provide","page_number":118,"box":{"x":69,"y":853,"width":827,"height":11}},{"id":"fc721ef8-c6ed-4b72-b57e-682e79ea0e86","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":118,"box":{"x":69,"y":869,"width":794,"height":11}},{"id":"a1076836-26e4-400d-9e28-50a2a6874ed3","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":118,"box":{"x":69,"y":884,"width":371,"height":11}},{"id":"76f63e68-b8dd-4896-b8e4-a44cd786ee87","block_type":"box","text":"II-73","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"15883d30-ec8f-40d4-87d3-dbf430a32c5b","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d61a234f-cc97-473a-9801-929096423994","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":119,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"7d6a6ac4-3138-4c67-966e-872b9b177935","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":119,"box":{"x":70,"y":60,"width":808,"height":11}},{"id":"2a84d6bd-ce5d-4942-b57f-601e345861fd","block_type":"box","text":"entered into in connection with shor t sales. Compliance with this rule is expected to be required in late 2028,","page_number":119,"box":{"x":69,"y":75,"width":784,"height":11}},{"id":"e916934a-db9d-4e8f-bb1b-3d7107409760","block_type":"box","text":"although in response to the outcome of a legal challenge against the rule, the SEC may amend the rule and/or delay","page_number":119,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"72e8f687-0d75-4db8-8f29-5e85415d5678","block_type":"box","text":"the current expected compliance date.","page_number":119,"box":{"x":68,"y":105,"width":273,"height":11}},{"id":"f1c5d36b-c15b-4a4f-bf72-d13dc202a869","block_type":"box","text":"Short Sales.","page_number":119,"box":{"x":101,"y":128,"width":89,"height":9}},{"id":"7d7ddb4b-35f5-4451-868d-2eecbe72a1bc","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":119,"box":{"x":196,"y":128,"width":696,"height":11}},{"id":"f40312fa-ae87-4b42-8494-75c9cfd6defb","block_type":"box","text":"value of a por tfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":119,"box":{"x":68,"y":143,"width":821,"height":11}},{"id":"113eb4a2-1bfe-422e-8c1d-a840c801d40e","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":119,"box":{"x":69,"y":158,"width":778,"height":11}},{"id":"92962b06-4765-4b26-b941-124fe67b948e","block_type":"box","text":"“against-the-box.” In a shor t sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":119,"box":{"x":70,"y":173,"width":831,"height":11}},{"id":"9874effc-4524-4dd4-9f4c-3953a2d1bb79","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a shor t sale, it borrows","page_number":119,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"835c402d-daf4-410b-b84f-2bf8f4ac22dc","block_type":"box","text":"the security sold shor t and delivers it to the broker-dealer through which it made the shor t sale. A Fund may have to","page_number":119,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"ca5c5f06-6c5b-4ecd-bee8-f1582eab5173","block_type":"box","text":"pay a fee to borrow par ticular securities and is often obligated to turn over any payments received on such borrowed","page_number":119,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"1ae25955-3d83-440c-bda5-59f5d4fd04a3","block_type":"box","text":"securities to the lender of the securities.","page_number":119,"box":{"x":69,"y":234,"width":289,"height":9}},{"id":"06618048-fa1a-45b3-afbe-fe0c009156ce","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":119,"box":{"x":101,"y":257,"width":772,"height":11}},{"id":"57f8831c-0c22-44c9-a769-681669a5bcf7","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":119,"box":{"x":69,"y":272,"width":795,"height":11}},{"id":"9e5155ec-b008-4b3d-ba92-9b50a4fb2ab4","block_type":"box","text":"uncovered shor t positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":119,"box":{"x":69,"y":286,"width":801,"height":12}},{"id":"d964c4eb-356e-434f-bc63-143b90b185d4","block_type":"box","text":"extent that the value of both collateral deposits in the aggregate is at all times equal to at least 100% of the current","page_number":119,"box":{"x":69,"y":302,"width":830,"height":11}},{"id":"740f1b30-3779-4818-86f7-b78dd530f707","block_type":"box","text":"market value of the security sold shor t. Depending on arrangements made with the broker-dealer from which the Fund","page_number":119,"box":{"x":69,"y":317,"width":839,"height":11}},{"id":"bdc9d676-49a4-4f5d-aaf5-328e5dfc216d","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":119,"box":{"x":69,"y":332,"width":770,"height":11}},{"id":"9c7d767b-e6c1-47ab-ac93-241d18a846dd","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":119,"box":{"x":70,"y":347,"width":568,"height":11}},{"id":"4fd1ed21-e637-4b1e-99af-d2ba9b5f798c","block_type":"box","text":"Because making shor t sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":119,"box":{"x":102,"y":370,"width":806,"height":11}},{"id":"94ba8af0-4e0d-4114-8a18-353e1697a498","block_type":"box","text":"securities, such shor t sales involve speculative exposure risk. A Fund will incur a loss as a result of a shor t sale if","page_number":119,"box":{"x":69,"y":385,"width":817,"height":11}},{"id":"683ab3f3-795b-42f8-887a-5713e3f026fe","block_type":"box","text":"the price of the security increases between the date of the shor t sale and the date on which the Fund replaces the","page_number":119,"box":{"x":68,"y":400,"width":819,"height":11}},{"id":"8ca455bc-02de-499a-a9c1-1e29db11955b","block_type":"box","text":"borrowed security. As a result, if a Fund makes shor t sales in securities that increase in value, it will likely","page_number":119,"box":{"x":69,"y":415,"width":758,"height":11}},{"id":"d9e183b8-58e5-47da-b069-5ea52dd2f70f","block_type":"box","text":"underper form similar mutual funds that do not make shor t sales in securities. A Fund will realize a gain on a shor t","page_number":119,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"c87dd25b-aece-43b8-afb8-d309c152ef5b","block_type":"box","text":"sale if the security declines in price between those dates. There can be no assurance that a Fund will be able to","page_number":119,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"5fe43026-739f-4623-b979-ffbc200a7083","block_type":"box","text":"close out a shor t sale position at any par ticular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":119,"box":{"x":69,"y":461,"width":818,"height":11}},{"id":"b43b7f7d-3236-4318-8627-b12bdcaeb525","block_type":"box","text":"the price at which it sold the security shor t, its potential loss is limited only by the maximum attainable price of the","page_number":119,"box":{"x":68,"y":475,"width":821,"height":12}},{"id":"5f1263ae-392e-4a78-903d-14a689f75ecb","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":119,"box":{"x":69,"y":491,"width":640,"height":11}},{"id":"d7295407-807a-46d1-a957-76dc3fc7ec63","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":119,"box":{"x":101,"y":514,"width":673,"height":11}},{"id":"92c6a502-aca3-48a8-9ef8-9a6d90b0504a","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its shor t sale","page_number":119,"box":{"x":101,"y":536,"width":721,"height":11}},{"id":"800fc59b-78a6-4563-b88d-14296763b7ca","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":119,"box":{"x":69,"y":551,"width":791,"height":11}},{"id":"5a20d797-6d26-4076-b1e6-1c4c149c7fdd","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":119,"box":{"x":70,"y":566,"width":489,"height":11}},{"id":"5ba26581-f2d9-424e-99c9-d52b209aa49a","block_type":"box","text":"Shor t sales are also subject to cer tain SEC regulations and cer tain European Union and United Kingdom","page_number":119,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"527e9ed3-2996-42c0-8037-7bea259fac42","block_type":"box","text":"regulations (under which there are restrictions on net shor t sales in cer tain securities). If the SEC or regulatory","page_number":119,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"ad6d6b71-ca9f-4e72-962b-1cebb206e9b8","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":119,"box":{"x":69,"y":619,"width":796,"height":11}},{"id":"8cc9a952-9c8b-4aec-9916-a233af475126","block_type":"box","text":"Fund’s ability to engage in shor t sales in cer tain circumstances, and the Fund may be unable to execute its","page_number":119,"box":{"x":70,"y":634,"width":766,"height":12}},{"id":"a3b94fa1-783e-44f0-ab5e-0898b14240fb","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":119,"box":{"x":70,"y":649,"width":754,"height":12}},{"id":"b04ae9c7-d498-40ce-9f7f-7565b39becc5","block_type":"box","text":"jurisdictions may adopt (and in cer tain cases, have adopted) bans or other restrictions on shor t sales of cer tain","page_number":119,"box":{"x":67,"y":664,"width":800,"height":12}},{"id":"0ecf2b76-eaf1-4f9b-adb1-a977750bc9c0","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":119,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"87b46fbe-05d2-47a0-9113-1b71a29c7288","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute cer tain investment strategies and may have a","page_number":119,"box":{"x":69,"y":695,"width":782,"height":11}},{"id":"80e14aea-a917-4698-9406-490308031883","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":119,"box":{"x":69,"y":710,"width":460,"height":11}},{"id":"147cfe03-ded3-4cc3-9feb-9ddd87f0a051","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":119,"box":{"x":101,"y":733,"width":293,"height":11}},{"id":"08857e3f-0653-4326-81eb-2f628afaa140","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":119,"box":{"x":400,"y":733,"width":504,"height":11}},{"id":"d1b31245-2609-49bf-9fb4-eb8b9ae920fa","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":119,"box":{"x":69,"y":748,"width":791,"height":11}},{"id":"82b64982-e056-459d-b264-7b2ffbd62cd4","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":119,"box":{"x":70,"y":763,"width":793,"height":11}},{"id":"6bc642b5-8f87-47af-b26e-37a6794c28c0","block_type":"box","text":"publicly traded company that raises investment capital via an IPO for the purpose of identifying and acquiring one or","page_number":119,"box":{"x":70,"y":778,"width":824,"height":11}},{"id":"6dfc054f-e8ba-48df-9d62-0d5a661f8fbc","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":119,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"f64410e6-7ebc-4c0c-aed0-cc49afcf9586","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":119,"box":{"x":69,"y":808,"width":768,"height":11}},{"id":"828e5b13-c096-4f52-89d3-fc1e0fe441b7","block_type":"box","text":"percentage (typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a SPAC","page_number":119,"box":{"x":70,"y":823,"width":826,"height":12}},{"id":"435d7cac-dc39-45cb-8454-3ce3f74ef7e2","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition oppor tunity.","page_number":119,"box":{"x":69,"y":838,"width":809,"height":12}},{"id":"2433fca3-969b-4143-8cf3-82d1372b6099","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":119,"box":{"x":70,"y":854,"width":797,"height":11}},{"id":"ba6dae47-4479-49d9-8194-c1833c90f3ac","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":119,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"853be2fd-7645-4d9e-a019-6209a83a042f","block_type":"box","text":"within a pre-established period of time, the invested funds are returned to the SPAC’s public shareholders, the","page_number":119,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"26d96d80-6c95-42e6-879a-37fc769295d4","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":119,"box":{"x":68,"y":899,"width":794,"height":11}},{"id":"a6a55821-1943-4825-a1bf-e195f9e8d147","block_type":"box","text":"II-74","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f31e53a9-d7c2-487b-a6fd-26939e3ba9cc","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1fbc738c-10b3-4226-bbda-ddc568015124","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":120,"box":{"x":69,"y":45,"width":820,"height":11}},{"id":"6e53dae1-73bf-45d2-8e99-0eb00fc8a562","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":120,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"7ed3bf21-4bc4-46c3-8091-4102c0dece81","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":120,"box":{"x":70,"y":75,"width":802,"height":11}},{"id":"5dcaa841-3c29-433f-ac73-7e679db51da9","block_type":"box","text":"There is no guarantee that the SPACs in which a Fund invests will complete an acquisition or that any acquisitions","page_number":120,"box":{"x":68,"y":90,"width":812,"height":11}},{"id":"2c89af5d-3a85-4343-ac6d-db0e5c6f31de","block_type":"box","text":"completed by the SPACs in which the Fund invests will be profitable. Some SPACs may pursue acquisitions only within","page_number":120,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"1fb89a8c-8335-497e-923b-135e7029238b","block_type":"box","text":"cer tain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":120,"box":{"x":69,"y":120,"width":806,"height":12}},{"id":"57bf6c51-6e2e-458e-8c55-4dc538a066a9","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":120,"box":{"x":69,"y":135,"width":828,"height":11}},{"id":"7c8cae8f-8ebe-497e-a2fc-65741a81e9fa","block_type":"box","text":"Standby Commitment Agreements.","page_number":120,"box":{"x":101,"y":158,"width":255,"height":11}},{"id":"534fe343-2c8c-40ae-868d-5ab76f8f3685","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":120,"box":{"x":362,"y":158,"width":511,"height":11}},{"id":"e51da553-7c4e-4e1a-81c0-fc115acebd84","block_type":"box","text":"time, to purchase a stated amount of securities that may be issued and sold to that Fund at the option of the issuer.","page_number":120,"box":{"x":68,"y":173,"width":834,"height":11}},{"id":"2bf33861-f698-4a63-a206-72d18b37ae6c","block_type":"box","text":"The price of the security is fixed at the time of the commitment. At the time of entering into the agreement, a Fund is","page_number":120,"box":{"x":68,"y":188,"width":834,"height":12}},{"id":"e2c5a9d6-dbca-43a2-ab04-3492164ece3e","block_type":"box","text":"paid a commitment fee, regardless of whether or not the security is ultimately issued. A Fund will enter into such","page_number":120,"box":{"x":70,"y":203,"width":802,"height":12}},{"id":"9ef27519-b529-4d72-b930-d94894685858","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":120,"box":{"x":69,"y":218,"width":793,"height":12}},{"id":"34f1821a-903c-4336-9d5c-712fd651e01a","block_type":"box","text":"advantageous to the Fund.","page_number":120,"box":{"x":69,"y":234,"width":188,"height":11}},{"id":"3deeb597-995f-41a7-b82f-e542beeba9c8","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the value of","page_number":120,"box":{"x":101,"y":256,"width":800,"height":11}},{"id":"50bfb663-3a77-4666-90e6-a3f2845b8187","block_type":"box","text":"the security, if issued, on the delivery date may be more or less than its purchase price. Since the issuance of the","page_number":120,"box":{"x":68,"y":271,"width":816,"height":12}},{"id":"bf4f941f-dfe3-4b53-88b8-48dcc2f2143c","block_type":"box","text":"security underlying the commitment is at the option of the issuer, the Fund may bear the risk of a decline in the value","page_number":120,"box":{"x":69,"y":286,"width":835,"height":12}},{"id":"d95078b4-0431-4bb1-b8e8-72a14d6c41df","block_type":"box","text":"of such security and may not benefit from an appreciation in the value of the security during the commitment period.","page_number":120,"box":{"x":69,"y":302,"width":828,"height":11}},{"id":"beecb9fd-0bba-4e05-9129-9fd7f597a76c","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":120,"box":{"x":101,"y":324,"width":785,"height":12}},{"id":"72af884b-9fb0-49df-875b-b4c7949bf3e9","block_type":"box","text":"be recorded on the date on which the security can reasonably be expected to be issued, and the value of the security","page_number":120,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"55613609-9b2c-400d-bb68-99ca09025666","block_type":"box","text":"thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis of the security will be adjusted by the","page_number":120,"box":{"x":68,"y":355,"width":815,"height":11}},{"id":"030dda4b-2321-47a3-9da0-626bc90f45c3","block_type":"box","text":"amount of the commitment fee. In the event the security is not issued, the commitment fee will be recorded as","page_number":120,"box":{"x":69,"y":370,"width":792,"height":11}},{"id":"ebc86555-4b8b-45a7-abe3-9416fd69ebbd","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":120,"box":{"x":70,"y":385,"width":415,"height":11}},{"id":"0841a29a-510b-4f08-844b-2b19414e4480","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":120,"box":{"x":102,"y":408,"width":789,"height":11}},{"id":"98719b80-3138-4623-bdc9-bb9253cf6dbd","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":120,"box":{"x":69,"y":423,"width":814,"height":11}},{"id":"04605b7f-648a-437c-bf45-65d94b55f3ba","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":120,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"29825a0c-a430-4700-aae7-3f61ada36b0c","block_type":"box","text":"at zero in determining NAV. Accordingly, where a Fund pays directly or indirectly for a standby commitment, its cost","page_number":120,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"6f357e0c-134d-4d3d-8e55-6864ed9ca6f7","block_type":"box","text":"will be reflected as an unrealized loss for the period during which the commitment is held by such Fund and will be","page_number":120,"box":{"x":68,"y":468,"width":817,"height":11}},{"id":"ed53e4bb-331e-442e-8fd0-2006f8fb37fe","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":120,"box":{"x":69,"y":483,"width":578,"height":11}},{"id":"36290e45-eb6a-41b4-bcc0-4292e41b980a","block_type":"box","text":"Stripped Securities.","page_number":120,"box":{"x":101,"y":506,"width":143,"height":11}},{"id":"083aea96-abd4-407c-9be4-bc66adeb593c","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":120,"box":{"x":251,"y":506,"width":596,"height":11}},{"id":"3531e549-68fa-4037-b6ad-c341826e5d5e","block_type":"box","text":"components of an instrument and sells them as separate securities. In general, one security is entitled to receive the","page_number":120,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"f76dfd56-84ce-45d0-b30f-e062d5fa5801","block_type":"box","text":"interest payments on the underlying assets (the interest only or “IO” security) and the other to receive the principal","page_number":120,"box":{"x":70,"y":536,"width":818,"height":11}},{"id":"ae761122-5972-42c3-b9d9-09adff8be2e7","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":120,"box":{"x":70,"y":551,"width":813,"height":11}},{"id":"a0dc010a-f174-4ef0-b8d3-24f86727a332","block_type":"box","text":"principal payments. The yields to maturity on IOs and POs are sensitive to the expected or anticipated rate of","page_number":120,"box":{"x":70,"y":566,"width":777,"height":11}},{"id":"bcc40134-0bf4-4ac7-80b5-b2d7318b3fc1","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":120,"box":{"x":70,"y":582,"width":802,"height":11}},{"id":"97025c04-8b99-4d7a-839d-c6e407220c2d","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":120,"box":{"x":69,"y":596,"width":794,"height":12}},{"id":"1ce20cfb-c7fd-4004-b307-35cf2f9f8fc6","block_type":"box","text":"principal, a Fund may not fully recoup its initial investment in IOs. Conversely, if the underlying assets experience less","page_number":120,"box":{"x":70,"y":612,"width":837,"height":11}},{"id":"3df87ef0-15a7-460f-b98d-053f9b94398b","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":120,"box":{"x":68,"y":627,"width":823,"height":11}},{"id":"03e3139e-3365-4443-bfb7-8ff946201edd","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":120,"box":{"x":69,"y":642,"width":494,"height":11}},{"id":"20541405-6c7a-4835-b8d3-edb5cf1872d9","block_type":"box","text":"Structured Notes.","page_number":120,"box":{"x":101,"y":665,"width":130,"height":8}},{"id":"5af0f2e3-8b7e-4b97-8d8f-56e7f774541f","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":120,"box":{"x":237,"y":665,"width":650,"height":11}},{"id":"74b3960c-fba5-4cf2-87b6-aa77563dae89","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the per formance of a","page_number":120,"box":{"x":69,"y":680,"width":818,"height":11}},{"id":"9e0fbd1c-4b9f-43da-b96c-486c458763e7","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":120,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"bca8b02d-7325-4ac2-8c33-bf56b384bc65","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":120,"box":{"x":70,"y":710,"width":821,"height":11}},{"id":"ec9b52ef-8814-4c18-8c82-1ac012fa6640","block_type":"box","text":"increase or decrease, depending upon changes in the value of the reference measure. The terms of a structured note","page_number":120,"box":{"x":70,"y":725,"width":839,"height":11}},{"id":"0f43e5fe-85a2-4305-befc-d991b5a063d5","block_type":"box","text":"may provide that, in cer tain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":120,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"bc763dad-f661-4b4f-a282-ae34f8b4fbf3","block_type":"box","text":"invested capital by a Fund. The interest and/or principal payments that may be made on a structured product may","page_number":120,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"d8d28caf-3ed6-4f79-b1ee-6146fcf9a3f4","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":120,"box":{"x":68,"y":770,"width":673,"height":12}},{"id":"e1cd9cc6-f861-413d-a89c-6a001c70759e","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":120,"box":{"x":102,"y":793,"width":768,"height":11}},{"id":"482801dd-3370-4dd0-b7c5-4b2b2def8b04","block_type":"box","text":"produce an increase or a decrease in the interest rate or the value of the principal at maturity. The rate of return on","page_number":120,"box":{"x":70,"y":808,"width":821,"height":11}},{"id":"62db05eb-8cc3-48f9-b023-b1c7b3669888","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":120,"box":{"x":69,"y":823,"width":787,"height":12}},{"id":"abfd9c72-fd7d-4fc9-aca1-64d1842422f7","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":120,"box":{"x":69,"y":838,"width":827,"height":12}},{"id":"e0176f35-20a7-4dff-a85a-3c41ccf1253c","block_type":"box","text":"the risk of loss.","page_number":120,"box":{"x":68,"y":853,"width":110,"height":9}},{"id":"d75d9a16-2feb-4073-9ff2-d331e9ded3ba","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured product.","page_number":120,"box":{"x":101,"y":876,"width":759,"height":11}},{"id":"65697ba5-3625-4616-ac9c-061e279a2e56","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":120,"box":{"x":69,"y":891,"width":795,"height":11}},{"id":"045a32be-272e-44ca-bc53-ec1ebf0dfbc9","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":120,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"4f5563cd-3582-4557-aab9-f53373df7205","block_type":"box","text":"II-75","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c1bc44a6-59c0-48fa-ae89-563a05eb0e4a","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ebc2d580-2f78-48af-9898-3647d945cfba","block_type":"box","text":"illiquid making them difficult to sell when the Fund determines to sell them. The possible lack of a liquid secondary","page_number":121,"box":{"x":70,"y":45,"width":821,"height":11}},{"id":"abf64d13-4d6a-455b-a44c-48da43f1868f","block_type":"box","text":"market for structured notes and the resulting inability of the Fund to sell a structured note could expose the Fund to","page_number":121,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"274f4833-157b-4378-ab0d-0c87046cc727","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":121,"box":{"x":70,"y":75,"width":618,"height":11}},{"id":"d117c6d5-c1c3-4830-9741-e50623a491bd","block_type":"box","text":"Taxability Risk.","page_number":121,"box":{"x":103,"y":98,"width":109,"height":11}},{"id":"54f78363-2742-41f2-993b-c773b7084ce0","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":121,"box":{"x":218,"y":98,"width":644,"height":11}},{"id":"c012d50f-73c8-475f-a0b5-9e42ac22326d","block_type":"box","text":"investing in tax-exempt or municipal securities in reliance at the time of purchase on an opinion of bond counsel to","page_number":121,"box":{"x":70,"y":113,"width":817,"height":11}},{"id":"2e7d2f27-4af6-4a90-8ada-9520a88b9ec4","block_type":"box","text":"the issuer and, in the case of derivative securities, sponsors’ counsel, that the interest paid on those securities will","page_number":121,"box":{"x":68,"y":128,"width":827,"height":11}},{"id":"102a6ee3-c492-4025-b67a-a2d1efd9afe1","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":121,"box":{"x":69,"y":143,"width":835,"height":11}},{"id":"8cd1007b-688c-40aa-932b-bdaee664db94","block_type":"box","text":"to pay, or have paid, taxable income subsequent to the Fund’s acquisition of the securities. In that event, the IRS","page_number":121,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"7a49a05f-16e1-4887-9824-538c506c623d","block_type":"box","text":"may demand that the Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to","page_number":121,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"f7b54568-6fca-4793-9e8b-580cddff9d92","block_type":"box","text":"do so, the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or to be","page_number":121,"box":{"x":69,"y":188,"width":816,"height":11}},{"id":"3930e029-3d80-4ff9-a30b-03f548a2c4a9","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":121,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"6e3e085c-517a-4e46-af49-d72b8702a3fd","block_type":"box","text":"increased U.S. federal income tax liabilities. If the interest paid on any tax-exempt or municipal security held by the","page_number":121,"box":{"x":70,"y":218,"width":818,"height":12}},{"id":"15218cad-1013-471f-a173-56d8e242fa3e","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":121,"box":{"x":70,"y":234,"width":771,"height":11}},{"id":"76ce2816-54a6-4b00-bae7-ca684f2526fb","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":121,"box":{"x":70,"y":249,"width":765,"height":11}},{"id":"98cf6ede-7341-4424-8a01-863a583a7ae3","block_type":"box","text":"securities to be subject, directly or indirectly, to U.S. federal income taxation or interest on state municipal securities","page_number":121,"box":{"x":69,"y":264,"width":834,"height":11}},{"id":"1397a11f-592c-4762-b4b9-646e0c378c68","block_type":"box","text":"to be subject to state or local income taxation, or the value of state municipal securities to be subject to state or","page_number":121,"box":{"x":68,"y":279,"width":807,"height":11}},{"id":"4abae438-8b55-48f7-abae-2077e37124d2","block_type":"box","text":"local intangible personal proper ty tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":121,"box":{"x":70,"y":294,"width":830,"height":11}},{"id":"b6815e05-dbb4-4cc6-ba22-073304a682d8","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such securities, and thus","page_number":121,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"f5a82b1b-8bde-4fa4-85c9-88b9aa6b3c50","block_type":"box","text":"the value of an investment in the Fund.","page_number":121,"box":{"x":68,"y":324,"width":278,"height":9}},{"id":"62260de1-d6e1-42b2-b724-6e6c117a409a","block_type":"box","text":"Temporary Defensive Measures.","page_number":121,"box":{"x":103,"y":347,"width":230,"height":11}},{"id":"7c559d6d-b1c9-4fd5-afe2-201dd1e9f2fa","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":121,"box":{"x":339,"y":347,"width":542,"height":11}},{"id":"8f2920da-d905-4d83-881c-abcc8d149890","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":121,"box":{"x":69,"y":362,"width":811,"height":11}},{"id":"6071ea09-ea0a-4ff5-a3f2-33c454bb920e","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":121,"box":{"x":68,"y":377,"width":813,"height":12}},{"id":"3ea682e2-2f09-4192-b745-c7b845275f83","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":121,"box":{"x":69,"y":393,"width":833,"height":11}},{"id":"ab5415b5-38f6-4376-b99f-77135e4b0a03","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":121,"box":{"x":70,"y":408,"width":813,"height":11}},{"id":"af7509e0-0c2c-4cd5-ad18-876fbf6e859b","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":121,"box":{"x":69,"y":423,"width":795,"height":11}},{"id":"6127ce77-2e41-46f5-844a-b84627e64e59","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":121,"box":{"x":68,"y":438,"width":806,"height":11}},{"id":"f53c62c9-a996-4fa6-9e72-2daa21f868c5","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":121,"box":{"x":69,"y":453,"width":808,"height":11}},{"id":"3c20b4bc-e162-4204-857d-6a1e6d05dc69","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s ability to achieve","page_number":121,"box":{"x":68,"y":468,"width":820,"height":11}},{"id":"f26c86d6-f45c-4376-8147-160aecc01c72","block_type":"box","text":"its investment objective.","page_number":121,"box":{"x":70,"y":483,"width":171,"height":11}},{"id":"5d31f47c-48b3-4adf-8c63-ce0db33ae9ef","block_type":"box","text":"U.S. Government Obligations.","page_number":121,"box":{"x":102,"y":506,"width":213,"height":11}},{"id":"c300b5d3-071f-4642-94ba-b65d3a761a6d","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":121,"box":{"x":321,"y":506,"width":566,"height":11}},{"id":"11eb7564-0f67-4734-8632-4a6ec16c3594","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":121,"box":{"x":69,"y":521,"width":810,"height":11}},{"id":"23a31c60-452e-4a53-9e3c-92334ef4bff7","block_type":"box","text":"U.S. Government are suppor ted by the full faith and credit of the U.S. Treasury. Others are suppor ted by the right of","page_number":121,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"28ac285b-348a-446e-aa41-83a5e1f27ec0","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are suppor ted only by the credit of the agency or","page_number":121,"box":{"x":68,"y":551,"width":779,"height":11}},{"id":"53b17a9f-a1b7-42ce-a62f-29bbfab043d2","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":121,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"2a766812-cdd4-47ab-a8f6-7da054fb1a26","block_type":"box","text":"suppor t to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Cer tain U.S. Treasury","page_number":121,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"9845363d-a69a-4005-a0c5-5fdc350b49e8","block_type":"box","text":"and agency securities may be held by trusts that issue par ticipation cer tificates (such as Treasury income growth","page_number":121,"box":{"x":69,"y":596,"width":809,"height":12}},{"id":"fb52a8e1-bb1d-49ef-8b7c-86ccfc8fe61e","block_type":"box","text":"receipts and cer tificates of accrual on Treasury cer tificates). These cer tificates, as well as Treasury receipts and","page_number":121,"box":{"x":69,"y":612,"width":805,"height":11}},{"id":"dcda01a0-54f8-4ea9-b634-719dba13b40e","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":121,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"6b42df7a-0db3-46fa-bf3f-20acce8bae23","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":121,"box":{"x":70,"y":642,"width":832,"height":11}},{"id":"aa1b17ff-7a97-4db9-9733-455953015055","block_type":"box","text":"and may (par ticularly in the case of stripped mor tgage-backed securities) exhibit greater price volatility than ordinary","page_number":121,"box":{"x":69,"y":657,"width":829,"height":11}},{"id":"348091e4-86a8-4704-8f93-2920036cc85d","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":121,"box":{"x":69,"y":672,"width":716,"height":11}},{"id":"9791aa13-3982-4466-8c3d-372748dee8c1","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S. Treasury Bills,","page_number":121,"box":{"x":102,"y":695,"width":800,"height":11}},{"id":"110985d2-224b-4cee-a271-3239c756ed11","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":121,"box":{"x":68,"y":710,"width":785,"height":11}},{"id":"e91c0011-7072-4021-a197-9ac738cd1c14","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":121,"box":{"x":68,"y":725,"width":813,"height":11}},{"id":"bafc5989-faad-408c-85c7-e78451997059","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":121,"box":{"x":70,"y":740,"width":794,"height":11}},{"id":"643475d1-e60d-46d8-9d1f-2637c666ca49","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":121,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"8ba4fbf6-c256-4426-91fe-c64fbdd527d3","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":121,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"33e66dfc-f5e3-452e-912f-53c343ca365d","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":121,"box":{"x":70,"y":786,"width":777,"height":11}},{"id":"ce2eabc2-f712-47b7-97de-42d95751401a","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":121,"box":{"x":70,"y":801,"width":749,"height":11}},{"id":"792e85e4-25b5-4cf2-b4e1-4af808bb9d26","block_type":"box","text":"U.S. Treasury Obligations.","page_number":121,"box":{"x":103,"y":823,"width":183,"height":12}},{"id":"7c348415-dd70-42d4-9918-0948f24dce6c","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":121,"box":{"x":292,"y":823,"width":593,"height":12}},{"id":"b56c600a-9cd0-4f5e-b9a0-30aa280b2bc9","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":121,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"507a95c1-adca-4aa6-8eb1-ef780d5b4938","block_type":"box","text":"of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given","page_number":121,"box":{"x":69,"y":853,"width":827,"height":12}},{"id":"e61c81b7-1252-4c54-85b8-bbfb5201c8fa","block_type":"box","text":"that the U.S. Government will provide financial suppor t to its agencies and authorities if it is not obligated by law to","page_number":121,"box":{"x":68,"y":869,"width":823,"height":11}},{"id":"2762f600-186d-44aa-b0ce-3c163b3ce6f8","block_type":"box","text":"do so.","page_number":121,"box":{"x":69,"y":884,"width":42,"height":9}},{"id":"2f316c09-12f6-41ee-ac63-f8d4b7d7f617","block_type":"box","text":"II-76","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"02a86f20-ea46-4039-9399-e554424a009e","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e29fb61-45d7-4f76-b662-cc58fb6b80b6","block_type":"box","text":"U.S. Treasury Rolls","page_number":122,"box":{"x":102,"y":45,"width":139,"height":11}},{"id":"4174bc10-fba5-4bae-99e6-68943b59c518","block_type":"box","text":".","page_number":122,"box":{"x":241,"y":52,"width":3,"height":2}},{"id":"15695cf2-742f-4318-9e6a-bc6951f4a260","block_type":"box","text":"Cer tain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":122,"box":{"x":250,"y":45,"width":656,"height":11}},{"id":"ec33223f-b8f2-471d-8d7f-15c291896ad8","block_type":"box","text":"sells a treasury security to a counterpar ty with a simultaneous agreement to repurchase the same security at an","page_number":122,"box":{"x":69,"y":60,"width":804,"height":11}},{"id":"e5ba22e4-5e79-4753-a41b-23d5b208d092","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":122,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"a84b984d-02e9-40e7-8452-69af9c21b825","block_type":"box","text":"maturity of a Fund’s por tfolio and increase the interest yield on the Fund’s por tfolio by extending the average maturity","page_number":122,"box":{"x":69,"y":90,"width":840,"height":11}},{"id":"fabc1a55-2ce2-4eae-ad32-87187b449799","block_type":"box","text":"of the por tfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":122,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"28bc32c2-3d60-4646-ab41-646f7abb2ce3","block_type":"box","text":"roll, a Fund continues to earn interest on the securities it is selling; however, it does not earn interest on the","page_number":122,"box":{"x":69,"y":120,"width":775,"height":12}},{"id":"67cebafa-b50c-4c47-ae05-8d95f55cefa7","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an oppor tunity loss if the counterpar ty","page_number":122,"box":{"x":69,"y":135,"width":829,"height":12}},{"id":"52b733ad-a7e0-454a-b2b1-779d22a5f722","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":122,"box":{"x":68,"y":150,"width":657,"height":12}},{"id":"877268f2-de32-4cf7-9ce3-d345256fc54e","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed upon","page_number":122,"box":{"x":101,"y":173,"width":756,"height":11}},{"id":"66ee0a1f-b156-4941-bf9d-888185bd1651","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":122,"box":{"x":70,"y":188,"width":800,"height":11}},{"id":"8b6a4fa9-2907-484e-b6ba-ed87d73327ac","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":122,"box":{"x":70,"y":203,"width":617,"height":12}},{"id":"9c8a0c30-e072-43f4-a193-84493fa9ad94","block_type":"box","text":"Utility Industries.","page_number":122,"box":{"x":102,"y":226,"width":124,"height":11}},{"id":"184c3f67-b411-408b-a184-44533518050a","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":122,"box":{"x":233,"y":226,"width":674,"height":11}},{"id":"c609ce24-2af7-4a0b-875b-c6ea03bd74d7","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":122,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"277a93db-9244-44cf-ac2f-7bea804bc768","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":122,"box":{"x":69,"y":256,"width":812,"height":12}},{"id":"6b29fdd6-a33a-4438-ac9a-905418775b05","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":122,"box":{"x":69,"y":271,"width":821,"height":12}},{"id":"08875543-1321-4e3a-a46f-4b0dc0d65cb4","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":122,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"3e00e3ff-95dd-4cea-97fd-0f0f9fb575c3","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":122,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"af40b720-021f-472a-bef2-3c6f383a5c15","block_type":"box","text":"availability and high costs of natural gas for resale, the effects of energy conservation, the effects of a national","page_number":122,"box":{"x":69,"y":317,"width":795,"height":11}},{"id":"4d5241c8-5f51-4812-bc44-b165da73f029","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":122,"box":{"x":69,"y":332,"width":774,"height":11}},{"id":"dafd1e46-0f30-4b41-a086-3cf6f5fac623","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":122,"box":{"x":69,"y":347,"width":817,"height":11}},{"id":"c5fab887-f365-43e9-8de3-1fc9f4b4b40c","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":122,"box":{"x":69,"y":362,"width":839,"height":11}},{"id":"649b3c6a-eaac-4cec-97c3-12598cd5c623","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":122,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"73ad7d2d-48e8-43de-8844-922269b9fb5c","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":122,"box":{"x":69,"y":392,"width":761,"height":12}},{"id":"029339c3-545a-49e4-a13e-215d405e1928","block_type":"box","text":"authorities will, in the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":122,"box":{"x":69,"y":407,"width":821,"height":12}},{"id":"1dfc2933-85e0-4544-89f2-aa3a282d8a11","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":122,"box":{"x":69,"y":423,"width":777,"height":11}},{"id":"238a3af0-26b1-4eee-8029-281f709312f1","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Cer tain of the issuers of securities","page_number":122,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"b9613d94-9f22-4020-b9ae-0367d2e1e6b2","block_type":"box","text":"held in the Fund’s por tfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":122,"box":{"x":69,"y":453,"width":835,"height":11}},{"id":"37743317-dfbc-4635-be06-392b5ae4808c","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":122,"box":{"x":68,"y":468,"width":778,"height":11}},{"id":"2c223f1c-58fc-47a9-9e52-11cafd9c604b","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":122,"box":{"x":69,"y":483,"width":808,"height":11}},{"id":"437d8a4b-2eb3-4abe-8a3f-a5f04c9463fb","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, par ticularly a hydro-based electric","page_number":122,"box":{"x":69,"y":498,"width":831,"height":11}},{"id":"5f355a22-fe05-4264-8e43-d076eb3081b6","block_type":"box","text":"utility.","page_number":122,"box":{"x":69,"y":514,"width":39,"height":10}},{"id":"a293043e-d457-4c6f-8163-2ac46bc24d2a","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":122,"box":{"x":102,"y":536,"width":744,"height":11}},{"id":"dc2723a0-f7b5-4d4d-8036-7155bbb29c83","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":122,"box":{"x":70,"y":551,"width":828,"height":11}},{"id":"4f3c9aec-4ed0-499b-ad62-90275f383068","block_type":"box","text":"debt securities and, to a lesser extent, equity securities, tends to have an inverse relationship to the movement of","page_number":122,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"d370a59b-9155-45b5-b4d1-b4378ad1f138","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":122,"box":{"x":70,"y":581,"width":464,"height":11}},{"id":"3b44d9c1-8240-4e2e-88d2-de8fdb74e368","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":122,"box":{"x":102,"y":604,"width":789,"height":11}},{"id":"f2ac51d8-2a51-4209-b474-3a058d7255c1","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":122,"box":{"x":69,"y":619,"width":790,"height":11}},{"id":"4e5a014b-4c93-4235-9292-eb3076292dff","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":122,"box":{"x":69,"y":634,"width":811,"height":11}},{"id":"1b195e88-78db-4eff-813a-c0e25478764c","block_type":"box","text":"regulated in the United States and in foreign countries with the intention of protecting the public while ensuring that","page_number":122,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"986a2ab3-b939-4cb8-979e-6afa4525b182","block_type":"box","text":"the rate of return earned by utility companies is sufficient to allow them to attract capital in order to grow and","page_number":122,"box":{"x":68,"y":664,"width":781,"height":12}},{"id":"b4794b48-d076-411a-a5c5-099c48e0e84e","block_type":"box","text":"continue to provide appropriate services. There can be no assurance that such pricing policies or rates of return will","page_number":122,"box":{"x":69,"y":680,"width":826,"height":11}},{"id":"98115125-e44c-4f1c-987f-e8fd3e2fc5c8","block_type":"box","text":"continue in the future.","page_number":122,"box":{"x":69,"y":695,"width":156,"height":9}},{"id":"3e137095-0f64-433e-8fbd-a93b86e6b073","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in foreign","page_number":122,"box":{"x":101,"y":717,"width":763,"height":12}},{"id":"86c195c1-32b8-4e2f-8718-aeb0d4383821","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":122,"box":{"x":69,"y":733,"width":820,"height":11}},{"id":"8aa4d1ca-faaa-414e-8119-127f6ebcf0e8","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":122,"box":{"x":70,"y":748,"width":834,"height":11}},{"id":"8fb4e057-63eb-49d1-a894-3c10775dd2b8","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":122,"box":{"x":69,"y":763,"width":784,"height":11}},{"id":"cd8bcfeb-95cf-48ea-9dd5-e08765f67cf8","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":122,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"e082c86e-3004-4f66-b47d-7cb048b145e3","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":122,"box":{"x":68,"y":793,"width":809,"height":11}},{"id":"a2437576-7678-4fc3-8f6f-a28d19597ee9","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":122,"box":{"x":69,"y":808,"width":834,"height":11}},{"id":"884e4259-c8b9-411e-8097-e9c1e4dc4508","block_type":"box","text":"utility companies being able to earn more than their traditional regulated rates of return, while others may be forced","page_number":122,"box":{"x":69,"y":823,"width":825,"height":12}},{"id":"5fc73818-4f96-4da6-a54c-0c27d8fb8a96","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":122,"box":{"x":68,"y":838,"width":840,"height":11}},{"id":"92836fa8-7223-400a-b6b0-e2370bb50201","block_type":"box","text":"new uses of funds (such as for expansion, operations or stock buybacks) could result in cuts in dividend payout","page_number":122,"box":{"x":69,"y":853,"width":796,"height":12}},{"id":"327a08df-9b72-4b53-a4fd-15c2b17cfcb7","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":122,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"68fae607-44a6-486c-8103-91629690623d","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":122,"box":{"x":68,"y":884,"width":831,"height":11}},{"id":"0c65d87e-f4bb-4429-bfa8-cdbd28109cdc","block_type":"box","text":"restrictions on the maximum level of profits of cer tain utility companies, but may also subject these companies to","page_number":122,"box":{"x":69,"y":899,"width":812,"height":11}},{"id":"177ae6a5-cc3c-4396-a75f-e51143ceb781","block_type":"box","text":"II-77","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"56152709-03f1-4109-b9a7-303c8ea189f8","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":122,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"48100611-d840-4a03-85fd-f09eabdc72f9","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment oppor tunities that may arise from","page_number":123,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"c3bfaf3a-6e9b-472a-b6ea-b8a7fa307733","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":123,"box":{"x":68,"y":60,"width":831,"height":11}},{"id":"9d6527ce-db21-4eed-aabe-abbb3c96a7b7","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":123,"box":{"x":102,"y":83,"width":720,"height":11}},{"id":"3786ea93-371a-4d23-acd0-2ac338d94a2d","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":123,"box":{"x":69,"y":98,"width":838,"height":11}},{"id":"3b121fa8-9bb7-4147-bba0-51b35fba5498","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":123,"box":{"x":68,"y":113,"width":762,"height":11}},{"id":"bf74b6ab-b9ac-4376-ad51-acb022dec22a","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":123,"box":{"x":68,"y":128,"width":815,"height":11}},{"id":"ddf9a371-794b-4616-b56b-7a0cb3250041","block_type":"box","text":"than those used in the United States, which may require such utilities to invest in pollution control equipment to","page_number":123,"box":{"x":68,"y":143,"width":801,"height":11}},{"id":"95389eca-c02d-428d-a27f-d7a47fef177c","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":123,"box":{"x":69,"y":158,"width":828,"height":11}},{"id":"9b4e0edb-ab20-4340-be6a-8139ce7c8432","block_type":"box","text":"ways different from regulation in the United States.","page_number":123,"box":{"x":68,"y":173,"width":365,"height":11}},{"id":"b50db492-a675-4db1-b9f3-46e50d2968e9","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":123,"box":{"x":101,"y":196,"width":745,"height":11}},{"id":"9c28490f-277d-4e14-90de-9b34884aa2a1","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":123,"box":{"x":68,"y":211,"width":790,"height":11}},{"id":"3cd9f8a9-d4aa-4c66-b663-7f3b80f10928","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":123,"box":{"x":69,"y":226,"width":833,"height":11}},{"id":"e2ad1f8f-24eb-4662-af04-44c20d6c07b9","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":123,"box":{"x":69,"y":241,"width":810,"height":11}},{"id":"80254ee4-ad8c-4f6b-8679-94e7283c117b","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":123,"box":{"x":69,"y":256,"width":831,"height":12}},{"id":"136dee07-60c5-4cc6-80e2-1ac9e718276a","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":123,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"a3a8d37c-358d-4988-a4d7-2abc78756731","block_type":"box","text":"ownership, is expected to occur in newer, faster-growing economies and in mature economies. Of course, there is no","page_number":123,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"cec9bd0d-b6b0-4274-8f9d-ce121ef8769e","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":123,"box":{"x":69,"y":302,"width":786,"height":11}},{"id":"348b9a35-9e59-4cf6-b8cc-0ac04755d95f","block_type":"box","text":"increase.","page_number":123,"box":{"x":70,"y":317,"width":63,"height":9}},{"id":"7e97a24f-b61f-4b9f-8cdf-ea1d2ebe749e","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":123,"box":{"x":101,"y":339,"width":793,"height":12}},{"id":"6fb41eb4-4401-4c76-a751-5f4ab33dcc49","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":123,"box":{"x":70,"y":355,"width":821,"height":11}},{"id":"ecc76002-94e8-4985-9c80-01db3c2c6930","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":123,"box":{"x":69,"y":370,"width":619,"height":11}},{"id":"fba03e3a-3a6e-424f-b348-ea1162cc4d49","block_type":"box","text":"Electric.","page_number":123,"box":{"x":102,"y":393,"width":54,"height":8}},{"id":"0cd88c44-0cb4-4d0d-aeae-0ce6736af8ae","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":123,"box":{"x":163,"y":392,"width":684,"height":12}},{"id":"a7f478ac-038f-4ca6-aafc-e227ef273ebf","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":123,"box":{"x":68,"y":407,"width":793,"height":12}},{"id":"d54d6aa9-bb25-4997-8f78-528313c5bc4b","block_type":"box","text":"electric utility companies, in general, have been favorably affected by lower fuel and financing costs and the full or","page_number":123,"box":{"x":69,"y":423,"width":814,"height":11}},{"id":"5b4e5a3f-dd8c-421c-84a6-81a20ee3e12a","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":123,"box":{"x":69,"y":438,"width":833,"height":11}},{"id":"3c88fa67-edf0-479c-a917-584193c7bb4e","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":123,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"25da257a-9901-47b3-b36f-1346c34f8aa6","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":123,"box":{"x":69,"y":468,"width":823,"height":11}},{"id":"e9c03d48-fd73-4ffe-b82f-0d8bff69538c","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":123,"box":{"x":68,"y":483,"width":803,"height":11}},{"id":"a9c52250-d23f-47c3-a8e8-7cecba3304b1","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":123,"box":{"x":70,"y":498,"width":778,"height":11}},{"id":"19c3b689-913b-44d9-9c11-f30ee2f1be3e","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":123,"box":{"x":70,"y":513,"width":836,"height":12}},{"id":"a85d81aa-29d3-4619-9612-8519fa283026","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":123,"box":{"x":69,"y":528,"width":793,"height":12}},{"id":"e81ceaab-1fb8-4568-ab1b-69d8c996688c","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":123,"box":{"x":69,"y":543,"width":786,"height":12}},{"id":"d188b45e-1b76-495f-bef1-3731af290361","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in par t with customers. In a period of rising interest","page_number":123,"box":{"x":69,"y":559,"width":819,"height":11}},{"id":"a1e4bf86-d4ff-4352-a8bf-c8c1ccee802f","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":123,"box":{"x":69,"y":574,"width":775,"height":11}},{"id":"e4ec8437-d638-4c81-a98b-438ad3521290","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":123,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"ba8b3195-511a-4516-87d9-e229efb05403","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":123,"box":{"x":70,"y":604,"width":826,"height":11}},{"id":"a2318de3-b74d-4196-ae6d-17101282d0f6","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":123,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"c70f1d56-d76f-4686-a15b-a01dcc96a904","block_type":"box","text":"costs in rate authorizations or the risk that a company may not be permitted to operate or complete construction of a","page_number":123,"box":{"x":69,"y":634,"width":836,"height":11}},{"id":"56880005-ec94-4c5d-82d7-98762e905260","block_type":"box","text":"facility. In addition, operators of nuclear power plants may be subject to significant costs for disposal of nuclear fuel","page_number":123,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"a26e7704-fdd7-4586-830c-5f549012ee2d","block_type":"box","text":"and for decommissioning such plants.","page_number":123,"box":{"x":69,"y":664,"width":270,"height":12}},{"id":"671f2315-1f07-48d5-a1ff-0779e6e7d11f","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":123,"box":{"x":101,"y":687,"width":776,"height":11}},{"id":"627e7645-e676-4078-bd9b-2d804b15f280","block_type":"box","text":"impacted to a greater extent in the future by the division of their asset base. Electric utility companies that focus","page_number":123,"box":{"x":70,"y":702,"width":802,"height":12}},{"id":"37944b7b-c8e6-4c6f-bd97-ae850203e8a9","block_type":"box","text":"more on the generation of electricity may be assigned less favorable ratings as this business is expected to be","page_number":123,"box":{"x":69,"y":717,"width":791,"height":12}},{"id":"63d54cbb-140a-4739-96f4-c7d7775ac0a6","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":123,"box":{"x":69,"y":732,"width":839,"height":12}},{"id":"4565aac6-dd3d-4de6-9f7d-2eb4d10b68ac","block_type":"box","text":"is expected to be the least competitive and the more regulated par t of the business, may see higher ratings given the","page_number":123,"box":{"x":70,"y":748,"width":838,"height":11}},{"id":"8ecb676f-e62e-4d5a-9158-706070465e3e","block_type":"box","text":"greater predictability of cash flow.","page_number":123,"box":{"x":68,"y":763,"width":239,"height":11}},{"id":"7647c404-f6c3-4685-83d7-128a5011b2e8","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":123,"box":{"x":101,"y":785,"width":801,"height":12}},{"id":"b2450f20-ef83-45c0-9c33-0493b663c4bf","block_type":"box","text":"the industry as a result of such deregulation has at times resulted in lower revenue, lower credit ratings, increased","page_number":123,"box":{"x":68,"y":801,"width":821,"height":11}},{"id":"951f18a7-f083-4b5d-9398-da02bc219c54","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":123,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"c5ffc774-049d-446d-a4bc-23db8b2d1b7a","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":123,"box":{"x":68,"y":831,"width":815,"height":11}},{"id":"38ea07ac-b922-490a-b0b0-b12a21a24e08","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":123,"box":{"x":68,"y":846,"width":803,"height":11}},{"id":"6857e0b9-f0bf-41ba-8d3e-589c5ab45e5e","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":123,"box":{"x":69,"y":861,"width":777,"height":11}},{"id":"3822c38b-663f-480c-b316-d5765f8cf4dc","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":123,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"9e89bf39-161e-485e-8f55-9ee0eb9131cb","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":123,"box":{"x":68,"y":891,"width":835,"height":12}},{"id":"14bd885b-3f0d-4f5f-b2f6-f2bf66479b9c","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":123,"box":{"x":69,"y":906,"width":700,"height":12}},{"id":"de4fa7a8-9c34-42d0-824b-79fa6755af65","block_type":"box","text":"II-78","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bc3d508f-b098-4d3b-a581-ec3fcd73a4e2","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":123,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b5c8f407-713b-4808-87c4-6c72f1bf7c5d","block_type":"box","text":"Telecommunications.","page_number":124,"box":{"x":103,"y":45,"width":147,"height":9}},{"id":"ac453cc8-4ca4-43d9-a60b-7337c3d652e2","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":124,"box":{"x":256,"y":45,"width":652,"height":11}},{"id":"e427cf04-7093-4296-9e21-441f2194fe9f","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":124,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"d1884162-35c0-4a51-9c59-3799a7434118","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":124,"box":{"x":70,"y":75,"width":782,"height":11}},{"id":"88230793-93a3-49c6-ae5a-273a3e7d55d3","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":124,"box":{"x":69,"y":90,"width":786,"height":11}},{"id":"6394deea-15b4-46a9-bb37-cb911b162ed3","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":124,"box":{"x":69,"y":105,"width":784,"height":11}},{"id":"082c3a07-859e-4ab4-a331-14cf177ea79c","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":124,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"a09bc4ec-26d6-4f76-bbad-8b9daa801ff6","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":124,"box":{"x":69,"y":135,"width":790,"height":12}},{"id":"5be23c1c-e953-4f60-89bf-c1f38dec0c84","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":124,"box":{"x":70,"y":150,"width":788,"height":12}},{"id":"31ee47f0-71c6-41b9-b372-46c3d35a0269","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":124,"box":{"x":68,"y":166,"width":825,"height":11}},{"id":"c267aa6a-aabf-4895-bd59-390578f752f9","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":124,"box":{"x":69,"y":181,"width":823,"height":11}},{"id":"ce1fcd80-6ee4-4ad4-af61-d22980d28ba4","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":124,"box":{"x":69,"y":196,"width":821,"height":11}},{"id":"a46dab93-5ec5-418e-84f9-7dd43d19e8f0","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":124,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"41fe0dac-ec3e-4697-97a1-51564e6ffc7b","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":124,"box":{"x":70,"y":226,"width":821,"height":11}},{"id":"86c5fa3d-e013-4a17-a366-f098b3214c0d","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":124,"box":{"x":69,"y":241,"width":827,"height":11}},{"id":"1fe2a285-48ad-4e51-b026-457eb1be7711","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":124,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"da2870fb-a51e-4fc3-a0cf-356630bc5c78","block_type":"box","text":"residential, corporate and governmental customers.","page_number":124,"box":{"x":69,"y":272,"width":367,"height":11}},{"id":"00da808b-23da-409f-b430-af1dde2b9ac1","block_type":"box","text":"Gas.","page_number":124,"box":{"x":102,"y":294,"width":31,"height":9}},{"id":"998cc89a-1a85-4e7a-bd34-288f94b81659","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":124,"box":{"x":139,"y":294,"width":740,"height":11}},{"id":"32336282-50f4-49aa-87c2-bf640f25a058","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":124,"box":{"x":70,"y":309,"width":834,"height":11}},{"id":"6994f33b-31bd-41ad-a206-3e2d88335043","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":124,"box":{"x":70,"y":324,"width":756,"height":12}},{"id":"0632dc78-5712-4ca3-a88e-ec151cfb2fac","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":124,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"ed3c9e37-2ec6-4c84-9f6f-4b9b5c864ef7","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":124,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"6939123e-1594-4e51-9bf2-8732dc18bd78","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":124,"box":{"x":69,"y":370,"width":815,"height":11}},{"id":"62702c29-c723-4098-9247-127bb4050902","block_type":"box","text":"outlook in the future. For example, natural gas is the cleanest of the hydrocarbon fuels, and this may result in","page_number":124,"box":{"x":69,"y":385,"width":782,"height":11}},{"id":"a0b657b9-9282-4339-abe2-65ca4a4de67e","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":124,"box":{"x":70,"y":400,"width":829,"height":11}},{"id":"3aca7829-0ccb-498c-8065-e0b322bf7131","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":124,"box":{"x":70,"y":415,"width":691,"height":11}},{"id":"6d2c989a-cc05-47f9-95ba-f2014548328c","block_type":"box","text":"Water.","page_number":124,"box":{"x":103,"y":438,"width":42,"height":9}},{"id":"195829ae-095b-4c4a-92ef-837d02e70621","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":124,"box":{"x":151,"y":438,"width":754,"height":11}},{"id":"cab152bf-6276-4e22-b03c-81e0b69ff724","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":124,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"fe6ff348-fae7-4992-93cc-55b8f999f089","block_type":"box","text":"Companies in this industry are generally mature and are experiencing little or no per capita volume growth. In the","page_number":124,"box":{"x":69,"y":468,"width":806,"height":11}},{"id":"59ebe849-82c2-48ae-b621-ec8ee38cac3e","block_type":"box","text":"opinion of the Manager, there may be oppor tunities for cer tain companies to acquire other water utility companies","page_number":124,"box":{"x":69,"y":483,"width":814,"height":11}},{"id":"b5c56d86-1c32-4f60-975c-a7606efa8ddc","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":124,"box":{"x":69,"y":498,"width":808,"height":11}},{"id":"ba85fbbf-d970-41b7-92c1-11285f26cfc8","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":124,"box":{"x":69,"y":513,"width":832,"height":12}},{"id":"eb838d9f-09ca-4754-aae4-3ae9d5ddf7b9","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":124,"box":{"x":69,"y":528,"width":662,"height":12}},{"id":"09a161f6-5b7c-43ab-8b04-802d5979e0ef","block_type":"box","text":"Utility Industries Generally.","page_number":124,"box":{"x":103,"y":551,"width":186,"height":11}},{"id":"bd748599-4b83-4fa5-8dc5-89c672240689","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":124,"box":{"x":296,"y":551,"width":584,"height":11}},{"id":"da93f52c-ff1c-42e5-9ea7-d0e71db85d70","block_type":"box","text":"those relating to privatization and changing regulation, will occur or that risk factors other than those noted above will","page_number":124,"box":{"x":68,"y":566,"width":837,"height":11}},{"id":"ea41f375-4ebf-4e8d-969b-ad777bd9e217","block_type":"box","text":"not develop in the future.","page_number":124,"box":{"x":69,"y":581,"width":178,"height":11}},{"id":"fe386f63-9f32-41df-9078-4162b0cd605b","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":124,"box":{"x":103,"y":604,"width":585,"height":11}},{"id":"f5f29597-c05f-44c1-b608-93e927a2f846","block_type":"box","text":"A Fund may purchase or sell","page_number":124,"box":{"x":694,"y":604,"width":200,"height":11}},{"id":"de162653-555d-42ec-91d9-6bdd1c8c8f5f","block_type":"box","text":"securities that it is entitled to receive on a when-issued basis. A Fund may also purchase or sell securities on a","page_number":124,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"65d56a2d-da5f-4f11-9925-df9ae2224484","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":124,"box":{"x":69,"y":634,"width":777,"height":12}},{"id":"5a9cc569-ad91-4bb2-a62a-1f9610d1ff8a","block_type":"box","text":"transactions involve the purchase or sale of securities by a Fund at an established price with payment and delivery","page_number":124,"box":{"x":68,"y":649,"width":820,"height":12}},{"id":"b402122b-fb9f-4b27-9a37-9df60055f7bc","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":124,"box":{"x":68,"y":664,"width":807,"height":12}},{"id":"b4f3f5d9-c4ce-4b43-a2e3-2e3c46913a83","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":124,"box":{"x":70,"y":680,"width":430,"height":11}},{"id":"aca6c756-d160-461d-9b7b-8db2deab2f3e","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":124,"box":{"x":102,"y":702,"width":750,"height":11}},{"id":"cc7c70e3-f5f2-4a2d-bb40-54c5c268638b","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterpar ty generally will be required to post collateral when entering into","page_number":124,"box":{"x":70,"y":717,"width":823,"height":12}},{"id":"e79eb875-1f23-4883-9160-63974908a7ae","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":124,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"5763a870-2319-455c-93e2-2bf5a4da971a","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":124,"box":{"x":70,"y":748,"width":755,"height":11}},{"id":"bb1b5278-736f-4130-b9e8-1121eb8fac9d","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":124,"box":{"x":69,"y":763,"width":799,"height":11}},{"id":"798c0038-4e1c-46be-b21a-c36f56daa436","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":124,"box":{"x":69,"y":778,"width":614,"height":11}},{"id":"22939edf-bc13-47cf-b99d-1839f2438bce","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a security","page_number":124,"box":{"x":101,"y":801,"width":780,"height":11}},{"id":"ba382555-1bf5-4ef7-ae05-301511e11202","block_type":"box","text":"purchased or sold on a delayed delivery basis or through a forward commitment will be delivered. Also, the value of","page_number":124,"box":{"x":70,"y":816,"width":823,"height":11}},{"id":"041dc3c1-2440-47c5-9b61-ea533a59c66b","block_type":"box","text":"securities in these transactions on the delivery date may be more or less than the price paid by the Fund to purchase","page_number":124,"box":{"x":69,"y":831,"width":838,"height":11}},{"id":"7cf52a81-6e8a-4f7b-9cf5-a7d7a0605628","block_type":"box","text":"the securities. The Fund will lose money if the value of the security in such a transaction declines below the purchase","page_number":124,"box":{"x":68,"y":846,"width":839,"height":11}},{"id":"5b91d301-a1b4-4217-9e3f-8b6d5e238a67","block_type":"box","text":"price and will not benefit if the value of the security appreciates above the sale price during the commitment period.","page_number":124,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"98173992-6777-4960-9a07-7412b7ce590c","block_type":"box","text":"II-79","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0e839049-4199-429e-838f-9fb5e5167f7c","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":124,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7dde7ef9-0f32-4f5a-8c50-0296fd39a34f","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":125,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"82e0bb8e-cf2c-407a-8f17-40173de572c6","block_type":"box","text":"after it has been entered into, and may sell securities it has committed to purchase before those securities are","page_number":125,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"7bd7023a-6935-41cf-8218-b609076ff8ac","block_type":"box","text":"delivered to the Fund on the settlement date. In these cases the Fund may realize a taxable capital gain or loss.","page_number":125,"box":{"x":69,"y":75,"width":799,"height":11}},{"id":"eee11e76-ac3e-4a18-a27f-bb1385927e80","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other par ty to","page_number":125,"box":{"x":101,"y":98,"width":784,"height":11}},{"id":"0e2d5985-eb1c-45a0-93e9-4aa9900f485f","block_type":"box","text":"consummate the trade. Failure of such par ty to do so may result in the Fund’s incurring a loss or missing an","page_number":125,"box":{"x":69,"y":113,"width":772,"height":11}},{"id":"4ca1e1a8-9f48-48fa-a170-61b460569e2e","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":125,"box":{"x":69,"y":128,"width":434,"height":11}},{"id":"80c7916f-43a4-432c-ae2e-93209c277d21","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":125,"box":{"x":101,"y":150,"width":745,"height":12}},{"id":"391083c5-6cd3-4fd4-8fd7-81d5e597546f","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund star ting on the","page_number":125,"box":{"x":68,"y":166,"width":831,"height":11}},{"id":"709a70fa-a688-4ab3-a1d0-b9811e361b71","block_type":"box","text":"day the Fund agrees to purchase the securities. The Fund does not earn interest on the securities it has committed","page_number":125,"box":{"x":69,"y":181,"width":823,"height":11}},{"id":"eca63793-0bdb-42c8-91bd-cd0a98086b34","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":125,"box":{"x":68,"y":196,"width":514,"height":11}},{"id":"e3c86b26-5f8d-4cc4-8d55-419bff577e7b","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":125,"box":{"x":102,"y":218,"width":759,"height":12}},{"id":"4fa83298-7cb8-47d6-99f6-c9ea09c6b967","block_type":"box","text":"securities (","page_number":125,"box":{"x":69,"y":234,"width":78,"height":11}},{"id":"4c94b0a6-c4dc-479e-8475-90a2f72547f1","block_type":"box","text":"e.g.","page_number":125,"box":{"x":148,"y":235,"width":25,"height":10}},{"id":"b94a6a10-f4ef-46a1-a1d6-cf858b31eaa6","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":125,"box":{"x":176,"y":234,"width":686,"height":11}},{"id":"0e84de76-fd1c-4dfe-9375-5581a634f82e","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":125,"box":{"x":69,"y":249,"width":813,"height":11}},{"id":"ad0a3513-638f-4c86-ad4e-801224f351f3","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":125,"box":{"x":70,"y":264,"width":822,"height":11}},{"id":"77934df5-c18f-416a-9f8e-a2ef1f054997","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":125,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"1f240b0a-c265-4ab3-b87b-0460b5bb9cc8","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":125,"box":{"x":69,"y":294,"width":826,"height":11}},{"id":"6ced37d9-80a1-438b-9f8b-ddaf62f0a952","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":125,"box":{"x":70,"y":309,"width":816,"height":11}},{"id":"03e60dda-2f71-4e68-ad37-6ec517eed340","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":125,"box":{"x":70,"y":324,"width":349,"height":11}},{"id":"0bb748f0-4fb5-4d6f-80d5-cacedbd99ae8","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":125,"box":{"x":102,"y":347,"width":800,"height":11}},{"id":"cf87c68d-2b71-4ea1-97d6-80df943c663f","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":125,"box":{"x":68,"y":362,"width":829,"height":11}},{"id":"50beb289-0cbc-4187-8456-34d4917d390c","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterpar ties, such as a Fund, to","page_number":125,"box":{"x":69,"y":377,"width":814,"height":12}},{"id":"6082d282-6dfd-4d43-ae62-5c859677a098","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":125,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"a6a7049e-0982-4e9a-92e6-83fb9e449109","block_type":"box","text":"suppor t in the event that the counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency","page_number":125,"box":{"x":69,"y":407,"width":836,"height":12}},{"id":"3ce269bb-5dbd-47d5-907d-183e1de75ebd","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":125,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"823b633a-e660-4ffd-ba16-3fab4289f308","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":125,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"7bab7b31-8edf-4676-86b0-4f152e65bd40","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":125,"box":{"x":68,"y":453,"width":573,"height":11}},{"id":"6d8308f2-b1cc-4844-9632-1eaaf376f28b","block_type":"box","text":"Yields and Ratings.","page_number":125,"box":{"x":103,"y":476,"width":139,"height":11}},{"id":"6eb3ea00-1e77-4f65-aed4-408b44d07e9f","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":125,"box":{"x":247,"y":475,"width":628,"height":12}},{"id":"37582b3a-abb1-48dd-8e33-038df9789c09","block_type":"box","text":"market conditions, conditions in the par ticular market for the obligation, the financial condition of the issuer, the size","page_number":125,"box":{"x":69,"y":491,"width":834,"height":11}},{"id":"30318ef3-61ab-47a0-86c6-c21f3c17f4b9","block_type":"box","text":"of the offering, the maturity of the obligation and the ratings of the issue. The ratings of Moody’s, Fitch and S&P","page_number":125,"box":{"x":69,"y":506,"width":799,"height":11}},{"id":"8280ff8b-688a-496e-a181-0aa9c4767502","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they under take to rate. Ratings, however, are","page_number":125,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"21b6ebd3-6972-43b0-a3f7-39a8a2798629","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":125,"box":{"x":68,"y":536,"width":792,"height":11}},{"id":"b0a03191-881a-4252-acd0-107383c61daf","block_type":"box","text":"interest rate may have different market prices. Subsequent to its purchase by a Fund, a rated security may cease to","page_number":125,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"153c7d77-4cf9-4353-9f79-e36fd04903f7","block_type":"box","text":"be rated. A Fund’s Manager or sub-adviser will consider such an event in determining whether the Fund should","page_number":125,"box":{"x":69,"y":566,"width":786,"height":11}},{"id":"11192f56-086a-429a-9855-56970d76d25c","block_type":"box","text":"continue to hold the security.","page_number":125,"box":{"x":69,"y":582,"width":204,"height":10}},{"id":"9a0bc5ca-6a33-4899-8893-eb9b688dcb91","block_type":"box","text":"Zero Coupon Securities.","page_number":125,"box":{"x":102,"y":604,"width":175,"height":11}},{"id":"8fbd7045-5ad2-4ecb-8042-5b5fcfa7bc03","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":125,"box":{"x":283,"y":604,"width":601,"height":11}},{"id":"97c40755-8a3f-48aa-9d42-d06173bf9815","block_type":"box","text":"not pay interest during the life of the security. The discount approximates the total amount of interest the security will","page_number":125,"box":{"x":69,"y":619,"width":837,"height":11}},{"id":"7d902f4d-6f73-4f8c-b5cb-296eecdd6cc5","block_type":"box","text":"accrue and compound over the period until maturity at a rate of interest reflecting the market rate of the security at","page_number":125,"box":{"x":69,"y":634,"width":822,"height":12}},{"id":"369eb98a-2dff-4f6a-8fc4-015343a52b70","block_type":"box","text":"the time of issuance. Upon maturity, the holder of a zero coupon security is entitled to receive the par value of the","page_number":125,"box":{"x":68,"y":649,"width":814,"height":12}},{"id":"087bc44c-c69d-4c3f-a2e4-7541f00f73d9","block_type":"box","text":"security.","page_number":125,"box":{"x":69,"y":665,"width":57,"height":11}},{"id":"c3ce4f00-9ffb-48f5-9669-78b54ada8ea2","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":125,"box":{"x":101,"y":687,"width":749,"height":11}},{"id":"7094dd74-a52d-49aa-a118-3934dc2c6f05","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":125,"box":{"x":69,"y":702,"width":835,"height":12}},{"id":"5073adbe-aae5-4337-bdd9-2789597d049d","block_type":"box","text":"owning instruments that do not make current interest payments is that a fixed yield is earned not only on the original","page_number":125,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"6c7d0e3d-9174-4244-83e3-5a5fc5e7aba7","block_type":"box","text":"investment but also, in effect, on all discount accretion during the life of the obligations. This implicit reinvestment of","page_number":125,"box":{"x":70,"y":732,"width":836,"height":12}},{"id":"7468a8a6-2c17-46a6-b653-6c7bda7317dc","block_type":"box","text":"earnings at a fixed rate eliminates the risk of being unable to invest distributions at a rate as high as the implicit","page_number":125,"box":{"x":69,"y":748,"width":804,"height":11}},{"id":"b595be17-750d-4400-a753-3cf5f644c039","block_type":"box","text":"yield on the zero coupon bond, but at the same time eliminates the holder’s ability to reinvest at higher rates in the","page_number":125,"box":{"x":68,"y":763,"width":824,"height":11}},{"id":"e4bab404-c2e6-47f0-9e7f-3ab89ba1a6aa","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":125,"box":{"x":68,"y":778,"width":805,"height":11}},{"id":"3c010e41-4187-4746-855d-56fde8615da1","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":125,"box":{"x":70,"y":793,"width":837,"height":11}},{"id":"2b766baf-64bf-4abd-8752-910fd67ee95e","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":125,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"4fb9a45e-81c0-4b9a-81b9-23e4736554d2","block_type":"box","text":"benefit the issuer by mitigating its need for cash to meet debt service, but also require a higher rate of return to","page_number":125,"box":{"x":69,"y":823,"width":800,"height":12}},{"id":"06fbf23e-ef3e-4cb2-9672-3b7937bade9f","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":125,"box":{"x":69,"y":838,"width":400,"height":12}},{"id":"ac220d31-7925-4450-aa41-bb021f702367","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":125,"box":{"x":101,"y":861,"width":775,"height":11}},{"id":"c7bbb854-459e-4d57-8325-cc4cca1b1913","block_type":"box","text":"prior to the receipt of cash payments. Zero coupon securities may be subject to greater fluctuation in value and less","page_number":125,"box":{"x":70,"y":876,"width":827,"height":11}},{"id":"9fbc781b-f01f-4536-b5e9-1b14151f63fd","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":125,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"4e053806-cbe7-4b90-b2ff-f5c73632ee2c","block_type":"box","text":"intervals.","page_number":125,"box":{"x":70,"y":907,"width":64,"height":8}},{"id":"1c165cfc-dd90-4b51-aaa2-25c18f679f27","block_type":"box","text":"II-80","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"11973a4e-b15e-40d1-a6aa-7c4f6bbf79ba","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":125,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"692f478c-1e7d-45c3-911e-8895b0fc25ed","block_type":"box","text":"Fur ther, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":126,"box":{"x":102,"y":45,"width":749,"height":11}},{"id":"174a0bdf-c7b4-4886-a868-0870c6d9c014","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":126,"box":{"x":69,"y":60,"width":784,"height":11}},{"id":"95affc66-659f-4fa6-ae13-a1c6d365bd2e","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":126,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"4bdabdae-572e-42ba-90f4-b04205e00e9e","block_type":"box","text":"generate the cash to satisfy these distributions. The required distributions may result in an increase in a Fund’s","page_number":126,"box":{"x":68,"y":90,"width":799,"height":11}},{"id":"b403040f-abd1-4ee4-8576-b2e6bbe9e4e3","block_type":"box","text":"exposure to zero coupon securities.","page_number":126,"box":{"x":69,"y":105,"width":253,"height":11}},{"id":"0e403dfd-d1ba-40b9-94f0-3c6126c80d8d","block_type":"box","text":"In addition to the above-described risks, there are cer tain other risks related to investing in zero coupon","page_number":126,"box":{"x":102,"y":128,"width":740,"height":11}},{"id":"2c411ca8-0aa6-4b3e-bd98-0ddb13e83db0","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":126,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"3734cb3a-af2b-45ef-a550-64c2af5b0f47","block_type":"box","text":"In addition, as these securities do not pay cash interest, a Fund’s investment exposure to these securities and their","page_number":126,"box":{"x":70,"y":158,"width":829,"height":11}},{"id":"1302ef9a-f290-46f0-9478-880cd4fe2b5d","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s por tfolio.","page_number":126,"box":{"x":69,"y":173,"width":741,"height":11}},{"id":"bb063234-c9b0-491b-9e0c-5e95febea4bd","block_type":"box","text":"Suitability. (All Funds)","page_number":126,"box":{"x":101,"y":196,"width":161,"height":11}},{"id":"bfac4fb7-7ab2-401e-8355-d7b5146b1f81","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of the Fund,","page_number":126,"box":{"x":101,"y":218,"width":793,"height":12}},{"id":"4d8c871d-eb98-4bfd-9d47-ade509ff277e","block_type":"box","text":"the Manager and its affiliates. Each Fund should be considered a vehicle for diversification and not as a balanced","page_number":126,"box":{"x":68,"y":234,"width":811,"height":11}},{"id":"efc68bbe-a8cb-4f56-a320-9e398abe05bc","block_type":"box","text":"investment program. The suitability for any par ticular investor of a purchase of shares in a Fund will depend upon,","page_number":126,"box":{"x":70,"y":249,"width":810,"height":11}},{"id":"cf95d7ec-d30f-460a-8b4f-d5a7e7fea98b","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":126,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"4a8cd9c5-1f62-4293-b18f-6e86d5a21269","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":126,"box":{"x":68,"y":279,"width":460,"height":11}},{"id":"f657be84-90bc-45df-81e7-62faed546748","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":126,"box":{"x":102,"y":302,"width":264,"height":11}},{"id":"2397493c-66cf-40ed-b994-1e99f1616abf","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":126,"box":{"x":102,"y":324,"width":745,"height":11}},{"id":"97083968-66b0-4d36-963f-e2284616e5a4","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":126,"box":{"x":68,"y":339,"width":807,"height":12}},{"id":"602e37aa-deff-46e9-a38c-cd79a4606fed","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":126,"box":{"x":69,"y":355,"width":528,"height":11}},{"id":"0da84599-ae51-46d0-ac8e-001d41be1e5c","block_type":"box","text":"Each Fund’s investments will be limited in order to allow the Fund to qualify as a “regulated investment","page_number":126,"box":{"x":102,"y":377,"width":735,"height":12}},{"id":"9e0cdce1-a52f-4540-aac1-582f19fb57da","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":126,"box":{"x":69,"y":392,"width":775,"height":12}},{"id":"de998052-c014-44f3-9193-3c2df8bc3528","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quar ter of the taxable year, (i) at least","page_number":126,"box":{"x":69,"y":407,"width":837,"height":12}},{"id":"53c3831f-9b86-4e58-b596-c2777049fc30","block_type":"box","text":"50% of the market value of each Fund’s assets is represented by cash, securities of other regulated investment","page_number":126,"box":{"x":69,"y":423,"width":799,"height":11}},{"id":"3eedd9d3-a9aa-480e-9611-3a796409b560","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":126,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"31734520-8107-4a0c-96ee-b5e4c3bff7bc","block_type":"box","text":"issuer, to an amount not greater in value than 5% of the Fund’s assets and not greater than 10% of the outstanding","page_number":126,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"72cbb75a-de45-4f29-9306-155fb3d85fd1","block_type":"box","text":"voting securities of such issuer and (ii) not more than 25% of the value of its assets is invested in the securities","page_number":126,"box":{"x":68,"y":468,"width":802,"height":11}},{"id":"3d61a034-ebfe-4780-a9f3-6d1157fe3cb4","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":126,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"60e6c69c-fc09-4a65-8bde-5afc47cc125c","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or similar trades or","page_number":126,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"4f8851b7-5284-4b6c-8a3a-747d207edc7f","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded par tnerships","page_number":126,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"224e838d-776d-4e86-bd49-7fcae72f4b8f","block_type":"box","text":"(","page_number":126,"box":{"x":69,"y":529,"width":3,"height":10}},{"id":"a59be4d8-70a6-449b-9109-6f416626ff67","block_type":"box","text":"i.e.","page_number":126,"box":{"x":74,"y":529,"width":21,"height":8}},{"id":"3a8dcb01-7941-43c5-be19-2c9ab575f4bd","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":126,"box":{"x":97,"y":529,"width":806,"height":11}},{"id":"509536f4-9b11-468d-bc34-b9c76194c580","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":126,"box":{"x":70,"y":543,"width":824,"height":12}},{"id":"8195270d-501f-4513-9625-313fc6bb5154","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":126,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"fc803b94-5b6e-4626-86e0-ea1c323f771e","block_type":"box","text":"of its political subdivisions, agencies or instrumentalities and each multi-state agency of which the state is a member","page_number":126,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"d1822564-226f-4c58-90ab-f304a01a57e4","block_type":"box","text":"as a separate issuer. Each public authority that issues securities on behalf of a private entity generally will also be","page_number":126,"box":{"x":69,"y":589,"width":815,"height":11}},{"id":"b0419e64-e293-4ee8-8a99-0096f79f6c4d","block_type":"box","text":"regarded as a separate issuer, except that if the security is backed only by the assets and revenues of a non","page_number":126,"box":{"x":69,"y":604,"width":781,"height":11}},{"id":"811c2889-5404-4925-a946-4bbf17d3eac0","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":126,"box":{"x":68,"y":619,"width":810,"height":11}},{"id":"1e58dd78-95ac-45c4-be49-2d03c98abb27","block_type":"box","text":"regarded as the sole issuer.","page_number":126,"box":{"x":69,"y":634,"width":198,"height":12}},{"id":"5846a565-91fa-49be-a1e8-d2b2a4cbaa67","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":126,"box":{"x":102,"y":657,"width":784,"height":11}},{"id":"a75874d3-c76d-4879-8b3a-1effffb9d69e","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":126,"box":{"x":69,"y":672,"width":819,"height":11}},{"id":"a49da4d7-59c4-4876-818e-0b9cf2a2a1e4","block_type":"box","text":"considered to be obligations of a single issuer. These tax-related limitations may be changed by the Directors of a","page_number":126,"box":{"x":69,"y":687,"width":811,"height":11}},{"id":"d4333731-a681-42d4-8a77-02f1787f7ba5","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":126,"box":{"x":70,"y":702,"width":747,"height":12}},{"id":"fc813f07-a685-49de-9301-febeb99eac3d","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":126,"box":{"x":70,"y":717,"width":834,"height":12}},{"id":"da722722-ae5d-4eb1-a1d3-db1297316108","block_type":"box","text":"75% of its total assets.","page_number":126,"box":{"x":69,"y":732,"width":165,"height":10}},{"id":"eabbf299-2365-40ad-a9dc-3d04b3bd9bdd","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":126,"box":{"x":268,"y":762,"width":442,"height":10}},{"id":"4d535b09-d727-475d-ac09-4d63f3d91441","block_type":"box","text":"Directors and Officers","page_number":126,"box":{"x":69,"y":792,"width":159,"height":9}},{"id":"f2a5d316-f93c-4986-baa1-9fcd6fc7c5db","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":126,"box":{"x":102,"y":815,"width":733,"height":11}},{"id":"55581f5d-1f52-4753-9b17-5b2d27ea289c","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":126,"box":{"x":69,"y":830,"width":783,"height":11}},{"id":"8abe4137-de84-40b6-bc91-6b9dcb136501","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Par t I of each Fund’s SAI for biographical and","page_number":126,"box":{"x":69,"y":845,"width":795,"height":12}},{"id":"c51e6790-e6c3-4409-b553-8c4041cdd729","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":126,"box":{"x":69,"y":860,"width":789,"height":12}},{"id":"ad77ba61-f53d-4c70-bf1b-df8228855b9f","block_type":"box","text":"II-81","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6bcf6a02-9741-42fc-9ad8-91380b176f4c","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":126,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5de4d4b4-6f48-4479-9aa0-5bd7f65d0036","block_type":"box","text":"Management Arrangements","page_number":127,"box":{"x":69,"y":45,"width":202,"height":11}},{"id":"ea097352-d958-4960-a70e-c2fd590916f1","block_type":"box","text":"Management Services.","page_number":127,"box":{"x":102,"y":67,"width":162,"height":12}},{"id":"3e7296bf-5ca0-4bbf-9030-0c19e5194b19","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":127,"box":{"x":270,"y":68,"width":615,"height":11}},{"id":"4b48ea45-862b-49a0-a753-0e73bb642a84","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":127,"box":{"x":69,"y":82,"width":836,"height":12}},{"id":"aa79b197-e7b3-4ff6-bcca-f828d279b33e","block_type":"box","text":"por tfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":127,"box":{"x":70,"y":98,"width":820,"height":11}},{"id":"92dd00f4-f377-4a77-b3f5-ff1a37f5ed71","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a par ticular security rests with the Manager. The Manager","page_number":127,"box":{"x":68,"y":113,"width":832,"height":11}},{"id":"45911040-6de7-4139-a486-83915abf5dc4","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":127,"box":{"x":70,"y":128,"width":801,"height":11}},{"id":"f66088cc-f298-46a4-bcfa-c971988557c3","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":127,"box":{"x":69,"y":143,"width":370,"height":11}},{"id":"29425621-61bb-4ad2-b54b-5dd9d3a2de5e","block_type":"box","text":"Each Feeder Fund invests all or a por tion of its assets in shares of a Master Por tfolio. To the extent a Feeder","page_number":127,"box":{"x":102,"y":166,"width":778,"height":11}},{"id":"ed988079-84ce-409e-b9db-3eadc05a6fdf","block_type":"box","text":"Fund invests all of its assets in a Master Por tfolio, it does not invest directly in por tfolio securities and does not","page_number":127,"box":{"x":70,"y":181,"width":800,"height":11}},{"id":"4fac6991-2f8c-4133-91bf-f91259701328","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":127,"box":{"x":69,"y":196,"width":810,"height":11}},{"id":"a4ce472f-ad96-4c22-8b22-a858cd64f11f","block_type":"box","text":"Management Fee.","page_number":127,"box":{"x":102,"y":219,"width":126,"height":11}},{"id":"7070c447-5ebd-4e70-b922-311be331b118","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":127,"box":{"x":235,"y":219,"width":646,"height":11}},{"id":"151bafdc-ccde-40d5-a71e-c1b13bb28b58","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":127,"box":{"x":68,"y":234,"width":841,"height":11}},{"id":"c314d032-5356-4abb-8e08-f9ceacfcbf12","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":127,"box":{"x":69,"y":249,"width":833,"height":11}},{"id":"21d5fec7-e5c5-4f54-bd16-9cccb787d421","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":127,"box":{"x":68,"y":264,"width":746,"height":11}},{"id":"e513a2bb-3e39-4c58-a3b5-6c9b1593fe40","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":127,"box":{"x":70,"y":279,"width":825,"height":11}},{"id":"b35f9786-a380-4f69-88ad-bb8c0251debf","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":127,"box":{"x":102,"y":302,"width":774,"height":11}},{"id":"90a7ba8f-ddf7-47fb-b2e4-ee4d556c847e","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":127,"box":{"x":69,"y":317,"width":826,"height":11}},{"id":"c84292f8-c873-4c35-a07d-d631cd761720","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":127,"box":{"x":70,"y":332,"width":820,"height":11}},{"id":"a5211875-b515-4eeb-afb6-2e4aba0650af","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":127,"box":{"x":68,"y":347,"width":797,"height":11}},{"id":"fe63462b-1650-457e-9edf-23779d099300","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":127,"box":{"x":70,"y":362,"width":830,"height":11}},{"id":"c34fa34c-955e-45de-af58-01a265807cce","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":127,"box":{"x":69,"y":377,"width":802,"height":12}},{"id":"09fa8e3f-481c-4ca2-bd87-f52ef9ec106e","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":127,"box":{"x":70,"y":392,"width":809,"height":12}},{"id":"cde8b8b2-8545-4a09-b057-d3536fa1cc4a","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":127,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"58ed63d9-5938-463a-9f63-7406b35ab3db","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":127,"box":{"x":69,"y":423,"width":830,"height":11}},{"id":"b9193df3-5dde-4dec-a85c-bc50fe8ef542","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":127,"box":{"x":70,"y":438,"width":784,"height":11}},{"id":"2696646e-cc3a-4d16-ad65-d454e910a281","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":127,"box":{"x":69,"y":453,"width":767,"height":11}},{"id":"ebf088b2-9086-4ca0-b430-5140a70c6547","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":127,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"c0bc0dcd-c034-4eb6-8d5b-8bf58c1d3673","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”)","page_number":127,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"6acb128d-e8f0-438e-a867-084eb6e27f85","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":127,"box":{"x":69,"y":498,"width":794,"height":11}},{"id":"7d6b1a11-a996-493d-be2f-99a010257b24","block_type":"box","text":"applicable, and each Fund. Each Fund pays a fee for these services. In addition, the Manager provides cer tain","page_number":127,"box":{"x":69,"y":513,"width":786,"height":12}},{"id":"83a71f9e-f0eb-4c9a-9fc5-ff0c788c11ed","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":127,"box":{"x":69,"y":528,"width":790,"height":12}},{"id":"ce02cbb7-006d-43eb-84a4-7b6b01611158","block_type":"box","text":"cer tain promotional expenses of the Funds incurred in connection with the offering of shares of the Funds. Cer tain","page_number":127,"box":{"x":69,"y":543,"width":817,"height":12}},{"id":"ae22f442-3938-4ff3-b036-e8b9fec3404a","block_type":"box","text":"expenses are financed by each Fund pursuant to distribution plans in compliance with Rule 12b-1 under the","page_number":127,"box":{"x":69,"y":559,"width":767,"height":11}},{"id":"ec309aa8-8973-454e-b2ec-50bf215b8a15","block_type":"box","text":"Investment Company Act. See “Purchase of Shares — Distribution and/or Shareholder Servicing Plans.”","page_number":127,"box":{"x":70,"y":574,"width":743,"height":11}},{"id":"720211ae-c32e-4885-ba6c-a1e9200a678a","block_type":"box","text":"Sub-Advisory Fee.","page_number":127,"box":{"x":102,"y":597,"width":124,"height":11}},{"id":"9c952feb-b2c8-4ed7-8a5e-c635968cd9f9","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":127,"box":{"x":232,"y":596,"width":643,"height":12}},{"id":"f954baf0-ac8b-4861-b846-46643629646b","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":127,"box":{"x":70,"y":612,"width":839,"height":11}},{"id":"e62d2ff0-5413-41ae-b5b4-1941ca7582c9","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":127,"box":{"x":68,"y":627,"width":830,"height":11}},{"id":"75eafde0-cc23-4915-a987-2eeb88af31bf","block_type":"box","text":"Organization of the Manager.","page_number":127,"box":{"x":102,"y":649,"width":204,"height":12}},{"id":"5f69572f-fa41-4926-93f2-597b060cd74e","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":127,"box":{"x":313,"y":649,"width":560,"height":12}},{"id":"fae4f66a-bb32-40ac-a02f-23dbdb1b08f9","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":127,"box":{"x":70,"y":664,"width":819,"height":12}},{"id":"710fcbd9-2a0d-4674-a260-48b46c442596","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":127,"box":{"x":70,"y":680,"width":817,"height":11}},{"id":"fd6a4bb7-87da-46f3-87fe-225cb2ca961b","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":127,"box":{"x":69,"y":695,"width":768,"height":11}},{"id":"2bc44832-d81f-4bc2-92ba-189e1bf09cb2","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":127,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"ee6d8eb1-54a0-4fb1-9e71-1c455413b72d","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":127,"box":{"x":69,"y":725,"width":517,"height":11}},{"id":"942772d1-50ea-4802-98f6-28432889c3a6","block_type":"box","text":"Duration and Termination.","page_number":127,"box":{"x":102,"y":748,"width":182,"height":9}},{"id":"35fa9736-5311-495e-946d-11ce96043e4a","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":127,"box":{"x":292,"y":748,"width":613,"height":11}},{"id":"c54749ef-a476-4366-882c-87102046c49d","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":127,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"0fd67da6-2d40-4299-936a-add3967b5a87","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":127,"box":{"x":69,"y":778,"width":803,"height":11}},{"id":"e2746ff3-77f8-47d8-bbb4-1a400fc9d44f","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not par ties to such agreement or interested persons (as defined","page_number":127,"box":{"x":69,"y":793,"width":839,"height":11}},{"id":"a973d7e7-64b4-45d8-96d2-9febd8bce27b","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":127,"box":{"x":70,"y":808,"width":778,"height":11}},{"id":"cb41a51a-9962-40e4-827d-d26da9b21698","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either par ty thereto or","page_number":127,"box":{"x":69,"y":823,"width":832,"height":12}},{"id":"a5a86b81-b702-448b-b6a6-8be074f3d03e","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":127,"box":{"x":69,"y":838,"width":388,"height":11}},{"id":"c05ce7f8-75a7-42d6-be2f-6eb80ee8783b","block_type":"box","text":"II-82","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"820e5e47-643e-4f4a-80cd-51a4453d14c3","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":127,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"34c0b425-ea44-480f-a890-4e122a33ca5c","block_type":"box","text":"Other Service Arrangements","page_number":128,"box":{"x":69,"y":45,"width":205,"height":11}},{"id":"db2b4211-d099-4f4f-870d-8a9153897f1e","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":128,"box":{"x":101,"y":67,"width":338,"height":9}},{"id":"019d2efc-7eb8-46f9-86d9-d83e1e9d5eb6","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":128,"box":{"x":446,"y":67,"width":439,"height":12}},{"id":"6c5af4f3-425e-42f5-9eee-1e5be366e299","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Par t I of the Fund’s","page_number":128,"box":{"x":69,"y":82,"width":818,"height":12}},{"id":"4324536d-c53a-4a6a-bb84-63fb5cc704f4","block_type":"box","text":"SAI (each an “Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the","page_number":128,"box":{"x":69,"y":98,"width":808,"height":11}},{"id":"b3bb03b5-61df-4ffe-b537-c89163ee018e","block_type":"box","text":"annual rate set for th in each applicable Fund’s Prospectus. For information regarding any administrative fees paid by","page_number":128,"box":{"x":69,"y":113,"width":833,"height":11}},{"id":"ec778234-25c8-4d82-84db-b86fe839572e","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":128,"box":{"x":68,"y":128,"width":738,"height":11}},{"id":"19edffde-93d2-400a-b576-5938b0d3b0de","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":128,"box":{"x":68,"y":143,"width":839,"height":11}},{"id":"7b1111d5-248b-4b24-93d1-4bbfe67c06a7","block_type":"box","text":"that Fund’s SAI.","page_number":128,"box":{"x":68,"y":158,"width":113,"height":9}},{"id":"6172f807-a69e-4fbc-92b5-403e6a2d092a","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":128,"box":{"x":102,"y":181,"width":755,"height":11}},{"id":"54ce617f-9bb6-4399-a9ae-2d23b934c9c2","block_type":"box","text":"cer tain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":128,"box":{"x":69,"y":196,"width":800,"height":11}},{"id":"71495e0a-e1be-4bfa-a263-ff18e8676e47","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":128,"box":{"x":70,"y":211,"width":809,"height":11}},{"id":"cd28e17b-218c-481f-aea9-647be21277e2","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":128,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"36a4108e-b911-4881-be0a-f8b01c4e8ab5","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":128,"box":{"x":70,"y":241,"width":362,"height":11}},{"id":"6b225a5d-dba6-4373-b1d2-af55c64e8ff2","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":128,"box":{"x":102,"y":264,"width":390,"height":11}},{"id":"d09d3bf6-a531-432f-8ac8-273a938f1bd2","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":128,"box":{"x":499,"y":264,"width":364,"height":10}},{"id":"79bba043-e44b-4493-bf20-d3886e431141","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":128,"box":{"x":68,"y":279,"width":832,"height":11}},{"id":"35684a88-156b-4ec8-92bb-4827870c9e58","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":128,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"2f759a64-99fb-4af4-8f09-081a1bf3507c","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not par ties to such contract or","page_number":128,"box":{"x":69,"y":309,"width":800,"height":11}},{"id":"82644747-f7aa-4cbf-a582-cd9d29d3730f","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such par ty. Such contract is not assignable","page_number":128,"box":{"x":70,"y":324,"width":810,"height":12}},{"id":"51f7070b-0352-4a1f-a519-245de5a50a62","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either par ty thereto or by the vote of the","page_number":128,"box":{"x":69,"y":339,"width":805,"height":12}},{"id":"ff63780d-3d90-4702-969d-623d556d1975","block_type":"box","text":"shareholders of the Fund.","page_number":128,"box":{"x":69,"y":355,"width":181,"height":9}},{"id":"8a52cf71-20fc-4ab7-b59f-eeff6689a491","block_type":"box","text":"Transfer Agency Services.","page_number":128,"box":{"x":103,"y":377,"width":180,"height":12}},{"id":"ebe7a115-feb7-4042-946a-b854ef3d1ee1","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":128,"box":{"x":291,"y":377,"width":595,"height":12}},{"id":"76d5d698-7a36-4c25-a90d-037baf3ab113","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":128,"box":{"x":69,"y":392,"width":816,"height":12}},{"id":"5b80f95c-0f35-4cf7-af7d-7a9eca156fdf","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":128,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"8e442801-1598-4ccf-b818-6e048ba70702","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":128,"box":{"x":68,"y":423,"width":792,"height":11}},{"id":"d6953e0e-f9de-43c6-89f3-e672f6f176f8","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":128,"box":{"x":68,"y":438,"width":819,"height":11}},{"id":"8f1d5a96-c456-4fdd-97c5-6992147b6e7d","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":128,"box":{"x":68,"y":453,"width":839,"height":11}},{"id":"f78091a3-7bd0-41ce-b656-eb4138f2bdb1","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":128,"box":{"x":70,"y":468,"width":831,"height":11}},{"id":"1133702b-cb3a-4cf8-a473-c3fd8cacfe5f","block_type":"box","text":"for cer tain accounts that par ticipate in cer tain fee-based programs sponsored by the Manager or its affiliates. For","page_number":128,"box":{"x":68,"y":483,"width":813,"height":11}},{"id":"a4cf5b73-26e8-4de9-8fc6-467d4c071afe","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":128,"box":{"x":70,"y":498,"width":836,"height":11}},{"id":"bd02b063-e74f-4fed-bd7e-d393e8686afe","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":128,"box":{"x":69,"y":513,"width":806,"height":12}},{"id":"be9240a1-b13c-42d4-a055-0a0b4c6ba5da","block_type":"box","text":"class on a recordkeeping system.","page_number":128,"box":{"x":69,"y":529,"width":238,"height":11}},{"id":"428fc9b8-702c-447d-86d8-49e9c64dee7c","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":128,"box":{"x":102,"y":551,"width":338,"height":11}},{"id":"03d568ff-3b43-42b2-beaf-7103e3d17bff","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":128,"box":{"x":446,"y":551,"width":441,"height":11}},{"id":"13ec65cf-000e-46b1-b1fb-abcff37e794b","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":128,"box":{"x":69,"y":566,"width":840,"height":11}},{"id":"02b29fcd-a507-4937-b33d-e4e82fe7b1bf","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":128,"box":{"x":69,"y":581,"width":823,"height":12}},{"id":"cfc73889-9985-4825-bc85-dee908c6959e","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":128,"box":{"x":69,"y":596,"width":627,"height":12}},{"id":"d7e9db8d-0291-4fde-bd94-987060f06cf3","block_type":"box","text":"Custodian Services.","page_number":128,"box":{"x":102,"y":619,"width":141,"height":9}},{"id":"08e183c8-6ad3-43e2-bcb9-8e29ddccd0f6","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":128,"box":{"x":249,"y":619,"width":654,"height":11}},{"id":"8d18c943-2181-4f19-9d35-e87d78b0ea27","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":128,"box":{"x":70,"y":634,"width":820,"height":12}},{"id":"155f4cf4-511f-41ea-a5d9-34dc8c0051be","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":128,"box":{"x":70,"y":649,"width":814,"height":12}},{"id":"0f72c6d4-02eb-449a-a902-0dca374d9288","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":128,"box":{"x":68,"y":664,"width":802,"height":12}},{"id":"8b32acca-a11b-4f40-adef-a4dba33e87db","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with cer tain foreign","page_number":128,"box":{"x":69,"y":680,"width":839,"height":11}},{"id":"d5e55bca-2b54-46b1-aea3-1c23fdca7739","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":128,"box":{"x":69,"y":695,"width":792,"height":11}},{"id":"322b326d-a15e-49a9-a30d-38fd2e93782a","block_type":"box","text":"cer tain assets.","page_number":128,"box":{"x":69,"y":710,"width":106,"height":9}},{"id":"a9a144ff-8de3-4abd-801b-2be5d160bd92","block_type":"box","text":"For cer tain Feeder Funds, the Custodian also acts as the custodian of the Master Por tfolio’s assets.","page_number":128,"box":{"x":102,"y":732,"width":716,"height":11}},{"id":"82efbc09-e186-433f-a84c-57299acc6f91","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":134,"box":{"x":102,"y":775,"width":731,"height":12}},{"id":"a13e77d5-aaf6-45ac-89b7-2588a46ef200","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel who may be","page_number":134,"box":{"x":69,"y":790,"width":799,"height":12}},{"id":"250d69d5-23de-4b69-aa34-cf2763759729","block_type":"box","text":"involved in the investment activities and business operations of a Fund, are engaged worldwide in businesses,","page_number":134,"box":{"x":70,"y":806,"width":786,"height":11}},{"id":"52e14537-6a8b-4719-9d8f-3b766bf85024","block_type":"box","text":"including managing equities, fixed income securities, cash and alternative investments, and other financial services,","page_number":134,"box":{"x":70,"y":821,"width":829,"height":11}},{"id":"88508af2-4f45-4d83-bee6-8a34bb4bb842","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":134,"box":{"x":69,"y":836,"width":804,"height":11}},{"id":"91a63f46-c685-4322-9f3d-6f52074d47d6","block_type":"box","text":"should be aware, and which may cause conflicts of interest that could disadvantage a Fund and its shareholders.","page_number":134,"box":{"x":69,"y":851,"width":806,"height":11}},{"id":"78c7930b-8685-4f8a-9b20-64e616ae8c8a","block_type":"box","text":"These businesses and interests include potential multiple advisory, transactional, financial and other","page_number":134,"box":{"x":101,"y":874,"width":722,"height":11}},{"id":"fa7e6009-0e4b-49c0-a244-a12bf33fd7c6","block_type":"box","text":"relationships with, or interests in companies and interests in securities or other instruments that may be purchased","page_number":134,"box":{"x":69,"y":889,"width":827,"height":11}},{"id":"e9349f55-bbb7-4287-be62-4fe2ca761cac","block_type":"box","text":"or sold by a Fund.","page_number":134,"box":{"x":69,"y":904,"width":125,"height":11}},{"id":"073cbb5f-c2ea-499e-8a96-395326d610b6","block_type":"box","text":"II-89","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"de63fbbb-b6d4-4eb6-9962-495d77cd787d","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"addece0c-7868-4bfc-b3d8-4defe97aa5c0","block_type":"box","text":"BlackRock may have proprietary interests in, and may manage or advise with respect to, accounts or funds","page_number":135,"box":{"x":102,"y":45,"width":762,"height":11}},{"id":"f61899c1-3751-4172-ad26-f2bf14df932c","block_type":"box","text":"(including separate accounts and other funds and collective investment vehicles) that have investment objectives","page_number":135,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"d6c6f5b9-42b8-410d-98b5-7915d9783c01","block_type":"box","text":"identical or similar to those of a Fund and/or that engage in transactions in the same types of securities, currencies","page_number":135,"box":{"x":70,"y":75,"width":828,"height":11}},{"id":"e10e5418-bda1-4eb4-9b18-17669c001627","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":135,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"1554db84-040c-4181-8a62-ab02fbae113b","block_type":"box","text":"substantially similar to those of a Fund but with different fees and expenses, governance and structures, and/or","page_number":135,"box":{"x":69,"y":105,"width":803,"height":11}},{"id":"7c904ec5-b047-4fdb-966b-6505d5509c5f","block_type":"box","text":"services provided by BlackRock","page_number":135,"box":{"x":69,"y":120,"width":224,"height":11}},{"id":"5a6f4f29-301a-4e27-90d7-059ba5baf442","block_type":"box","text":".","page_number":135,"box":{"x":295,"y":128,"width":2,"height":1}},{"id":"ebe6e0a2-2208-43f5-9bfd-0940d384413b","block_type":"box","text":"BlackRock is also a major par ticipant in the global currency, equities, swap and fixed","page_number":135,"box":{"x":304,"y":120,"width":603,"height":12}},{"id":"a1df886e-19f6-4e21-b2c3-eb8a95314a01","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":135,"box":{"x":70,"y":135,"width":791,"height":11}},{"id":"5148fcc6-e812-4563-bb9d-563d985a583e","block_type":"box","text":"BlackRock is or may be actively engaged in transactions in the same securities, currencies, and instruments in which","page_number":135,"box":{"x":70,"y":151,"width":835,"height":11}},{"id":"915fd066-8c21-40b4-9822-474427d1503d","block_type":"box","text":"a Fund invests.","page_number":135,"box":{"x":69,"y":166,"width":106,"height":9}},{"id":"7b8b02ec-69ca-47a5-b326-3c083c842e22","block_type":"box","text":"Such activities could affect the prices and availability of the securities, currencies, and instruments in which a","page_number":135,"box":{"x":102,"y":188,"width":785,"height":11}},{"id":"1f6a22e0-934f-45aa-8e24-dab5217b0774","block_type":"box","text":"Fund invests, which could have an adverse impact on a Fund’s per formance. Such transactions, par ticularly in","page_number":135,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"51903849-49e8-4707-a6d3-6620c6e0be35","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":135,"box":{"x":69,"y":218,"width":832,"height":12}},{"id":"80930e1f-b1fd-464d-afbf-594c426d4a5e","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":135,"box":{"x":68,"y":234,"width":652,"height":11}},{"id":"5beaba33-94b4-4939-8223-ab2207c0afe4","block_type":"box","text":"In addition, the por tfolio holdings of cer tain BlackRock-advised investment vehicles managed in an identical or","page_number":135,"box":{"x":102,"y":256,"width":787,"height":12}},{"id":"c87e1da4-e736-456f-98ba-1f85cc724199","block_type":"box","text":"substantially similar manner as cer tain Funds are made publicly available on a more timely basis than the applicable","page_number":135,"box":{"x":69,"y":272,"width":832,"height":11}},{"id":"e98a8f9b-7cbf-4bda-8b06-e422e48ab90e","block_type":"box","text":"Fund. In some cases, such por tfolio holdings are made publicly available on a daily basis. While not expected, it is","page_number":135,"box":{"x":70,"y":286,"width":816,"height":12}},{"id":"515230e7-55dd-4e3e-bf1b-4f02cfee0b9d","block_type":"box","text":"possible that a recipient of por tfolio holdings information for such an investment vehicle could cause harm to a Fund","page_number":135,"box":{"x":70,"y":302,"width":831,"height":11}},{"id":"27450582-b39f-4a4a-97c8-83d56a08fe6f","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":135,"box":{"x":68,"y":317,"width":813,"height":11}},{"id":"20c182cd-f183-4422-b12d-c3d7597ed494","block_type":"box","text":"based on the information received.","page_number":135,"box":{"x":69,"y":332,"width":247,"height":9}},{"id":"c19807c2-7024-4623-a9a8-690018682f78","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the assets","page_number":135,"box":{"x":101,"y":355,"width":777,"height":11}},{"id":"00ae83f7-89da-46a7-812f-18188f6829d3","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":135,"box":{"x":69,"y":370,"width":838,"height":11}},{"id":"d4a31ed9-e26c-40c4-ac99-b98c79219ed7","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":135,"box":{"x":69,"y":385,"width":835,"height":11}},{"id":"97b644d8-c7fa-4438-bd5e-03b194c3d7cf","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":135,"box":{"x":70,"y":400,"width":817,"height":11}},{"id":"bb4f2da1-5941-44a8-a31b-5ab77a2efe3a","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":135,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"ee579958-5a53-4fd8-a440-9d6acaebfed3","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":135,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"c17d7d26-ad76-483a-b23b-db015279a6ca","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":135,"box":{"x":69,"y":446,"width":827,"height":11}},{"id":"57162f39-7d2c-48ef-a7f2-be5d50c25027","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":135,"box":{"x":70,"y":460,"width":785,"height":11}},{"id":"eb6c9d16-c115-4e6a-b1dc-613bd7c84b3b","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":135,"box":{"x":69,"y":475,"width":767,"height":12}},{"id":"1e4b4371-e9b7-4c08-a401-e7a7b7817dcc","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":135,"box":{"x":69,"y":491,"width":802,"height":11}},{"id":"d731bf09-bb8d-4863-bb7a-e6c59beb7a2b","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":135,"box":{"x":68,"y":506,"width":827,"height":11}},{"id":"f1ad96ed-9ed4-4095-b146-eebc146bec51","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":135,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"1481b4d0-d495-45b6-97c1-47b93e08ffbb","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in cer tain","page_number":135,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"a316ca48-fb53-4c75-a1ea-867775bfc845","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":135,"box":{"x":69,"y":551,"width":781,"height":11}},{"id":"8141ce2a-a7e9-4eda-b40d-2621a9d41050","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":135,"box":{"x":69,"y":566,"width":787,"height":11}},{"id":"f2a68359-8cda-4628-b98e-decc19158ab7","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a shor t position by a Fund may impair the","page_number":135,"box":{"x":70,"y":581,"width":809,"height":12}},{"id":"122c8ae9-ad9f-40c4-bfbf-571c9ae425bb","block_type":"box","text":"price of the same security sold shor t by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":135,"box":{"x":70,"y":596,"width":805,"height":12}},{"id":"56ada822-1ae3-4c06-a1de-b31e78d95778","block_type":"box","text":"purchase of a security or covering of a shor t position in a security by a Fund may increase the price of the same","page_number":135,"box":{"x":70,"y":612,"width":797,"height":11}},{"id":"49eca1ad-29fc-48da-9330-5919a46e19dd","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":135,"box":{"x":69,"y":627,"width":573,"height":11}},{"id":"40ffbdf1-63a7-4c09-b56e-1e739718d743","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":135,"box":{"x":102,"y":649,"width":797,"height":12}},{"id":"a9908ba6-b24e-4cdb-b8de-9360e24a2693","block_type":"box","text":"extend credit to different par ts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":135,"box":{"x":69,"y":664,"width":791,"height":12}},{"id":"6fd20f07-6f0f-48f9-a62c-06647fa1f028","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":135,"box":{"x":69,"y":680,"width":835,"height":11}},{"id":"4751b034-6767-4ad5-9e2f-6a806f802a5a","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":135,"box":{"x":69,"y":695,"width":812,"height":11}},{"id":"eb0a3e17-610a-4cb6-bc47-04631f767626","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":135,"box":{"x":69,"y":710,"width":803,"height":11}},{"id":"70957552-e6e7-4f9d-a0c9-7c81a01d1e8e","block_type":"box","text":"Funds) hold positions in multiple par ts of the capital structure of an issuer, BlackRock may not pursue cer tain","page_number":135,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"e80b806a-132d-414b-a124-6b8ff759e193","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":135,"box":{"x":69,"y":740,"width":818,"height":11}},{"id":"5ac8737d-23e0-4464-9498-bdfe409b702c","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":135,"box":{"x":70,"y":755,"width":777,"height":11}},{"id":"30d99c6e-edf0-42d1-af4a-5bc2da19fcde","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":135,"box":{"x":70,"y":770,"width":780,"height":11}},{"id":"d296e841-6f07-4104-b846-cd0c4a7509a3","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":135,"box":{"x":69,"y":785,"width":802,"height":12}},{"id":"29995277-c6c5-412b-a385-2cc428d76d1c","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":135,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"f5c8a339-a5ea-46df-b566-4007c34ed94d","block_type":"box","text":"Funds.","page_number":135,"box":{"x":70,"y":816,"width":44,"height":9}},{"id":"867e2b2a-4a2a-4982-b82a-bd4a0af68ac7","block_type":"box","text":"In addition, to the extent permitted by applicable law, cer tain Funds may invest their assets in other funds","page_number":135,"box":{"x":102,"y":838,"width":755,"height":11}},{"id":"5e29081f-74ce-4e0d-8a2d-b733227d048c","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same por tfolio managers, which could","page_number":135,"box":{"x":69,"y":853,"width":836,"height":12}},{"id":"70685be7-f5c4-4117-914a-3fe8182eff4a","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":135,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"951b2045-6f62-4bcb-8b78-f4537343f97a","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":135,"box":{"x":69,"y":884,"width":679,"height":11}},{"id":"07bb6be1-035c-4670-a320-e0f4633f4c55","block_type":"box","text":"II-90","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"17ba669c-a853-45e6-a78e-74657681049c","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5b25d091-9e51-43cc-9795-463429672947","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":136,"box":{"x":101,"y":45,"width":760,"height":11}},{"id":"55300187-5622-4b22-8bea-f6419af31627","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":136,"box":{"x":70,"y":60,"width":818,"height":11}},{"id":"43ef3832-c89a-46af-8fda-488161a1d0b7","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":136,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"1f0e22c5-c72b-4bc2-9467-836192166e73","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":136,"box":{"x":69,"y":90,"width":825,"height":11}},{"id":"63cfe8eb-1eba-44f0-b5a6-50035919fb2b","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":136,"box":{"x":68,"y":105,"width":421,"height":11}},{"id":"26338d96-e209-4b56-a7fb-e383d6407b37","block_type":"box","text":"In cer tain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":136,"box":{"x":102,"y":128,"width":794,"height":11}},{"id":"88614b22-e7b7-4cb7-ab31-035980efaf75","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":136,"box":{"x":68,"y":143,"width":817,"height":11}},{"id":"dcdedda8-c855-4bbb-a7a3-dc56446a3654","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":136,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"2f3fbd85-8c4a-4a11-8851-c25051508e9d","block_type":"box","text":"based on each par ty’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":136,"box":{"x":69,"y":173,"width":826,"height":11}},{"id":"9f3459a1-b9ab-47f9-ad8b-ce458a6de2df","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":136,"box":{"x":70,"y":188,"width":780,"height":12}},{"id":"082adaf8-4555-4143-a7fd-91658f49d3c5","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":136,"box":{"x":69,"y":203,"width":791,"height":12}},{"id":"123f98be-92de-4fb7-a59e-3c8edac08f6b","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":136,"box":{"x":70,"y":219,"width":457,"height":11}},{"id":"bc07d513-b12f-4d95-9654-c232ab2b997c","block_type":"box","text":"BlackRock and its clients may pursue or enforce rights with respect to an issuer in which a Fund has invested,","page_number":136,"box":{"x":102,"y":241,"width":784,"height":11}},{"id":"30279125-1fe9-4e0b-8d57-d86bf7f052c0","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":136,"box":{"x":69,"y":256,"width":840,"height":11}},{"id":"d4e408f9-32e9-4fed-af44-2a49e7894daf","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":136,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"22e8af70-c902-4302-868f-9aaba748fd11","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":136,"box":{"x":70,"y":286,"width":828,"height":12}},{"id":"4f105bf1-6fd3-47c1-8c3c-48179b9e6dc3","block_type":"box","text":"case.","page_number":136,"box":{"x":69,"y":304,"width":37,"height":7}},{"id":"8f6e086f-6a42-4e20-a879-143b38df99ff","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":136,"box":{"x":101,"y":324,"width":791,"height":12}},{"id":"d6a1a310-21d4-4f40-9bdf-0554d8b8ab12","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":136,"box":{"x":70,"y":340,"width":824,"height":11}},{"id":"30c59e57-198b-4f24-ac47-06d42dd1f7b3","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":136,"box":{"x":69,"y":355,"width":798,"height":11}},{"id":"ba302593-de64-4baa-887c-175312611953","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":136,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"89529fbb-f68e-4856-b272-050b2e8ca3e9","block_type":"box","text":"Fund. Moreover, it is possible that a Fund will sustain losses during periods in which one or more proprietary or other","page_number":136,"box":{"x":70,"y":385,"width":835,"height":11}},{"id":"1f5c02bf-0e15-4d4e-bcf9-7102cd88faff","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":136,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"e49ffd84-3597-4ea5-b9a0-a11098ee3ac3","block_type":"box","text":"From time to time, a Fund may be restricted from purchasing or selling securities, or from engaging in other","page_number":136,"box":{"x":102,"y":423,"width":766,"height":11}},{"id":"1fbbac93-f939-479b-a0db-4dd0fe4d4298","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":136,"box":{"x":70,"y":438,"width":786,"height":11}},{"id":"363ce3ca-c3ea-4304-9f28-32cd1d6d0466","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":136,"box":{"x":69,"y":453,"width":828,"height":11}},{"id":"6197df40-3c89-4861-a286-8e678bc657e1","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend cer tain","page_number":136,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"03f08eaa-cc18-4d1b-b0d3-ee1b62bbfcf9","block_type":"box","text":"types of transactions in cer tain securities or instruments with respect to which BlackRock is per forming services or","page_number":136,"box":{"x":68,"y":483,"width":825,"height":11}},{"id":"7d81fc25-9c24-4c6e-bd5a-93ec75d9e677","block_type":"box","text":"when position limits have been reached. 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BlackRock will not be under any obligation, however, to effect","page_number":136,"box":{"x":70,"y":581,"width":826,"height":12}},{"id":"efd10a82-4fb7-423a-92fc-825d55635401","block_type":"box","text":"transactions on behalf of a Fund in accordance with such analysis and models. In addition, BlackRock will not have","page_number":136,"box":{"x":68,"y":596,"width":821,"height":12}},{"id":"f3218960-bb06-40ed-9589-a57183839871","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":136,"box":{"x":69,"y":612,"width":821,"height":11}},{"id":"dcf18ee8-1a64-4b76-94fe-bef3b0d8c224","block_type":"box","text":"strategies used for other accounts managed by them, for the benefit of the management of a Fund and it is not","page_number":136,"box":{"x":69,"y":627,"width":793,"height":11}},{"id":"26adf883-1890-4c2f-b19d-5d5767e21bbf","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":136,"box":{"x":69,"y":642,"width":762,"height":11}},{"id":"42aaf763-d370-47a1-bcf4-abf36fb504bb","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":136,"box":{"x":70,"y":657,"width":839,"height":11}},{"id":"b5803eb6-16ac-4636-9dd9-1e42a3cbc47a","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":136,"box":{"x":70,"y":672,"width":795,"height":11}},{"id":"af663097-ebe0-4d14-be41-636131989926","block_type":"box","text":"managing a Fund.","page_number":136,"box":{"x":69,"y":687,"width":124,"height":11}},{"id":"15a7761d-61c1-4b0e-90ab-c44d20040c5c","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":136,"box":{"x":101,"y":710,"width":751,"height":11}},{"id":"88d9d7d4-6cda-4ca2-b5fa-3c2eb9994f81","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":136,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"3a00543d-27ab-4398-900c-f948d7ec9020","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":136,"box":{"x":70,"y":740,"width":820,"height":11}},{"id":"1047fcc9-1f1c-46b3-a89a-ee3a424e52ac","block_type":"box","text":"value and liquidity of a Fund may be impacted by purchases and sales of the Fund by model-driven investment","page_number":136,"box":{"x":68,"y":755,"width":785,"height":11}},{"id":"b62c9b48-bbca-4021-8815-2581e6c839c3","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":136,"box":{"x":70,"y":770,"width":481,"height":11}},{"id":"6455a65e-9764-4df3-a4a7-14bd1862aa50","block_type":"box","text":"In addition, cer tain principals and cer tain employees of a Fund’s investment adviser are also principals or","page_number":136,"box":{"x":102,"y":793,"width":754,"height":11}},{"id":"8878e617-f857-4c36-afb6-e6cc3045c2b0","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":136,"box":{"x":69,"y":808,"width":804,"height":11}},{"id":"b8b84a92-9a04-49c8-a343-fbd04d2a0662","block_type":"box","text":"have obligations to such other business units or entities or their clients and such obligations to other business units","page_number":136,"box":{"x":69,"y":823,"width":831,"height":12}},{"id":"b972f74c-bae6-48b4-bcc2-2c090e1ffb28","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":136,"box":{"x":69,"y":838,"width":680,"height":11}},{"id":"ba2fa04a-6247-4be7-9137-d34086be7569","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":136,"box":{"x":102,"y":861,"width":791,"height":11}},{"id":"1e017a3d-f109-4c2e-a7a8-335b4c384d17","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":136,"box":{"x":70,"y":876,"width":820,"height":11}},{"id":"62711620-fc1d-4549-bee8-6506f546ccf8","block_type":"box","text":"as the counterpar ty, principal or issuer. In such cases, such par ty’s interests in the transaction will be adverse to the","page_number":136,"box":{"x":69,"y":891,"width":837,"height":11}},{"id":"4b0eefda-2837-427e-97fd-35b0c3ef67ad","block_type":"box","text":"interests of the Fund, and such par ty may have no incentive to assure that the Fund obtains the best possible prices","page_number":136,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"fac0a82d-951c-416b-a51b-b86cad830fe2","block_type":"box","text":"II-91","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"010f5003-3343-488f-9582-ec8bc165ec6f","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1ac4946b-4448-4f9f-936a-7f010da76338","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":137,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"22ae54aa-7063-4239-95ab-fa024cc05640","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":137,"box":{"x":70,"y":60,"width":344,"height":11}},{"id":"81b48b34-4b75-4825-9fc6-8fb7a3a55873","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":137,"box":{"x":102,"y":82,"width":741,"height":12}},{"id":"84cea5ef-d7f2-4426-ad5f-d38aa034a8d2","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the per formance of the Fund.","page_number":137,"box":{"x":70,"y":98,"width":824,"height":11}},{"id":"a3dd3a6c-0071-4007-8b4b-32581b0b385b","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the per formance of","page_number":137,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"fde69355-e58d-4de2-ac9d-744f7331ec88","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":137,"box":{"x":69,"y":128,"width":777,"height":11}},{"id":"b412bfa0-45b2-4194-a6c9-53c3651d3b27","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":137,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"8a87c798-9e9c-4629-8e7b-42c1c300c705","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":137,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"fa10cf99-0b70-410e-a825-1d877ed49373","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":137,"box":{"x":70,"y":173,"width":798,"height":11}},{"id":"f2c7998e-4e39-4fbf-9cfa-1e74cb107adf","block_type":"box","text":"under management for BlackRock.","page_number":137,"box":{"x":69,"y":188,"width":243,"height":12}},{"id":"74c9140b-3317-40b0-9f38-b29c75bf86c9","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":137,"box":{"x":101,"y":211,"width":773,"height":11}},{"id":"c2b8d3ff-96f6-41d5-9f93-85cca54e441b","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":137,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"3b968a9d-0fb8-4e40-bb60-e60cfaeb2803","block_type":"box","text":"clients have interests adverse to those of the Fund. At times, these activities may cause business units or entities","page_number":137,"box":{"x":69,"y":241,"width":817,"height":11}},{"id":"a3a216b3-e32a-4fbc-ab5a-8aba65a365d5","block_type":"box","text":"within BlackRock to give advice to clients that may cause these clients to take actions adverse to the interests of the","page_number":137,"box":{"x":68,"y":256,"width":837,"height":12}},{"id":"7fb457c2-9e6b-4cb4-acd4-09d2f9afeed8","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":137,"box":{"x":70,"y":272,"width":781,"height":11}},{"id":"ced6ba3f-a740-4cd2-bbdb-ff2a57151067","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":137,"box":{"x":101,"y":294,"width":779,"height":11}},{"id":"14e6cef1-058c-4522-8b7d-b64a0a72503c","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":137,"box":{"x":69,"y":309,"width":795,"height":11}},{"id":"900b95c7-6f57-4a96-a03c-0f56008e8126","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":137,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"5d7c9a8b-b323-4dcb-bd63-80a6871d8ed2","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":137,"box":{"x":68,"y":339,"width":802,"height":12}},{"id":"b76a2850-4024-421a-a910-cb534af52129","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":137,"box":{"x":69,"y":355,"width":792,"height":11}},{"id":"a474160c-baad-4b95-b2f9-f6a636e533f2","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":137,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"8d40962c-911e-40db-9308-63140c183198","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":137,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"e846086c-16d4-4d98-a1f5-c7588256234d","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":137,"box":{"x":68,"y":400,"width":726,"height":11}},{"id":"c2b9b3c9-cb13-4148-a9ea-8d5ce0ad8662","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":137,"box":{"x":102,"y":423,"width":796,"height":11}},{"id":"fbcfb4f3-6d8e-461b-b532-2cd4cc52870d","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":137,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"d4540de7-a8f4-4719-b189-9142b2ffeef7","block_type":"box","text":"or in other commercial capacities. No accounting to the Funds or their shareholders will be required, and no fees or","page_number":137,"box":{"x":69,"y":453,"width":823,"height":11}},{"id":"14876bf3-4310-4445-9777-95ae1a90e744","block_type":"box","text":"other compensation payable by the Funds or their shareholders will be reduced by reason of receipt by BlackRock of","page_number":137,"box":{"x":69,"y":468,"width":828,"height":11}},{"id":"37d4cb72-5d08-4600-89a3-07b5d6de719f","block_type":"box","text":"any such fees or other amounts.","page_number":137,"box":{"x":69,"y":483,"width":230,"height":11}},{"id":"9af4a042-4470-4876-8728-a97d5134886e","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":137,"box":{"x":101,"y":506,"width":805,"height":11}},{"id":"c008830d-6e2f-4881-a5b3-3bf52516f754","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":137,"box":{"x":70,"y":521,"width":768,"height":11}},{"id":"4cc7e2f3-380d-4429-a266-b301aa6c2b04","block_type":"box","text":"A Fund will be required to establish business relationships with its counterpar ties based on the Fund’s own","page_number":137,"box":{"x":101,"y":544,"width":766,"height":10}},{"id":"808de0b6-821b-4a77-8767-2fe57735cd27","block_type":"box","text":"credit standing. BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":137,"box":{"x":69,"y":559,"width":793,"height":11}},{"id":"9dcf12ea-3586-4f31-b17a-9918262ddfdd","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterpar ties will rely on the credit of","page_number":137,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"06db24f9-5f29-46df-85e8-0965285576b8","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":137,"box":{"x":70,"y":589,"width":374,"height":11}},{"id":"0ac4a639-bc7e-46bc-973c-7c2e4c294371","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. 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As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":137,"box":{"x":70,"y":732,"width":814,"height":12}},{"id":"1b853ab1-db4c-4be3-8b8b-0888ae43a6dc","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":137,"box":{"x":69,"y":748,"width":660,"height":11}},{"id":"ed089cdd-cf85-41b2-ac8b-ab91b663cb0f","block_type":"box","text":"As par t of its securities lending program, BlackRock indemnifies the Funds and cer tain other clients and/or","page_number":137,"box":{"x":101,"y":770,"width":767,"height":12}},{"id":"818b55de-d8af-47c2-897b-7000330bfdcc","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":137,"box":{"x":68,"y":785,"width":820,"height":12}},{"id":"85c27eb6-39d8-4193-9feb-bce038be005a","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":137,"box":{"x":70,"y":801,"width":806,"height":11}},{"id":"2f40a37b-efe3-4740-925f-af5666790f07","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":137,"box":{"x":70,"y":816,"width":816,"height":11}},{"id":"bf911335-2800-48e2-b2e6-d1c04f5ce2a4","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":137,"box":{"x":69,"y":831,"width":838,"height":11}},{"id":"3041ed54-4f67-42a5-b518-ea2b9b7c5124","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":137,"box":{"x":70,"y":846,"width":727,"height":11}},{"id":"baa0ed3d-cd6e-41bb-a697-ba43f4390658","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":137,"box":{"x":69,"y":861,"width":815,"height":11}},{"id":"3e7ea99e-e0af-4ea7-a2f0-f2e509044d0c","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":137,"box":{"x":69,"y":876,"width":786,"height":11}},{"id":"ed7830f3-c856-4fc3-a2fb-72dd0e717cd3","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":137,"box":{"x":70,"y":891,"width":796,"height":12}},{"id":"2bf298e5-d3c5-46ca-9fe8-6ffd3569d937","block_type":"box","text":"II-92","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"86359f57-e25d-4715-8219-e20639fe9bbb","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"123e0142-638c-45e8-9bb5-8d91e207a1c7","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending oppor tunities for cer tain loans (including by","page_number":138,"box":{"x":69,"y":45,"width":799,"height":11}},{"id":"5c1d9e3d-9104-43cc-abc4-0ce6058bc4ed","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":138,"box":{"x":69,"y":60,"width":356,"height":11}},{"id":"445e6794-c5e9-4562-928a-1909bb69f540","block_type":"box","text":"BlackRock may decline to make a securities loan on behalf of a Fund, discontinue lending on behalf of a Fund or","page_number":138,"box":{"x":102,"y":82,"width":801,"height":12}},{"id":"086e15e6-881c-49f9-a784-75c2fc549d0f","block_type":"box","text":"terminate a securities loan on behalf of a Fund for any reason, including but not limited to regulatory requirements","page_number":138,"box":{"x":68,"y":98,"width":817,"height":11}},{"id":"d69265a6-c97c-46ad-8ccd-90704133c0dc","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":138,"box":{"x":69,"y":113,"width":784,"height":11}},{"id":"8e1a8947-6df3-462e-afd3-484dd10d402d","block_type":"box","text":"eliminating the volume of lending oppor tunities for cer tain types of loans, loans in par ticular markets, loans of","page_number":138,"box":{"x":69,"y":128,"width":789,"height":11}},{"id":"ebfbc9aa-b9e0-416f-99cc-10cfd68d191d","block_type":"box","text":"par ticular securities or types of securities, or for loans overall. In addition, some borrowers may prefer cer tain","page_number":138,"box":{"x":70,"y":143,"width":783,"height":11}},{"id":"98b4283a-2c4c-4dda-8dff-e21b0bcc368d","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":138,"box":{"x":70,"y":158,"width":790,"height":11}},{"id":"2cda93d2-3bc0-4f6d-b363-ad3230b4f862","block_type":"box","text":"regulation.","page_number":138,"box":{"x":69,"y":173,"width":73,"height":11}},{"id":"8fdae817-e881-473b-8308-0d8b2b27d943","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":138,"box":{"x":102,"y":196,"width":777,"height":11}},{"id":"554275b8-c254-4989-b55e-c0fa5179dda6","block_type":"box","text":"order to allocate a loan to a por tfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":138,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"5db37c72-7f26-49d4-8431-cfbfc5815a7b","block_type":"box","text":"various program limits (","page_number":138,"box":{"x":68,"y":226,"width":168,"height":11}},{"id":"dab33582-2645-4f99-a72f-29ef534d41e4","block_type":"box","text":"i.e.","page_number":138,"box":{"x":238,"y":226,"width":20,"height":9}},{"id":"4484b102-937c-4859-b6f6-b5be1df7e506","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":138,"box":{"x":265,"y":226,"width":621,"height":11}},{"id":"0cf610be-a421-4757-8122-98fe6a29c6a4","block_type":"box","text":"hold the asset at the time a loan oppor tunity arrives; and (iii) the lending por tfolio must also have enough inventory,","page_number":138,"box":{"x":69,"y":241,"width":827,"height":11}},{"id":"471e9255-d060-411a-af3c-855a22fcf35d","block_type":"box","text":"either on its own or when aggregated with other por tfolios into one single market delivery, to satisfy the loan request.","page_number":138,"box":{"x":69,"y":256,"width":836,"height":12}},{"id":"1f1f2c8e-0946-4f88-bbe5-fe9ffac780eb","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":138,"box":{"x":70,"y":271,"width":780,"height":12}},{"id":"3817bf96-6a1b-41d0-91b0-ce2ed27602a9","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":138,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"778ca8cd-a1f7-4b4e-992b-6e3f1c5cd775","block_type":"box","text":"Specifically, shor t and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":138,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"0ff8974c-4ab1-4691-84ab-8ff5d974d802","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":138,"box":{"x":69,"y":317,"width":444,"height":11}},{"id":"99305957-2602-4179-b3e0-288273b45713","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":138,"box":{"x":102,"y":339,"width":734,"height":12}},{"id":"cef4f082-be6b-45a3-8651-d83505b715f5","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":138,"box":{"x":70,"y":355,"width":840,"height":11}},{"id":"6fe7693f-e6c2-486c-81c8-13917369d64f","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":138,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"5255b59d-77fe-4754-872a-12b757c88aa5","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":138,"box":{"x":69,"y":385,"width":788,"height":11}},{"id":"75f65a23-403d-4d9a-a2dd-099c26fbace9","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":138,"box":{"x":70,"y":400,"width":426,"height":11}},{"id":"7ffacb4c-241d-410e-bc73-375433fecba5","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":138,"box":{"x":102,"y":423,"width":763,"height":11}},{"id":"bd4d2402-d716-41bb-a5aa-1d76e375fcde","block_type":"box","text":"entire volume of securities purchased or sold. When this occurs, the various prices may be averaged, and the Funds","page_number":138,"box":{"x":69,"y":438,"width":828,"height":11}},{"id":"fec8bae1-2fe7-40db-bf38-5a9a81324ca6","block_type":"box","text":"will be charged or credited with the average price. Thus, the effect of the aggregation may operate on some","page_number":138,"box":{"x":68,"y":453,"width":767,"height":11}},{"id":"534033b6-1c7d-4ffe-8198-2f72d1ae4360","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under cer tain circumstances, the Funds will not be charged","page_number":138,"box":{"x":69,"y":468,"width":828,"height":11}},{"id":"04b524ff-4488-45ec-ad73-b2dc381297a6","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":138,"box":{"x":68,"y":483,"width":672,"height":11}},{"id":"5d215177-0fbb-470a-8af7-8f33503e68a9","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":138,"box":{"x":101,"y":506,"width":767,"height":11}},{"id":"9324acca-5458-4d80-9aa7-c94f9f286168","block_type":"box","text":"Securities,” BlackRock, unless prohibited by applicable law, may cause a Fund or account to pay a broker or dealer a","page_number":138,"box":{"x":69,"y":521,"width":832,"height":11}},{"id":"d284edad-8bad-41b5-80f4-9a45fcf90812","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":138,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"6c1e95b6-975b-4ca6-a6b1-624a40c7e507","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":138,"box":{"x":69,"y":551,"width":836,"height":11}},{"id":"b3234f61-7cf6-499e-ac77-17cbc6afadce","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":138,"box":{"x":69,"y":566,"width":831,"height":11}},{"id":"e29ccafe-4579-4eac-ba51-69887edd4cf5","block_type":"box","text":"sub-adviser to cer tain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":138,"box":{"x":69,"y":581,"width":812,"height":11}},{"id":"6159b4a1-0036-4eff-bce2-4c0cd9866e0b","block_type":"box","text":"than through client commissions.","page_number":138,"box":{"x":68,"y":597,"width":237,"height":11}},{"id":"33556a87-dc16-4698-b334-e2094ed567e4","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":138,"box":{"x":102,"y":619,"width":770,"height":11}},{"id":"55e0c950-da04-4354-b3ec-529d7a5c963d","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":138,"box":{"x":69,"y":634,"width":797,"height":12}},{"id":"3393988d-3e68-4546-a486-024200c7f928","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":138,"box":{"x":69,"y":650,"width":830,"height":11}},{"id":"d7e15993-4300-48b3-a0e6-d706f6faf57d","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":138,"box":{"x":70,"y":664,"width":780,"height":12}},{"id":"f5016c99-e4bb-4803-84a1-57ad45f0aff8","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":138,"box":{"x":69,"y":680,"width":795,"height":11}},{"id":"cf0ec7f5-9237-4d6f-9945-66cc55a326a7","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":138,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"c1bf1163-ba87-49d5-bbb3-0fdecb05866c","block_type":"box","text":"research-oriented software and other services and products.","page_number":138,"box":{"x":69,"y":710,"width":430,"height":11}},{"id":"282792d9-7b27-4fa4-8054-8c7a9f633cb0","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":138,"box":{"x":102,"y":732,"width":785,"height":12}},{"id":"b1ea5d0e-3959-443d-84d0-8441586f1820","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":138,"box":{"x":70,"y":748,"width":768,"height":11}},{"id":"b4ca5f36-3f71-4a24-a9cd-aa5a016e8a80","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":138,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"bf4dcaf6-b0d8-4465-9910-010ec55fcfa6","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":138,"box":{"x":69,"y":778,"width":818,"height":11}},{"id":"fad58210-2131-4554-a9e7-028da7e15c20","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":138,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"10510f80-f864-414e-9913-85eeca4e45a8","block_type":"box","text":"that are paid for through one client’s commissions may not be used in managing that client’s account. In addition,","page_number":138,"box":{"x":68,"y":808,"width":815,"height":11}},{"id":"f245a75c-6c53-44fa-b197-13bd75286a7f","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":138,"box":{"x":69,"y":823,"width":824,"height":12}},{"id":"844d3d87-95f6-4a4e-b22e-5bbd5d935ebe","block_type":"box","text":"or price discounts in connection with products and services that may be provided to the Funds and to such other","page_number":138,"box":{"x":69,"y":839,"width":804,"height":10}},{"id":"8fe324af-699b-44e8-945f-5609ad40131a","block_type":"box","text":"BlackRock client accounts. To the extent that BlackRock uses soft dollars, it will not have to pay for those products","page_number":138,"box":{"x":70,"y":853,"width":819,"height":12}},{"id":"f68fc3b7-4755-4ff3-8429-eac4ddc9f13f","block_type":"box","text":"and services itself.","page_number":138,"box":{"x":69,"y":869,"width":134,"height":9}},{"id":"60b63385-d6bf-4cd3-a3fc-e7b7a8173420","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":138,"box":{"x":102,"y":891,"width":793,"height":12}},{"id":"2f56e1c3-d3cb-4443-9ed9-bbf6d19dbd52","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":138,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"36fb78f0-96ff-475b-83bc-201bc437de39","block_type":"box","text":"II-93","page_number":138,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c69ba64a-76f7-43b9-baa0-2e5bec372781","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d29b7e3c-1275-4141-b22d-727db13a0144","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":139,"box":{"x":69,"y":45,"width":833,"height":11}},{"id":"5fad22c2-fb87-498f-9c79-5192ff3e370d","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":139,"box":{"x":68,"y":60,"width":836,"height":11}},{"id":"9f296403-4daf-438c-8d96-8549e1c4dd3e","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":139,"box":{"x":69,"y":75,"width":760,"height":11}},{"id":"7b244ea0-4d86-422a-8734-012639ca8596","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a por tion of the commissions or","page_number":139,"box":{"x":68,"y":90,"width":803,"height":11}},{"id":"a3f87a00-806d-4001-bdb8-85acb8b41348","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":139,"box":{"x":69,"y":105,"width":807,"height":11}},{"id":"95320a55-3d7a-4dfd-af58-01c80df6a31d","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":139,"box":{"x":69,"y":120,"width":760,"height":12}},{"id":"4c8d484d-e933-43ac-a95c-1ce375639754","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":139,"box":{"x":102,"y":143,"width":799,"height":11}},{"id":"bf2cbfcf-3d82-4fac-878c-d6c5fb8782ed","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":139,"box":{"x":70,"y":158,"width":767,"height":11}},{"id":"8279f7e8-7139-402a-98ed-97f9c6ab3e52","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":139,"box":{"x":69,"y":173,"width":794,"height":11}},{"id":"95a6e655-2b6c-405b-a958-66c57999d98d","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":139,"box":{"x":69,"y":188,"width":825,"height":11}},{"id":"330ae7db-60e5-4ea8-8075-85f72d7b55c0","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":139,"box":{"x":68,"y":204,"width":821,"height":11}},{"id":"a25754fc-2946-4de8-b3a9-7541fca324c7","block_type":"box","text":"the cost of the securities purchased. Access fees may be paid by BlackRock even though incurred in connection with","page_number":139,"box":{"x":68,"y":218,"width":833,"height":12}},{"id":"4dae99a2-377b-4768-9f21-ff3a36b1519a","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":139,"box":{"x":69,"y":234,"width":812,"height":11}},{"id":"e5eecdb8-ff7c-4bb8-a51e-647d5bc7ee30","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":139,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"c7e53f47-6c40-4e0a-a3d0-ba138e7b6e38","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":139,"box":{"x":68,"y":264,"width":519,"height":11}},{"id":"7fe9d8ab-3df6-401f-b961-4965f4594f46","block_type":"box","text":"BlackRock owns a minority interest in, and is a member of, Members Exchange (“MEMX”), a newly created U.S.","page_number":139,"box":{"x":102,"y":286,"width":793,"height":12}},{"id":"30f32575-77cb-49fc-9613-7164ddce7eb0","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third par ty brokers select MEMX as the","page_number":139,"box":{"x":69,"y":302,"width":782,"height":11}},{"id":"a68c4f8d-c325-4827-b8b5-6a29d98d8f75","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":139,"box":{"x":69,"y":317,"width":710,"height":11}},{"id":"5edf0124-2703-4d64-9814-7b0d416862c9","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":139,"box":{"x":102,"y":339,"width":792,"height":12}},{"id":"8ff2c149-d6c9-4bb4-8636-9eac048c0cf2","block_type":"box","text":"voting decisions that it makes on behalf of advisory clients, including the Funds, and to help ensure that such","page_number":139,"box":{"x":68,"y":355,"width":784,"height":11}},{"id":"23035e0d-f826-4259-85f4-30f84416eb6b","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":139,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"392ad639-a495-4656-9227-6d2208da420b","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":139,"box":{"x":69,"y":385,"width":835,"height":11}},{"id":"35bbe7ab-1178-4980-bc75-a9085e205889","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":139,"box":{"x":68,"y":400,"width":837,"height":11}},{"id":"47c5ef9a-4c45-4e95-be3c-92c2b36d2896","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":139,"box":{"x":69,"y":415,"width":795,"height":11}},{"id":"9f8df328-c961-4fc1-97af-bcfde2456cd0","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":139,"box":{"x":70,"y":430,"width":490,"height":11}},{"id":"58c27578-cc3c-41a8-be5e-cb21e2afb1a9","block_type":"box","text":"It is also possible that, from time to time, BlackRock and/or its advisory clients (including other funds and","page_number":139,"box":{"x":102,"y":453,"width":757,"height":11}},{"id":"74daa910-49c2-435f-8205-f01e5639c54d","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":139,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"754f1ee1-8ad4-477e-aeda-cd7153287212","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":139,"box":{"x":70,"y":483,"width":837,"height":11}},{"id":"9e5a64bd-8c53-4e23-b8a5-9ef5323006b5","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":139,"box":{"x":69,"y":498,"width":774,"height":11}},{"id":"fd298c0d-b5ff-4cfa-aeb1-d0a360875160","block_type":"box","text":"applicable law, to redeem at any time some or all of the shares of a Fund acquired for its own accounts. A large","page_number":139,"box":{"x":69,"y":513,"width":796,"height":12}},{"id":"62ac63a8-8686-4182-8700-fc5909f27e2a","block_type":"box","text":"redemption of shares of a Fund by BlackRock could significantly reduce the asset size of the Fund, which might have","page_number":139,"box":{"x":69,"y":528,"width":830,"height":12}},{"id":"dad906e3-6940-4276-a977-d22bcd02e2ad","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":139,"box":{"x":69,"y":543,"width":831,"height":12}},{"id":"7d2868ef-c5e3-43d6-89ab-bf6968076a20","block_type":"box","text":"consider the effect of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is","page_number":139,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"a14b1571-bf46-42ba-a4b3-1fab0a375675","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":139,"box":{"x":69,"y":574,"width":355,"height":11}},{"id":"c43a2ceb-0830-4d4d-a305-d7c70e626e37","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in which","page_number":139,"box":{"x":102,"y":596,"width":742,"height":12}},{"id":"5c82a2aa-30df-4a6a-b83b-dfda8e81e41a","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. 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BlackRock and its sales personnel may","page_number":139,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"0af916d1-b25c-41ae-9815-4658bb821872","block_type":"box","text":"directly or indirectly receive a por tion of the fees and commissions charged to the Funds or their shareholders.","page_number":139,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"ded91d09-31bb-491b-b0f4-60c0971377c1","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":139,"box":{"x":70,"y":801,"width":745,"height":11}},{"id":"60793dc3-2eeb-4d94-96c8-2bccb276b879","block_type":"box","text":"management. 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BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":140,"box":{"x":68,"y":143,"width":803,"height":11}},{"id":"cffa7798-0b96-45fb-bda6-931fbf08cbaf","block_type":"box","text":"under the Investment Company Act and acts through BlackRock’s Rule 2a-5 Committee (the “2a-5 Committee”), with","page_number":140,"box":{"x":69,"y":158,"width":831,"height":11}},{"id":"21f6b6b1-0b32-403d-8cbe-ca2289b17a51","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":140,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"c219ce14-c32a-4057-806f-eff7fb2dcdcd","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":140,"box":{"x":69,"y":188,"width":802,"height":12}},{"id":"a41e8f3d-c8e4-4cd1-8682-4fc14838e625","block_type":"box","text":"price that a Fund might reasonably expect to receive from the current sale of that asset or liability in an arm’s-length","page_number":140,"box":{"x":70,"y":203,"width":829,"height":12}},{"id":"8cce58e0-0241-4f1b-a7b4-8fecda2b7a12","block_type":"box","text":"transaction. The price generally may not be determined based on what a Fund might reasonably expect to receive for","page_number":140,"box":{"x":68,"y":218,"width":832,"height":12}},{"id":"67ece415-3c4e-4296-b896-1bce4964b2a4","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. While fair value determinations","page_number":140,"box":{"x":69,"y":234,"width":837,"height":11}},{"id":"9a593836-2dab-4779-a16a-fa701842c564","block_type":"box","text":"will be based upon all available factors that BlackRock deems relevant at the time of the determination, and may be","page_number":140,"box":{"x":68,"y":249,"width":829,"height":11}},{"id":"fc7c450d-422b-401c-ab81-0d6ffb024ea3","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":140,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"49430e98-594d-4613-900b-edd61e0af5ae","block_type":"box","text":"represents only a good faith approximation of the value of an asset or liability. The fair value of one or more assets or","page_number":140,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"a022aa89-7053-4b59-8e75-d06e80c98a2f","block_type":"box","text":"liabilities may not, in retrospect, be the price at which those assets or liabilities could have been sold during the","page_number":140,"box":{"x":70,"y":294,"width":800,"height":11}},{"id":"a9f52f89-9d9b-49d0-ba4d-836f48e0c88f","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":140,"box":{"x":70,"y":309,"width":779,"height":11}},{"id":"7cdfb5d3-a4f6-4ce3-b850-ddbb37bca51c","block_type":"box","text":"redemption of its shares at NAV, at a time when a holding or holdings are valued by the 2a-5 Committee at fair value,","page_number":140,"box":{"x":69,"y":324,"width":834,"height":12}},{"id":"9ef224e1-f314-43c9-af03-61b5f120d5d1","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":140,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"daed6201-4a48-437d-b5fc-1d3d34731401","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":140,"box":{"x":69,"y":355,"width":765,"height":11}},{"id":"81b41bee-3a7e-4b5c-961d-da1c5233447f","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its shor t term cash investments in","page_number":140,"box":{"x":101,"y":377,"width":784,"height":11}},{"id":"51228db3-bcd4-4ea2-a51c-9b79d6e3b6c6","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":140,"box":{"x":69,"y":392,"width":823,"height":12}},{"id":"ff295ad1-a713-45ca-aec0-d4b39532e794","block_type":"box","text":"such investments, a Fund, to the extent permitted by the Investment Company Act, may pay its share of expenses of","page_number":140,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"2de2398f-6567-4a4c-bfb8-5919be5d1dc3","block_type":"box","text":"a money market fund or other similarly-managed private fund in which it invests, which may result in a Fund bearing","page_number":140,"box":{"x":69,"y":423,"width":822,"height":11}},{"id":"e274d871-1089-4403-b76c-f98480b84361","block_type":"box","text":"some additional expenses.","page_number":140,"box":{"x":69,"y":438,"width":190,"height":11}},{"id":"7d8833fe-3b51-4395-8bd6-997fe53de629","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":140,"box":{"x":102,"y":460,"width":787,"height":12}},{"id":"88fca87f-2a92-4a5a-ad6a-b12bfbe5af1d","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. 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To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":140,"box":{"x":70,"y":521,"width":802,"height":11}},{"id":"b0041bfd-96cd-4dcb-af89-aa3608e373b5","block_type":"box","text":"BlackRock each have adopted a Code of Ethics in compliance with Section 17(j) of the Investment Company Act that","page_number":140,"box":{"x":70,"y":536,"width":828,"height":11}},{"id":"a33c958a-1b18-4e24-9ca6-f7d877381bdc","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":140,"box":{"x":69,"y":551,"width":825,"height":11}},{"id":"390c3240-8bfb-4b93-a7fe-6f547a2055c9","block_type":"box","text":"possession of information regarding the Fund’s por tfolio transactions. Each Code of Ethics is also available on the","page_number":140,"box":{"x":70,"y":566,"width":816,"height":11}},{"id":"43a6f022-1536-4094-916f-bcbaf496e166","block_type":"box","text":"EDGAR Database on the Commission’s Internet site at http://www.sec.gov, and copies may be obtained, after paying","page_number":140,"box":{"x":70,"y":581,"width":836,"height":12}},{"id":"841df531-2c84-4674-a0cd-09e6e49ae759","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":140,"box":{"x":69,"y":596,"width":352,"height":12}},{"id":"5c2f10a5-ae62-46e6-80be-ee3535963c0a","block_type":"box","text":"BlackRock will not purchase securities or other proper ty from, or sell securities or other proper ty to, a Fund,","page_number":140,"box":{"x":102,"y":619,"width":768,"height":11}},{"id":"56e7002a-d9a2-4385-8485-617c49fe8de8","block_type":"box","text":"except that the Fund may in accordance with rules or guidance adopted under the Investment Company Act engage in","page_number":140,"box":{"x":69,"y":634,"width":836,"height":12}},{"id":"af9db86f-e0ed-4066-afb2-cf9801fdd9f1","block_type":"box","text":"transactions with another Fund or accounts that are affiliated with the Fund as a result of common officers, directors,","page_number":140,"box":{"x":68,"y":649,"width":839,"height":11}},{"id":"d46dc111-d85a-4157-b487-9bf5f7aeb9d4","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":140,"box":{"x":69,"y":665,"width":824,"height":11}},{"id":"8dfc52d2-9c06-4112-b7fe-575a32d32ea8","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":140,"box":{"x":68,"y":680,"width":824,"height":11}},{"id":"d13c9efb-0d14-4bc9-baf9-49ad8d48d6ae","block_type":"box","text":"for the Fund to purchase and another client of BlackRock to sell, or the Fund to sell and another client of BlackRock","page_number":140,"box":{"x":68,"y":695,"width":826,"height":11}},{"id":"2cc36ef6-d8e4-49d6-af6c-58cce31f5db3","block_type":"box","text":"to purchase, the same security or instrument on the same day. From time to time, the activities of a Fund may be","page_number":140,"box":{"x":68,"y":710,"width":810,"height":11}},{"id":"09aaa889-5f78-4413-af12-e0c5077b3bc8","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":140,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"e0e75d6d-2cee-4a99-a9ba-f23cc4af8a3a","block_type":"box","text":"to comply with, limit the applicability of, or that otherwise relate to such requirements. A client not advised by","page_number":140,"box":{"x":68,"y":740,"width":782,"height":11}},{"id":"3e870b78-b46a-492d-86ae-67f10efef8d8","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":140,"box":{"x":70,"y":755,"width":807,"height":11}},{"id":"aa6c26ae-cc83-42a9-8618-e86c25036cdd","block_type":"box","text":"initiate or recommend cer tain types of transactions, or may otherwise restrict or limit its advice regarding cer tain","page_number":140,"box":{"x":70,"y":770,"width":804,"height":12}},{"id":"de496c2d-4f9e-4963-8806-4cbed61ff0f8","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":140,"box":{"x":69,"y":785,"width":799,"height":12}},{"id":"3385734d-ef5e-419c-a097-519833bdb2e7","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":140,"box":{"x":69,"y":801,"width":755,"height":11}},{"id":"102973cb-375d-4ff6-9c8a-888c2c02a865","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":140,"box":{"x":69,"y":816,"width":831,"height":11}},{"id":"a5ab2111-07c1-4110-9a1d-bbf47c8e99d6","block_type":"box","text":"of that company on behalf of a Fund, par ticularly where such services result in BlackRock obtaining material non","page_number":140,"box":{"x":69,"y":831,"width":806,"height":11}},{"id":"5af93352-433e-49a7-8caa-4d7a74f8e010","block_type":"box","text":"public information about the company (","page_number":140,"box":{"x":70,"y":846,"width":276,"height":11}},{"id":"a323d2a3-7ec7-4d9f-8818-b7a5853c9fd7","block_type":"box","text":"e.g.","page_number":140,"box":{"x":348,"y":847,"width":25,"height":10}},{"id":"7354053a-d758-451d-92b8-7158c654a81e","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":140,"box":{"x":376,"y":846,"width":499,"height":11}},{"id":"242c29ea-d44f-42fc-935b-8b4d22a881fc","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":140,"box":{"x":69,"y":861,"width":784,"height":11}},{"id":"90c86664-2e76-4b27-b0ae-68e5ced8abb9","block_type":"box","text":"BlackRock from effecting cer tain por tfolio transactions or taking other actions in respect of an investment on behalf","page_number":140,"box":{"x":70,"y":876,"width":827,"height":11}},{"id":"82955de4-04aa-4cdd-9034-2d22d8d5cbb1","block_type":"box","text":"of a Fund, including where BlackRock and/or clients advised by BlackRock already have an interest in such issuer or","page_number":140,"box":{"x":69,"y":891,"width":830,"height":12}},{"id":"2d33239c-dc52-443d-aaa4-2f8c15c1726e","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":140,"box":{"x":68,"y":906,"width":773,"height":11}},{"id":"149dd8cf-04dc-43f5-886e-f4390cf28096","block_type":"box","text":"II-95","page_number":140,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3de930c9-cbe5-44f7-b664-995fed1054c5","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"231aeff2-2857-4046-9ce5-37a65f8aa654","block_type":"box","text":"securities of which the Funds wish to purchase or sell. However, if permitted by applicable law, and where consistent","page_number":141,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"c941558e-f67d-494f-a58f-f5a2b3a2394a","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":141,"box":{"x":68,"y":60,"width":781,"height":11}},{"id":"4d5de219-516c-4176-a4dc-ff9d81b1a937","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":141,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"86c88364-3ce5-4447-9cf3-82941712c209","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":141,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"9040fbec-00fa-4dcc-aa65-1392a535d2ac","block_type":"box","text":"of the issuer.","page_number":141,"box":{"x":69,"y":105,"width":92,"height":9}},{"id":"af3b5efe-b3ed-462e-89dd-82a38eb326b4","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":141,"box":{"x":102,"y":128,"width":748,"height":11}},{"id":"6b1f9bfc-81a8-42ba-9031-8dc8f254aa94","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. 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Cer tain por tfolio management teams within BlackRock may","page_number":141,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"1c5e6c2d-10b3-441a-a9ef-a2a3b96fdee3","block_type":"box","text":"make decisions or take (or refrain from taking) actions with respect to clients they advise in a manner different than","page_number":141,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"d7a2575f-4214-488c-a4e4-ec4c5ddbf9d2","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ por tfolio management teams. The","page_number":141,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"3e261d9f-1ea7-4583-b2b0-bde5c36f7ef5","block_type":"box","text":"various por tfolio management teams may not share information with each other, including as a result of cer tain","page_number":141,"box":{"x":68,"y":218,"width":797,"height":12}},{"id":"e325d6d6-474a-483c-b9c4-1a459b752bdd","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":141,"box":{"x":70,"y":234,"width":667,"height":11}},{"id":"8795450a-c740-437a-bf74-53fdfe09af99","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":141,"box":{"x":102,"y":256,"width":794,"height":12}},{"id":"462777f2-94cb-4cd5-89a1-f9d658ded4a5","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":141,"box":{"x":69,"y":271,"width":791,"height":12}},{"id":"f3adb05e-e2c7-4c74-831d-b6fef9daae6d","block_type":"box","text":"por tfolios and voting proxies with respect to cer tain index equity por tfolios versus those responsible for managing","page_number":141,"box":{"x":70,"y":286,"width":812,"height":12}},{"id":"38a07267-e5c3-4a33-946f-74eb90c81c6d","block_type":"box","text":"por tfolios and voting proxies with respect to all other por tfolios. As a result of information barriers, cer tain units of","page_number":141,"box":{"x":70,"y":302,"width":818,"height":11}},{"id":"2b7b0490-12cc-4562-80ae-e7ee0c1e21a9","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":141,"box":{"x":70,"y":317,"width":830,"height":11}},{"id":"aa687f84-946b-4a60-8b77-02e1d9b2659b","block_type":"box","text":"senior personnel, in other units of BlackRock, and generally will not manage the Funds with the benefit of information","page_number":141,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"b799310e-0ae1-4845-98e2-499d8bed3e3d","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":141,"box":{"x":70,"y":347,"width":824,"height":11}},{"id":"3872f06a-c0b4-4aac-ab0d-4a2fce74d2e5","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":141,"box":{"x":68,"y":362,"width":472,"height":11}},{"id":"d752ad9c-b814-45be-a845-eab54ec7c5df","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":141,"box":{"x":102,"y":385,"width":744,"height":11}},{"id":"5dadaec7-5424-4754-b632-fc8d380dc554","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":141,"box":{"x":70,"y":400,"width":775,"height":11}},{"id":"e644d40e-e177-419b-8d0a-ac7f60b6af4f","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":141,"box":{"x":69,"y":415,"width":818,"height":11}},{"id":"21e40515-013a-47dc-8fbe-cb352de2c25d","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":141,"box":{"x":68,"y":430,"width":779,"height":11}},{"id":"ef7bc92d-67b9-401d-9478-888318445a9d","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":141,"box":{"x":69,"y":445,"width":771,"height":12}},{"id":"ddf71bc5-ff87-430d-8ac3-32e26a20160a","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":141,"box":{"x":68,"y":460,"width":812,"height":12}},{"id":"0c0addaa-0066-464f-a2b1-65d4ade44ba8","block_type":"box","text":"purchased or sold for a client in the absence of a change to an information barrier). Information barriers may not","page_number":141,"box":{"x":70,"y":475,"width":803,"height":12}},{"id":"33687b42-3f31-496d-b640-47fcb4443e23","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadver tent crossings of the barriers,","page_number":141,"box":{"x":69,"y":491,"width":813,"height":11}},{"id":"c628d3d2-5d4d-4332-b73c-efcbdeeefcb5","block_type":"box","text":"and actions by personnel on one side of a barrier may impact the potential actions of personnel on the other side of","page_number":141,"box":{"x":69,"y":506,"width":829,"height":11}},{"id":"74c39e72-8da6-4815-bd30-d8d6e37ac333","block_type":"box","text":"a barrier.","page_number":141,"box":{"x":69,"y":521,"width":62,"height":9}},{"id":"252e6e32-3187-4c09-9f65-d6adedc75bd5","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":141,"box":{"x":101,"y":543,"width":788,"height":12}},{"id":"8a9f10d2-0d55-49aa-88a2-50fdcf9b9908","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":141,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"90b2f035-a1a0-450d-a2b8-0ad282a12af9","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":141,"box":{"x":69,"y":574,"width":805,"height":11}},{"id":"2576101a-5b78-4ab7-8e9c-9337de7ec9d0","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":141,"box":{"x":69,"y":589,"width":840,"height":11}},{"id":"5d58c79c-ccd7-40d5-8d29-541f3bb4e2ab","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":141,"box":{"x":69,"y":604,"width":806,"height":11}},{"id":"7643d98c-a239-4974-8f82-8c5c858b8427","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":141,"box":{"x":70,"y":619,"width":818,"height":11}},{"id":"59b8b87a-c3c4-497b-8ecb-d358264fbeb7","block_type":"box","text":"that operate in cer tain industries (","page_number":141,"box":{"x":68,"y":634,"width":244,"height":11}},{"id":"cc7dc382-3f5a-4ddd-8e57-0120da19b812","block_type":"box","text":"e.g.","page_number":141,"box":{"x":314,"y":636,"width":25,"height":10}},{"id":"c4d3b668-c011-44ed-ac64-8c0caa99f032","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":141,"box":{"x":342,"y":634,"width":515,"height":12}},{"id":"12c1e02f-ea11-4958-bfda-f0298ca57b78","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":141,"box":{"x":69,"y":650,"width":523,"height":11}},{"id":"bb085221-235d-4269-9881-2f4bdb60f2d2","block_type":"box","text":"e.g.","page_number":141,"box":{"x":594,"y":651,"width":25,"height":10}},{"id":"118eb748-9033-48f7-b53e-986571485dad","block_type":"box","text":", with mechanisms such as poison pills","page_number":141,"box":{"x":621,"y":650,"width":280,"height":10}},{"id":"6709912f-c6ae-47c6-936a-ce6511273698","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in cer tain futures and derivatives, there may be","page_number":141,"box":{"x":70,"y":664,"width":816,"height":12}},{"id":"996d438e-d6b8-4b7d-b7e4-2bf02c3915a2","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":141,"box":{"x":70,"y":680,"width":825,"height":11}},{"id":"0a6fb032-2503-4722-8e1f-177892980621","block_type":"box","text":"not be exceeded without the grant of a license or other regulatory or corporate approval, order, consent, relief, waiver","page_number":141,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"aae306b3-4950-4788-95c2-e44af72526d8","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":141,"box":{"x":69,"y":710,"width":769,"height":11}},{"id":"847592ae-aedb-44ea-a419-4a6c0e6d7fd2","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":141,"box":{"x":69,"y":725,"width":775,"height":11}},{"id":"56f2f4de-4a10-4c49-86a4-fb9c68eb6095","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":141,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"67538105-1f57-4f1f-8625-9a13127098f7","block_type":"box","text":"seek to make indirect investments (","page_number":141,"box":{"x":69,"y":755,"width":255,"height":11}},{"id":"d893c46f-2f45-405b-956c-e3988263915a","block_type":"box","text":"e.g.","page_number":141,"box":{"x":326,"y":757,"width":24,"height":9}},{"id":"296f614d-0801-4c1a-85e6-272ddac00885","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":141,"box":{"x":353,"y":755,"width":514,"height":11}},{"id":"d12c7d1e-8ed2-4100-b11d-3ad1db155bb1","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":141,"box":{"x":69,"y":770,"width":817,"height":12}},{"id":"c43774d6-ff6d-4add-ae56-5003cda4da3f","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":141,"box":{"x":69,"y":786,"width":795,"height":11}},{"id":"abff62e3-d954-4f23-9194-fd87651646b0","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":141,"box":{"x":68,"y":801,"width":799,"height":11}},{"id":"40056f24-73ee-4bed-88bc-7c7de249f1be","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":141,"box":{"x":69,"y":816,"width":767,"height":11}},{"id":"9f82214c-aea3-4fd0-9e27-c11ebfc3c7c6","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":141,"box":{"x":69,"y":831,"width":829,"height":11}},{"id":"6812b499-08cd-4b31-a448-e327980ce671","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":141,"box":{"x":69,"y":846,"width":772,"height":11}},{"id":"cb400fa9-3796-45f4-963a-afe1a8f663f8","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":141,"box":{"x":102,"y":869,"width":783,"height":11}},{"id":"213f2fc5-71f3-4c8f-9d14-89cca09c2fd4","block_type":"box","text":"client or as a result of corporate actions by the issuer, the ability of BlackRock on behalf of clients to purchase or","page_number":141,"box":{"x":69,"y":884,"width":808,"height":11}},{"id":"017fc02e-fb87-485e-8817-6e9022008ae3","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":141,"box":{"x":69,"y":899,"width":837,"height":11}},{"id":"eee3c0a5-19f3-49ed-8e32-7f5420096b31","block_type":"box","text":"II-96","page_number":141,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"906a8fc4-680c-40d1-a479-cce7d98438fd","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1fa26d16-9c84-4b57-8ae1-c4cc6b5ae438","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":142,"box":{"x":70,"y":45,"width":818,"height":11}},{"id":"51b4c4b3-bd24-4f90-8300-f2a868d8f076","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":142,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"aebb5676-81d5-4f83-9f87-c6b30be16ec8","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":142,"box":{"x":69,"y":75,"width":806,"height":11}},{"id":"19a53170-4ff1-42f5-bbc4-9d4d8de41fcf","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":142,"box":{"x":70,"y":90,"width":839,"height":11}},{"id":"9b86d9d7-5af8-4a08-bd49-449a734e8697","block_type":"box","text":"closely as it would if it was not subject to an ownership limitation or restriction because the fund cannot acquire the","page_number":142,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"062b7cb8-eade-4096-815c-bc59e5956e4c","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":142,"box":{"x":69,"y":120,"width":807,"height":11}},{"id":"6ecf17bb-6680-4dfa-8292-af3117842b10","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":142,"box":{"x":69,"y":135,"width":830,"height":12}},{"id":"ed3b6ba0-5c9f-4221-b9be-cb9e38c03370","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":142,"box":{"x":69,"y":150,"width":765,"height":12}},{"id":"d079bb26-cf49-4173-87db-ab6e6408c7aa","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":142,"box":{"x":69,"y":166,"width":781,"height":11}},{"id":"da51a7fb-c8e1-4b50-8f9a-1dc8ce1f2804","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":142,"box":{"x":69,"y":181,"width":796,"height":11}},{"id":"757a2e59-333d-4c11-a941-7a47de747e58","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":142,"box":{"x":69,"y":196,"width":720,"height":11}},{"id":"ec60846c-b3ea-4ca1-9a86-d66afda0ccb6","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":142,"box":{"x":101,"y":219,"width":807,"height":11}},{"id":"39637035-ecc9-4fc2-8816-a7423d3bf5d3","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":142,"box":{"x":70,"y":234,"width":810,"height":11}},{"id":"3079c2f5-0d0d-4b72-bd7c-23a28363930b","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":142,"box":{"x":70,"y":249,"width":829,"height":11}},{"id":"65585ec0-6161-4816-8905-cc64c5585477","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":142,"box":{"x":69,"y":264,"width":824,"height":11}},{"id":"92865ecc-96b6-48e9-bace-730f1d3769d2","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":142,"box":{"x":68,"y":279,"width":841,"height":11}},{"id":"279792c3-5925-4c0a-9550-85dcf4a8a4d1","block_type":"box","text":"may accept if it believes the benefits outweigh the costs and may limit BlackRock from taking actions that it","page_number":142,"box":{"x":69,"y":294,"width":770,"height":11}},{"id":"527bfcd4-2a8a-461c-8cf8-f12ac2f0012a","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":142,"box":{"x":69,"y":309,"width":769,"height":11}},{"id":"e216f2a2-5afc-4718-8bee-9923e927e7b5","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":142,"box":{"x":70,"y":325,"width":794,"height":11}},{"id":"daa77ebb-0c94-4be2-a5a2-a4d958500c30","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":142,"box":{"x":69,"y":340,"width":757,"height":11}},{"id":"9196992e-f784-4c90-8547-7afa3150b6c7","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":142,"box":{"x":69,"y":355,"width":807,"height":11}},{"id":"5834b1d9-4c7c-43ae-af82-34436afa3fb9","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":142,"box":{"x":69,"y":370,"width":833,"height":11}},{"id":"12c1841b-7c41-4214-9119-05e209c6ba1c","block_type":"box","text":"respect to ETFs, remove such securities from the list of Deposit Securities to be delivered to the Fund in connection","page_number":142,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"e9f32ebf-07a2-48e3-a94b-31da67a921f7","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":142,"box":{"x":68,"y":400,"width":803,"height":11}},{"id":"5636b2bf-e0cf-4c85-a540-a7218c85b07d","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":142,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"d1e03ba1-de77-4a93-b458-4ca4d36121f3","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":142,"box":{"x":69,"y":430,"width":826,"height":11}},{"id":"7a814fed-7a17-42b2-b741-0b4cfffa6341","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":142,"box":{"x":69,"y":445,"width":834,"height":11}},{"id":"f475e30b-4817-44ff-997a-cbcf269191d5","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":142,"box":{"x":102,"y":468,"width":795,"height":11}},{"id":"01322184-299e-47f4-8982-42c9cae7f2bb","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadver tently breach a limit or violate the corporate or","page_number":142,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"71b887a8-f123-43c6-9062-796b8726a00b","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":142,"box":{"x":69,"y":498,"width":566,"height":11}},{"id":"29a4794d-46f4-4c6e-8d91-6d9b5c74b2eb","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":142,"box":{"x":102,"y":521,"width":798,"height":11}},{"id":"07a0e712-0aeb-4ebe-9f03-603d6fb47f35","block_type":"box","text":"regulatory authorities, and such repor ts may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":142,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"36257de4-6e6d-4e9c-89d6-3fa76d72ab35","block_type":"box","text":"strategy with respect to such security or asset.","page_number":142,"box":{"x":69,"y":551,"width":333,"height":11}},{"id":"459b797e-39f9-48f3-a3d5-ff33ade8c8f7","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":142,"box":{"x":102,"y":574,"width":785,"height":11}},{"id":"01a591d0-3917-4e9d-9ca7-fa28f00bfa51","block_type":"box","text":"license and use such indices as par t of their investment strategy. Index based funds that seek to track the","page_number":142,"box":{"x":70,"y":589,"width":760,"height":11}},{"id":"c2b6fec1-f2b3-4f89-a110-6da9c5bd6cfa","block_type":"box","text":"per formance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":142,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"08438379-5fb2-4a72-be3c-9a0f652ce617","block_type":"box","text":"providers, including BlackRock (to the extent permitted by applicable law), may be paid licensing fees for use of their","page_number":142,"box":{"x":70,"y":619,"width":830,"height":11}},{"id":"b765014e-4c44-4599-8b75-6ceb3e61982a","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":142,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"5430aa66-e29a-462a-925d-94942f085569","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third par ty index. BlackRock may","page_number":142,"box":{"x":68,"y":649,"width":829,"height":12}},{"id":"7e6538a3-f49a-4341-8078-9e22ab1f9220","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":142,"box":{"x":69,"y":664,"width":784,"height":12}},{"id":"82a34fc0-59cf-42cf-ac8c-86d9795dc60e","block_type":"box","text":"indices. BlackRock is not obligated to license its indices to a Fund and the Funds are under no obligation to use","page_number":142,"box":{"x":70,"y":680,"width":797,"height":11}},{"id":"178b8b62-1bda-4a74-8f9c-1a4694371d17","block_type":"box","text":"BlackRock indices. Any Fund that enters into a license for a BlackRock index cannot be assured that the terms of any","page_number":142,"box":{"x":70,"y":695,"width":837,"height":11}},{"id":"63f5db0c-9cca-46f0-95f8-5a6ae6cdbe8f","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":142,"box":{"x":70,"y":710,"width":746,"height":11}},{"id":"9b6daa6d-44eb-46ee-a7f9-9cf84fc3184f","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":142,"box":{"x":102,"y":733,"width":686,"height":11}},{"id":"d58482b3-dd0b-4879-a5bb-9e43f71b2dd1","block_type":"box","text":"e.g.","page_number":142,"box":{"x":790,"y":734,"width":25,"height":10}},{"id":"942bf45a-313c-46fa-bc9a-43d3f54624ed","block_type":"box","text":", custodians,","page_number":142,"box":{"x":817,"y":733,"width":90,"height":10}},{"id":"6992a2b9-ba98-4172-b225-62a8bf4e62c7","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":142,"box":{"x":69,"y":748,"width":756,"height":11}},{"id":"3fa02fd9-714c-4a81-944c-29ff90ba36a6","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":142,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"ef77d8c6-2f94-430d-9031-d2fa5b80ebc8","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":142,"box":{"x":69,"y":778,"width":772,"height":11}},{"id":"54de08ef-a24c-48e3-b681-ae67e9fe9a23","block_type":"box","text":"provider’s services are terminated with respect to a Fund. To the extent that BlackRock is responsible for paying","page_number":142,"box":{"x":70,"y":793,"width":800,"height":11}},{"id":"2ac19163-abc8-444e-bc0d-81db8bd6aae8","block_type":"box","text":"service providers out of its fees that it receives from the Funds, the benefits of lower fees, including any fee","page_number":142,"box":{"x":69,"y":808,"width":771,"height":11}},{"id":"e81da06e-0b46-498e-a1a8-295b365822a4","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in par t, to BlackRock, which could result","page_number":142,"box":{"x":69,"y":823,"width":839,"height":12}},{"id":"9071c396-03ab-4dd8-95ac-6f54eef2d3f8","block_type":"box","text":"in conflicts of interest relating to the use or termination of service providers to a Fund. In addition, conflicts of","page_number":142,"box":{"x":70,"y":838,"width":785,"height":12}},{"id":"fe20d6db-1a80-4c5e-9709-50c1b77b643e","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-par ty service providers to a Fund, or the","page_number":142,"box":{"x":70,"y":854,"width":786,"height":11}},{"id":"ab0fbbe6-aaaf-479b-b0ae-cdc31f65b7c7","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":142,"box":{"x":69,"y":869,"width":837,"height":11}},{"id":"0fc5695d-8cb0-4c46-acfa-48263644d376","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":142,"box":{"x":69,"y":884,"width":809,"height":11}},{"id":"1f2be362-6492-4a42-b759-f876192f2e45","block_type":"box","text":"II-97","page_number":142,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1e8632c8-1d4b-42b1-a45c-a25895d6de5c","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"777dc94c-a49d-45c2-a947-fc65da6b99b9","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":143,"box":{"x":102,"y":45,"width":788,"height":11}},{"id":"9715422a-bb8d-4a5f-9381-d882ae4b5658","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":143,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"ade8e372-633f-44e4-af37-bc86b98d432f","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":143,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"abb81759-a7c4-4645-bbed-69a629b9828d","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":143,"box":{"x":70,"y":90,"width":363,"height":9}},{"id":"595e0ce0-dc10-40df-853c-b292e5c13ab5","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":143,"box":{"x":102,"y":113,"width":757,"height":11}},{"id":"3690f9f9-4541-4673-b2a1-92170710d576","block_type":"box","text":"information systems used by Fund service providers. These systems are, or will be, used by a Fund service provider","page_number":143,"box":{"x":70,"y":128,"width":826,"height":11}},{"id":"1baf78ba-2b54-4314-9d29-8fb36ada2eab","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":143,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"c6a4aa93-e3dc-4e1e-bc4b-c8db1e3307eb","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":143,"box":{"x":69,"y":158,"width":782,"height":11}},{"id":"52f0d380-bd43-4c46-9fa3-95aab558c689","block_type":"box","text":"provider remunerates BlackRock for the use of the systems. A Fund service provider’s payments to BlackRock for the","page_number":143,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"5b22c6d6-fe4e-4a84-b55b-ea34e4c735c2","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":143,"box":{"x":69,"y":188,"width":465,"height":11}},{"id":"917ee912-407d-47bd-8904-b2e4d3166fec","block_type":"box","text":"BlackRock’s receipt of fees from a service provider in connection with the use of systems provided by BlackRock","page_number":143,"box":{"x":102,"y":211,"width":804,"height":11}},{"id":"7c5a3624-ee82-4973-adba-509e24667afd","block_type":"box","text":"may create an incentive for BlackRock to recommend that a Fund enter into or renew an arrangement with the service","page_number":143,"box":{"x":69,"y":226,"width":840,"height":11}},{"id":"d6523464-82e4-4361-9bc9-7a9a79955110","block_type":"box","text":"provider.","page_number":143,"box":{"x":70,"y":241,"width":58,"height":11}},{"id":"532edb93-61bf-45dc-84a5-6c89619989bf","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":143,"box":{"x":102,"y":264,"width":778,"height":11}},{"id":"f3bec9cd-5ac4-4542-8dd1-5f02d961ff31","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":143,"box":{"x":69,"y":279,"width":831,"height":11}},{"id":"78184089-b3a9-4f60-954c-238b5738bbe8","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":143,"box":{"x":68,"y":294,"width":485,"height":11}},{"id":"815792ac-e672-4886-b95d-a2e249faa096","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":143,"box":{"x":102,"y":317,"width":742,"height":11}},{"id":"3d24aa13-18e0-42e0-91f1-63430d1d2dab","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":143,"box":{"x":69,"y":332,"width":517,"height":11}},{"id":"01c2f3c6-a412-4aac-9d20-3c402a2a002e","block_type":"box","text":"PURCHASE OF SHARES","page_number":143,"box":{"x":395,"y":361,"width":188,"height":10}},{"id":"c3220ec3-85a4-42cc-83e6-98904ad05b64","block_type":"box","text":"Most BlackRock-advised open-end funds offer multiple classes of shares under a plan adopted under Rule 18f-3","page_number":143,"box":{"x":102,"y":384,"width":800,"height":11}},{"id":"a95b3515-7e33-4284-b8de-d50a1845872e","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":143,"box":{"x":69,"y":399,"width":771,"height":12}},{"id":"b7d8c851-c352-40d3-9de1-056d1dbac2f9","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":143,"box":{"x":69,"y":414,"width":822,"height":12}},{"id":"9b9f8d08-205b-40e1-ac9b-f14eff375870","block_type":"box","text":"generally not subject to an initial sales charge, and Investor C Shares are sold to investors choosing the deferred","page_number":143,"box":{"x":68,"y":429,"width":809,"height":12}},{"id":"f00c9c1f-772b-4e3f-86d9-8573ac51be71","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":143,"box":{"x":69,"y":445,"width":781,"height":11}},{"id":"61a268f9-1b8a-46dc-8712-434412001bcc","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":143,"box":{"x":68,"y":460,"width":833,"height":11}},{"id":"09aaa7f9-5249-4ce9-a2d8-83d7939c7ffa","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to cer tain eligible investors without a sales charge.","page_number":143,"box":{"x":68,"y":475,"width":833,"height":11}},{"id":"93c28b81-1225-49f8-a19c-2ba0ff3ebebf","block_type":"box","text":"Cer tain Funds offer Class R Shares, which are available only to cer tain employer-sponsored retirement plans and are","page_number":143,"box":{"x":69,"y":490,"width":835,"height":11}},{"id":"f3912a7e-8f16-4bb8-a130-dd60abf8b62e","block_type":"box","text":"sold without a sales charge. Cer tain Funds offer Class G Shares, which are available only to investors on eligible","page_number":143,"box":{"x":69,"y":505,"width":804,"height":11}},{"id":"f00cea05-26da-467d-8da7-2cc11c79a18b","block_type":"box","text":"platforms, which are platforms where clients invest in the Fund through a single omnibus account in the name of a","page_number":143,"box":{"x":70,"y":520,"width":816,"height":12}},{"id":"60f9fbff-1f29-4bcc-baf5-ffa3cf590a82","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":143,"box":{"x":68,"y":535,"width":835,"height":11}},{"id":"6f6b2cd4-80f7-4319-9bb1-1059145c14b7","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to cer tain eligible investors. Please see the","page_number":143,"box":{"x":69,"y":551,"width":834,"height":11}},{"id":"b0c436ca-cbc6-4e4a-ad61-85211a341c7a","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":143,"box":{"x":69,"y":566,"width":757,"height":11}},{"id":"07f04dcb-60cb-468b-8de8-1e707c47a347","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":143,"box":{"x":69,"y":581,"width":802,"height":11}},{"id":"7b4464e6-f4e0-4bea-9bb3-f6fd8a517467","block_type":"box","text":"The applicable offering price for purchase orders is based on the NAV of a Fund next determined after receipt of","page_number":143,"box":{"x":101,"y":603,"width":799,"height":12}},{"id":"68e32da9-6a0b-4a46-9008-f1310f252b9b","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":143,"box":{"x":68,"y":618,"width":798,"height":12}},{"id":"c732755e-316a-4ef0-b91d-0703e2de971a","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":143,"box":{"x":70,"y":634,"width":795,"height":11}},{"id":"3cc627fc-8f35-4db8-b140-728bfd45b970","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":143,"box":{"x":68,"y":649,"width":786,"height":11}},{"id":"169784f5-dbed-40c0-b3fd-ed339e80fe8b","block_type":"box","text":"offering price of each affiliated underlying fund is based on the NAV of such affiliated underlying fund next determined","page_number":143,"box":{"x":69,"y":664,"width":839,"height":11}},{"id":"4fae3e7e-0bca-4db0-a472-0cf328e45118","block_type":"box","text":"after a purchase order is received, or deemed to be received upon receipt by a Selling Dealer, by the BlackRock","page_number":143,"box":{"x":69,"y":679,"width":795,"height":11}},{"id":"8b4b3245-aa1f-4bd2-b39b-6a43a5ba301a","block_type":"box","text":"Target Date Funds that allocate a por tion of such purchase order to such affiliated underlying fund. As to purchase","page_number":143,"box":{"x":68,"y":694,"width":819,"height":11}},{"id":"910c5328-3184-4805-8421-cab61d74d277","block_type":"box","text":"orders received by Selling Dealers or BlackRock Target Date Funds prior to the close of business on the New York","page_number":143,"box":{"x":69,"y":709,"width":808,"height":11}},{"id":"7dd625c2-3edf-4fa5-af63-dac32e2cde6c","block_type":"box","text":"Stock Exchange (“NYSE”) (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the order is placed,","page_number":143,"box":{"x":69,"y":724,"width":803,"height":12}},{"id":"29c4ebdd-d518-4e33-9e31-f01e593e13c2","block_type":"box","text":"including orders received after the close of business on the previous day, the applicable offering price is based on","page_number":143,"box":{"x":70,"y":739,"width":812,"height":12}},{"id":"050c7e8f-a91f-4f95-afa2-5b399a651d02","block_type":"box","text":"the NAV determined as of the close of business on the NYSE on that day. If the purchase orders are not received by","page_number":143,"box":{"x":68,"y":755,"width":828,"height":11}},{"id":"f4622638-9349-4363-9b21-cae170778d2e","block_type":"box","text":"the Selling Dealer or a BlackRock Target Date Fund before the close of business on the NYSE, such orders are","page_number":143,"box":{"x":68,"y":770,"width":788,"height":11}},{"id":"f27e3349-3f69-4e12-a89b-44ee53cd70e7","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":143,"box":{"x":69,"y":785,"width":779,"height":11}},{"id":"260275dd-ba70-4769-82b6-b2a6f4a59ee4","block_type":"box","text":"payment on a timely basis. Generally, if payment is not received within the period described in the Prospectuses, the","page_number":143,"box":{"x":70,"y":800,"width":830,"height":11}},{"id":"32be83c9-4624-4c79-a0e7-34e6d861e662","block_type":"box","text":"order will be canceled, notice thereof will be given, and the broker and its customers will be responsible for any loss","page_number":143,"box":{"x":69,"y":815,"width":828,"height":11}},{"id":"e7fd236f-c3b8-4a44-b22d-037562c38d39","block_type":"box","text":"to the Fund or its shareholders. Orders of less than $500 may be mailed by a broker to the Transfer Agent.","page_number":143,"box":{"x":68,"y":829,"width":762,"height":12}},{"id":"708467b1-d4f2-48d7-a9d8-d25241547238","block_type":"box","text":"The minimum investment for the initial purchase of shares is set for th in the Prospectus for each Fund. The","page_number":143,"box":{"x":101,"y":853,"width":768,"height":11}},{"id":"c52fc000-e3c1-4507-9022-0fb4a9c08926","block_type":"box","text":"minimum initial investment for employees of a Fund, a Fund’s Manager, Sub-Advisers or BRIL or employees of their","page_number":143,"box":{"x":69,"y":868,"width":819,"height":11}},{"id":"199a1ab4-35ec-410b-a42a-d9274885ad7e","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":143,"box":{"x":69,"y":882,"width":769,"height":12}},{"id":"305ed326-1ca4-44fe-aef7-2bb168d7a192","block_type":"box","text":"investment is $25.","page_number":143,"box":{"x":70,"y":898,"width":132,"height":10}},{"id":"bd6f41e1-5971-4d9d-a7d0-a1ff846738d8","block_type":"box","text":"II-98","page_number":143,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8bdbb71d-6f7f-4008-8252-41fd8c82b285","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"50f8d920-9220-4755-90c3-114a66ca42d7","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":144,"box":{"x":102,"y":45,"width":802,"height":11}},{"id":"59b9563e-15a6-48e4-87a2-e8a2043625e4","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":144,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"c3327841-2e8f-4ca5-91d4-094eea96a44a","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":144,"box":{"x":70,"y":75,"width":806,"height":11}},{"id":"0c4d603c-f1e8-49ba-829c-dcd1a4041f1b","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":144,"box":{"x":70,"y":90,"width":751,"height":11}},{"id":"d30d961b-b9f8-4fe3-bd37-40ee0a7ad047","block_type":"box","text":"subsequent investment requirements and suspend and resume the sale of any share class of any Fund at any time.","page_number":144,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"1128ed19-e58a-4e96-aed8-a6dcb6632f5d","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":144,"box":{"x":102,"y":128,"width":768,"height":11}},{"id":"4813f9e2-d8d4-46a2-9034-b048c5c6f167","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":144,"box":{"x":68,"y":143,"width":807,"height":11}},{"id":"d2d806a0-959c-449a-854b-c9df073f9233","block_type":"box","text":"class of shares of the same Fund, provided that the exchanged shares are not subject to a contingent deferred sales","page_number":144,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"8cf8d116-b859-4ec1-b916-a87c4cfb966f","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":144,"box":{"x":69,"y":173,"width":814,"height":11}},{"id":"223a16d9-3de1-441c-b306-7ed4e661a906","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":144,"box":{"x":68,"y":188,"width":740,"height":11}},{"id":"29bd7af3-6e25-4806-b096-8ff9787e6cac","block_type":"box","text":"Each Fund or the Distributor may suspend the continuous offering of the Fund’s shares of any class at any time","page_number":144,"box":{"x":102,"y":211,"width":795,"height":11}},{"id":"0ea37205-f9a1-4ba8-92da-b4d754acf17e","block_type":"box","text":"in response to conditions in the securities markets or otherwise and may resume offering the shares from time to","page_number":144,"box":{"x":70,"y":226,"width":813,"height":11}},{"id":"75f22c12-6a4c-4464-98a3-2bfc95567a2e","block_type":"box","text":"time. Any order may be rejected by a Fund or the Distributor. Neither the Distributor, the securities dealers nor other","page_number":144,"box":{"x":68,"y":241,"width":827,"height":11}},{"id":"67ef185a-a962-4d50-8dc9-53809882570b","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":144,"box":{"x":68,"y":256,"width":750,"height":12}},{"id":"e1cf5f95-324f-4dc8-ad1b-4ba77a5eeacd","block_type":"box","text":"The term “purchase,” as used in the Prospectus and this SAI, refers to (i) a single purchase by an individual,","page_number":144,"box":{"x":101,"y":279,"width":776,"height":11}},{"id":"5ae0b983-5eb7-47d5-9a2a-95aab93ec5cd","block_type":"box","text":"(ii) concurrent purchases by an individual, his or her spouse and their children purchasing shares for his, her or their","page_number":144,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"d6549ce4-a658-4d80-b9b2-e51e3cc39f51","block_type":"box","text":"own account, and (iii) single purchases by a trustee or other fiduciary purchasing shares for a single trust estate or","page_number":144,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"f71a9770-f399-46c3-8645-7061465a50f8","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":144,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"964432a5-1fc9-4e93-a10c-3c30d401fcdd","block_type":"box","text":"purchases by any “company,” as that term is defined in the Investment Company Act, but does not include purchases","page_number":144,"box":{"x":70,"y":339,"width":839,"height":12}},{"id":"ec9e1f1f-a012-4f44-b60c-bc2da180ba7f","block_type":"box","text":"by (i) any company that has not been in existence for at least six months, (ii) a company that has no purpose other","page_number":144,"box":{"x":69,"y":355,"width":819,"height":11}},{"id":"ba405044-3016-4c3f-94c9-21cad00d0de9","block_type":"box","text":"than the purchase of shares of a Fund or shares of other registered investment companies at a discount, or (iii) any","page_number":144,"box":{"x":68,"y":370,"width":827,"height":11}},{"id":"56aada6e-a50d-4bf1-81f3-d020b1e1f8ca","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":144,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"3b008047-35a2-45c7-b99b-a57bea886daf","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":144,"box":{"x":70,"y":400,"width":788,"height":11}},{"id":"d8962e21-c26a-4878-bd5b-3f81c9c33d97","block_type":"box","text":"adviser.","page_number":144,"box":{"x":69,"y":415,"width":53,"height":9}},{"id":"092651c6-6634-4410-88e7-97d8e576c606","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":144,"box":{"x":101,"y":438,"width":795,"height":11}},{"id":"d4e9d85c-96e8-44ee-92f9-9577f194e1cd","block_type":"box","text":"and may not be distributed by a foreign financial intermediary. Under this policy, in order to accept new accounts or","page_number":144,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"e1144a59-bcaa-480e-892e-2013c7f35eab","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":144,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"482e6706-cbec-4675-8014-beec381f76f0","block_type":"box","text":"requires that (i) a shareholder that is a natural person be a U.S. citizen or resident alien, in each case residing within","page_number":144,"box":{"x":69,"y":483,"width":834,"height":11}},{"id":"55aa7b76-1841-4e14-aafd-663256a11fb0","block_type":"box","text":"the United States or a U.S. territory (including APO/FPO/DPO addresses), and have a valid U.S. taxpayer","page_number":144,"box":{"x":68,"y":498,"width":747,"height":11}},{"id":"ba289f66-d81f-4a64-a043-90da0193f952","block_type":"box","text":"identification number, and (ii) a financial intermediary or a shareholder that is an entity be domiciled in the United","page_number":144,"box":{"x":70,"y":513,"width":809,"height":11}},{"id":"139adc8a-3e53-4757-9411-3871b468696a","block_type":"box","text":"States and have a valid U.S. taxpayer identification number or be domiciled in a U.S. territory and have a valid U.S.","page_number":144,"box":{"x":69,"y":528,"width":819,"height":12}},{"id":"369f65a4-5bde-4eb9-a2a9-1e3ad650fc4d","block_type":"box","text":"taxpayer identification number or IRS Form W-8. Any existing account that is updated to reflect a non-U.S. address will","page_number":144,"box":{"x":68,"y":543,"width":840,"height":12}},{"id":"6d6b4cdf-cda3-4329-b371-d03efb153723","block_type":"box","text":"also be restricted from making additional investments.","page_number":144,"box":{"x":69,"y":559,"width":388,"height":11}},{"id":"2dfd059d-b1d7-49a5-9a21-79ccda11d747","block_type":"box","text":"In-Kind Purchases","page_number":144,"box":{"x":102,"y":582,"width":127,"height":8}},{"id":"2990cf7f-55af-4f7f-9ed1-e65ce1cb8f78","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":144,"box":{"x":230,"y":581,"width":649,"height":11}},{"id":"97ac5332-10af-49b8-b53a-110a874e2282","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":144,"box":{"x":69,"y":596,"width":779,"height":12}},{"id":"35f72ae6-52b6-4cb4-a921-8a24da9b722e","block_type":"box","text":"limitations of the Fund as described herein. In connection with an in-kind securities payment, the Fund may require,","page_number":144,"box":{"x":70,"y":612,"width":820,"height":11}},{"id":"5301860b-5a89-4ed8-b8ee-a400d99bbfb8","block_type":"box","text":"among other things, that the securities: (i) be valued on the day of purchase in accordance with the pricing methods","page_number":144,"box":{"x":69,"y":627,"width":827,"height":11}},{"id":"b8d973af-903a-47b8-ba7c-321360950a99","block_type":"box","text":"used by the Fund; (ii) be accompanied by satisfactory assurance that the Fund will have good and marketable title to","page_number":144,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"b0187930-8084-408b-9a11-a8049085e232","block_type":"box","text":"such securities; (iii) not be subject to any restrictions upon resale by the Fund; (iv) be in proper form for transfer to","page_number":144,"box":{"x":69,"y":657,"width":817,"height":11}},{"id":"a591c311-cd64-42eb-99be-9c31ff056c59","block_type":"box","text":"the Fund; and (v) be accompanied by adequate information concerning the basis and other tax matters relating to the","page_number":144,"box":{"x":68,"y":672,"width":837,"height":11}},{"id":"e2f66940-f7f1-4d9a-869e-4055ce31fe80","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":144,"box":{"x":69,"y":687,"width":835,"height":11}},{"id":"281df847-9f5c-4f63-a511-4aa95b86c940","block_type":"box","text":"of the Fund engaged in the in-kind purchase transaction and must be delivered to the Fund by the investor upon","page_number":144,"box":{"x":69,"y":702,"width":795,"height":12}},{"id":"7af83179-81be-490c-bd4a-ad86361ca08b","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":144,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"dfcd8cbc-4888-4cb2-90e6-353dae0ce09b","block_type":"box","text":"has settled.","page_number":144,"box":{"x":69,"y":733,"width":83,"height":9}},{"id":"9aab3631-ffa6-4c02-8d7b-8c9ccf200047","block_type":"box","text":"Institutional Shares","page_number":144,"box":{"x":69,"y":763,"width":142,"height":9}},{"id":"b3311d2e-6167-47e8-bf4b-4ebccfc4e7d3","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":144,"box":{"x":102,"y":786,"width":759,"height":11}},{"id":"5225d067-e34e-4bb0-a7c8-af2db1adc384","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":144,"box":{"x":70,"y":801,"width":756,"height":11}},{"id":"3098379d-c607-4fae-b408-76479e7de8d9","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":144,"box":{"x":70,"y":816,"width":775,"height":11}},{"id":"136e58a9-fbb5-422f-99be-35b18aadc2a0","block_type":"box","text":"Investor A, Investor A1, Investor C, Investor P, Class R or Service Shares. A Fund may in its discretion waive or modify","page_number":144,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"e3035df8-1da9-48d8-9869-4222ff4eb577","block_type":"box","text":"any minimum investment amount, may reject any order for any class of shares and may suspend and resume the","page_number":144,"box":{"x":69,"y":846,"width":807,"height":11}},{"id":"bded1127-b873-401c-bdd3-310eb0459a04","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":144,"box":{"x":69,"y":861,"width":276,"height":11}},{"id":"036a36ca-d3da-47ea-a3e1-123d5e548565","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":144,"box":{"x":102,"y":884,"width":259,"height":11}},{"id":"e193f675-1f8d-4993-a476-2db6f3a5bd72","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":144,"box":{"x":369,"y":884,"width":540,"height":11}},{"id":"ac1cf9fc-dc82-4c0e-bc04-4842acc68414","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":144,"box":{"x":69,"y":899,"width":826,"height":11}},{"id":"fd23b940-ff62-4124-be9b-9c4a16a8b7dd","block_type":"box","text":"II-99","page_number":144,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4bc7e0d2-a878-4716-b885-4cb284992958","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"398003c9-4d37-4749-9467-659b55126d56","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":145,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"2b4600e4-b77f-4f08-81d0-ab581d48cd58","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":145,"box":{"x":69,"y":60,"width":819,"height":11}},{"id":"5a62ef31-3001-48eb-9797-86b87785efd5","block_type":"box","text":"redemption of Fund shares. Each broker-dealer or agent is responsible for transmitting to its customers a schedule of","page_number":145,"box":{"x":69,"y":75,"width":840,"height":11}},{"id":"81876b23-a8bf-4e0b-a6bd-2e3d1b38b938","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":145,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"0a27cb9c-2ba7-45c5-a278-42ca64183c43","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":145,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"2487f058-1ebe-41bf-b508-fd8789420823","block_type":"box","text":"these fees and conditions.","page_number":145,"box":{"x":68,"y":120,"width":189,"height":9}},{"id":"0d6e282f-f4a4-490e-a127-5d8444773897","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":145,"box":{"x":102,"y":143,"width":805,"height":11}},{"id":"f0e2db5e-915e-4946-ac1e-a20bbbc0e136","block_type":"box","text":"4 p.m. (Eastern time) on the first business day following receipt of the order. Payment may also, in the discretion of","page_number":145,"box":{"x":69,"y":158,"width":825,"height":11}},{"id":"6151e212-77ea-47d5-af42-3a2813b7f0ec","block_type":"box","text":"cer tain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":145,"box":{"x":69,"y":173,"width":817,"height":11}},{"id":"ee7788a2-8410-4ef6-8791-bcd3e6db223d","block_type":"box","text":"purchase order is not received by the prescribed time, an investor may be liable for any resulting losses or expenses","page_number":145,"box":{"x":70,"y":188,"width":831,"height":12}},{"id":"c831afd2-4829-400e-9120-c54ffc9bcc63","block_type":"box","text":"incurred by the Fund.","page_number":145,"box":{"x":70,"y":204,"width":147,"height":11}},{"id":"fc3b833b-fbe2-45a8-9af9-e58381333a2d","block_type":"box","text":"Cer tain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":145,"box":{"x":102,"y":226,"width":774,"height":11}},{"id":"055cf257-02f7-46ca-ae4f-3caae64b4662","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":145,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"620dfae3-99e2-434a-b938-51d386e83b09","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":145,"box":{"x":70,"y":256,"width":773,"height":11}},{"id":"db80bf29-318e-4daf-8de0-b1230d4173ca","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":145,"box":{"x":70,"y":271,"width":762,"height":12}},{"id":"2e74e730-4277-4278-821e-69eae7297c64","block_type":"box","text":"investment of $2 million who may purchase shares of a Fund through a financial intermediary that has entered into","page_number":145,"box":{"x":70,"y":286,"width":821,"height":12}},{"id":"6200b291-13c7-46d7-92a4-7b774e0a6119","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":145,"box":{"x":69,"y":302,"width":819,"height":11}},{"id":"afec8bbc-b112-43b2-a3b0-f5ceae3b0200","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":145,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"8e501486-d841-41da-be65-f0d74f260b30","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":145,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"dcf9731e-9410-4fbc-9fc1-90b4158816a1","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":145,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"72b22a71-8386-41bc-91d7-07c77ced9f00","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":145,"box":{"x":69,"y":362,"width":815,"height":11}},{"id":"24744617-d46f-4e71-ad8f-274457faecdd","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":145,"box":{"x":69,"y":377,"width":789,"height":12}},{"id":"6e11d3fb-8ede-440b-8c27-9e41990df300","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":145,"box":{"x":70,"y":392,"width":772,"height":12}},{"id":"d567288d-756e-4dbd-9c90-d7f8434da091","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":145,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"96b047aa-bdff-4670-90ee-a79c21c78615","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":145,"box":{"x":68,"y":423,"width":783,"height":11}},{"id":"86d5464f-fc55-4611-bfcb-d2811d57b8e2","block_type":"box","text":"(i) charge such clients a fee for advisory, investment consulting, or similar services or (ii) have entered into an","page_number":145,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"bab980a4-a91a-497f-8a8b-ceeee25dbeb1","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":145,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"f74f04ba-099d-4126-b703-8aa806fa9cdc","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":145,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"c7729a27-4efe-405c-bf9b-f07f50dcb967","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":145,"box":{"x":69,"y":483,"width":751,"height":11}},{"id":"81c3cff7-b2ed-4861-a714-09804f1d5435","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":145,"box":{"x":69,"y":498,"width":817,"height":11}},{"id":"a1b60b23-8f8f-456f-a615-3c2518f9c13e","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":145,"box":{"x":69,"y":513,"width":773,"height":12}},{"id":"4acd4e49-5819-4d71-a2b6-58a0086698c0","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":145,"box":{"x":69,"y":528,"width":771,"height":12}},{"id":"1a2e790d-3047-4ec7-93ea-28a988313f55","block_type":"box","text":"minimum initial investment of $1,000; trust depar tment clients of Bank of America, N.A. and its affiliates for whom","page_number":145,"box":{"x":69,"y":543,"width":822,"height":11}},{"id":"79c12efe-e863-4f01-a8ce-eb5892df4709","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":145,"box":{"x":68,"y":559,"width":771,"height":11}},{"id":"3a0076e5-cb0f-4cf6-9a61-b5f9627fe8cf","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of cer tain BofA Corp.","page_number":145,"box":{"x":70,"y":573,"width":801,"height":12}},{"id":"b0b7453e-e519-47ba-a307-292ecb1e25e4","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":145,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"5c604361-9b3e-4422-b3ac-120fdb439c27","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":145,"box":{"x":102,"y":612,"width":280,"height":11}},{"id":"e9d3aef7-27fb-4e7a-8635-575ab07133d3","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":145,"box":{"x":389,"y":612,"width":496,"height":11}},{"id":"6a371cc1-56bd-4e69-a5ad-b0b1fff25618","block_type":"box","text":"Funds, BofA Corp. or their respective affiliates; and any trust, pension, profit-sharing or other benefit plan for such","page_number":145,"box":{"x":70,"y":627,"width":812,"height":11}},{"id":"85c53d0e-58a4-4121-906d-5db744cba10d","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":145,"box":{"x":70,"y":642,"width":828,"height":11}},{"id":"896c2c29-70fe-4ea3-8b84-41645105e37f","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by vir tue of the familiarity of these persons","page_number":145,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"4ee970d4-f74b-4bbf-b41b-42eb7f6e8835","block_type":"box","text":"with the Fund. Employees, directors, and board members of other funds wishing to purchase shares of a Fund must","page_number":145,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"25f666ec-5993-4cd4-8c2c-fd7de695948c","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":145,"box":{"x":69,"y":687,"width":279,"height":11}},{"id":"bf813479-f677-4304-9d9b-6803ff69069a","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":145,"box":{"x":69,"y":718,"width":382,"height":11}},{"id":"531ef6cc-4045-4ff9-abdb-510491df2e56","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":145,"box":{"x":102,"y":740,"width":770,"height":11}},{"id":"745b336e-f248-46c6-af58-1a00f82cb8ef","block_type":"box","text":"Shares are offered only (i) for purchase by cer tain employer-sponsored retirement plans and fee-based programs that","page_number":145,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"ca16f19b-e7f4-4b82-9fe6-b2639abed976","block_type":"box","text":"have been previously approved by cer tain Funds, and (ii) to cer tain investors who currently hold Investor A1 Shares","page_number":145,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"f2b1baf3-06ca-4e07-86ce-51c9082ae3ea","block_type":"box","text":"for dividend and capital gain reinvestment only. The Investor A1 initial sales charge does not apply to the transactions","page_number":145,"box":{"x":68,"y":785,"width":840,"height":12}},{"id":"0a9626e3-d30f-4a00-af42-f086ec4ba77c","block_type":"box","text":"described in (i) and (ii). For ease of reference, Investor A, Investor A1 and Investor P (discussed below) Shares are","page_number":145,"box":{"x":69,"y":801,"width":815,"height":11}},{"id":"ed90636f-0acd-4abb-a42c-01dda12631fd","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":145,"box":{"x":69,"y":816,"width":791,"height":11}},{"id":"90f551ff-f9f9-4df2-8da1-a817245dfde8","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":145,"box":{"x":70,"y":831,"width":727,"height":11}},{"id":"8cc02e2d-4cf5-4f52-a984-56b752fb9278","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":145,"box":{"x":102,"y":853,"width":770,"height":12}},{"id":"e13ff8a5-84fc-4353-b18e-e5b14dab1a37","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":145,"box":{"x":70,"y":869,"width":812,"height":11}},{"id":"54d6bd09-cdef-4845-af91-08214c37e1e9","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":145,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"e811eba9-e132-460e-a447-91909ce67faa","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":145,"box":{"x":69,"y":899,"width":826,"height":11}},{"id":"7a40dfa2-3893-4c1a-b9e6-d533bb715c7d","block_type":"box","text":"II-100","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f15974b4-92d3-4f0a-9a96-5e69a601b997","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3d810328-9075-48b1-8383-e347726d4ffd","block_type":"box","text":"for an extended period of time also may elect to purchase Investor A Shares, because over time the accumulated","page_number":146,"box":{"x":68,"y":45,"width":808,"height":11}},{"id":"1aeed1be-0b03-4e98-acf7-906c8546b3ad","block_type":"box","text":"ongoing service and distribution fees on CDSC shares may exceed the front-end load shares’ initial sales charge and","page_number":146,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"73b97709-ffd7-4eb0-a95a-6aaaa39c8eb6","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":146,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"cc411cd1-e1ff-41c4-b120-ba1969c33cd8","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":146,"box":{"x":70,"y":90,"width":789,"height":11}},{"id":"4f5697e0-3204-470a-94c1-a351ec607fd5","block_type":"box","text":"BlackRock front-end load and CDSC share holdings, will count toward a right of accumulation that may qualify the","page_number":146,"box":{"x":70,"y":105,"width":805,"height":11}},{"id":"35e53230-8cf4-4692-9a10-341515e0e425","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":146,"box":{"x":70,"y":120,"width":792,"height":12}},{"id":"9c4ab531-92f5-4839-b620-81b45c19e729","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":146,"box":{"x":69,"y":135,"width":826,"height":12}},{"id":"c54e0856-6bde-4261-bf79-a4647d6baeda","block_type":"box","text":"have lower total returns than the initial sales charge shares. The ongoing front-end load shares’ service fees will","page_number":146,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"4838cc10-3a6d-4ad7-8f80-cec90208d8f5","block_type":"box","text":"cause Investor A, Investor A1, Investor P and Service Shares to have a higher expense ratio, pay lower dividends and","page_number":146,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"59bbfee3-137b-4ac2-b9b5-b011d59e75e2","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":146,"box":{"x":69,"y":181,"width":358,"height":9}},{"id":"f0315b8c-5725-4d11-9abd-041eaa57a4de","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":146,"box":{"x":102,"y":203,"width":734,"height":12}},{"id":"d1d4373f-19f6-4d39-982c-a5a3514d606b","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":146,"box":{"x":70,"y":218,"width":785,"height":11}},{"id":"bccbf20b-540c-47f5-b228-3cd575261032","block_type":"box","text":"periods indicated.","page_number":146,"box":{"x":70,"y":234,"width":124,"height":11}},{"id":"5be3f01d-ae03-4321-a004-0df62255be41","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":146,"box":{"x":101,"y":256,"width":806,"height":11}},{"id":"9738cb33-82ca-44f3-82a5-9bd601b0b541","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":146,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"195b87cd-adfb-47aa-9484-c94f2ba0adf8","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":146,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"7e42d6de-dbc5-42d1-88c6-96fc873b22dd","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":146,"box":{"x":69,"y":302,"width":714,"height":11}},{"id":"6d0b47dc-5fc6-4c06-9fe3-c31db68705c7","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":146,"box":{"x":69,"y":332,"width":297,"height":11}},{"id":"f814e484-6bdc-4564-840c-242700e5758d","block_type":"box","text":"Cer tain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":146,"box":{"x":102,"y":355,"width":761,"height":11}},{"id":"386ddcd4-a7aa-41ae-b505-13f7e1c152ed","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":146,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"5c8d20de-3877-4c64-8504-3f10328f088a","block_type":"box","text":"entered into an agreement with the Distributor to offer such shares and are subject to an initial sales charge. The","page_number":146,"box":{"x":69,"y":385,"width":812,"height":11}},{"id":"8aa52282-7ac1-4077-b4f4-55c29e90472b","block_type":"box","text":"ongoing front-end load shares’ service fees will cause Investor P Shares to have a higher expense ratio, pay lower","page_number":146,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"b232404d-a35a-45be-996b-3509e2d741e8","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":146,"box":{"x":69,"y":415,"width":578,"height":9}},{"id":"99b653f4-2111-4541-9eeb-6b24d291f52e","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":146,"box":{"x":102,"y":438,"width":734,"height":11}},{"id":"5ca63291-2f94-4782-a682-c75180194221","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":146,"box":{"x":70,"y":453,"width":800,"height":11}},{"id":"b6350e9d-2a6e-469c-aae0-145e64620084","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":146,"box":{"x":101,"y":475,"width":806,"height":12}},{"id":"1642ca53-c7db-47cd-a3d2-71b6b9313104","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":146,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"8927ebd9-479e-477e-be7d-e2a6c84f975e","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":146,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"26b780c2-2719-4f2e-8266-978ec339c43b","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":146,"box":{"x":69,"y":521,"width":714,"height":11}},{"id":"bd9b51be-baa2-4350-af39-2b4596e482be","block_type":"box","text":"Reduced Initial Sales Charges","page_number":146,"box":{"x":69,"y":551,"width":219,"height":11}},{"id":"a5eee446-cdb9-4e29-81c0-755e48df9261","block_type":"box","text":"Cer tain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":146,"box":{"x":102,"y":574,"width":782,"height":11}},{"id":"720a9c18-35f1-423d-960a-0c1920302e06","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":146,"box":{"x":69,"y":589,"width":827,"height":11}},{"id":"36e9b24a-ac87-4bc1-bf43-d8ccc07e8835","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":146,"box":{"x":68,"y":604,"width":809,"height":11}},{"id":"2a9cbdf7-d726-4c7f-a0f2-8c6adfeb9408","block_type":"box","text":"exchange shares of a Fund from one class of shares to another class of shares of the same Fund provided that the","page_number":146,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"9130f3b7-68fa-4ee1-9c9d-fc127b34a3b9","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":146,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"24c28903-4b48-4868-91a8-5fac7f311e6d","block_type":"box","text":"requirements of the new share class. Cer tain sales load reductions and waivers may be available to customers of","page_number":146,"box":{"x":69,"y":649,"width":813,"height":12}},{"id":"390c177e-1746-4cb6-aff3-2c4049168c70","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":146,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"725e9784-e67b-4ff5-9855-408dc52aa797","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":146,"box":{"x":70,"y":680,"width":603,"height":11}},{"id":"486e0098-4692-476e-b0a7-f84606e12b67","block_type":"box","text":"Reinvested Dividends.","page_number":146,"box":{"x":102,"y":703,"width":156,"height":8}},{"id":"4811e63f-df00-4fbd-9aec-92f90e4378d2","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":146,"box":{"x":265,"y":702,"width":566,"height":12}},{"id":"66bd8adc-8ead-41fb-a464-5735bb78f22c","block_type":"box","text":"reinvestment of dividends.","page_number":146,"box":{"x":69,"y":717,"width":186,"height":9}},{"id":"c42dd50d-fd46-46a4-8516-c21427b3c101","block_type":"box","text":"Right of Accumulation.","page_number":146,"box":{"x":102,"y":740,"width":158,"height":11}},{"id":"3aee5120-d3f6-4352-aa36-5a8f0d6e4cd3","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":146,"box":{"x":267,"y":740,"width":574,"height":11}},{"id":"b593c3ce-e2b7-47e5-9188-7aa07df96e84","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":146,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"43d1eb8d-0938-45b4-a8bb-08e981abf986","block_type":"box","text":"a reduced front-end sales charge: (i) the current value of an investor’s existing Investor A, Investor A1, Investor C,","page_number":146,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"8263980a-4d54-400c-bf93-f201eb99cca1","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares in most BlackRock Funds, (ii) the current value of an investor’s","page_number":146,"box":{"x":70,"y":785,"width":825,"height":11}},{"id":"2dcc91bc-7d78-48f8-8377-20a6161120c2","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":146,"box":{"x":69,"y":801,"width":780,"height":11}},{"id":"055ca87a-d9c0-46c0-89c2-ae11425cc756","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":146,"box":{"x":70,"y":816,"width":828,"height":11}},{"id":"3ac4e5fd-8eeb-4a2b-acc2-9566427f46d5","block_type":"box","text":"CollegeAdvantage 529 Program by the investor or by or on behalf of the investor’s spouse and children. Financial","page_number":146,"box":{"x":69,"y":831,"width":804,"height":11}},{"id":"64ac4126-d033-4add-9fd2-9dbcaf4f8ac1","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":146,"box":{"x":70,"y":846,"width":794,"height":11}},{"id":"bc9c6e75-ed7e-4d47-8823-2ecbe2837141","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":146,"box":{"x":70,"y":861,"width":814,"height":11}},{"id":"99203ef9-7e93-4e0a-84e1-29e320554720","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must aler t BlackRock to the existence of","page_number":146,"box":{"x":70,"y":876,"width":828,"height":11}},{"id":"8b85b9af-e802-423a-bb15-9b7507b76d8a","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":146,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"207b924a-e093-44dd-855e-ec38620c6e82","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":146,"box":{"x":70,"y":906,"width":776,"height":12}},{"id":"a7d853b3-1262-49aa-9ed7-9182aefe7d02","block_type":"box","text":"II-101","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"97cd74b5-363e-4854-99ce-8a1420019aaf","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bfa8ff4b-9f43-4f21-8984-a998a148df7f","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Shor t Obligations Fund generally are not subject to a sales","page_number":147,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"c80246f2-67a5-4050-a464-2b02bb219d90","block_type":"box","text":"charge, an investor’s existing Investor A, Investor A1, Investor C, Investor P, Institutional, Class K and Premier Shares","page_number":147,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"df5ea160-7c18-4b8a-9a6c-c0dd1d2e5258","block_type":"box","text":"in the Index Funds and BlackRock Shor t Obligations Fund may be combined with the amount of an investor’s current","page_number":147,"box":{"x":70,"y":75,"width":829,"height":11}},{"id":"fe223bdf-62e2-4446-b466-a8ea29a67da9","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":147,"box":{"x":70,"y":90,"width":774,"height":11}},{"id":"36d3cc88-f344-40bc-a8a1-aa37e921992e","block_type":"box","text":"Letter of Intent.","page_number":147,"box":{"x":102,"y":113,"width":109,"height":9}},{"id":"85e06ed2-6fbf-4c44-a017-1b2e9b814f33","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":147,"box":{"x":217,"y":113,"width":681,"height":11}},{"id":"879c4c6d-edd3-4818-8b11-f04ef7188987","block_type":"box","text":"Intent” stating the investor’s intention to make one or more of the following investments within the next 13 months","page_number":147,"box":{"x":70,"y":128,"width":820,"height":11}},{"id":"3930b56c-94ea-4a9c-852e-34b38837d5b0","block_type":"box","text":"which would, if bought all at once, qualify the investor for a reduced sales charge: (i) buy a specified amount of","page_number":147,"box":{"x":68,"y":143,"width":792,"height":11}},{"id":"b2bea5ca-6407-4e2b-a822-612eae3d0832","block_type":"box","text":"Investor A, Investor C, Investor P, Institutional, Class K and/or Premier Shares, (ii) make an investment in one or","page_number":147,"box":{"x":70,"y":158,"width":802,"height":11}},{"id":"17cfd821-232c-409b-839c-6d975982e7bd","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":147,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"64d6e6f8-f8b6-4360-af85-5d90ee146ad9","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":147,"box":{"x":69,"y":188,"width":800,"height":12}},{"id":"2dc4e1ac-c64a-457c-b658-90309ee46ea2","block_type":"box","text":"initial purchase requirement. The 13-month Letter of Intent period commences on the day that the Letter of Intent is","page_number":147,"box":{"x":70,"y":203,"width":826,"height":12}},{"id":"e10cd73a-2fd6-45e3-83f8-91bbbeff9e76","block_type":"box","text":"received by the Fund. The market value of current holdings in the BlackRock Funds (including Investor A, Investor C,","page_number":147,"box":{"x":69,"y":218,"width":822,"height":12}},{"id":"953bc770-5e17-4ba1-9420-959a35731c68","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":147,"box":{"x":70,"y":234,"width":764,"height":11}},{"id":"4dcf3b74-4ee6-49b9-9d7a-ad72fc417886","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":147,"box":{"x":70,"y":249,"width":800,"height":11}},{"id":"f13f54bc-f3e3-4f74-bf6f-60b55c3ec3c3","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":147,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"10c98372-7e5c-42d7-af5c-a44c969dc306","block_type":"box","text":"the Fund of (i) any current holdings in the BlackRock Funds, Eligible Unlisted BlackRock Closed-End Funds and/or the","page_number":147,"box":{"x":68,"y":279,"width":835,"height":11}},{"id":"a3e9b5cf-31dd-4a1f-a418-9701f9583d53","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":147,"box":{"x":70,"y":294,"width":811,"height":11}},{"id":"b2ff316d-c65f-4ff8-a1f7-c2478dffdb3d","block_type":"box","text":"subsequent purchases that should be counted towards the Letter of Intent. During the term of the Letter of Intent,","page_number":147,"box":{"x":69,"y":309,"width":814,"height":11}},{"id":"9b911e29-d9f4-458c-bd3d-276c5418e3aa","block_type":"box","text":"the Fund will hold Investor A Shares and/or Investor P Shares, as applicable, representing up to 5% of the indicated","page_number":147,"box":{"x":68,"y":324,"width":827,"height":12}},{"id":"ea7c4d1a-c2bc-4620-aed3-fbf52ba6d78e","block_type":"box","text":"amount in an escrow account for payment of a higher sales load if the full amount indicated in the Letter of Intent is","page_number":147,"box":{"x":69,"y":339,"width":827,"height":12}},{"id":"ebf4339c-37cd-4b61-9514-0dc7ff09d2f4","block_type":"box","text":"not purchased. If the full amount indicated is not purchased within the 13-month period, and the investor does not","page_number":147,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"b5f9bac1-af76-48d9-9a59-5e93c889a2b8","block_type":"box","text":"pay the higher sales load within 20 days, the Fund will redeem enough of the Investor A Shares and/or Investor P","page_number":147,"box":{"x":70,"y":370,"width":807,"height":11}},{"id":"7a685b07-ebff-4f12-a093-33c3d0f56f91","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":147,"box":{"x":69,"y":385,"width":423,"height":11}},{"id":"b1dc23de-b974-408a-a4a9-540231b13bec","block_type":"box","text":"Placement Fees.","page_number":147,"box":{"x":102,"y":408,"width":116,"height":8}},{"id":"61b81505-4b46-4c33-be6b-eacf535bdfe7","block_type":"box","text":"BlackRock may pay placement fees to dealers on purchases of Investor A and Investor P Shares of all Funds,","page_number":147,"box":{"x":102,"y":430,"width":777,"height":11}},{"id":"75d7533d-16f0-4386-ae5f-ba6fe01ba080","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":147,"box":{"x":68,"y":445,"width":704,"height":12}},{"id":"392b0f6e-efc9-4260-98d4-54e8d735cb91","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":147,"box":{"x":102,"y":468,"width":741,"height":11}},{"id":"647c5946-4581-4bb5-b3ed-39a383decfdb","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":495,"width":361,"height":10}},{"id":"c08afc86-8896-409c-9bf0-f34b380752cc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":147,"box":{"x":535,"y":496,"width":288,"height":9}},{"id":"f4281e4d-10e6-40f2-bd3e-829c44c40808","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":510,"width":361,"height":11}},{"id":"89669f2b-cbf0-4d2b-9c47-3def77f76119","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":147,"box":{"x":535,"y":511,"width":288,"height":9}},{"id":"f108a139-a6f4-46ef-bfcc-c39c01a5cc6d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":525,"width":345,"height":11}},{"id":"dce147f7-5640-4f91-8b86-2442a666bc90","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":147,"box":{"x":518,"y":526,"width":305,"height":9}},{"id":"8f804711-2cc8-45fd-adb5-9e3a71cf25bd","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":147,"box":{"x":101,"y":550,"width":776,"height":11}},{"id":"b7b01c0a-c112-4d84-b971-38f6226144cf","block_type":"box","text":"Por tfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares","page_number":147,"box":{"x":69,"y":565,"width":774,"height":11}},{"id":"247f8d80-3821-4aa9-abd3-244611f96f6c","block_type":"box","text":"purchased prior to July 1, 2020) of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV","page_number":147,"box":{"x":70,"y":580,"width":824,"height":11}},{"id":"8f3c5b76-2ae4-48ff-9ec1-1a7c07c5eebd","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":147,"box":{"x":69,"y":595,"width":695,"height":11}},{"id":"0f00ed98-3d9c-46e8-a241-2d961b9d05f9","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":622,"width":410,"height":11}},{"id":"b41952d5-bbb1-4ba9-bd5e-b4c3d269e5e2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":147,"box":{"x":583,"y":623,"width":240,"height":9}},{"id":"c043d790-2e13-43e3-a3e1-315994142694","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":637,"width":361,"height":11}},{"id":"d8cd699e-2948-4642-93a5-8ae2cbbb1303","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":147,"box":{"x":535,"y":638,"width":288,"height":9}},{"id":"3629b8b3-2879-4197-9989-0c2507832751","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":652,"width":345,"height":11}},{"id":"483072e3-3003-41f8-a271-a7937cd40e74","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":147,"box":{"x":518,"y":653,"width":305,"height":9}},{"id":"a5d01cc4-1b08-4188-bda2-6d4607720a0e","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":147,"box":{"x":101,"y":677,"width":806,"height":11}},{"id":"a4f86572-9d9f-473f-953b-ad87cc47d387","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":147,"box":{"x":68,"y":692,"width":821,"height":11}},{"id":"d5168dfd-fb2b-4799-89c1-d48a7dca1f7f","block_type":"box","text":"SM","page_number":147,"box":{"x":890,"y":693,"width":11,"height":4}},{"id":"d1bcfa39-0274-4bd4-a423-c5bc9a729c32","block_type":"box","text":",","page_number":147,"box":{"x":903,"y":700,"width":2,"height":3}},{"id":"7324810b-75ae-42df-95aa-70249a2209d1","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":147,"box":{"x":70,"y":707,"width":816,"height":12}},{"id":"1feaac2a-6ccc-41e0-ac6c-8f964a2aa2fd","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":147,"box":{"x":70,"y":722,"width":835,"height":12}},{"id":"9e27cec0-44a7-4a43-b6ec-2c092e59540d","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":147,"box":{"x":70,"y":738,"width":520,"height":11}},{"id":"c29a788e-94e7-46d7-a374-fe5534c84f5e","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":765,"width":361,"height":10}},{"id":"a0485c5e-3c07-47a0-9048-68025e3fd7c1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":147,"box":{"x":535,"y":765,"width":288,"height":9}},{"id":"51356382-54c6-4471-8b16-62f8dc4bdd6c","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":780,"width":361,"height":10}},{"id":"8ae2f8a3-9e3e-4f65-b091-965fe4b91eea","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":147,"box":{"x":535,"y":780,"width":288,"height":9}},{"id":"501479b7-9dfa-45b7-985c-8fe57666941a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":795,"width":345,"height":10}},{"id":"0a7f839d-7cc7-484f-a5c3-79273003fa6b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":147,"box":{"x":518,"y":796,"width":305,"height":8}},{"id":"195c1473-ced1-4c72-b08f-2f40b043127c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":147,"box":{"x":101,"y":819,"width":743,"height":12}},{"id":"89a58b63-cd2f-4383-bc32-1cbc2c9b53b6","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":147,"box":{"x":70,"y":835,"width":674,"height":11}},{"id":"98c8c8b4-e6e9-4f3e-8cc2-6d131626f7b8","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":862,"width":361,"height":10}},{"id":"48fa62f2-1678-48b4-a4f9-5c9077a663ac","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":147,"box":{"x":535,"y":862,"width":288,"height":9}},{"id":"e01a3775-4ace-4a49-84b1-3bfc8205b489","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":877,"width":361,"height":10}},{"id":"c6e13724-da84-47c2-a89e-cf432f0fff12","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":147,"box":{"x":535,"y":878,"width":288,"height":8}},{"id":"156ee63e-ede5-4571-80e5-66c8c2248754","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":892,"width":345,"height":10}},{"id":"b1312c84-3ca9-4b52-bc19-ae13bf847622","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":147,"box":{"x":518,"y":893,"width":305,"height":9}},{"id":"c94f657c-5b35-48b2-a123-28daad4c10d7","block_type":"box","text":"II-102","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6ddd2441-795d-4d13-8b8c-5414b87a93fe","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"809a10a6-48a7-40a3-81cd-5f67f1cc0ffb","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":148,"box":{"x":101,"y":45,"width":808,"height":11}},{"id":"d36ba7a0-12ed-43ae-97a7-43a7610ce959","block_type":"box","text":"may be up to the following amounts:","page_number":148,"box":{"x":69,"y":60,"width":257,"height":11}},{"id":"b439e4bc-9f3e-4da3-b227-ecb076a6800c","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":87,"width":410,"height":11}},{"id":"b78cb621-ac73-4b65-bdd7-5fbb1d950d61","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":583,"y":88,"width":240,"height":8}},{"id":"62cfe8ee-81df-4fbd-8bdf-3d8da8bcb0ed","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":102,"width":361,"height":10}},{"id":"85bfe178-2d4b-4c98-bcc9-a61fddfc71ea","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":535,"y":103,"width":288,"height":9}},{"id":"d5f88284-e03b-4590-ae97-0fd8d9708199","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":117,"width":345,"height":11}},{"id":"d1bf7a8f-9c70-4541-a1e4-fcc5ed8ddcff","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":148,"box":{"x":518,"y":118,"width":305,"height":9}},{"id":"4b945958-651d-4d9d-82f3-b49a46de2e1c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":148,"box":{"x":101,"y":142,"width":768,"height":11}},{"id":"e37d56e1-9e80-4a8f-bd33-15f38be965ee","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":148,"box":{"x":70,"y":157,"width":371,"height":11}},{"id":"e9ffca96-39a1-4fcf-921a-ea5a3e8fbcb6","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":184,"width":361,"height":10}},{"id":"aed9fdae-963d-4d02-83fd-eeadf48328b0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":148,"box":{"x":535,"y":185,"width":288,"height":8}},{"id":"40102644-07c5-4ad5-88c9-a44634168779","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":199,"width":361,"height":10}},{"id":"1c67a4d9-5df6-4ccd-8511-f118adf0f791","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":148,"box":{"x":535,"y":200,"width":288,"height":9}},{"id":"fd5447a6-51d2-4fd0-9808-c54ed6d15d1f","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":214,"width":345,"height":11}},{"id":"623accca-4101-409e-99ac-1043ead1620e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":148,"box":{"x":518,"y":215,"width":305,"height":9}},{"id":"2c4939f9-7034-44dd-a6ba-9c58c563c09c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":148,"box":{"x":101,"y":239,"width":778,"height":11}},{"id":"b694a095-ea40-41b9-8847-8de360e78aff","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":148,"box":{"x":69,"y":254,"width":830,"height":11}},{"id":"c51dfd0f-0f30-46dc-8ee4-0e790600722e","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":148,"box":{"x":70,"y":269,"width":371,"height":11}},{"id":"06841e87-e61d-4053-886d-ac48f7ebe0e6","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":296,"width":410,"height":11}},{"id":"41ee692d-d65a-4f2b-96b5-7485aab44721","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":148,"box":{"x":583,"y":297,"width":240,"height":9}},{"id":"c19e03fb-dc55-40e5-9b13-6e878019716b","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":311,"width":361,"height":11}},{"id":"b6f78c5e-9e9a-4019-ade9-bf4c3578f20a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":535,"y":312,"width":288,"height":9}},{"id":"efc22816-6770-404d-80db-5c056e60d358","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":326,"width":345,"height":11}},{"id":"1a9b9a6d-45e7-46e0-9d28-50ee98eb42c9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":518,"y":327,"width":305,"height":9}},{"id":"856b04e4-c351-4b8d-8dc7-3137e24f2fdb","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":148,"box":{"x":101,"y":351,"width":779,"height":11}},{"id":"67fcf24d-f238-439b-85d9-8bd5e8df7c11","block_type":"box","text":"Inc. (for shares purchased prior to March 18, 2019), the placement fees may be up to the following amounts:","page_number":148,"box":{"x":70,"y":366,"width":780,"height":11}},{"id":"c1b43414-0c00-48d7-9034-c4508362ce7f","block_type":"box","text":"$250,000 and above . . . .","page_number":148,"box":{"x":167,"y":393,"width":182,"height":11}},{"id":"82dc2efc-5dce-493a-8c62-a411fa9b8136","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":355,"y":394,"width":468,"height":9}},{"id":"5ac443b3-cbd4-467d-b8d8-9affa145eb21","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":148,"box":{"x":101,"y":418,"width":779,"height":11}},{"id":"c8d804b3-6436-448d-8584-173f7150b2c3","block_type":"box","text":"Inc. (for shares purchased on or after March 18, 2019 and prior to July 1, 2020), the placement fees may be up to","page_number":148,"box":{"x":70,"y":433,"width":819,"height":11}},{"id":"e9b622e3-ae4b-4472-86ad-cce2ac247a02","block_type":"box","text":"the following amounts:","page_number":148,"box":{"x":68,"y":448,"width":161,"height":11}},{"id":"81e549a4-aaac-4544-810b-cc8ddd147ee6","block_type":"box","text":"$100,000 and above . . . .","page_number":148,"box":{"x":167,"y":475,"width":182,"height":11}},{"id":"fb865ad6-1313-4ff4-9e12-8cdec32fd49f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":355,"y":476,"width":468,"height":8}},{"id":"32a33775-db9d-46c8-9f6e-4ff6ad0e885f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":148,"box":{"x":101,"y":499,"width":779,"height":11}},{"id":"fa2bdd85-035f-4fa4-9a59-bd176574882c","block_type":"box","text":"Inc. (for shares purchased on or after July 1, 2020), the placement fees may be up to the following amounts:","page_number":148,"box":{"x":70,"y":515,"width":775,"height":11}},{"id":"251e6183-74ba-487b-9357-b7a475e49d52","block_type":"box","text":"$250,000 and above . . . .","page_number":148,"box":{"x":167,"y":542,"width":182,"height":11}},{"id":"9477af62-c533-4012-b165-67a297764882","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":355,"y":542,"width":468,"height":9}},{"id":"5a2de034-d27c-4a38-ab7c-178e24ee2ba0","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":148,"box":{"x":101,"y":566,"width":788,"height":11}},{"id":"f6d0a25c-ad3f-4608-8743-ccdbff738b8a","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":148,"box":{"x":69,"y":581,"width":792,"height":11}},{"id":"48d888f8-f7cc-4ca2-8f90-e80835bac6f9","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":148,"box":{"x":70,"y":597,"width":787,"height":11}},{"id":"0b708626-bdf4-441f-a24b-7a15711e70cb","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":148,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"86bcf850-dfee-4441-a359-51d7c13e0882","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":148,"box":{"x":70,"y":627,"width":729,"height":11}},{"id":"94ea7976-e9be-4182-8a0a-998ea028d373","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":654,"width":410,"height":11}},{"id":"5d5d3912-5bb7-49af-8f5a-4ee5fd7382c7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":148,"box":{"x":583,"y":655,"width":240,"height":8}},{"id":"5d93107e-c97f-4387-9538-6ac0f69eaf9a","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":669,"width":361,"height":10}},{"id":"186b50cb-df4c-4951-a459-75860a0beae5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":535,"y":670,"width":288,"height":9}},{"id":"dda77c42-59d7-4276-b99b-8b202db21898","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":684,"width":345,"height":10}},{"id":"e8f677f5-8977-48db-972c-ac993f3cc62c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":518,"y":685,"width":305,"height":9}},{"id":"d445a0e2-7b60-4efb-b35a-e9f8bbdae2e8","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Por tfolio (for shares purchased on or after","page_number":148,"box":{"x":101,"y":709,"width":801,"height":11}},{"id":"b0b91cdc-a589-489d-a4d2-3eedec0a2391","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares purchased on or after July 1, 2020) of","page_number":148,"box":{"x":69,"y":724,"width":769,"height":11}},{"id":"9e145a74-51a0-4730-b2ec-8fb26f16e3ce","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":148,"box":{"x":70,"y":739,"width":818,"height":10}},{"id":"faa129be-c322-4d41-8d7b-08007f1919a5","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":148,"box":{"x":68,"y":754,"width":401,"height":11}},{"id":"fedd991e-b9b9-4282-9b94-010de027a457","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":781,"width":410,"height":11}},{"id":"64ea4f09-2d9e-4e23-9c0e-d4b585eb0791","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":148,"box":{"x":583,"y":782,"width":240,"height":9}},{"id":"439c06a1-e6d7-4e44-ae42-2756f516563f","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":796,"width":361,"height":11}},{"id":"23d701bb-c165-4586-aad5-2c1dbe625304","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":535,"y":797,"width":288,"height":9}},{"id":"efb233a4-6d2a-4a45-91e9-c77667ec0768","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":811,"width":345,"height":11}},{"id":"6caab189-1a65-4a93-940f-9d09c6fe0ee1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":518,"y":812,"width":305,"height":9}},{"id":"882fd7e4-144c-49d7-8518-f976e76bac27","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":148,"box":{"x":101,"y":836,"width":398,"height":11}},{"id":"1b981a6e-bd79-4f57-ad3d-d7554abb010b","block_type":"box","text":"®","page_number":148,"box":{"x":500,"y":836,"width":6,"height":5}},{"id":"a1063223-a593-46cd-a289-a1fb7cd7a4c3","block_type":"box","text":"Index 2030 Fund, BlackRock 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LifePath","page_number":148,"box":{"x":70,"y":866,"width":177,"height":11}},{"id":"3368904f-275e-4d75-9713-4e86cff4da6f","block_type":"box","text":"®","page_number":148,"box":{"x":248,"y":866,"width":6,"height":5}},{"id":"0292f0da-9fbd-4b24-830a-33bc801ccfe0","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":148,"box":{"x":261,"y":866,"width":263,"height":11}},{"id":"29f5e9ca-a0c7-4a57-9420-9654a766d4a0","block_type":"box","text":"®","page_number":148,"box":{"x":526,"y":866,"width":6,"height":5}},{"id":"d7588de5-46a0-43a7-9bec-6c2a160077d1","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":148,"box":{"x":538,"y":866,"width":264,"height":11}},{"id":"2a43b3d3-7f71-4892-9598-b97da6998d5e","block_type":"box","text":"®","page_number":148,"box":{"x":803,"y":866,"width":6,"height":5}},{"id":"39f6ff19-ea02-423e-a077-8ee705436a4a","block_type":"box","text":"Index 2065","page_number":148,"box":{"x":815,"y":866,"width":80,"height":9}},{"id":"22405675-e1b2-4540-b351-28a74e650639","block_type":"box","text":"II-103","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"47424577-79b6-4f98-bc50-791eba2ebf8d","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"703285a3-30bf-4029-b161-7ae595c63c73","block_type":"box","text":"Fund, BlackRock LifePath","page_number":149,"box":{"x":70,"y":45,"width":177,"height":10}},{"id":"20c0a3f4-de2a-4e89-88c4-9f30b20b1c98","block_type":"box","text":"®","page_number":149,"box":{"x":248,"y":45,"width":6,"height":4}},{"id":"b8b592e7-14d7-44ff-9b28-c04749de4811","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":149,"box":{"x":261,"y":45,"width":290,"height":9}},{"id":"cded5c44-0d3b-49ff-8b58-6b4d2a4a3a38","block_type":"box","text":"®","page_number":149,"box":{"x":552,"y":45,"width":6,"height":4}},{"id":"137cd780-e154-4a0e-a467-b9a24847c13a","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":149,"box":{"x":564,"y":45,"width":324,"height":10}},{"id":"5f230d03-5bee-4c14-8dab-5fc47c2ebe10","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":149,"box":{"x":68,"y":60,"width":401,"height":11}},{"id":"fef7bf14-296e-4134-b2ee-ac8ad58331b2","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":149,"box":{"x":167,"y":87,"width":206,"height":11}},{"id":"064f6884-1b03-4d9b-b7c9-f6b5b74f61a8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":149,"box":{"x":380,"y":88,"width":443,"height":8}},{"id":"44dd8ea0-89cf-481f-9064-0f42202947ac","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":149,"box":{"x":101,"y":111,"width":657,"height":11}},{"id":"7702d141-c73b-461c-ab20-a4de9b1579c4","block_type":"box","text":"SM","page_number":149,"box":{"x":760,"y":112,"width":10,"height":4}},{"id":"d6525a93-9bbf-43b4-b330-e2240cf28d78","block_type":"box","text":", the placement","page_number":149,"box":{"x":773,"y":112,"width":110,"height":10}},{"id":"1e26504f-7c8b-41bd-b4de-5e68c1fcc36b","block_type":"box","text":"fees may be up to the following amounts:","page_number":149,"box":{"x":68,"y":126,"width":294,"height":12}},{"id":"5fc5b869-6507-4a48-8be0-9281c87eda2c","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":149,"box":{"x":167,"y":154,"width":206,"height":11}},{"id":"8296ec9d-766c-446f-a94d-9a5b1d69125f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":149,"box":{"x":380,"y":154,"width":443,"height":9}},{"id":"dbd42241-8d7a-4fba-a284-94e57c83c4f7","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":149,"box":{"x":101,"y":178,"width":787,"height":11}},{"id":"905f350f-1f4b-4538-83f0-e40435b2f917","block_type":"box","text":"Russell 2000 Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":149,"box":{"x":70,"y":193,"width":808,"height":11}},{"id":"a6251ef5-41cb-43a9-ae86-4925d1057b44","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":149,"box":{"x":70,"y":208,"width":393,"height":12}},{"id":"a93abe70-6425-4501-ac03-48bab292542e","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":149,"box":{"x":102,"y":231,"width":740,"height":11}},{"id":"8d9f92ac-670d-4321-aae1-5f621e49b7f3","block_type":"box","text":"example, a sale of $4 million wor th of Investor A Shares of BlackRock Impact Mor tgage Fund of BlackRock Funds V","page_number":149,"box":{"x":69,"y":246,"width":823,"height":11}},{"id":"a233eff7-2765-481c-9ca3-495cbfee40c3","block_type":"box","text":"will result in a placement fee of up to 0.50% on the first $3 million and a placement fee of 0.25% on the final","page_number":149,"box":{"x":68,"y":261,"width":780,"height":11}},{"id":"422bbf6b-a006-44e2-bf15-490ed9ed533e","block_type":"box","text":"$1 million).","page_number":149,"box":{"x":69,"y":276,"width":79,"height":11}},{"id":"e9d9fd3d-eaf1-41d2-8c47-62dd856a93b8","block_type":"box","text":"Other.","page_number":149,"box":{"x":102,"y":299,"width":41,"height":9}},{"id":"4761726a-ab20-4bc2-9fb5-ffd5c41675ec","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":149,"box":{"x":149,"y":299,"width":698,"height":11}},{"id":"2b373d9b-6606-4f69-bc06-ae291beabd13","block_type":"box","text":"(a) cer tain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":149,"box":{"x":69,"y":314,"width":839,"height":11}},{"id":"b91d08a1-fea4-49ac-9901-cb8db509cd33","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through cer tain employer","page_number":149,"box":{"x":69,"y":329,"width":790,"height":12}},{"id":"7f2dfba6-cb34-4622-b203-22f0d9936d63","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":149,"box":{"x":69,"y":344,"width":825,"height":11}},{"id":"1a883718-8a06-4d34-ac2d-4fe31d220d4e","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":149,"box":{"x":68,"y":360,"width":773,"height":11}},{"id":"0c39075e-0340-449a-a06a-1829cb3c8584","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":149,"box":{"x":70,"y":375,"width":838,"height":11}},{"id":"64c2c417-6b05-4435-a615-25e0f33faa8e","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":149,"box":{"x":68,"y":390,"width":837,"height":11}},{"id":"56aa0a4e-69dc-4a95-8f96-1260781dd467","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":149,"box":{"x":69,"y":405,"width":836,"height":11}},{"id":"144af57c-bb16-40b4-a9f5-f7d60d176c41","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust depar tments exercising","page_number":149,"box":{"x":69,"y":420,"width":793,"height":11}},{"id":"c236d4f8-8d12-4311-b8e0-8d44a267463d","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons par ticipating in a","page_number":149,"box":{"x":69,"y":435,"width":811,"height":11}},{"id":"32937361-e43c-45c3-a0a6-366dfb97926e","block_type":"box","text":"fee-based program (such as a wrap account) under which they pay advisory fees to a broker-dealer or other financial","page_number":149,"box":{"x":68,"y":450,"width":827,"height":12}},{"id":"3b350495-fcb7-4eb3-89fc-61eca0dc3c18","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":149,"box":{"x":70,"y":465,"width":782,"height":12}},{"id":"eb68ba82-7782-448a-9dbc-d04eb67524d3","block_type":"box","text":"approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not","page_number":149,"box":{"x":69,"y":481,"width":830,"height":11}},{"id":"b802bb4d-57dc-4654-aba4-29cdcdf89dec","block_type":"box","text":"charge a transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into Roth","page_number":149,"box":{"x":69,"y":496,"width":815,"height":11}},{"id":"fcd4f64d-e522-4342-89c9-42f48c42baf0","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":149,"box":{"x":70,"y":511,"width":799,"height":11}},{"id":"3aec6956-a652-4d42-a518-60e90aabb8e0","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":149,"box":{"x":69,"y":526,"width":752,"height":11}},{"id":"1b7aca5f-1cae-4dff-8e03-f95c688fc680","block_type":"box","text":"involuntarily liquidated from a Fund, who within 60 days of liquidation buy new shares of another BlackRock Fund (but","page_number":149,"box":{"x":70,"y":541,"width":836,"height":11}},{"id":"d06cfc96-b7e0-4dc9-b9ad-dcc4d57e1277","block_type":"box","text":"only up to the amount that was liquidated). The following persons associated with the Funds, the Fund’s Manager,","page_number":149,"box":{"x":69,"y":556,"width":812,"height":11}},{"id":"55102bf5-0e2c-4d09-90a7-d131e4a4cb8e","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":149,"box":{"x":69,"y":571,"width":839,"height":12}},{"id":"6c33d35c-fa1e-4111-8a17-4a9f37a9f81c","block_type":"box","text":"or Investor P Shares of each of the Funds without paying a sales charge to the extent permitted by these firms","page_number":149,"box":{"x":69,"y":586,"width":788,"height":12}},{"id":"efb2baf0-8063-44f3-abf1-18cb1282af6f","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":149,"box":{"x":70,"y":601,"width":838,"height":12}},{"id":"88defc4d-af98-40e3-b585-b74b8b2d0048","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":149,"box":{"x":69,"y":617,"width":810,"height":11}},{"id":"058b4f4b-e56e-4f25-8e6a-eace59de15cf","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":149,"box":{"x":68,"y":632,"width":787,"height":11}},{"id":"729301df-fd5e-44aa-b630-21fedd4afbde","block_type":"box","text":"spouse or domestic par tner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":149,"box":{"x":69,"y":647,"width":834,"height":11}},{"id":"cbe4d56f-5cbf-4ffa-a210-7070110b0b0d","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":149,"box":{"x":70,"y":662,"width":808,"height":11}},{"id":"150e0848-3f6f-48aa-8e5b-253e75d45619","block_type":"box","text":"sales charge should purchase Investor A or Investor P Shares. In addition, a sales charge waiver may be available for","page_number":149,"box":{"x":69,"y":677,"width":837,"height":11}},{"id":"bd6ec65d-ec3d-4dc8-9b2a-933ce7473a32","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":149,"box":{"x":70,"y":692,"width":820,"height":11}},{"id":"130fb55f-0feb-478b-b4eb-023b6fec82ea","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":149,"box":{"x":69,"y":707,"width":813,"height":12}},{"id":"0a0e439d-cbe0-4cd4-b128-b5a8ed7014cf","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":149,"box":{"x":70,"y":723,"width":831,"height":11}},{"id":"148784c9-87e1-43c5-b1c6-817fe9b0a4b9","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":149,"box":{"x":69,"y":738,"width":783,"height":11}},{"id":"dc9cd412-0328-49aa-acea-3e2ff466deb4","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":149,"box":{"x":70,"y":753,"width":668,"height":11}},{"id":"0b572629-b9a3-443c-ba17-85f74f50a722","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":149,"box":{"x":102,"y":775,"width":754,"height":12}},{"id":"e372418e-af7e-4a38-8566-95cd286ab0ac","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":149,"box":{"x":70,"y":790,"width":823,"height":12}},{"id":"a666bfdf-01c1-440d-9070-338e789d4745","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":149,"box":{"x":69,"y":806,"width":833,"height":10}},{"id":"2dc7c6a8-d010-4cdf-82d4-5d5eb05a8345","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":149,"box":{"x":70,"y":821,"width":802,"height":11}},{"id":"669fc244-7b1b-4864-9d53-13a56b013779","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":149,"box":{"x":70,"y":836,"width":781,"height":11}},{"id":"088f2c59-6428-4130-9ed5-e5ac7993c414","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":149,"box":{"x":70,"y":851,"width":819,"height":11}},{"id":"3c184e5a-0bf5-4376-a863-681aa590d805","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":149,"box":{"x":68,"y":866,"width":835,"height":11}},{"id":"bc64821a-c415-4369-b1e1-ade3f9872590","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":149,"box":{"x":69,"y":881,"width":813,"height":11}},{"id":"0f76527e-4400-4930-9544-f18fa81089e1","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":149,"box":{"x":70,"y":896,"width":792,"height":11}},{"id":"064ee0e3-3489-4155-aca5-11b604875382","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":149,"box":{"x":70,"y":911,"width":813,"height":12}},{"id":"1d84d4d4-ee67-44f6-aa42-c2da336b9d14","block_type":"box","text":"II-104","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"83cde35e-82f9-4a91-bc57-7b3121841e74","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":149,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a5af177-cf45-446d-95ee-19966be3b586","block_type":"box","text":"BlackRock Funds V) or more in Investor A or Investor P Shares, as applicable, you may not pay an initial sales charge.","page_number":150,"box":{"x":70,"y":45,"width":837,"height":11}},{"id":"ca90edd3-87cd-41a7-af77-a727900bfbf1","block_type":"box","text":"However, if you redeem your Investor A or Investor P Shares, as applicable, within 18 months after purchase (a","page_number":150,"box":{"x":70,"y":60,"width":790,"height":11}},{"id":"609a23f0-4bba-4b58-b0f2-61a6e83a5799","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":150,"box":{"x":69,"y":75,"width":736,"height":11}},{"id":"5ab8283a-5a5f-45be-904a-b689d3337d45","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to cer tain redemptions of Investor A Shares of the Index","page_number":150,"box":{"x":101,"y":98,"width":763,"height":11}},{"id":"b7223b20-e55e-41ff-9d01-c50c1d1fd957","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":150,"box":{"x":70,"y":113,"width":782,"height":11}},{"id":"d426ca59-f349-4cda-b319-9e4813bf07ec","block_type":"box","text":"por tfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":150,"box":{"x":70,"y":128,"width":832,"height":11}},{"id":"81ce67bb-5334-4e8e-b4cf-1fbd166edda5","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Por tfolio”) as par t of an investment of $1,000,000 (lesser amounts may","page_number":150,"box":{"x":68,"y":142,"width":839,"height":12}},{"id":"bd31d5f5-dfd9-4f9b-b278-2592cf1333dd","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Por tfolio) or more. The Investor A Shares deferred sales","page_number":150,"box":{"x":69,"y":158,"width":817,"height":11}},{"id":"7933776e-3f02-4a78-8a9b-6bd3132876c3","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":150,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"5fad57b4-b11c-43fa-b347-55dd4e6f4af9","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Por tfolio (a shor ter holding period may apply depending","page_number":150,"box":{"x":70,"y":188,"width":818,"height":12}},{"id":"a55c0b46-69c9-4c8f-9792-715a496345cb","block_type":"box","text":"on the Investor A Load-Waived BlackRock Por tfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":150,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"009dcb52-7759-4a0d-9844-1a3ab272c5e8","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shor ter holding","page_number":150,"box":{"x":69,"y":218,"width":830,"height":12}},{"id":"bb18df37-f94f-473f-b9e8-ebfb3551d7fb","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":150,"box":{"x":70,"y":234,"width":778,"height":11}},{"id":"224618de-0cc0-4c6a-b70f-fe3b8746b9be","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":150,"box":{"x":70,"y":249,"width":526,"height":11}},{"id":"34010245-2428-4337-9121-4dcd595a2b63","block_type":"box","text":"The deferred sales charge on Investor A or Investor P Shares, as applicable, is not charged in connection with:","page_number":150,"box":{"x":101,"y":271,"width":788,"height":12}},{"id":"032f891f-a21f-44f1-8e5f-69a3149b3194","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":150,"box":{"x":69,"y":286,"width":819,"height":12}},{"id":"9c33e479-1041-4880-b12b-1b12a247d93c","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":150,"box":{"x":69,"y":302,"width":820,"height":11}},{"id":"022f2ce5-3bf7-4d95-a161-3d6536758fcd","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":150,"box":{"x":69,"y":317,"width":837,"height":11}},{"id":"d38941aa-acf1-4961-809e-774158ba35ac","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":150,"box":{"x":68,"y":332,"width":812,"height":11}},{"id":"626c1ec3-c42a-4508-aa89-c4271d133ea6","block_type":"box","text":"cer tain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":150,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"8bee2596-2c1f-494e-be95-79611e0e040a","block_type":"box","text":"shareholder’s death or, if later, the receipt of a cer tified probate settlement (including in connection with the","page_number":150,"box":{"x":69,"y":362,"width":772,"height":11}},{"id":"bb437eb1-e73d-4b6c-b723-e27ee203a65d","block_type":"box","text":"distribution of account assets to a beneficiary of the decedent) or (ii) in connection with a shareholder’s disability (as","page_number":150,"box":{"x":69,"y":377,"width":835,"height":11}},{"id":"1daa4a8a-d231-4aad-b07d-07f483bc0a58","block_type":"box","text":"defined in the Code) subsequent to the purchase of Investor A or Investor P Shares; (f) involuntary redemptions of","page_number":150,"box":{"x":69,"y":392,"width":814,"height":12}},{"id":"13165b1a-704c-418a-a9d8-dc5dae9aa595","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) cer tain redemptions made pursuant to the","page_number":150,"box":{"x":70,"y":408,"width":772,"height":11}},{"id":"ae24e8f2-0a84-410a-96ce-259d905e9a26","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":150,"box":{"x":69,"y":423,"width":805,"height":11}},{"id":"3365edfe-2807-47d9-b7c6-94a0d33959e7","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":150,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"4c6d591d-0a4a-4a2a-a9a9-b01342efafda","block_type":"box","text":"the absolute discretion of a Fund.","page_number":150,"box":{"x":68,"y":453,"width":239,"height":9}},{"id":"9df1207b-5982-47a5-aee5-a1dd000ee03b","block_type":"box","text":"With respect to cer tain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":150,"box":{"x":101,"y":475,"width":794,"height":12}},{"id":"64ca8da7-e9d4-4acc-a29f-d03f16e3e53f","block_type":"box","text":"fee, the Fund may, at its own discretion, waive the CDSC related to purchases of $1,000,000 ($250,000 for","page_number":150,"box":{"x":68,"y":490,"width":776,"height":12}},{"id":"cd81f475-2ef0-4f6f-8ab1-82a097783035","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":150,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"25ea6fbe-f2bf-42bc-a2af-f31bd1db451f","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":150,"box":{"x":70,"y":521,"width":800,"height":10}},{"id":"54abda58-f66f-4a22-8032-a8eb6328d094","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":150,"box":{"x":70,"y":536,"width":806,"height":11}},{"id":"1c840cb7-b274-4671-bf97-e68bd201f25b","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":150,"box":{"x":70,"y":551,"width":823,"height":11}},{"id":"48375d7e-a7de-409d-a7fc-974f626544fd","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":150,"box":{"x":70,"y":566,"width":770,"height":11}},{"id":"285d308b-63b1-4420-af61-86ea2a5337d7","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":150,"box":{"x":70,"y":581,"width":766,"height":11}},{"id":"dcb56aa6-4795-46fa-9f16-55af1054960d","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":150,"box":{"x":69,"y":596,"width":837,"height":12}},{"id":"1c8d3532-9213-47d7-bdba-33b22ee34543","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":150,"box":{"x":70,"y":612,"width":805,"height":11}},{"id":"d81bdafe-9479-444b-9a53-320b4320846d","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":150,"box":{"x":70,"y":626,"width":832,"height":12}},{"id":"3389544a-2cba-4fcb-ade3-0f684eeea546","block_type":"box","text":"Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V) or more of Investor A or","page_number":150,"box":{"x":70,"y":642,"width":828,"height":11}},{"id":"9b7d94ea-055f-4551-8546-8de047b338d9","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":150,"box":{"x":70,"y":657,"width":746,"height":11}},{"id":"8a148396-a449-4513-a527-1dc396f8b4a3","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":150,"box":{"x":70,"y":672,"width":307,"height":11}},{"id":"4c2c6492-fd69-4fe5-aa14-b5d86a11830b","block_type":"box","text":"Investor A and Investor P Shares are also available at NAV to investors that, for regulatory reasons, are required","page_number":150,"box":{"x":102,"y":695,"width":799,"height":11}},{"id":"82b9a390-d9c0-4d4c-9a3b-24e113d65907","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":150,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"23de7fa2-2219-44e6-87f5-624d90d9be99","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":150,"box":{"x":68,"y":725,"width":317,"height":11}},{"id":"99c9c5f9-e7e3-4425-937d-14e690deeb13","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":150,"box":{"x":101,"y":748,"width":326,"height":11}},{"id":"107753fe-073e-45c2-93f6-14554d3369c4","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":150,"box":{"x":434,"y":748,"width":413,"height":11}},{"id":"28a5f612-b941-454a-9688-fa6064e65f87","block_type":"box","text":"connection with the acquisition of the assets of, or merger or consolidation with, a personal holding company or a","page_number":150,"box":{"x":69,"y":763,"width":811,"height":11}},{"id":"a5b3bd7a-9314-4608-96e7-4cf9ed75e0dc","block_type":"box","text":"public or private investment company.","page_number":150,"box":{"x":70,"y":778,"width":266,"height":11}},{"id":"655bd111-c036-4303-ad2c-633886dfb67f","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":150,"box":{"x":102,"y":801,"width":372,"height":11}},{"id":"3490b405-c050-4a13-91ab-f4be4d2fdab7","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":150,"box":{"x":481,"y":801,"width":421,"height":11}},{"id":"b86840cb-bd41-421f-8f3d-e27de83c487b","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities dealers","page_number":150,"box":{"x":70,"y":816,"width":825,"height":11}},{"id":"954f01de-7af1-4911-ad39-24d21d9d9ae8","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":150,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"b2d94f12-f627-49a8-be12-6f9cce43bc9a","block_type":"box","text":"II-105","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"33394de0-2da4-4de9-94e7-04e13623968e","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8dc5e2d7-d369-45e1-b76d-239ec4eab13d","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":151,"box":{"x":69,"y":45,"width":405,"height":11}},{"id":"45d8a5ba-35de-499d-9aa5-4dee2d3e6380","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":151,"box":{"x":102,"y":67,"width":799,"height":12}},{"id":"a902e4d9-8da6-43f9-af0f-abab240cda4e","block_type":"box","text":"as to the length of time they intend to hold their assets in a Fund. If you select Investor C Shares, you do not pay an","page_number":151,"box":{"x":69,"y":82,"width":828,"height":12}},{"id":"b114d650-dcbc-4ce4-b1b6-20ced92fd7aa","block_type":"box","text":"initial sales charge at the time of purchase. A Fund will not accept a purchase order of $500,000 or more for","page_number":151,"box":{"x":70,"y":97,"width":778,"height":12}},{"id":"814c96cd-af80-4683-b5a1-6ab0b582ae0c","block_type":"box","text":"Investor C Shares (may be lower on funds that have set a lower breakpoint for NAV). Your financial intermediary may","page_number":151,"box":{"x":70,"y":113,"width":826,"height":11}},{"id":"ccab9f3e-7a57-4aba-88b9-4e752a7f0250","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":151,"box":{"x":69,"y":128,"width":311,"height":9}},{"id":"e6a2f030-c211-4597-b15a-8e4f54e4ed89","block_type":"box","text":"Investor C Shares are not available in accounts opened or held directly with a Fund that do not have a financial","page_number":151,"box":{"x":102,"y":150,"width":789,"height":12}},{"id":"9fa75aa9-b572-4dac-8b4e-c1a3d0e789d8","block_type":"box","text":"intermediary associated with the account.","page_number":151,"box":{"x":70,"y":166,"width":297,"height":11}},{"id":"416338c2-223e-450d-bbae-f69682b469a1","block_type":"box","text":"If you select Investor C Shares, you do not pay an initial sales charge at the time of purchase.","page_number":151,"box":{"x":102,"y":188,"width":669,"height":12}},{"id":"ad2ff49f-e677-4153-8a70-a768eefa9eec","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":151,"box":{"x":101,"y":211,"width":763,"height":11}},{"id":"93b0dfe0-ca96-4ef3-ba74-79b33f28f970","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":151,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"31a3f7af-a782-42ca-88ef-c0a5ea48f1e4","block_type":"box","text":"these fees potentially may be offset to the extent any return is realized on the additional funds initially invested in","page_number":151,"box":{"x":68,"y":241,"width":813,"height":11}},{"id":"f5e59484-a11b-4cc4-97b5-f47cacf822c0","block_type":"box","text":"CDSC shares.","page_number":151,"box":{"x":69,"y":256,"width":97,"height":9}},{"id":"7ced2f3f-6359-4591-9165-f0f5105e8bf7","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":151,"box":{"x":102,"y":279,"width":804,"height":11}},{"id":"300e35f2-16fb-48b7-b90c-cbd594c5f93d","block_type":"box","text":"of purchase from its own funds. Proceeds from the CDSC and the distribution fee are paid to the Distributor and are","page_number":151,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"27ec7ef8-ddcc-458e-88fe-e2491e116d17","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":151,"box":{"x":69,"y":309,"width":786,"height":11}},{"id":"041d605b-d575-4196-9745-24f1221d8d71","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":151,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"5b38ee7c-b219-4d92-804d-59d24a49234c","block_type":"box","text":"of the CDSC and the ongoing distribution fee facilitates the ability of each Fund to sell the CDSC shares without a","page_number":151,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"54a6f1eb-e031-434c-8a77-db1d475d1843","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":151,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"e28705cf-8c98-4ae4-8022-252fd813a8fa","block_type":"box","text":"Imposition of the CDSC and the distribution fee on CDSC shares is limited by FINRA (as defined below) asset-based","page_number":151,"box":{"x":70,"y":370,"width":822,"height":11}},{"id":"8bb5aab8-5168-4ef8-a4a8-8e3c4455a573","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":151,"box":{"x":69,"y":385,"width":618,"height":11}},{"id":"cb19a6f7-eab1-41a8-b97c-311d3d1d40d2","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":151,"box":{"x":102,"y":407,"width":782,"height":12}},{"id":"5bbebab0-8cfc-499a-a87b-a9b1b0ced25d","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":151,"box":{"x":70,"y":423,"width":764,"height":11}},{"id":"a76ec8fa-ec44-45a6-81ef-5514691247eb","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":151,"box":{"x":69,"y":438,"width":820,"height":11}},{"id":"c291b539-d7af-4fad-9341-08b3c8706d17","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":151,"box":{"x":70,"y":453,"width":806,"height":11}},{"id":"aa1f9568-8663-42fb-bb61-ad80c36834b8","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":151,"box":{"x":70,"y":468,"width":813,"height":11}},{"id":"652f36b9-5805-4d4a-9542-992947eec5a9","block_type":"box","text":"with sales of Investor A, Investor A1 and Investor P Shares. These may depend upon the policies, procedures and","page_number":151,"box":{"x":68,"y":483,"width":811,"height":11}},{"id":"b175d746-c272-431e-a7ce-24a4048205e2","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":151,"box":{"x":68,"y":498,"width":554,"height":11}},{"id":"b7ab99e9-0f6f-4fcc-979c-da1b4b54b0b9","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":151,"box":{"x":102,"y":521,"width":783,"height":11}},{"id":"eb341c57-3796-41e4-9a9d-06eb3fbda6de","block_type":"box","text":"Investor C Shares held for approximately eight years will be conver ted into Investor A Shares, as set for th in each","page_number":151,"box":{"x":70,"y":536,"width":808,"height":11}},{"id":"3330cf77-fae4-40ee-8a74-0463bbd6eabd","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":151,"box":{"x":70,"y":551,"width":797,"height":11}},{"id":"522a3214-30cc-46ea-ab45-f97e0ae9ae17","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted to","page_number":151,"box":{"x":69,"y":566,"width":837,"height":11}},{"id":"0667ab24-1d33-450c-8d85-2106fb0bd55b","block_type":"box","text":"Investor A Shares.","page_number":151,"box":{"x":70,"y":581,"width":128,"height":9}},{"id":"8cef8ce0-f18f-4cc8-a1ee-81b8ca4016e8","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":151,"box":{"x":102,"y":604,"width":378,"height":9}},{"id":"35a5e8ec-04a7-4a0a-a9f2-852bacc6bb2d","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":151,"box":{"x":102,"y":627,"width":804,"height":11}},{"id":"24c57b9e-83a5-4070-8555-a843c28b6689","block_type":"box","text":"of each Fund will conver t automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":151,"box":{"x":69,"y":642,"width":794,"height":11}},{"id":"e97a35d3-431d-40c4-89ca-e64ca58fd96c","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":151,"box":{"x":69,"y":657,"width":794,"height":11}},{"id":"46dcfdfd-a6f9-4498-8abc-a18acb9cd9b6","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":151,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"78df7300-348f-4a7c-a60f-83867d08739d","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":151,"box":{"x":70,"y":687,"width":793,"height":11}},{"id":"0587fa3f-c88a-4fb4-9e84-ac587972e6b2","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":151,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"93cc53cb-5ef6-47f7-8e05-71097149281a","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":151,"box":{"x":69,"y":717,"width":802,"height":12}},{"id":"1229a4f5-9648-4193-af8c-62c65b0abbfc","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":151,"box":{"x":69,"y":732,"width":793,"height":12}},{"id":"d4061f70-2c1f-4882-948c-f067f4f83ff4","block_type":"box","text":"Shares held as of the Effective Date will automatically conver t to Investor A Shares approximately eight years after","page_number":151,"box":{"x":69,"y":748,"width":817,"height":11}},{"id":"88428066-9968-40c4-9cad-b8d287826e7e","block_type":"box","text":"the Effective Date. If, as of November 23, 2028 (eight years after the Effective Date), a financial intermediary has","page_number":151,"box":{"x":68,"y":763,"width":814,"height":11}},{"id":"507ea6ce-43dd-4eda-8b49-d09b3b5c27a8","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":151,"box":{"x":69,"y":778,"width":828,"height":11}},{"id":"299abda6-b4a9-4184-85a3-14b5014d9cbf","block_type":"box","text":"holding Investor C Shares through such financial intermediary will no longer be eligible to hold Investor C Shares and","page_number":151,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"8f2f0811-e96f-41bc-b017-ee53ef3fd8ac","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":151,"box":{"x":69,"y":808,"width":718,"height":11}},{"id":"80510811-8ce3-4bad-bac1-4976b7963e61","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":151,"box":{"x":102,"y":831,"width":764,"height":11}},{"id":"34e6782b-acef-47a6-be46-b9d05606e2d8","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted into Investor A","page_number":151,"box":{"x":70,"y":846,"width":816,"height":11}},{"id":"58ac1a36-a26d-4b71-8e37-79e7a1830c38","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":151,"box":{"x":69,"y":861,"width":772,"height":11}},{"id":"e77d6a1f-58ef-42b4-9e4d-a52d0e98cf06","block_type":"box","text":"“Investor C Conversions”).","page_number":151,"box":{"x":70,"y":876,"width":186,"height":11}},{"id":"700dd81f-166b-4e61-88e5-ae887af31d20","block_type":"box","text":"II-106","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"271fc028-1bdb-42df-b657-d90606f30265","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1c8e8858-aeea-4813-9f29-f81e5f9d0804","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”) on the","page_number":152,"box":{"x":101,"y":45,"width":776,"height":11}},{"id":"161a5464-0c34-4c53-b132-10d1c5f6551c","block_type":"box","text":"basis of the relative NAV of the shares of the two applicable classes on the Investor C Conversion Date, without the","page_number":152,"box":{"x":69,"y":60,"width":824,"height":11}},{"id":"4c0b9954-e336-40f1-9994-8a439c0b1ed7","block_type":"box","text":"imposition of any sales load, fee or other charge. The Investor C Conversions will not be deemed a purchase or sale","page_number":152,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"3c414fdc-d8a3-4c12-a77e-ab37f6df3894","block_type":"box","text":"of the shares for U.S. federal income tax purposes. Shares acquired through reinvestment of dividends on Investor C","page_number":152,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"a9b43a83-7c6b-430d-b81c-746a617aabca","block_type":"box","text":"Shares will also conver t automatically to Investor A Shares, as set for th in each Fund’s Prospectus. The Investor C","page_number":152,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"18bc14d7-c96e-4319-b57a-7ab95511b9e8","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":152,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"949247a2-400d-4b32-a1d1-cfabc3e502c3","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":152,"box":{"x":69,"y":136,"width":445,"height":11}},{"id":"ea7d3003-4c6b-4c44-bb27-6a66184c3103","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":152,"box":{"x":102,"y":158,"width":396,"height":11}},{"id":"073e9eec-8df7-447d-bb1d-0e2d7a433d4a","block_type":"box","text":"Investor C Shares that are redeemed within one year of purchase may be subject to a 1.00% CDSC charged as a","page_number":152,"box":{"x":102,"y":181,"width":804,"height":11}},{"id":"a7557ab3-677d-4c44-8a8a-6b0a9098c32f","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":152,"box":{"x":70,"y":196,"width":826,"height":11}},{"id":"bb955c80-2770-4b8e-bf58-c8142c70cbaa","block_type":"box","text":"a redemption, the calculation will be determined in the manner that results in the lowest possible rate being charged.","page_number":152,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"61bf87fe-d1bf-4bbf-a50d-b6a71f397d64","block_type":"box","text":"The charge will be assessed on an amount equal to the lesser of the proceeds of redemption or the cost of the","page_number":152,"box":{"x":68,"y":226,"width":795,"height":11}},{"id":"3206d60a-0d12-4bb7-a394-0a7c117d5b3e","block_type":"box","text":"shares being redeemed. Accordingly, no CDSC will be imposed on increases in NAV above the initial purchase price of","page_number":152,"box":{"x":69,"y":241,"width":840,"height":11}},{"id":"566dd5aa-c4f8-489d-b40d-bac9c909f56f","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":152,"box":{"x":70,"y":256,"width":804,"height":12}},{"id":"09094fab-e815-4d0b-8651-33738faa8cff","block_type":"box","text":"dividends. It will be assumed that the redemption is first of shares held for over one year or shares acquired","page_number":152,"box":{"x":69,"y":271,"width":772,"height":12}},{"id":"075b6df9-4ca0-458d-ad10-4de1b0fd4d5b","block_type":"box","text":"pursuant to reinvestment of dividends and then of shares held longest during the one-year period. A transfer of","page_number":152,"box":{"x":70,"y":286,"width":790,"height":12}},{"id":"9aa79259-51f7-43a8-877c-7a4b0085e327","block_type":"box","text":"shares from a shareholder’s account to another account will be assumed to be made in the same order as a","page_number":152,"box":{"x":69,"y":302,"width":776,"height":9}},{"id":"eaf67f11-8825-4492-b243-9c331e565363","block_type":"box","text":"redemption.","page_number":152,"box":{"x":69,"y":317,"width":83,"height":11}},{"id":"5dfd1bb2-6337-47b3-a87b-7a4abd130a9d","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":152,"box":{"x":102,"y":339,"width":734,"height":12}},{"id":"96117840-29ce-42fc-b00d-12ab96789992","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":152,"box":{"x":70,"y":355,"width":769,"height":11}},{"id":"579e3d72-b8e5-48ae-93c0-cea8070c5035","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":152,"box":{"x":102,"y":377,"width":572,"height":12}},{"id":"115d368a-31c3-4cad-8c7d-5245a40ca746","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":152,"box":{"x":101,"y":400,"width":740,"height":11}},{"id":"ccd0c512-3b23-4ad9-83ae-710529c9ac46","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":152,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"b40bfa33-d6b6-453d-b033-ba835332bcb7","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":152,"box":{"x":69,"y":430,"width":786,"height":11}},{"id":"aa84e6ed-f0aa-45b1-8397-4e792e7d7b94","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":152,"box":{"x":70,"y":445,"width":797,"height":12}},{"id":"6e32a595-7b08-4067-9fd5-538fc14c8b5f","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to cer tain","page_number":152,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"6cade4b8-0a49-4ea2-ad70-6da7e4812e37","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":152,"box":{"x":69,"y":475,"width":747,"height":12}},{"id":"659527b5-cda0-48ec-938d-2aee4024670e","block_type":"box","text":"shareholder’s death as long as the waiver request is made within one year of death or, if later, reasonably promptly","page_number":152,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"edb7bb1f-fb93-4832-ac78-21248438c880","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":152,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"52e1e509-acf6-4964-bbe8-0c8f8c0f59cc","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":152,"box":{"x":69,"y":521,"width":806,"height":11}},{"id":"7606089d-19c3-4c54-8a9f-b0aae8e17b92","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":152,"box":{"x":69,"y":536,"width":786,"height":11}},{"id":"4a78a202-b1f0-4cce-93e7-3ef619a0c860","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":152,"box":{"x":70,"y":551,"width":834,"height":11}},{"id":"fdf4e587-2158-4654-983c-0f6e8a63893a","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":152,"box":{"x":70,"y":566,"width":809,"height":11}},{"id":"5b710cad-8f8b-47a7-819b-d239156ff51b","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":152,"box":{"x":70,"y":581,"width":791,"height":11}},{"id":"4b1b5e2d-b329-4656-91fc-59525bc3d9f4","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":152,"box":{"x":70,"y":596,"width":784,"height":12}},{"id":"d30badd6-d383-4870-8069-35d9a91e13bd","block_type":"box","text":"demonstrate hardship, in the absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares","page_number":152,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"54c0c28c-f47e-4b48-be06-db609d18b665","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":152,"box":{"x":69,"y":627,"width":451,"height":11}},{"id":"b4f85e48-e665-42fb-9035-946804b26d6d","block_type":"box","text":"Cer tain CDSC waivers and reductions on Investor C Shares may be available to customers of cer tain financial","page_number":152,"box":{"x":102,"y":649,"width":781,"height":12}},{"id":"132118ed-bc76-422a-af16-ffa92877d00c","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":152,"box":{"x":70,"y":664,"width":813,"height":12}},{"id":"3f765d55-0403-4c77-afe4-8ec70d935481","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":152,"box":{"x":69,"y":680,"width":462,"height":11}},{"id":"31027b77-4577-4b0d-bf18-992e897917c4","block_type":"box","text":"Class R Shares","page_number":152,"box":{"x":69,"y":710,"width":110,"height":9}},{"id":"2535722b-3356-4809-95c4-6bbfbb80044f","block_type":"box","text":"Cer tain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":152,"box":{"x":102,"y":732,"width":775,"height":11}},{"id":"6281f723-d7c4-4564-91fb-f900fcffe564","block_type":"box","text":"available only to cer tain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":152,"box":{"x":69,"y":748,"width":799,"height":11}},{"id":"69bbed84-abba-406b-9e75-300e3abefa25","block_type":"box","text":"charge or a CDSC but are subject to an ongoing distribution fee of 0.25% per year and an ongoing service fee of","page_number":152,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"55b2f86e-e689-4ea0-a11f-a9bd93a5faa6","block_type":"box","text":"0.25% per year. Distribution fees are used to suppor t the Fund’s marketing and distribution effor ts, such as","page_number":152,"box":{"x":69,"y":778,"width":772,"height":11}},{"id":"ad940a2c-bf06-4d42-9e34-0ccdc1aa7952","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":152,"box":{"x":69,"y":793,"width":836,"height":11}},{"id":"ad626700-2208-43f6-bd4f-320bffbc25b0","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":152,"box":{"x":68,"y":808,"width":636,"height":11}},{"id":"850db25f-dcbf-44e5-ae0a-ccf3f9d6aa88","block_type":"box","text":"If Class R Shares are held over time, these fees may exceed the maximum sales charge that an investor would","page_number":152,"box":{"x":102,"y":831,"width":791,"height":11}},{"id":"87413393-9436-457c-9059-e4fd6f1ff5aa","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":152,"box":{"x":69,"y":846,"width":440,"height":11}},{"id":"0cddcad4-db0d-481c-a9ed-8a82abf7eaa4","block_type":"box","text":"II-107","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6200c493-f625-47d0-86e4-0fe360026f91","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"22baf4df-6e40-4f77-9e6e-216cf0969784","block_type":"box","text":"Class K Shares","page_number":153,"box":{"x":69,"y":45,"width":109,"height":9}},{"id":"9a209367-7b91-44c1-9758-0a0e368820d5","block_type":"box","text":"Cer tain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":153,"box":{"x":102,"y":67,"width":797,"height":11}},{"id":"62d4e8e7-cac6-4e90-b5c7-87ec017efb8c","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":153,"box":{"x":69,"y":82,"width":772,"height":12}},{"id":"245b2750-8be0-4cb8-a2f5-2c07fb88759a","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":153,"box":{"x":69,"y":98,"width":827,"height":11}},{"id":"e0f1d7a8-5a51-430b-982e-c835f0513447","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":153,"box":{"x":69,"y":113,"width":817,"height":11}},{"id":"395db444-f553-436f-9559-ad710a46da2e","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":153,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"e42e1d7c-9688-4ed8-9b99-051998b9f76e","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":153,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"03f18923-70a8-460b-881b-7fd28d7e352a","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":153,"box":{"x":68,"y":158,"width":828,"height":11}},{"id":"bfb6733b-09d3-4f1f-8dfb-95f39d7a09be","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":153,"box":{"x":70,"y":173,"width":760,"height":11}},{"id":"5278da3a-6592-4f84-9f6d-15e746d577eb","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":153,"box":{"x":70,"y":188,"width":823,"height":12}},{"id":"5d4ade72-8a98-4eca-b47d-003e1b84a72f","block_type":"box","text":"banks that purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":153,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"d2eaf9d9-69c9-4009-be23-de0154b2809e","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":153,"box":{"x":70,"y":218,"width":814,"height":12}},{"id":"2c1eba68-d20e-4d58-b55a-3cd6e06f7da1","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":153,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"f26afd30-3bf4-4676-b1b2-219e7962b59c","block_type":"box","text":"offer such shares to fee-based advisory clients through an omnibus account held at the Fund or (b) transacts in the","page_number":153,"box":{"x":69,"y":249,"width":823,"height":11}},{"id":"f96f8f41-5533-49d4-9105-c0080fc01173","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":153,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"67aef870-dd2a-49e9-baef-acd9e517df11","block_type":"box","text":"met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have continually held","page_number":153,"box":{"x":69,"y":279,"width":833,"height":11}},{"id":"4e707c81-d183-4329-8745-fe4178f671d4","block_type":"box","text":"Class K Shares of the Fund or the respective Predecessor Fund in the same account since August 15, 2016. The","page_number":153,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"cb7e37a7-7143-4bad-bf70-facbc25f66fd","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":153,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"a22c8fab-ea4b-48d0-96c3-ca51029e85a8","block_type":"box","text":"distribution and marketing agreement.","page_number":153,"box":{"x":69,"y":325,"width":270,"height":11}},{"id":"695d689e-fc4c-4bce-a806-467033061f49","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":153,"box":{"x":102,"y":347,"width":734,"height":11}},{"id":"44a0f6cc-e208-460a-940a-76bc411ebf5f","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":153,"box":{"x":70,"y":362,"width":817,"height":11}},{"id":"9e34b204-4e72-464d-8b89-bea6b632f11f","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":153,"box":{"x":70,"y":377,"width":753,"height":12}},{"id":"813043a2-b223-4f9f-a4f3-19a66b4a19cf","block_type":"box","text":"Class G Shares","page_number":153,"box":{"x":69,"y":408,"width":110,"height":8}},{"id":"1389c3b6-3b37-4c5c-9893-463914dd78e3","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":153,"box":{"x":102,"y":430,"width":804,"height":11}},{"id":"9d745684-e28e-48f0-b1c2-2b2223f40d3c","block_type":"box","text":"are those where clients invest in the Fund through a single omnibus account in the name of a financial intermediary","page_number":153,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"3ba0a16a-29d0-4b8d-a3b5-5f27183334b8","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":153,"box":{"x":68,"y":460,"width":836,"height":12}},{"id":"4499f3d7-f426-4bd0-8875-849dc04c71c2","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":153,"box":{"x":69,"y":476,"width":803,"height":11}},{"id":"06cf0fd7-a2ca-4683-83dd-0705c79f600a","block_type":"box","text":"eligibility requirements.","page_number":153,"box":{"x":69,"y":491,"width":164,"height":11}},{"id":"7343f9db-e099-4156-a492-2dcd146eeb66","block_type":"box","text":"Service Shares","page_number":153,"box":{"x":68,"y":521,"width":109,"height":9}},{"id":"2eb35f36-aa77-4333-a3f0-a6b0def2bc51","block_type":"box","text":"Cer tain Funds offer Service Shares, which are available only to cer tain investors, including: (i) cer tain financial","page_number":153,"box":{"x":102,"y":543,"width":788,"height":12}},{"id":"6510c5da-fa34-4d03-9619-ea975f7ef0d6","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) cer tain persons who were","page_number":153,"box":{"x":70,"y":559,"width":815,"height":11}},{"id":"780549ef-1925-41b7-af14-6e53fb4cdb27","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":153,"box":{"x":69,"y":574,"width":693,"height":11}},{"id":"cd9262e3-67ab-47a2-b1c5-29ec423f2934","block_type":"box","text":"®","page_number":153,"box":{"x":763,"y":574,"width":6,"height":5}},{"id":"8440ec09-5a39-4eb4-97fb-2c9aad1b5818","block_type":"box","text":"Fund in 1996; and","page_number":153,"box":{"x":775,"y":574,"width":130,"height":10}},{"id":"79c682b2-5625-4215-93b2-b329b555b83c","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":153,"box":{"x":69,"y":589,"width":287,"height":11}},{"id":"a9a59c0a-8f07-4801-b72c-0700b72ea486","block_type":"box","text":"SM","page_number":153,"box":{"x":357,"y":589,"width":11,"height":5}},{"id":"556e4edc-3eff-4f3d-ab2d-19bdcf6222ca","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":153,"box":{"x":374,"y":589,"width":534,"height":11}},{"id":"b5424f0b-d8a7-4b17-82f6-cbaed69ae7b5","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set for th in the applicable Fund’s Prospectus.","page_number":153,"box":{"x":69,"y":604,"width":776,"height":11}},{"id":"600632f8-9b15-48d6-99c4-1118a0396c96","block_type":"box","text":"BlackRock Shares","page_number":153,"box":{"x":69,"y":634,"width":133,"height":9}},{"id":"8c7777fd-4482-46ce-9403-3d4e34e8f5b4","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":153,"box":{"x":102,"y":657,"width":760,"height":11}},{"id":"78682e1e-6b44-4211-a199-6a5285a5a59f","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":153,"box":{"x":69,"y":672,"width":813,"height":11}},{"id":"85b30ac5-c139-456f-bd3d-065f29e7d4d3","block_type":"box","text":"fee-based programs.","page_number":153,"box":{"x":68,"y":687,"width":145,"height":11}},{"id":"7957769e-a97e-468f-a6d8-0214591d63de","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":153,"box":{"x":69,"y":718,"width":348,"height":11}},{"id":"52b3f19c-5b2a-43a3-84c1-17a4d9b7a104","block_type":"box","text":"Each Fund has adopted a plan (each, a “Plan”) pursuant to Rule 12b-1 under the Investment Company Act with","page_number":153,"box":{"x":102,"y":740,"width":790,"height":11}},{"id":"ff98003f-3335-4185-a6a2-7364de7ed671","block_type":"box","text":"respect to cer tain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":153,"box":{"x":69,"y":755,"width":761,"height":11}},{"id":"3a09324a-7052-4c8d-9378-5d2f7b52d405","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":153,"box":{"x":69,"y":770,"width":541,"height":12}},{"id":"9f64e832-490b-427f-8126-21983471afee","block_type":"box","text":"Pursuant to the Plans, a Fund may pay BRIL and/or BlackRock, or any other affiliate or significant shareholder of","page_number":153,"box":{"x":102,"y":793,"width":803,"height":11}},{"id":"65cec312-5513-4212-b6b9-c5fe35abcd22","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":153,"box":{"x":70,"y":808,"width":783,"height":11}},{"id":"e06a3f54-fe3f-442f-bf4c-918ed0a89667","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described fur ther below, only Investor C and Class R Shares","page_number":153,"box":{"x":70,"y":823,"width":809,"height":11}},{"id":"e217c75e-aab0-44d9-adde-35daee0b4519","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":153,"box":{"x":69,"y":838,"width":360,"height":11}},{"id":"b73f27dd-52e9-4870-85bc-4dafb19bd5da","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":153,"box":{"x":102,"y":861,"width":770,"height":11}},{"id":"db84bf4b-c506-45c3-a8e1-32835b0fb345","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is","page_number":153,"box":{"x":69,"y":876,"width":824,"height":11}},{"id":"19247a5b-ae44-43d8-9c85-3e65d0e65227","block_type":"box","text":"not obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":153,"box":{"x":69,"y":891,"width":812,"height":12}},{"id":"fea9a842-10b2-4fa9-b569-0e1b5b897809","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":153,"box":{"x":68,"y":906,"width":355,"height":11}},{"id":"8f06ef55-63bf-4967-9ed4-de53af2e0bba","block_type":"box","text":"II-108","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0e8b1fb4-a371-4d25-8847-204122db6d73","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ff1e359d-6660-480a-9f70-f7be38508eb0","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":154,"box":{"x":102,"y":45,"width":727,"height":11}},{"id":"f258a505-5099-4ed9-8f9a-e73f825ad550","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":154,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"c53f788b-21c1-49bb-8e3c-d516c56b9e01","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":154,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"49e78a66-2adb-495c-9d19-9217f8120781","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":154,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"69a1bf8b-a8f1-4ef7-97b2-070bb48ea9e2","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":154,"box":{"x":68,"y":105,"width":786,"height":11}},{"id":"84fe7a57-3288-413a-94db-4ea456c5f1cf","block_type":"box","text":"Service and Class R Shares of a Fund. Such services are intended to supplement the services provided by the","page_number":154,"box":{"x":69,"y":120,"width":789,"height":11}},{"id":"d64e9da8-096c-4ccd-a1e9-d83d54fd166d","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":154,"box":{"x":70,"y":135,"width":562,"height":12}},{"id":"98955321-346d-4c1f-870f-87eca769a804","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":154,"box":{"x":101,"y":158,"width":798,"height":11}},{"id":"f6254641-fc5d-4014-a6ff-e79f2d89f2df","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":154,"box":{"x":69,"y":173,"width":808,"height":11}},{"id":"a3a0636c-a232-42f1-8e73-dd382615e278","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":154,"box":{"x":70,"y":188,"width":776,"height":12}},{"id":"325bb1a5-6e6a-4b77-9f60-7642697127a0","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":154,"box":{"x":70,"y":203,"width":835,"height":12}},{"id":"4c78c4ab-3c31-4f85-a111-8adfe75b1d2b","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":154,"box":{"x":69,"y":218,"width":791,"height":12}},{"id":"9799ba3b-6d8e-43d4-bccd-8124efb44a80","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":154,"box":{"x":69,"y":234,"width":813,"height":11}},{"id":"ef1afead-72e9-44c2-b698-0982fd819340","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":154,"box":{"x":68,"y":249,"width":501,"height":11}},{"id":"551e0b77-ba2c-49fd-86c6-d0df60ff9324","block_type":"box","text":"Payments under the Plans are based on a percentage of average daily net assets attributable to the shares in","page_number":154,"box":{"x":102,"y":271,"width":783,"height":12}},{"id":"e0a04b10-1734-42ca-b84e-291bd8f95fc1","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":154,"box":{"x":68,"y":286,"width":810,"height":12}},{"id":"4473e402-5f18-4e1b-bb59-ca377f7ea54e","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":154,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"86b2ad24-56c1-46af-bfa4-5a1529982c69","block_type":"box","text":"with respect to the related class. Information with respect to the payments under the Plans and expenses incurred in","page_number":154,"box":{"x":68,"y":317,"width":836,"height":11}},{"id":"0e462e26-3922-4165-83fc-9311894365d2","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":154,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"2bccd075-90f3-49c3-92ea-02b39f9cb69c","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":154,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"191a4408-74b9-402b-8ef1-a2b7c05e2775","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":154,"box":{"x":68,"y":362,"width":803,"height":11}},{"id":"7b5a0afa-5e39-46ba-85d4-63686a6bf6ab","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":154,"box":{"x":68,"y":377,"width":788,"height":12}},{"id":"8af4fb57-4cee-435d-9e37-e55359b4b72a","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":154,"box":{"x":69,"y":393,"width":798,"height":11}},{"id":"7edb5e2f-8842-4813-96fc-9e49fde1f04c","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":154,"box":{"x":69,"y":407,"width":755,"height":12}},{"id":"ef45311b-4ee6-4757-9534-aeffc42156a5","block_type":"box","text":"compensation for selling different classes of shares.","page_number":154,"box":{"x":69,"y":423,"width":375,"height":11}},{"id":"7a9515af-ce31-4fd2-b061-5c126e7e9184","block_type":"box","text":"Each Plan is subject to the provisions of Rule 12b-1 under the Investment Company Act. In their consideration of","page_number":154,"box":{"x":102,"y":445,"width":803,"height":11}},{"id":"8d378c9f-c161-4cb6-95c4-36ad7bb3ce6b","block_type":"box","text":"a Plan, the Directors must consider all factors they deem relevant, including information as to the benefits of the Plan","page_number":154,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"38c464ab-88e6-4be5-8e53-eb1f486dda91","block_type":"box","text":"to the Fund and the related class of shareholders. In approving a Plan in accordance with Rule 12b-1, the non","page_number":154,"box":{"x":68,"y":475,"width":788,"height":12}},{"id":"6317afdd-8cd1-4b6d-ab0c-3b486aadae2c","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":154,"box":{"x":70,"y":491,"width":818,"height":9}},{"id":"e40b7c0b-0005-4c28-afe8-4ccb0426c525","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quar terly","page_number":154,"box":{"x":69,"y":506,"width":824,"height":11}},{"id":"764b3fe0-bb2b-4650-acb3-b6467498467b","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":154,"box":{"x":69,"y":521,"width":821,"height":11}},{"id":"78503cb7-5e3a-4ea2-a607-fb8f0cbb82b0","block_type":"box","text":"(ii) the Plan will continue in effect for so long as its continuance is approved at least annually by the Board of","page_number":154,"box":{"x":69,"y":536,"width":778,"height":11}},{"id":"33b9b5cc-748f-41b4-bcfe-1e12e32db083","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":154,"box":{"x":70,"y":551,"width":773,"height":11}},{"id":"03c0ad12-d520-4972-91d5-3320cf6e4870","block_type":"box","text":"Company Act) and who have no direct or indirect financial interest in the operation of the Plan or any agreement","page_number":154,"box":{"x":69,"y":566,"width":796,"height":11}},{"id":"f515e742-3649-4b7d-9628-98a0e29f1841","block_type":"box","text":"entered into in connection with the Plan (the “12b-1 Directors”), acting in person at a meeting called for said purpose","page_number":154,"box":{"x":69,"y":581,"width":837,"height":12}},{"id":"e9fae9eb-9e3d-4c56-86ec-fe7f1c7afa6e","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":154,"box":{"x":70,"y":597,"width":801,"height":11}},{"id":"89440a10-9553-4c0d-bf74-30f7a0620641","block_type":"box","text":"approved by the Board of Directors, including the 12b-1 Directors, acting in person at a meeting called for said","page_number":154,"box":{"x":69,"y":612,"width":787,"height":11}},{"id":"12c6f608-abf9-4dca-b947-05fbb28b1ca4","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":154,"box":{"x":70,"y":627,"width":802,"height":11}},{"id":"74d4ebd4-ec18-446a-995e-5b9c25cd7a36","block_type":"box","text":"services pursuant to the Plan shall be effective only upon approval by a vote of a majority of the outstanding shares","page_number":154,"box":{"x":69,"y":642,"width":826,"height":11}},{"id":"918163f0-2983-4003-99c2-033ff5e6a565","block_type":"box","text":"of such class and by a majority of the Board of Directors, including the 12b-1 Directors, acting in person at a meeting","page_number":154,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"830996e7-334a-4cd9-ad7e-d95474efb839","block_type":"box","text":"called for said purpose; and (v) while the Plan remains in effect, the selection and nomination of the Fund’s Directors","page_number":154,"box":{"x":69,"y":672,"width":836,"height":11}},{"id":"f2824481-901f-4d64-80b6-768ad7df70ee","block_type":"box","text":"who are not “interested persons” of the Fund shall be committed to the discretion of the Fund’s non-interested","page_number":154,"box":{"x":68,"y":687,"width":792,"height":11}},{"id":"22c7a07f-a59c-4950-8eba-740698fffc55","block_type":"box","text":"Directors. Rule 12b-1 fur ther requires that each Fund preserve copies of each Plan and any repor t made pursuant to","page_number":154,"box":{"x":70,"y":702,"width":831,"height":11}},{"id":"126873c0-b771-4386-af28-deea5af50fe7","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such repor t, the first two years in an","page_number":154,"box":{"x":69,"y":717,"width":807,"height":12}},{"id":"400dc595-b64d-4d54-a8d1-7e22dfbd586f","block_type":"box","text":"easily accessible place.","page_number":154,"box":{"x":69,"y":733,"width":167,"height":11}},{"id":"d484e691-f108-4e9b-9cf1-eaa0f8f6b9f8","block_type":"box","text":"Each Plan is terminable as to any class of shares without penalty at any time by a vote of a majority of the 12b-1","page_number":154,"box":{"x":102,"y":755,"width":804,"height":11}},{"id":"9453d813-4b4c-4892-91f2-e91929ccb642","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":154,"box":{"x":70,"y":770,"width":542,"height":11}},{"id":"326eef38-3cc7-4cc1-80cf-2d42ff59b478","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":154,"box":{"x":102,"y":793,"width":734,"height":11}},{"id":"997021ed-5078-45a4-9d37-0dd3f6f5db93","block_type":"box","text":"information relating to the fees paid by your Fund to the Distributor under each Plan during the Fund’s most recent","page_number":154,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"23ad73bf-aae6-4979-be43-8ed58d6815ec","block_type":"box","text":"fiscal year.","page_number":154,"box":{"x":68,"y":823,"width":75,"height":11}},{"id":"d37380e2-6d8f-47cb-9c8c-92f193df7d6c","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":154,"box":{"x":69,"y":854,"width":396,"height":11}},{"id":"6aa76888-f635-41bc-9bc1-b8d8413cafa7","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":154,"box":{"x":101,"y":876,"width":777,"height":11}},{"id":"469a7016-e2c7-4a6b-8497-17fcdc12766c","block_type":"box","text":"imposes a limitation on cer tain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":154,"box":{"x":70,"y":891,"width":835,"height":12}},{"id":"dc12b899-43ef-4ed4-b40d-eb6ca60d3a1e","block_type":"box","text":"the distribution fee and the CDSC borne by the Investor C Shares. This limitation does not apply to the shareholder","page_number":154,"box":{"x":68,"y":906,"width":822,"height":12}},{"id":"d40cb6a6-caf1-4f34-9993-47ea5315e955","block_type":"box","text":"II-109","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1decb883-b356-4e6a-bfa0-cad7822365af","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fef4f8ed-d1d0-4e78-b9df-d5d73abf8336","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":155,"box":{"x":69,"y":45,"width":778,"height":11}},{"id":"b2f3c00f-d477-4b2d-afcf-9bf57062c6d5","block_type":"box","text":"distribution fee payments and CDSCs payable by a Fund to (1) 6.25% of eligible gross sales of Investor C and Class R","page_number":155,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"4468c669-33d0-4c91-be25-08b8124c5687","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":155,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"0f351958-4a7d-4c0e-8065-ab1ac808e5f5","block_type":"box","text":"(2) interest on the unpaid balance for the respective class, computed separately, at the prime rate plus 1% (the","page_number":155,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"c6ca1338-5ac7-4725-a3fe-184ed3d9594f","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":155,"box":{"x":69,"y":105,"width":839,"height":11}},{"id":"7b4803e7-08ac-42b3-a0b3-f169e8dd5aa5","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI","page_number":155,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"1c12c136-8c06-44b9-963d-7bc5eaa3c083","block_type":"box","text":"for comparative information as of your Fund’s most recent fiscal year end with respect to, if applicable, the Investor C","page_number":155,"box":{"x":68,"y":135,"width":839,"height":11}},{"id":"3d9ae216-8b7d-40fb-bee5-0ba4a521cd56","block_type":"box","text":"and Class R Shares of your Fund.","page_number":155,"box":{"x":69,"y":150,"width":236,"height":12}},{"id":"f8dec7e7-8d2c-413f-90d1-39861daf527b","block_type":"box","text":"Other Payments by the Fund","page_number":155,"box":{"x":69,"y":181,"width":206,"height":11}},{"id":"67635ced-cf9c-47d8-a7ba-610338928b1a","block_type":"box","text":"In addition to shareholder servicing fees that a Fund may pay to a Service Organization pursuant to the Plan and","page_number":155,"box":{"x":102,"y":203,"width":800,"height":12}},{"id":"c5e95c53-35b0-47b3-a371-c2e90c3fdcdc","block_type":"box","text":"fees the Fund pays to its Transfer Agent, BlackRock, on behalf of a Fund, may enter into non-Plan agreements with","page_number":155,"box":{"x":68,"y":218,"width":816,"height":12}},{"id":"ca2b9834-a75e-4f82-a9fa-23968f2b796c","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":155,"box":{"x":69,"y":234,"width":794,"height":11}},{"id":"5ed1047b-822f-460c-a5c1-f836cd5fca6b","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":155,"box":{"x":69,"y":249,"width":792,"height":11}},{"id":"518e2018-2e14-4931-8fa3-8f0a434079f5","block_type":"box","text":"generally based on either (1) a percentage of the average daily net assets of Fund shareholders serviced by a Service","page_number":155,"box":{"x":68,"y":264,"width":841,"height":11}},{"id":"ae2c7de6-d158-4f86-81e1-81165039819c","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":155,"box":{"x":69,"y":279,"width":831,"height":11}},{"id":"c5252a6f-e2d5-462c-afce-3f33796cd311","block_type":"box","text":"of these payments may be substantial.","page_number":155,"box":{"x":69,"y":294,"width":276,"height":11}},{"id":"5e3ce585-b8bc-4825-a652-691f22eeff32","block_type":"box","text":"Additional Payments by BlackRock","page_number":155,"box":{"x":68,"y":324,"width":256,"height":11}},{"id":"ad4f97a6-dc64-4dbf-9ab2-cdb2485ce5e7","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":155,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"91a2e929-1f5e-4562-9db0-b2ff8a4520a7","block_type":"box","text":"may compensate Service Organizations for the sale and distribution of shares of a Fund, for services to a Fund and","page_number":155,"box":{"x":69,"y":362,"width":823,"height":11}},{"id":"4d5035f5-709c-477d-b24f-fa4c94192c77","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":155,"box":{"x":70,"y":377,"width":768,"height":12}},{"id":"423bacd7-cd9a-4cf8-a425-87f80315ca63","block_type":"box","text":"obligations itself or may arrange for a third par ty to per form them. These payments, which are not made pursuant to","page_number":155,"box":{"x":69,"y":392,"width":830,"height":12}},{"id":"d5de837a-5502-4529-bcf4-aa373b2b2aca","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":155,"box":{"x":69,"y":407,"width":599,"height":12}},{"id":"3d8a02c0-ec10-4afc-885e-6a0602f44ae0","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":155,"box":{"x":101,"y":430,"width":776,"height":11}},{"id":"746d8578-2d75-4af4-84bb-382aca45ba09","block_type":"box","text":"paid by a Fund to BlackRock for various services, such as investment advisory services). These payments are not an","page_number":155,"box":{"x":70,"y":445,"width":832,"height":11}},{"id":"47e9409b-ff93-489b-ba11-4d908176f209","block_type":"box","text":"additional charge to a Fund or its shareholders and do not change the price paid by shareholders for the purchase of","page_number":155,"box":{"x":69,"y":460,"width":833,"height":12}},{"id":"db1437bf-7bbd-46b0-9237-b98f12bd7069","block_type":"box","text":"a Fund’s shares or the amount a Fund receives as proceeds from such purchases. Additional Payments made to","page_number":155,"box":{"x":69,"y":475,"width":802,"height":12}},{"id":"8f1456c3-715a-4f57-878a-4d1c660f9f30","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":155,"box":{"x":69,"y":491,"width":802,"height":11}},{"id":"02fea205-f2f6-4f1e-9390-97a04f9f5d17","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":155,"box":{"x":70,"y":506,"width":796,"height":11}},{"id":"fad3e67d-abb0-4f7a-9d2f-aa5ac01962ac","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":155,"box":{"x":69,"y":521,"width":836,"height":11}},{"id":"62a18ceb-5f22-41bf-993f-91c72c2c0742","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":155,"box":{"x":69,"y":536,"width":828,"height":11}},{"id":"fbb3cc2b-46ba-4417-810c-0ed809529f4c","block_type":"box","text":"such payments in connection with the sale and distribution of Fund shares, are required to be disclosed. While FINRA","page_number":155,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"a221e521-2f5c-4f9e-a61f-5089f8aea39d","block_type":"box","text":"regulations limit the sales charges that shareholders may bear, there are no limits with regard to the amounts that","page_number":155,"box":{"x":69,"y":566,"width":818,"height":11}},{"id":"2c6fe7dd-5295-4122-bad8-0cedb7e38e57","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":155,"box":{"x":70,"y":581,"width":294,"height":11}},{"id":"bda9483f-80f0-46f9-93d3-dc6c644d5411","block_type":"box","text":"Additional Payments may be made as a fixed dollar amount, may be based on the number of Customer accounts","page_number":155,"box":{"x":101,"y":604,"width":803,"height":11}},{"id":"c721d150-7914-4d28-b458-ca6ff26f8eff","block_type":"box","text":"maintained by a Service Organization, may be based on a percentage of the value of shares sold to, or held by,","page_number":155,"box":{"x":69,"y":619,"width":792,"height":11}},{"id":"0849620b-4839-428d-a995-0e0df3afd9f1","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":155,"box":{"x":69,"y":634,"width":623,"height":12}},{"id":"f507fcb0-68ce-45a7-b98e-df59dff0661e","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":155,"box":{"x":102,"y":657,"width":765,"height":11}},{"id":"a5bc377d-df00-4434-a02f-d4a67215fc25","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":155,"box":{"x":69,"y":672,"width":841,"height":11}},{"id":"e9a0e462-f8d3-43fb-9974-1abbc7fbab3d","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":155,"box":{"x":68,"y":687,"width":806,"height":11}},{"id":"69f79969-fb25-4d85-af50-c8e7e03ad40c","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":155,"box":{"x":69,"y":702,"width":776,"height":11}},{"id":"5e860266-c029-43b1-87fd-690e14e79704","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":155,"box":{"x":70,"y":717,"width":802,"height":12}},{"id":"20345957-c6da-46cb-a5d3-9cded82dd195","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In cer tain","page_number":155,"box":{"x":68,"y":732,"width":811,"height":12}},{"id":"d72eb00c-4fcf-4ef7-b736-62bc98ea3ff3","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":155,"box":{"x":69,"y":748,"width":538,"height":11}},{"id":"2e7eda31-3f80-427e-83aa-1d888d74ebee","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":155,"box":{"x":101,"y":770,"width":795,"height":12}},{"id":"52289cac-1820-4d37-8c61-6b8740fc137f","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":155,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"3e054b7c-e0c7-414f-a084-80b629937572","block_type":"box","text":"same Service Organization, or one or more of its affiliates, may receive payments under more than one category of","page_number":155,"box":{"x":69,"y":801,"width":823,"height":11}},{"id":"4878783f-51b1-4fec-93b1-8086fdc1b85c","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":155,"box":{"x":68,"y":816,"width":819,"height":11}},{"id":"5fbd1db7-e706-4579-9e31-4b9ec85025bb","block_type":"box","text":"Funds.","page_number":155,"box":{"x":70,"y":831,"width":44,"height":9}},{"id":"f35ce1b5-ea99-4edb-bde3-861757a48afc","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":155,"box":{"x":101,"y":854,"width":270,"height":11}},{"id":"19ac23f4-7c7f-4439-8806-de03f7b6f174","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. 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Conflicts","page_number":159,"box":{"x":102,"y":872,"width":78,"height":9}},{"id":"c9b6781c-e1fc-4a73-92e5-d53fa0b6fa06","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":159,"box":{"x":101,"y":895,"width":710,"height":11}},{"id":"004a0c01-070d-4f8e-a73f-9e74149c89de","block_type":"box","text":"arrangements may be an impor tant factor in the Service Organization’s willingness to suppor t the sale of a Fund","page_number":159,"box":{"x":69,"y":910,"width":803,"height":11}},{"id":"2413ceb7-6622-46e5-9c61-19c1f3efe2e4","block_type":"box","text":"II-114","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"78caf83f-da77-44dd-bedb-37f7fda7a27b","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6a2b8284-c1f0-4722-8823-0049d46d6aa6","block_type":"box","text":"and/or par ticular share class through its distribution system or to per form services with respect to such Fund.","page_number":160,"box":{"x":69,"y":45,"width":788,"height":11}},{"id":"40aa949b-3f80-44af-976d-baf08f9d4836","block_type":"box","text":"Additional Payments and other incentive arrangements may also be impor tant factors in the Service Organization’s","page_number":160,"box":{"x":68,"y":60,"width":819,"height":11}},{"id":"4c3b00b9-d71d-4078-b75a-324bdf34a076","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":160,"box":{"x":68,"y":75,"width":473,"height":11}},{"id":"d5719f88-012b-4652-8c86-2758411ebaaa","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":160,"box":{"x":102,"y":98,"width":793,"height":11}},{"id":"096b7fad-7e09-4028-8ebf-0699f76c556a","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":160,"box":{"x":69,"y":113,"width":835,"height":11}},{"id":"5332d939-6470-4333-a81a-008f21b35959","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":160,"box":{"x":68,"y":128,"width":833,"height":11}},{"id":"e27b0af3-ab1a-4916-a6e6-ecf43f294955","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":160,"box":{"x":70,"y":143,"width":830,"height":11}},{"id":"9ce62ee3-5d08-437f-a883-148360481bd9","block_type":"box","text":"Service Organizations may have financial incentives for recommending a par ticular Fund, share class or fund","page_number":160,"box":{"x":102,"y":166,"width":774,"height":11}},{"id":"2845dcf2-0d5b-4fc3-9aea-c1d05e5e2723","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":160,"box":{"x":69,"y":181,"width":794,"height":11}},{"id":"ca3f5131-3674-4f09-9879-cb8324523998","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":160,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"c4fa012d-7e09-493a-9de6-e25b629e436e","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":160,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"f6cba1f7-3c7f-4423-846a-d76ef1ede06e","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":160,"box":{"x":69,"y":226,"width":723,"height":11}},{"id":"ebc77cad-dbcd-409c-8800-222709d6c135","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":160,"box":{"x":102,"y":249,"width":759,"height":11}},{"id":"3f6dc7ff-1544-4288-ad6f-7caab2702b48","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":160,"box":{"x":69,"y":264,"width":760,"height":11}},{"id":"e4755011-cf7b-45db-a18f-1476161fff68","block_type":"box","text":"appropriate.","page_number":160,"box":{"x":69,"y":279,"width":84,"height":11}},{"id":"ecc5e846-20b2-4b25-945d-c7dccf88f0b9","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":160,"box":{"x":160,"y":279,"width":738,"height":11}},{"id":"cb5e743e-261d-41f9-a7df-96b2d122aa36","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":160,"box":{"x":69,"y":294,"width":795,"height":11}},{"id":"43fc9df7-5549-4235-b7d6-efbeec37e085","block_type":"box","text":"described above.","page_number":160,"box":{"x":69,"y":309,"width":122,"height":9}},{"id":"4070d3d4-5a1b-4e3f-bf71-81959f3b1948","block_type":"box","text":"REDEMPTION OF SHARES","page_number":160,"box":{"x":385,"y":339,"width":208,"height":9}},{"id":"68b5b6fd-49b7-4bb4-837e-0800543987b6","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":160,"box":{"x":102,"y":361,"width":798,"height":12}},{"id":"750f4f23-0ef0-4236-9061-f4ff7b3ac4c2","block_type":"box","text":"the right to redeem some or all of its shares in-kind under unusual circumstances (valued in the same way as they","page_number":160,"box":{"x":68,"y":377,"width":817,"height":11}},{"id":"ed7fa578-e96e-47ec-997a-b60ec6dd9545","block_type":"box","text":"would be valued for purposes of computing a Fund’s NAV), in order to protect the interests of remaining shareholders,","page_number":160,"box":{"x":68,"y":392,"width":840,"height":11}},{"id":"d756143e-8184-49ff-a6d0-b5e690925917","block_type":"box","text":"or to accommodate a request by a par ticular shareholder that does not adversely affect the interest of the remaining","page_number":160,"box":{"x":69,"y":407,"width":834,"height":11}},{"id":"e3baa321-2a5a-4049-ae4e-c51564dda0d0","block_type":"box","text":"shareholders, by delivery of securities and other assets selected from the Fund’s por tfolio holdings at its discretion.","page_number":160,"box":{"x":69,"y":422,"width":829,"height":11}},{"id":"cab9c183-1c0d-4688-b081-69180e000a5f","block_type":"box","text":"In-kind payment means payment will be made in por tfolio securities and other assets rather than cash. If this occurs,","page_number":160,"box":{"x":70,"y":437,"width":834,"height":11}},{"id":"aee2c500-2e27-4719-b0f6-22ce96c87083","block_type":"box","text":"the redeeming shareholder might incur brokerage or other transaction costs to conver t the securities and other","page_number":160,"box":{"x":68,"y":452,"width":793,"height":11}},{"id":"79625e45-dda9-4ca6-a32d-3041fdd79606","block_type":"box","text":"assets to cash. In an in-kind redemption, a pro rata por tion of a Fund’s por tfolio holdings will generally be distributed","page_number":160,"box":{"x":69,"y":467,"width":834,"height":12}},{"id":"588c3fe3-5e41-4058-8228-769a0f95921b","block_type":"box","text":"to the redeeming shareholder, but an Index Fund may, under cer tain circumstances, deviate from pro rata redemption","page_number":160,"box":{"x":68,"y":482,"width":838,"height":12}},{"id":"e6184924-903a-433b-a031-b7bc9f0117f3","block_type":"box","text":"if the securities and other assets to be distributed are deemed to be a fair representation of por tfolio holdings and","page_number":160,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"07bb87c5-0c42-4a16-a2a2-7388f386d9ac","block_type":"box","text":"the interests of the remaining shareholders in the Index Fund are not diluted. Each Fund has elected, however, to be","page_number":160,"box":{"x":68,"y":513,"width":831,"height":11}},{"id":"dd65bd1c-4882-47f8-a068-0a1a7c1c566d","block_type":"box","text":"governed by Rule 18f-1 under the Investment Company Act so that the Fund is obligated to redeem its shares solely","page_number":160,"box":{"x":68,"y":528,"width":828,"height":11}},{"id":"2fcfff57-7b68-46fb-a347-39df13569257","block_type":"box","text":"in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period for any shareholder of the Fund. The","page_number":160,"box":{"x":70,"y":542,"width":826,"height":12}},{"id":"0209b97c-3781-418d-8fde-5363f2c69157","block_type":"box","text":"redemption price is the NAV per share next determined after the initial receipt of proper notice of redemption. The","page_number":160,"box":{"x":69,"y":558,"width":810,"height":11}},{"id":"c70530ca-102d-4750-9969-b6823f4d6908","block_type":"box","text":"value of shares of each Fund at the time of redemption may be more or less than your cost at the time of purchase,","page_number":160,"box":{"x":68,"y":573,"width":827,"height":11}},{"id":"8414d6a6-3cc1-4a75-999c-a7af6ac45cbf","block_type":"box","text":"depending in par t on the market value of the securities held by the Fund at such time. Except for any CDSC that may","page_number":160,"box":{"x":69,"y":588,"width":832,"height":12}},{"id":"1cb9c8bc-349e-4dc5-8226-aaaf4545a655","block_type":"box","text":"be applicable, there will be no redemption charge if your redemption request is sent directly to the Transfer Agent. If","page_number":160,"box":{"x":69,"y":603,"width":828,"height":12}},{"id":"ead401c3-d1ae-4a0c-a225-b997a1fff37c","block_type":"box","text":"you are liquidating your holdings you will receive all dividends reinvested through the date of redemption.","page_number":160,"box":{"x":68,"y":618,"width":746,"height":12}},{"id":"51004be8-c951-4c95-9ee4-1101bb0a1720","block_type":"box","text":"The right to redeem shares may be suspended or payment upon redemption may be delayed for more than seven","page_number":160,"box":{"x":101,"y":641,"width":807,"height":11}},{"id":"1ae2c15d-6c5c-4a4d-b555-63f39a706319","block_type":"box","text":"days only (i) for any period during which trading on the NYSE is restricted as determined by the Commission or during","page_number":160,"box":{"x":69,"y":656,"width":835,"height":12}},{"id":"a0bc06ff-5d10-4ca1-bbce-1cf6c1503334","block_type":"box","text":"which the NYSE is closed (other than customary weekend and holiday closings), (ii) for any period during which an","page_number":160,"box":{"x":68,"y":671,"width":811,"height":12}},{"id":"82b35fa7-9914-4f61-a688-89e471a3350c","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":160,"box":{"x":69,"y":686,"width":741,"height":12}},{"id":"871ce083-7d90-4697-a863-72e2054450c6","block_type":"box","text":"determination of the NAV of a Fund is not reasonably practicable, or (iii) for such other periods as the Commission","page_number":160,"box":{"x":69,"y":702,"width":813,"height":11}},{"id":"cd135531-c978-4bfe-8eed-1a07b68dc9f5","block_type":"box","text":"may by order permit for the protection of shareholders of the Fund. (A Fund may also suspend or postpone the","page_number":160,"box":{"x":69,"y":717,"width":787,"height":11}},{"id":"a4dd2a57-440a-485b-b815-83ca254609a4","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":160,"box":{"x":69,"y":732,"width":685,"height":11}},{"id":"01b36fab-8f98-49d3-a072-996a0d39f666","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":160,"box":{"x":102,"y":755,"width":798,"height":11}},{"id":"6d6e100d-2b20-47af-b66c-8498b50b2a3c","block_type":"box","text":"credit with a syndicate of banks that is intended to provide the Fund with a temporary source of cash to be used to","page_number":160,"box":{"x":69,"y":770,"width":820,"height":11}},{"id":"3acc1555-f39d-4243-98b6-8fd1499cd529","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":160,"box":{"x":69,"y":785,"width":653,"height":11}},{"id":"d7b4451d-569b-49f5-a148-684d61adaa7e","block_type":"box","text":"Each Fund may redeem shares involuntarily to reimburse the Fund for any loss sustained by reason of the failure","page_number":160,"box":{"x":102,"y":807,"width":803,"height":12}},{"id":"43c6df7b-7ec4-4d70-8b2b-5f60b0f7470a","block_type":"box","text":"of a shareholder to make full payment for shares purchased by the shareholder or to collect any charge relating to a","page_number":160,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"a9234919-36ee-4956-bee7-0cddfa914d01","block_type":"box","text":"transaction effected for the benefit of a shareholder. Each Fund reserves the express right to redeem shares of the","page_number":160,"box":{"x":68,"y":838,"width":824,"height":11}},{"id":"b2d1cbb4-8e36-4588-8271-703334709352","block_type":"box","text":"Fund involuntarily at any time if the Fund’s Board of Directors determines, in its sole discretion, that failure to do so","page_number":160,"box":{"x":70,"y":853,"width":825,"height":11}},{"id":"f32460e6-c9cd-4f4d-9491-588d4910d4e8","block_type":"box","text":"may have adverse consequences to the holders of shares in the Fund. Upon such redemption the holders of shares","page_number":160,"box":{"x":69,"y":868,"width":825,"height":11}},{"id":"1a3b9f4d-05cf-40fa-a67b-2de0f6585e8e","block_type":"box","text":"so redeemed shall have no fur ther right with respect thereto other than to receive payment of the redemption price.","page_number":160,"box":{"x":69,"y":883,"width":823,"height":11}},{"id":"f11148c5-f03e-4ac7-9334-1c034fc75dcb","block_type":"box","text":"II-115","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ff9fb54f-12b5-4e97-a794-2fc451500277","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad8063d2-1448-45a7-b792-3003f8e052a6","block_type":"box","text":"Redemption","page_number":161,"box":{"x":69,"y":45,"width":86,"height":11}},{"id":"c18d6ecb-718e-46e1-882e-2068f6aaded3","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":161,"box":{"x":70,"y":67,"width":481,"height":11}},{"id":"e8e9d4e0-6c22-4c8e-ad64-f84e51546100","block_type":"box","text":"Redeem by Telephone:","page_number":161,"box":{"x":102,"y":90,"width":162,"height":11}},{"id":"a689c205-0818-4e48-a8af-8a3111d145a6","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":161,"box":{"x":270,"y":90,"width":571,"height":11}},{"id":"888beaf6-9f4e-4cff-a830-2222bd6031c2","block_type":"box","text":"telephone request if cer tain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":161,"box":{"x":68,"y":104,"width":829,"height":12}},{"id":"e4145871-74a2-4d67-9919-978113b79fe2","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":161,"box":{"x":69,"y":120,"width":798,"height":12}},{"id":"0a21ca39-1ebc-4e7a-81c0-98f4a2fa3461","block_type":"box","text":"Cer tain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":161,"box":{"x":69,"y":135,"width":838,"height":11}},{"id":"cdd7458f-e470-4516-abc4-9ec77830751a","block_type":"box","text":"verified banking information on file; or (ii) the proceeds are not paid to the record owner at the record address, must","page_number":161,"box":{"x":68,"y":150,"width":831,"height":12}},{"id":"03380e58-982a-4e6b-a6bc-701aff24af5d","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":161,"box":{"x":69,"y":166,"width":822,"height":11}},{"id":"fa953c14-66b4-436b-967c-90ae527b663e","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":161,"box":{"x":70,"y":181,"width":791,"height":11}},{"id":"5a24d566-74cc-4e61-98c8-d6e501a16f82","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":161,"box":{"x":68,"y":196,"width":818,"height":11}},{"id":"6abc0137-45d8-4f9f-92a4-a0c6e5cc6c30","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":161,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"521e148d-f050-47f6-ab39-bcd6bc9163af","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":161,"box":{"x":69,"y":226,"width":803,"height":11}},{"id":"f933203c-fab9-4da4-ad80-befd6a43b301","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":161,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"bb394968-3276-4c16-9238-6053606d2400","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":161,"box":{"x":69,"y":256,"width":825,"height":12}},{"id":"38f9fd25-4c52-45dc-9871-f2862f20a527","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":161,"box":{"x":68,"y":271,"width":840,"height":12}},{"id":"87566aa1-6b91-40e6-8a22-b7ffbe8e3384","block_type":"box","text":"will not be accepted. A notary public seal will not be acceptable. Generally, a properly signed written request with any","page_number":161,"box":{"x":68,"y":287,"width":835,"height":11}},{"id":"542774fb-7a5c-487e-9e3f-a61216e69c47","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":161,"box":{"x":69,"y":302,"width":828,"height":11}},{"id":"c8f68df9-b892-494c-9833-99c35bc8ac29","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":161,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"978051b6-5be8-408b-8509-a41fc43af835","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":161,"box":{"x":70,"y":332,"width":603,"height":11}},{"id":"108996f5-dc08-4a4f-be66-af39fa7b8798","block_type":"box","text":"If you make a redemption request before a Fund has collected payment for the purchase of shares, the Fund","page_number":161,"box":{"x":102,"y":355,"width":774,"height":11}},{"id":"cea2dd79-53b8-4fb9-882d-bb1ac661a103","block_type":"box","text":"may delay mailing your proceeds. This delay will usually not exceed ten days. A Fund, its Administrators and the","page_number":161,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"20207c19-1b7b-4b53-929e-08c604c84e15","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":161,"box":{"x":70,"y":385,"width":821,"height":11}},{"id":"d4274e45-0ab8-4834-a5de-42ae81dcd046","block_type":"box","text":"Telephone redemption requests will not be honored if: (i) the accountholder is deceased, (ii) the proceeds are to be","page_number":161,"box":{"x":68,"y":400,"width":823,"height":11}},{"id":"13ee840a-1b7a-402f-8e97-bd1cb6801869","block_type":"box","text":"sent to someone other than the shareholder of record, (iii) a Fund does not have verified information on file, (iv) the","page_number":161,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"7b743d8b-1510-4094-8166-0ecae0e4c12c","block_type":"box","text":"request is by an individual other than the accountholder of record, (v) the account is held by joint tenants who are","page_number":161,"box":{"x":69,"y":430,"width":809,"height":11}},{"id":"4853181e-1330-4b11-b667-3bfed186a168","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share cer tificates have been issued","page_number":161,"box":{"x":69,"y":445,"width":833,"height":12}},{"id":"c2719f2a-2473-49a9-999d-1fd4d7177677","block_type":"box","text":"on the account, or (vii) to protect against fraud, if the caller is unable to provide the account number, the name and","page_number":161,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"d35afd64-5fee-4510-afa1-3de45fd18e70","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":161,"box":{"x":69,"y":476,"width":785,"height":11}},{"id":"efd4ef39-bc21-4d4e-adde-e24b0122ee39","block_type":"box","text":"service providers will not be liable for any loss, liability, cost or expense for acting upon telephone instructions that","page_number":161,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"0f6c04ad-4e07-4262-bc81-47dc545c0603","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":161,"box":{"x":69,"y":506,"width":782,"height":11}},{"id":"0640ada0-cc7f-42c1-b344-b531d0662cf3","block_type":"box","text":"honored, signature approval from all shareholders of record on the account must be obtained. The Fund may refuse a","page_number":161,"box":{"x":69,"y":521,"width":838,"height":11}},{"id":"b9eb7fa8-44c3-46ff-83bf-4d2f3d91855c","block_type":"box","text":"telephone redemption request if it believes it is advisable to do so. During periods of substantial economic or market","page_number":161,"box":{"x":68,"y":536,"width":837,"height":11}},{"id":"cd8d5907-1749-40d7-b551-bb37f68227e9","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":161,"box":{"x":69,"y":551,"width":800,"height":11}},{"id":"070c37df-4fa0-428b-80e3-fa25178f55a8","block_type":"box","text":"Redemption orders for Institutional Shares placed prior to 4:00 p.m. (Eastern time) on a business day will be","page_number":161,"box":{"x":102,"y":574,"width":776,"height":11}},{"id":"5d539b27-a5f4-4a9f-a737-8a8520e7e470","block_type":"box","text":"priced at the NAV determined that day. If redemption orders are received by 4:00 p.m. (Eastern time) on a business","page_number":161,"box":{"x":70,"y":589,"width":823,"height":11}},{"id":"6ff8324c-df60-43d0-a03c-bc8bceef363b","block_type":"box","text":"day, payment for redeemed Institutional Shares will normally be wired in Federal Funds on the next business day. If","page_number":161,"box":{"x":69,"y":604,"width":820,"height":11}},{"id":"9d4a7c41-463a-4230-9ca3-df5a9c240730","block_type":"box","text":"the Federal Reserve Bank of Philadelphia is not open on the business day following receipt of the redemption order,","page_number":161,"box":{"x":68,"y":619,"width":826,"height":11}},{"id":"53f5eff2-ed07-46fa-be14-0229a59ed929","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":161,"box":{"x":68,"y":634,"width":817,"height":12}},{"id":"278c6f9a-7a2f-4185-a8f5-ec3d4889197c","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":161,"box":{"x":70,"y":649,"width":648,"height":11}},{"id":"f2b6c994-1528-4539-bac5-e68707bd340c","block_type":"box","text":"Redeem by VRU:","page_number":161,"box":{"x":102,"y":672,"width":120,"height":11}},{"id":"47afd70d-f028-447b-a7bc-47df14264c74","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":161,"box":{"x":229,"y":672,"width":667,"height":11}},{"id":"67b31b22-2430-41c6-8a0e-6176da5ef2f9","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":161,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"98ecf324-fa4f-4b42-9052-2322157f835b","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":161,"box":{"x":68,"y":702,"width":644,"height":12}},{"id":"e4ffc897-f150-4e36-ae4d-1393e3d59c9c","block_type":"box","text":"Redeem by Internet:","page_number":161,"box":{"x":102,"y":725,"width":147,"height":11}},{"id":"ce0beb34-4d9c-4a62-b72c-818c86e2957c","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":161,"box":{"x":255,"y":725,"width":637,"height":11}},{"id":"af11bf2c-e445-4f76-b598-4b04e71ab5ec","block_type":"box","text":"BlackRock website at www.blackrock.com. Proceeds from Internet redemptions may be sent via check, ACH or wire to","page_number":161,"box":{"x":70,"y":740,"width":836,"height":11}},{"id":"c1c81e65-b370-4cf2-bbb4-0a34429f81ad","block_type":"box","text":"the bank account of record. Payment for shares redeemed by Internet may be made for non-retirement accounts up","page_number":161,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"70988959-ab42-43a7-b84d-46523123b0ae","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to cer tain","page_number":161,"box":{"x":68,"y":770,"width":789,"height":12}},{"id":"06bad9cf-0075-43c7-8d20-1e5cd8698d39","block_type":"box","text":"institutional investors.","page_number":161,"box":{"x":70,"y":786,"width":155,"height":8}},{"id":"132c6161-24e0-40a1-a5c4-30411d985c79","block_type":"box","text":"Redeem in Writing:","page_number":161,"box":{"x":102,"y":808,"width":137,"height":11}},{"id":"564645ee-b92d-4e02-9fe1-4a262b79364f","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":161,"box":{"x":247,"y":808,"width":639,"height":11}},{"id":"0505fe00-a339-4cdb-98b5-f8f3783fecb3","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":161,"box":{"x":68,"y":823,"width":831,"height":12}},{"id":"c3f65ab9-85cf-4c17-a8e6-9afa5a4a879b","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":161,"box":{"x":68,"y":838,"width":745,"height":12}},{"id":"a314692b-809d-4f5d-88c5-fab1b36a76c0","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":161,"box":{"x":69,"y":853,"width":764,"height":12}},{"id":"1752d7e3-a74c-4f05-b870-31e5946eb968","block_type":"box","text":"cer tificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":161,"box":{"x":69,"y":869,"width":831,"height":11}},{"id":"7658870c-2b3f-40a3-9c90-6c01059c0e2f","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":161,"box":{"x":68,"y":884,"width":794,"height":11}},{"id":"b9dfe2d0-e906-405d-b7d5-011d1bceaf5a","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":161,"box":{"x":68,"y":899,"width":782,"height":11}},{"id":"53d100ec-a426-49a4-8275-d2352ac21722","block_type":"box","text":"II-116","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"602ecf49-b368-4f7f-96ea-c22bdaa35814","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e5dc1531-62d4-40ba-bac4-60955e36569a","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":162,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"82faac6c-2a17-4ec1-ba7f-8fcff094048d","block_type":"box","text":"hold stock cer tificates, return the cer tificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":162,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"a9f5b91d-9365-416c-9654-e4daa2a64757","block_type":"box","text":"or wire to the bank account of record.","page_number":162,"box":{"x":69,"y":75,"width":266,"height":9}},{"id":"732aa66c-1126-45e8-99d0-04da9a5df62e","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":162,"box":{"x":102,"y":98,"width":802,"height":11}},{"id":"1d69f08d-bbc6-4c2a-a9b1-7dfa8a14cec7","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":162,"box":{"x":69,"y":113,"width":489,"height":11}},{"id":"76ca89ba-e324-4eb2-ac4d-47f62d3ce436","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":162,"box":{"x":101,"y":135,"width":668,"height":12}},{"id":"b4a4b0d3-a4dd-4ee9-89e0-69151223870c","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":162,"box":{"x":102,"y":158,"width":800,"height":11}},{"id":"16f86cce-b15e-40d9-b303-2af7eb57823d","block_type":"box","text":"of receipt of the proper notice of redemption. A Fund may delay the mailing of a redemption check until good payment","page_number":162,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"6791e7cd-50ff-4da5-9296-b15da5779092","block_type":"box","text":"(that is, cash, Federal funds or cer tified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":162,"box":{"x":69,"y":188,"width":811,"height":11}},{"id":"43c2947e-0646-41b2-9ba3-b13c38617248","block_type":"box","text":"shares, which delay will usually not exceed 10 days. If your account is held directly with the Transfer Agent and","page_number":162,"box":{"x":69,"y":203,"width":789,"height":12}},{"id":"cd947724-197c-417e-8c05-f0922fe39db9","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":162,"box":{"x":69,"y":218,"width":775,"height":12}},{"id":"98e89abc-ad18-4ac5-88fd-702fa9f032d7","block_type":"box","text":"redeemed by the Fund.","page_number":162,"box":{"x":69,"y":234,"width":162,"height":11}},{"id":"a8659723-ffd2-4431-9b61-59796b5434c6","block_type":"box","text":"Note on Low Balance Accounts.","page_number":162,"box":{"x":102,"y":257,"width":223,"height":8}},{"id":"ed65abd2-68fe-44c6-b0ae-539129309253","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":162,"box":{"x":332,"y":256,"width":503,"height":12}},{"id":"e289340a-0845-45db-8978-67c75e2467da","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":162,"box":{"x":70,"y":271,"width":752,"height":12}},{"id":"934a4196-21d4-4234-89af-56a7e495bb82","block_type":"box","text":"Minimum”), and may redeem the shares in your account if the NAV of those shares in your account falls below $500","page_number":162,"box":{"x":70,"y":286,"width":829,"height":12}},{"id":"63af8e7b-8465-4cee-832c-a7df08c0c0f8","block_type":"box","text":"for any reason, including market fluctuation.","page_number":162,"box":{"x":68,"y":302,"width":313,"height":11}},{"id":"f47dcd5d-19ac-4dd0-b73d-c7109a752234","block_type":"box","text":"You will be notified that the value of your account is less than the Fund Minimum before the Fund makes any","page_number":162,"box":{"x":101,"y":324,"width":775,"height":11}},{"id":"1884ca0f-befe-4949-a991-bbd642ba7337","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":162,"box":{"x":70,"y":339,"width":773,"height":12}},{"id":"88f76d26-cbce-44f6-9e47-085260d6e7b7","block_type":"box","text":"investment in order to bring the value of your account to at least $500 before the Fund makes an involuntary","page_number":162,"box":{"x":70,"y":354,"width":776,"height":12}},{"id":"542b9ed0-8a3a-4769-9cf7-679e12576309","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":162,"box":{"x":69,"y":370,"width":834,"height":11}},{"id":"3445f5ff-10bf-4657-93c6-8e5f26a0891e","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":162,"box":{"x":69,"y":385,"width":811,"height":11}},{"id":"d49bd1d4-8ce5-4d8c-a754-0ad0184877dc","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":162,"box":{"x":69,"y":400,"width":435,"height":11}},{"id":"6399e962-26b4-4bbe-b265-9ec1abebf2a3","block_type":"box","text":"Repurchase","page_number":162,"box":{"x":69,"y":430,"width":85,"height":11}},{"id":"32fc061d-de95-44e3-8765-75ac2a384ef2","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":162,"box":{"x":101,"y":453,"width":800,"height":11}},{"id":"eac4f491-a93f-4072-b682-b35c55282d58","block_type":"box","text":"priced at the NAV of the Fund next determined after receipt of the repurchase order by a Selling Dealer that has been","page_number":162,"box":{"x":70,"y":468,"width":833,"height":11}},{"id":"dedc3731-f5d4-48b4-8aad-52bb98b275d6","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":162,"box":{"x":69,"y":483,"width":822,"height":11}},{"id":"d42ce25e-cd6c-407b-ba4e-4d15e499d027","block_type":"box","text":"prior to the close of business on the NYSE (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the","page_number":162,"box":{"x":70,"y":498,"width":809,"height":11}},{"id":"1defe528-b1a3-43c8-b6c7-715eebe9aacf","block_type":"box","text":"order is placed, which includes orders received after the close of business on the previous day, the repurchase price","page_number":162,"box":{"x":69,"y":513,"width":831,"height":11}},{"id":"0daf386f-7506-4f52-a477-4f1fa46cde07","block_type":"box","text":"is the NAV determined as of the close of business on the NYSE on that day. If the orders for repurchase are not","page_number":162,"box":{"x":70,"y":528,"width":796,"height":12}},{"id":"249cb8d9-7622-47d6-ae1f-6bf1a41cf78d","block_type":"box","text":"received by the Selling Dealer before the close of business on the NYSE, such orders are deemed received on the","page_number":162,"box":{"x":69,"y":543,"width":812,"height":12}},{"id":"636ac17c-f27d-4c75-b40f-b4b75fe59a03","block_type":"box","text":"next business day.","page_number":162,"box":{"x":69,"y":559,"width":130,"height":11}},{"id":"7c14fc59-0934-4310-9834-c01f9f0ab968","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":162,"box":{"x":101,"y":581,"width":783,"height":12}},{"id":"19c5c514-70ed-4294-baf6-a491e5b22936","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":162,"box":{"x":69,"y":596,"width":813,"height":12}},{"id":"a51cce08-27e6-47a9-aeab-f60d54d06c7c","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":162,"box":{"x":69,"y":612,"width":832,"height":11}},{"id":"b9b3588f-257a-40e8-ad97-f345384d52a8","block_type":"box","text":"impose a transaction charge for transmitting the notice of repurchase to the Fund. Each Fund reserves the right to","page_number":162,"box":{"x":70,"y":627,"width":814,"height":11}},{"id":"f3289cb7-fc30-4cf8-8915-9c67a1b599ef","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":162,"box":{"x":69,"y":642,"width":788,"height":11}},{"id":"35fd1291-70dd-4a25-a67e-63154ecf7574","block_type":"box","text":"redeem shares as set out above.","page_number":162,"box":{"x":69,"y":657,"width":235,"height":9}},{"id":"1dd82bcd-9996-48fc-8b6d-706f25968439","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":162,"box":{"x":69,"y":687,"width":440,"height":11}},{"id":"8013f249-ecc2-471b-a520-e375c5c42458","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":162,"box":{"x":102,"y":710,"width":791,"height":11}},{"id":"93b322b2-905e-4dc3-9f1a-31eb4f7a6a31","block_type":"box","text":"reinvest all or a por tion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":162,"box":{"x":69,"y":725,"width":815,"height":11}},{"id":"7dd23f1a-c9a5-4f04-9b1d-11bacf212e21","block_type":"box","text":"Shares of the same or another BlackRock fund without paying a front-end sales charge. This right may be exercised","page_number":162,"box":{"x":69,"y":740,"width":822,"height":11}},{"id":"fb5b2176-11fc-4567-82c5-32b7e36b4765","block_type":"box","text":"within 90 days of the redemption, provided that the Investor A or Investor P Shares, as applicable, of that fund is","page_number":162,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"3edc9531-afe2-4ea3-b170-bfddc8cea635","block_type":"box","text":"currently open to new investors or the shareholder has a current account in that closed fund. Shares will be","page_number":162,"box":{"x":69,"y":770,"width":768,"height":11}},{"id":"627643e2-ded6-44c7-8aea-8c601db222e8","block_type":"box","text":"purchased at the NAV calculated at the close of trading on the day the request is received in good order. To exercise","page_number":162,"box":{"x":70,"y":785,"width":827,"height":12}},{"id":"af3c3909-fd71-472a-acb5-5e3f47045454","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":162,"box":{"x":68,"y":801,"width":809,"height":11}},{"id":"9ea5fb81-f55f-4562-8eae-34be3822a53c","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":162,"box":{"x":69,"y":816,"width":764,"height":11}},{"id":"7a3589f2-85a1-4438-8c3e-73cfe5e69b5a","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":162,"box":{"x":69,"y":831,"width":400,"height":11}},{"id":"4f883610-c349-4213-9bd2-9db8924953a1","block_type":"box","text":"II-117","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3ae49a10-02ab-4cbc-811e-589de33607b4","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d85ffdfa-14f3-49a1-950d-11fd6c35db9e","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":163,"box":{"x":384,"y":45,"width":210,"height":10}},{"id":"66a7067c-eaf4-4616-af06-75d169a12938","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":163,"box":{"x":102,"y":68,"width":747,"height":11}},{"id":"bfe15626-0c98-4689-a3b0-33e1794b50cf","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":163,"box":{"x":70,"y":83,"width":781,"height":11}},{"id":"23508012-2ef3-486a-a650-a85507ff8d92","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":163,"box":{"x":68,"y":98,"width":836,"height":11}},{"id":"49b93665-db22-4855-bfdb-71efe723f2a4","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":163,"box":{"x":69,"y":113,"width":641,"height":11}},{"id":"9ba1ce97-11dc-473e-8486-083cfeff09fd","block_type":"box","text":"Investment Account","page_number":163,"box":{"x":69,"y":144,"width":146,"height":9}},{"id":"7aad96fe-6378-469c-8ea9-4eaf0b57d0b1","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":163,"box":{"x":102,"y":166,"width":774,"height":11}},{"id":"86896cf3-72d2-4b1c-8bbd-5b0dbb081e1e","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":163,"box":{"x":70,"y":181,"width":796,"height":12}},{"id":"55ef6d39-1a8a-41fb-aaee-9a5fd4bcc83f","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":163,"box":{"x":70,"y":196,"width":807,"height":12}},{"id":"65fcc92a-4293-4590-8d4b-84ec79ac0f9e","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":163,"box":{"x":68,"y":212,"width":830,"height":11}},{"id":"1bc93bf4-b6e1-4a44-aee9-f38cf8db14a5","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":163,"box":{"x":69,"y":227,"width":829,"height":11}},{"id":"7664eab9-f4ee-468b-b4b9-62db0d0e9e65","block_type":"box","text":"the Transfer Agent you may make additions to it at any time by mailing a check directly to the Transfer Agent. Each","page_number":163,"box":{"x":68,"y":242,"width":815,"height":11}},{"id":"2f12de29-4199-4d23-a934-f81479b6b9bd","block_type":"box","text":"Fund limits purchases by personal check to $500,000 per trade. You may also maintain an account through a","page_number":163,"box":{"x":70,"y":256,"width":781,"height":12}},{"id":"7aa91a7a-1403-4a9a-83a4-0330d3baf672","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":163,"box":{"x":69,"y":272,"width":825,"height":11}},{"id":"a2a9f35c-dac6-4911-84fd-f0cf85ebd617","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":163,"box":{"x":69,"y":287,"width":785,"height":11}},{"id":"6ad7cf42-a21e-4695-958e-f5dc9a5476ed","block_type":"box","text":"automatically at the Transfer Agent.","page_number":163,"box":{"x":69,"y":302,"width":251,"height":12}},{"id":"5e178323-4858-4308-ae60-61a1c60871ab","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":163,"box":{"x":101,"y":325,"width":750,"height":11}},{"id":"b6634e23-40e7-4171-b931-54df305e98b8","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":163,"box":{"x":69,"y":340,"width":797,"height":11}},{"id":"07361e87-3379-4e95-a22c-c12e11e4297c","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":163,"box":{"x":69,"y":355,"width":797,"height":11}},{"id":"a70463bd-02f3-4926-a02f-264da0716b16","block_type":"box","text":"coordinated by the new firm. If you wish to transfer your shares to a securities dealer or other financial intermediary","page_number":163,"box":{"x":69,"y":370,"width":826,"height":11}},{"id":"cdbb57cd-3667-4f52-b3ea-07ab9bcffeec","block_type":"box","text":"that has not entered into an agreement with the Distributor, you must either (i) redeem your shares, paying any","page_number":163,"box":{"x":68,"y":386,"width":792,"height":11}},{"id":"23aa5132-0592-4e5d-b8b2-27e20056fb54","block_type":"box","text":"applicable CDSC or (ii) continue to maintain an Investment Account at the Transfer Agent for those shares. You also","page_number":163,"box":{"x":69,"y":401,"width":824,"height":11}},{"id":"9e9d5710-ae15-4878-9b39-994dbe7e20dd","block_type":"box","text":"may request that the new securities dealer or other financial intermediary maintain the shares in an account at the","page_number":163,"box":{"x":69,"y":416,"width":820,"height":11}},{"id":"ebade7da-7ee6-491d-9699-fc438b473847","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":163,"box":{"x":68,"y":431,"width":833,"height":11}},{"id":"1bdb7cdf-2b4c-4cbe-b3cd-828ba08da443","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":163,"box":{"x":68,"y":446,"width":795,"height":11}},{"id":"6647addb-287c-4019-a6d2-f16245012d80","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":163,"box":{"x":70,"y":461,"width":822,"height":11}},{"id":"f0d5021c-8b14-457e-8d71-b330d8ff5b07","block_type":"box","text":"not be issued physically. Shares are maintained by each Fund on its register maintained by the Transfer Agent and","page_number":163,"box":{"x":69,"y":476,"width":814,"height":11}},{"id":"cec23754-4e6b-499f-a23f-acf69ee057b4","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if cer tificates had been","page_number":163,"box":{"x":68,"y":491,"width":822,"height":12}},{"id":"a6e1f6b1-65b9-43db-8663-f0cf21abd11d","block_type":"box","text":"issued.","page_number":163,"box":{"x":70,"y":507,"width":49,"height":8}},{"id":"d9529a04-5e80-4c68-a635-7007ddcdf18b","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":163,"box":{"x":102,"y":529,"width":785,"height":11}},{"id":"6fd340a8-a011-4cd8-b663-e84a5281fe72","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":163,"box":{"x":68,"y":544,"width":830,"height":11}},{"id":"40321cbd-0622-45c0-abd6-3961b16b5f00","block_type":"box","text":"that if the new firm will not take delivery of shares of the Fund, you must either redeem the shares (paying any","page_number":163,"box":{"x":68,"y":559,"width":790,"height":12}},{"id":"0a97fe8d-3087-482b-ba40-10028467e88b","block_type":"box","text":"applicable CDSC) so that the cash proceeds can be transferred to the account at the new firm, or you must continue","page_number":163,"box":{"x":69,"y":574,"width":831,"height":12}},{"id":"f4cb1b14-7aac-4bdc-8684-b5ce8bc77167","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":163,"box":{"x":68,"y":589,"width":652,"height":12}},{"id":"44ae291c-804b-4a1a-9bac-dd40445b5182","block_type":"box","text":"Exchange Privilege","page_number":163,"box":{"x":69,"y":620,"width":138,"height":11}},{"id":"25b02fce-ab80-4c1b-b1e8-6881d188e086","block_type":"box","text":"U.S. shareholders of Investor A, Investor A1, Investor C, Investor P, Class K, Institutional and Class G Shares of","page_number":163,"box":{"x":102,"y":642,"width":797,"height":11}},{"id":"3f19a1c5-3e91-4da1-b647-ac7e68f7fb61","block_type":"box","text":"each Fund have an exchange privilege with cer tain other Funds. However, Investor A1 Shares may only exchange out.","page_number":163,"box":{"x":69,"y":658,"width":832,"height":11}},{"id":"056308a2-12f4-47dc-8e8a-002716c39c84","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":163,"box":{"x":68,"y":672,"width":788,"height":12}},{"id":"daf2d276-87f2-4ad1-85d1-d712bd65de8b","block_type":"box","text":"$1,000 if you already have an account in the Fund into which you are exchanging. You may only exchange into a","page_number":163,"box":{"x":69,"y":687,"width":796,"height":12}},{"id":"fc99296f-08d4-4c5b-970b-4964d1b5a210","block_type":"box","text":"share class and a Fund that are open to new investors or in which you have a current account if the class or fund is","page_number":163,"box":{"x":69,"y":703,"width":824,"height":11}},{"id":"f43f1b9c-a61e-4d20-9253-6eb47445356a","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":163,"box":{"x":69,"y":718,"width":835,"height":11}},{"id":"15f4bac4-fae0-4315-b8c2-ccd3c2a26839","block_type":"box","text":"into which you wish to make the exchange. Exercise of the exchange privilege is treated as a sale of the exchanged","page_number":163,"box":{"x":70,"y":733,"width":820,"height":11}},{"id":"9010f494-b54f-4318-9271-919e1d13b0cf","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":163,"box":{"x":69,"y":748,"width":600,"height":11}},{"id":"12c57a75-7f16-4b16-90d7-964468c22e46","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":163,"box":{"x":102,"y":771,"width":648,"height":11}},{"id":"310af1e8-b90e-4c8d-b128-da623f638829","block_type":"box","text":"Institutional Shares","page_number":163,"box":{"x":757,"y":771,"width":137,"height":9}},{"id":"358b42bd-9bc2-4c0f-b89e-9eac1cb320e2","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":163,"box":{"x":69,"y":786,"width":817,"height":11}},{"id":"08903a5b-21f9-462d-b397-1424f77cbcc2","block_type":"box","text":"Investor A Shares of other Funds to the extent such shares are offered by your financial intermediary. Investor P","page_number":163,"box":{"x":70,"y":801,"width":798,"height":11}},{"id":"fc4fd727-8f3e-4119-856f-f624648ccefd","block_type":"box","text":"Shares are exchangeable for Investor P Shares of other Funds, to the extent such shares are offered by your financial","page_number":163,"box":{"x":69,"y":816,"width":838,"height":12}},{"id":"8ac870bf-ed57-4be0-b8c1-9e3021169b1a","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":163,"box":{"x":70,"y":831,"width":834,"height":12}},{"id":"96ecf63d-0e25-499e-8931-56b1ad9659d4","block_type":"box","text":"for Class G Shares of other Funds.","page_number":163,"box":{"x":68,"y":846,"width":246,"height":10}},{"id":"fa3a04f1-b674-4084-b219-60afef603a80","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":163,"box":{"x":102,"y":869,"width":800,"height":11}},{"id":"8e0d96ac-b063-44d0-84f6-93eaf1ee38ab","block_type":"box","text":"market fund are effected on the basis of relative NAV per Institutional Share. Exchanges of Investor A or Investor A1","page_number":163,"box":{"x":69,"y":884,"width":826,"height":12}},{"id":"3228092b-c536-4e6c-b5b8-4c27a1133de7","block_type":"box","text":"Shares outstanding (“outstanding Investor A Shares”) for Investor A Shares of a second fund, or for shares of a","page_number":163,"box":{"x":69,"y":899,"width":795,"height":12}},{"id":"22190b44-5ae2-49c5-bd69-11c06c5a5e9c","block_type":"box","text":"II-118","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"73aa091d-6d2f-4c25-bb23-e1682cf8d28a","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"60d5e508-0c53-4eb1-8ab7-75b7d18ddd0d","block_type":"box","text":"money market fund (“new Investor A Shares”) are effected on the basis of relative NAV per share. Exchanges of","page_number":164,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"499c0c98-7ed3-45f4-bc48-ffab2a3d44af","block_type":"box","text":"Investor P Shares outstanding for Investor P Shares of a second fund are effected on the basis of relative NAV per","page_number":164,"box":{"x":70,"y":60,"width":814,"height":11}},{"id":"e934f663-b2a3-49ba-acb6-d6f9e1b3fd43","block_type":"box","text":"share. Exchanges of Class K Shares outstanding for Class K Shares of a second fund, or for shares of a money","page_number":164,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"e1bdd456-dd02-46c8-8d1a-5aea06c2a069","block_type":"box","text":"market fund are effected on the basis of relative NAV per share. Exchanges of Class G Shares outstanding for Class","page_number":164,"box":{"x":69,"y":90,"width":828,"height":11}},{"id":"995f4cdc-11ff-4b8f-898c-a1c4eaa64647","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":164,"box":{"x":69,"y":105,"width":561,"height":11}},{"id":"a4222bb9-53bc-48a7-8002-46a759dbd7ba","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":164,"box":{"x":102,"y":128,"width":229,"height":11}},{"id":"537d32cf-feb5-4dc9-809b-dd0ff2c05691","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":164,"box":{"x":338,"y":128,"width":570,"height":11}},{"id":"dc1c52ec-b2a1-4eb7-8403-d1ff59a32294","block_type":"box","text":"Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund (“new Investor C Shares”) or","page_number":164,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"b4fe187a-ec4f-417d-8c97-3a7ed2a89cc3","block_type":"box","text":"for shares of a money market fund (“new money market fund Shares”) on the basis of relative NAV per share, without","page_number":164,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"709ea3a0-70ae-44b3-9fec-c17f52fe7a50","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":164,"box":{"x":68,"y":173,"width":811,"height":11}},{"id":"46f95d39-05c3-4dbb-9322-975ec6bedbcb","block_type":"box","text":"upon redemption of new Investor C Shares or new money market fund Shares, as applicable, the time you held both","page_number":164,"box":{"x":69,"y":188,"width":827,"height":11}},{"id":"c757e001-ceaa-45ed-9ef9-137b55bb11cf","block_type":"box","text":"the exchanged Investor C Shares and the new Investor C Shares or new money market fund Shares will count","page_number":164,"box":{"x":68,"y":203,"width":781,"height":12}},{"id":"1912441e-e6e6-445e-83b2-e7ec7eb783ea","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":164,"box":{"x":68,"y":218,"width":654,"height":12}},{"id":"b3cf1f32-3c87-4e07-8f7e-fde10cba3159","block_type":"box","text":"Exchanges of Service Shares.","page_number":164,"box":{"x":102,"y":241,"width":211,"height":11}},{"id":"c8108915-406d-4cf5-8ccf-b2c6e0145091","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":164,"box":{"x":319,"y":241,"width":588,"height":11}},{"id":"96a17a65-fbc3-4f8d-8556-ed1f5761937e","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":164,"box":{"x":69,"y":257,"width":342,"height":11}},{"id":"269bb05d-3d7a-47ae-afa6-6679142156cc","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":164,"box":{"x":102,"y":279,"width":335,"height":11}},{"id":"6e4ce104-9aa8-4c7a-b52e-3c372653db98","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":164,"box":{"x":443,"y":279,"width":455,"height":11}},{"id":"eef58b28-5192-4506-b1be-078ba12e5389","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":164,"box":{"x":70,"y":294,"width":788,"height":11}},{"id":"1954dbce-72f6-4bfd-99eb-0ebe311204b4","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":164,"box":{"x":70,"y":309,"width":793,"height":11}},{"id":"2b4923d1-45d0-4e86-8aba-752f44081139","block_type":"box","text":"classes of shares: exchanges of Investor A, Investor A1 and Institutional Shares of a Fund will receive Investor A","page_number":164,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"1334ad41-8909-44e5-b654-30d68c39fdd7","block_type":"box","text":"Shares of Summit and exchanges of Investor C Shares of a Fund will receive Investor C Shares of Summit. You may","page_number":164,"box":{"x":69,"y":339,"width":824,"height":12}},{"id":"66cf0041-ac9a-4107-ba04-d6ab3e278746","block_type":"box","text":"exchange Investor A Shares of Summit back into Investor A or Institutional Shares of a Fund, if you are eligible to","page_number":164,"box":{"x":69,"y":355,"width":805,"height":11}},{"id":"17043b43-9141-413c-8087-4dc7db1e42cb","block_type":"box","text":"hold such shares. You may exchange Investor C Shares of Summit back into Investor C Shares of a Fund and, in the","page_number":164,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"c7e61dc9-703f-4b88-a7f5-3b3147eace42","block_type":"box","text":"event of such an exchange, the period of time that you held Investor C Shares of Summit will count toward","page_number":164,"box":{"x":69,"y":385,"width":758,"height":11}},{"id":"6b71de19-c7cb-4a8b-906d-a987e908cd85","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":164,"box":{"x":69,"y":400,"width":822,"height":11}},{"id":"fb701f0d-6c5d-4966-b7c5-8a3712a55966","block_type":"box","text":"subject to a distribution fee at an annual rate of 0.75% of average daily net assets of such Investor C Shares.","page_number":164,"box":{"x":69,"y":415,"width":782,"height":11}},{"id":"49218cd2-b79d-40a5-ac5d-c4a2f50eea37","block_type":"box","text":"Exchanges of Investor C Shares of a money market fund other than Summit for Investor C Shares of a Fund will be","page_number":164,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"95eac4cb-07e9-43f1-89ad-5466e5f94d66","block_type":"box","text":"exercised at NAV. However, a CDSC may be charged in connection with any subsequent redemption of the Investor C","page_number":164,"box":{"x":69,"y":445,"width":830,"height":12}},{"id":"86ab7991-ce0c-4653-a191-7d90903ac587","block_type":"box","text":"Shares of the Fund received in the exchange. In determining the holding period for calculating the CDSC payable on","page_number":164,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"2c35834a-20cd-4605-9cc5-5072d85cf16a","block_type":"box","text":"redemption of Investor C Shares of the Fund received in the exchange, the holding period of the money market fund","page_number":164,"box":{"x":69,"y":475,"width":823,"height":12}},{"id":"ae7fa013-bdf6-4171-8292-e321b42909c9","block_type":"box","text":"Investor C Shares originally held will be added to the holding period of the Investor C Shares acquired through","page_number":164,"box":{"x":70,"y":491,"width":781,"height":11}},{"id":"650ae9ac-0d12-40c4-90d1-384e585c38ea","block_type":"box","text":"exchange.","page_number":164,"box":{"x":69,"y":506,"width":70,"height":11}},{"id":"686d3b74-057f-452d-b9fc-32314d8dea31","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":164,"box":{"x":102,"y":529,"width":337,"height":11}},{"id":"f712dc99-7276-47c5-ac87-35bbeb59fd43","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":164,"box":{"x":445,"y":528,"width":448,"height":12}},{"id":"7bfb66e7-811e-4d5e-a82a-b454216dd26a","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":164,"box":{"x":70,"y":543,"width":828,"height":12}},{"id":"81f2a17f-4081-44cc-a630-41f83c3f2b15","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":164,"box":{"x":69,"y":559,"width":796,"height":11}},{"id":"1d9c550b-a508-409d-8a8d-2032d362cf05","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":164,"box":{"x":70,"y":574,"width":324,"height":11}},{"id":"68e49f37-327d-4ef9-9f98-13cc90248172","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":164,"box":{"x":102,"y":596,"width":245,"height":12}},{"id":"696f2e49-dea0-458c-8da5-edd20021bae4","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":164,"box":{"x":353,"y":596,"width":543,"height":12}},{"id":"ddd083e9-76cb-44ff-ae55-57a5d8e0e3fe","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share cer tificates, you may","page_number":164,"box":{"x":69,"y":612,"width":794,"height":11}},{"id":"2fc4c473-4207-4f70-a8ef-88b5d79e7586","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":164,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"7bd40415-332b-4e3e-949a-439aef7d125d","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":164,"box":{"x":69,"y":642,"width":512,"height":11}},{"id":"afd5d3d7-bec0-4027-84b7-a56acb35133a","block_type":"box","text":"A shareholder who wishes to make an exchange may do so by sending a written request to the Fund c/o the","page_number":164,"box":{"x":101,"y":665,"width":772,"height":11}},{"id":"9e4f6bde-37c0-491b-989a-2a17cb5f48ec","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":164,"box":{"x":68,"y":680,"width":824,"height":11}},{"id":"82785e77-b1a5-4b00-9749-012daec188b4","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":164,"box":{"x":69,"y":695,"width":801,"height":11}},{"id":"b6ea3e9c-cfa2-40ab-85d2-be2df6b8bd12","block_type":"box","text":"Application that they do not wish to use this privilege. To add this feature to an existing account that previously did","page_number":164,"box":{"x":68,"y":710,"width":817,"height":11}},{"id":"6be71173-d25e-4bff-9681-3c20c0b17346","block_type":"box","text":"not provide this option, a Telephone Exchange Authorization Form must be filed with the Transfer Agent. This form is","page_number":164,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"fb807949-f500-4e07-8365-772cc4a3f058","block_type":"box","text":"available from the Transfer Agent. Once this election has been made, the shareholder may simply contact the Fund by","page_number":164,"box":{"x":69,"y":740,"width":840,"height":11}},{"id":"2f8ba77a-befc-40f7-aaae-8ad73c7e8f56","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":164,"box":{"x":68,"y":755,"width":811,"height":11}},{"id":"6258ce6e-bc27-4d2c-9ad9-1e636fa9d91e","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":164,"box":{"x":68,"y":770,"width":815,"height":12}},{"id":"e10f8572-f6aa-412d-9d13-7cd89b43377d","block_type":"box","text":"Transfer Agent in writing.","page_number":164,"box":{"x":68,"y":785,"width":175,"height":12}},{"id":"f87c46e2-ad6a-4cf1-b075-8dc063fab701","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":164,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"8a7d9db6-582f-47b4-9284-ccbdf76b014a","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":164,"box":{"x":69,"y":823,"width":828,"height":12}},{"id":"ca76cafb-7882-4f09-9e90-b5a37d13a245","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":164,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"21e909f5-5669-46b8-a484-883cc1501abd","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to par ticipate in the","page_number":164,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"46995dfc-873d-4f31-a236-b77652418e7d","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":164,"box":{"x":68,"y":869,"width":763,"height":11}},{"id":"b66d3668-f645-45f7-91c3-b6e1169af4af","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":164,"box":{"x":69,"y":884,"width":424,"height":11}},{"id":"6b3f712d-c833-4e8e-b7e1-9de6cc787127","block_type":"box","text":"II-119","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"34e0e09e-ac95-4f0e-a58c-67a18c3edb3e","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"96703e27-1a8d-413e-95e3-13b7b22d0b0c","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":165,"box":{"x":101,"y":45,"width":790,"height":11}},{"id":"b96b5c70-fc22-4887-b4c6-3517b55e274e","block_type":"box","text":"must be legally available for sale in the state of the investor’s residence. For U.S. federal income tax purposes, a","page_number":165,"box":{"x":69,"y":60,"width":808,"height":11}},{"id":"53a69aaf-e392-48bf-8be1-d6f24569954e","block_type":"box","text":"share exchange is a taxable event and, accordingly, a capital gain or loss may be realized. Before making an","page_number":165,"box":{"x":69,"y":75,"width":771,"height":11}},{"id":"bc0d9285-99c7-4313-87ff-40dc9a08787a","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":165,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"849b062b-19bf-43ff-bcd3-7a924636cbc2","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":165,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"a8c45931-f63c-499d-901f-04b0265cffdd","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":165,"box":{"x":70,"y":120,"width":354,"height":12}},{"id":"ceb91081-7c7c-4cc1-9440-6be7133651c1","block_type":"box","text":"The Funds reserve the right to suspend, modify or terminate the exchange privilege at any time. Notice will be","page_number":165,"box":{"x":101,"y":143,"width":782,"height":11}},{"id":"1e1c6bc6-0501-40db-9b46-959688b86696","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":165,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"24203b52-0de9-44d7-ae07-b2634d833cb3","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":165,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"8d071073-2e01-4a0e-bf88-2c445fe7631f","block_type":"box","text":"amount or frequency, and to other restrictions that may be established from time to time to ensure that exchanges","page_number":165,"box":{"x":69,"y":188,"width":818,"height":12}},{"id":"2b2b7412-e583-4d3c-8672-965a42ec60ba","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":165,"box":{"x":69,"y":203,"width":506,"height":12}},{"id":"c5d0abb3-8cd2-4207-98ce-f866796c9f18","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":165,"box":{"x":101,"y":226,"width":733,"height":11}},{"id":"38faf743-8b5c-4c03-9a2c-4fa68e868d49","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":165,"box":{"x":69,"y":241,"width":793,"height":11}},{"id":"0182609e-1de9-495f-922f-7e79abafe37f","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":165,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"a2cb8e58-aa95-401c-a782-07db6949a559","block_type":"box","text":"such procedures. By use of the exchange privilege, the investor authorizes the Fund’s Transfer Agent to act on","page_number":165,"box":{"x":69,"y":271,"width":785,"height":12}},{"id":"9e2ec798-9df8-4176-8132-17801ae94e96","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":165,"box":{"x":68,"y":286,"width":825,"height":12}},{"id":"8ae60aa4-73e1-4cb2-ae8a-54e1073fd6da","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent per taining to such instructions are","page_number":165,"box":{"x":68,"y":302,"width":837,"height":11}},{"id":"6eaed502-6e1d-432f-b964-896b65cebe91","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":165,"box":{"x":69,"y":317,"width":767,"height":11}},{"id":"9fd31e7e-366f-4cd4-b282-690d36939348","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":165,"box":{"x":69,"y":332,"width":750,"height":11}},{"id":"276d42b2-6b36-4e00-bda8-318ef3b0bd0b","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":165,"box":{"x":102,"y":355,"width":757,"height":11}},{"id":"346c7621-643f-45fa-b176-c2351389a4bf","block_type":"box","text":"Cer tain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":165,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"b968d678-d940-41ce-b3bb-0f024130ee1a","block_type":"box","text":"such offering from time to time. The exchange privilege is available only to U.S. shareholders in states where the","page_number":165,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"b1c2baf3-4142-43ea-94c0-f5899428fa51","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":165,"box":{"x":69,"y":400,"width":817,"height":11}},{"id":"a6a17954-9c3e-44c5-bc4e-86914fa1bf86","block_type":"box","text":"may be distributed by the Distributor.","page_number":165,"box":{"x":69,"y":415,"width":262,"height":11}},{"id":"92e09725-a152-4afd-abd5-67ea0d6d722b","block_type":"box","text":"Participation in Fee-Based Programs","page_number":165,"box":{"x":69,"y":445,"width":266,"height":11}},{"id":"f8dccc0c-fd74-4fba-90ee-e0d4c212dc48","block_type":"box","text":"If you par ticipate in cer tain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":165,"box":{"x":102,"y":468,"width":780,"height":11}},{"id":"3a62c152-7578-43f5-908b-2ab348f0e285","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":165,"box":{"x":69,"y":483,"width":826,"height":11}},{"id":"aaa535bb-7812-4bb2-9250-18d87d2241df","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":165,"box":{"x":70,"y":498,"width":825,"height":11}},{"id":"3b3d1488-3978-4869-a88b-24e34f0c725c","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":165,"box":{"x":69,"y":513,"width":770,"height":12}},{"id":"7970434c-5b69-448b-bb21-7e4270a0bfbc","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":165,"box":{"x":69,"y":528,"width":837,"height":12}},{"id":"9a6b1f4c-2aa2-499a-abbc-504f696aa272","block_type":"box","text":"if you choose to leave the fee-based program, you may have to redeem your shares held through the program and","page_number":165,"box":{"x":70,"y":543,"width":808,"height":12}},{"id":"7654a1c1-b97e-4940-9bc9-bde8dbe76620","block_type":"box","text":"purchase shares of another class, which may be subject to distribution and service fees. This may be a taxable event","page_number":165,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"0592e662-1e49-478e-a13d-238e772c6ad3","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":165,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"ce3bdfab-e927-46c5-911a-3dd5c47f2260","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":165,"box":{"x":70,"y":589,"width":555,"height":11}},{"id":"bdffd7bf-5c45-48bd-b6d9-f7a7f9c4a10f","block_type":"box","text":"Generally, upon termination of a fee-based program, the shares may be liquidated or the shares can be held in","page_number":165,"box":{"x":102,"y":612,"width":788,"height":11}},{"id":"a9fdcab1-be4d-47b6-aeec-6318f28cf78d","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":165,"box":{"x":69,"y":627,"width":817,"height":10}},{"id":"9ba6af5d-f956-4755-84dd-4b59706995b6","block_type":"box","text":"class was held in the program can be held after termination. Shares that have been held for less than specified","page_number":165,"box":{"x":69,"y":642,"width":796,"height":11}},{"id":"d225f1d0-4fca-400a-a5da-39f3971c6ab8","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":165,"box":{"x":70,"y":657,"width":754,"height":11}},{"id":"2201be89-ac49-41e9-aace-895f9796abe5","block_type":"box","text":"Institutional Shares in the program may be eligible to purchase additional shares of the respective share class of a","page_number":165,"box":{"x":70,"y":672,"width":820,"height":11}},{"id":"4a4997b3-3146-46ee-889d-5ada06a29bfe","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":165,"box":{"x":70,"y":687,"width":777,"height":11}},{"id":"1aa8250e-c231-4ab0-bc25-0737a27cdc3b","block_type":"box","text":"Institutional Shares are permitted only if you have an existing position at the time of purchase or are otherwise","page_number":165,"box":{"x":70,"y":702,"width":791,"height":12}},{"id":"b02f6fe7-db88-4846-84b6-49d2c349dfd2","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":165,"box":{"x":69,"y":717,"width":756,"height":12}},{"id":"9c47d22c-d755-4d88-a26b-2e12e06a3a74","block_type":"box","text":"Cer tain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":165,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"8bcbf84d-a2e9-42bd-af7b-70a67c24e983","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":165,"box":{"x":68,"y":755,"width":791,"height":11}},{"id":"aef8fc31-85dc-4818-af0b-70dba04ab3de","block_type":"box","text":"intermediary’s policies and procedures, exchange the share class held in the program for another share class of the","page_number":165,"box":{"x":70,"y":770,"width":830,"height":12}},{"id":"e56cb431-18f0-41d6-acb1-d329570fca8c","block_type":"box","text":"same fund, provided that the exchanged shares are not subject to a sales charge and the shareholder meets the","page_number":165,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"864eb887-ce06-40a3-a101-8c03e1f2af1c","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":165,"box":{"x":69,"y":801,"width":801,"height":11}},{"id":"b533668f-097f-43b4-8203-546b465762b0","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":165,"box":{"x":69,"y":816,"width":424,"height":11}},{"id":"3f64d232-91c8-4f29-a6b4-49a367dc1e5b","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":165,"box":{"x":102,"y":838,"width":752,"height":12}},{"id":"b3fa94a3-7b0d-4a20-bc78-84b152b17213","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":165,"box":{"x":70,"y":853,"width":789,"height":12}},{"id":"c426e676-a506-4f81-9e75-29b2a98ceb5c","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":165,"box":{"x":69,"y":869,"width":785,"height":11}},{"id":"8f3ad65c-14a9-48c8-b6e6-61bea539bcac","block_type":"box","text":"information.","page_number":165,"box":{"x":70,"y":884,"width":83,"height":9}},{"id":"74e15adc-7d89-44f4-995d-108997840152","block_type":"box","text":"II-120","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c217cab4-297b-4361-a834-8acf2e0185f0","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d3cd07c3-85a8-4304-83bc-050b67d46911","block_type":"box","text":"Retirement and Education Savings Plans","page_number":166,"box":{"x":69,"y":45,"width":296,"height":11}},{"id":"2352063a-6fd5-4aa8-8b04-97f360b7dee5","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":166,"box":{"x":102,"y":67,"width":805,"height":12}},{"id":"8cc5c116-2bd0-43b1-85ff-6d3d5f57969b","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and cer tain of","page_number":166,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"33a3095f-b3c0-4165-a2a2-8b00a734276d","block_type":"box","text":"the other mutual funds sponsored by the Manager or its affiliates as well as in other securities. There may be fees","page_number":166,"box":{"x":68,"y":98,"width":819,"height":11}},{"id":"7b36a51a-3106-45c2-98e3-9b5f887fc7ae","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":166,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"a7fff77f-c885-4c02-8606-3c025470d4f0","block_type":"box","text":"your financial intermediary.","page_number":166,"box":{"x":68,"y":128,"width":191,"height":11}},{"id":"7ccf8b90-fc4b-4347-a628-f44487363819","block_type":"box","text":"Dividends received in each of the plans referred to above are exempt from U.S. federal taxation until distributed","page_number":166,"box":{"x":102,"y":150,"width":796,"height":11}},{"id":"2d48f875-d793-4fbb-8270-041a52cc4514","block_type":"box","text":"from the plans and, in the case of Roth IRAs and education savings plans, may be exempt from taxation when","page_number":166,"box":{"x":68,"y":166,"width":784,"height":11}},{"id":"dd96f2d1-277b-4641-8e12-d23115d675c7","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":166,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"f0e4a869-f858-4a57-be64-fd6bd1c7c84e","block_type":"box","text":"specific tax laws relating to the plan and should consult their attorneys or tax advisors with respect to the","page_number":166,"box":{"x":69,"y":196,"width":753,"height":11}},{"id":"9b0604b1-ac31-42c6-8171-7a3c5d438043","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":166,"box":{"x":69,"y":211,"width":354,"height":11}},{"id":"dbd069a7-aa1f-4ae4-857d-7f45ed4d9291","block_type":"box","text":"Automatic Investment Plans","page_number":166,"box":{"x":68,"y":241,"width":207,"height":9}},{"id":"475f6f71-4097-4e76-9bf1-45096507b89c","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":166,"box":{"x":102,"y":264,"width":773,"height":11}},{"id":"2287f89a-00ad-4242-98dd-98f42850357e","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":166,"box":{"x":69,"y":279,"width":477,"height":11}},{"id":"9a92a764-cdb2-4abb-a33f-51918abb07a0","block_type":"box","text":"®","page_number":166,"box":{"x":547,"y":279,"width":6,"height":5}},{"id":"c2d9c1f7-634c-40b7-b90f-d8e435b5b81e","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":166,"box":{"x":559,"y":279,"width":272,"height":11}},{"id":"4277a436-86f4-45bc-a8e9-96aa227d534e","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":166,"box":{"x":70,"y":294,"width":787,"height":11}},{"id":"9359775b-6ebf-4a19-8637-4d51f715342a","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through cer tain accounts, no minimum charge to","page_number":166,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"e691df2d-f516-457e-a2a5-fa026d5f13ee","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":166,"box":{"x":68,"y":324,"width":805,"height":11}},{"id":"d96db023-f0b8-4984-abaf-e13a21d66cf6","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":166,"box":{"x":68,"y":355,"width":285,"height":9}},{"id":"bd5be4f5-a1a8-4766-a47c-7e3f9707e7a8","block_type":"box","text":"Each Fund will distribute substantially all of its net investment income and net realized capital gains, if any, to","page_number":166,"box":{"x":102,"y":377,"width":782,"height":12}},{"id":"287b7559-b6ec-401b-b8ff-d13286980ddb","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":166,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"378f457d-21d1-4aef-bc9b-b250441df9c7","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set for th in a","page_number":166,"box":{"x":69,"y":407,"width":839,"height":9}},{"id":"f8e9b4d2-9b54-4ff5-acb5-bfd6fe918ca7","block_type":"box","text":"Fund’s prospectus. Such election, or any revocation thereof, must be made in writing to the Transfer Agent, and will","page_number":166,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"be4dba79-c8d7-40cf-99e5-9b49ed9afea9","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":166,"box":{"x":69,"y":438,"width":614,"height":11}},{"id":"384b0a6c-6344-4656-b1e7-45aa0bc6bd75","block_type":"box","text":"Systematic Withdrawal Plans","page_number":166,"box":{"x":68,"y":468,"width":214,"height":11}},{"id":"9986ed58-dc36-4e71-a6ee-aac0572ee062","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":166,"box":{"x":102,"y":491,"width":780,"height":11}},{"id":"312d7646-f8a7-456a-b682-ced7b8b9db08","block_type":"box","text":"Upon commencement of the SWP, the account must have a current value of $10,000 or more in a Fund.","page_number":166,"box":{"x":70,"y":505,"width":742,"height":12}},{"id":"c5f5d851-57bf-400c-a327-b39ea4f25e5d","block_type":"box","text":"Shareholders may elect to receive automatic cash payments of $50 or more at any interval. You may choose any day","page_number":166,"box":{"x":69,"y":520,"width":834,"height":12}},{"id":"cff660c5-4282-4955-ba28-b4252c7b145a","block_type":"box","text":"for the withdrawal. If no day is specified, the withdrawals will be processed on the 25th day of the month or, if such","page_number":166,"box":{"x":68,"y":536,"width":823,"height":11}},{"id":"62c2d8f0-577a-4344-a07c-88c9d27c64fd","block_type":"box","text":"day is not a business day, on the prior business day and are paid promptly thereafter. An investor may utilize the SWP","page_number":166,"box":{"x":69,"y":551,"width":840,"height":11}},{"id":"901a9bbd-ad01-41ae-a666-327fcc77c5fa","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":166,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"28cd924e-8ec5-4de1-9ebf-7128000f1564","block_type":"box","text":"www.blackrock.com.","page_number":166,"box":{"x":68,"y":582,"width":142,"height":8}},{"id":"67a757c9-6be0-4654-8bf2-dc3b42d58620","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":166,"box":{"x":102,"y":604,"width":789,"height":11}},{"id":"f17dde58-6141-4a94-83b4-f28d1b365a1c","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":166,"box":{"x":68,"y":619,"width":774,"height":11}},{"id":"d54b359d-525b-4365-b21a-6709318786b6","block_type":"box","text":"Shareholders may change or cancel the SWP at any time, upon written notice to the Fund, or by calling the Fund at","page_number":166,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"15d2b096-b9e7-4c06-b889-046c8e307c17","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":166,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"35f97f66-8436-4738-85c1-5eaaecb22a76","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":166,"box":{"x":69,"y":664,"width":803,"height":12}},{"id":"de56f083-76de-4f16-946a-59990851f4de","block_type":"box","text":"CDSC will be assessed on redemptions of Investor C Shares made through the SWP that do not exceed 12% of the","page_number":166,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"58dd55de-4395-4edd-bd7e-e6361508d88d","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":166,"box":{"x":69,"y":695,"width":810,"height":11}},{"id":"b037abee-68f3-453d-8edb-404278803288","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quar terly) and 6% (semi","page_number":166,"box":{"x":70,"y":710,"width":816,"height":11}},{"id":"af0985da-6893-434c-9235-0b20e9c7cf2b","block_type":"box","text":"annually), respectively, of an account’s NAV on the redemption date. SWP redemptions of Investor C Shares in excess","page_number":166,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"2d5ccabb-015e-4660-8d3a-29ff8a9bd4c4","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":166,"box":{"x":69,"y":740,"width":367,"height":11}},{"id":"c8696775-5628-4cdd-a87d-e9f245406416","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":166,"box":{"x":102,"y":763,"width":798,"height":11}},{"id":"934440ad-0d8c-4ecd-8215-c879a229a8c6","block_type":"box","text":"to Buy, Sell, Exchange and Transfer Shares” or “How to Buy, Sell and Exchange Shares,” as applicable, in the Fund’s","page_number":166,"box":{"x":68,"y":778,"width":834,"height":11}},{"id":"67cc5edd-da9b-45dd-84b2-265462369b66","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":166,"box":{"x":69,"y":793,"width":311,"height":11}},{"id":"c2b2182f-0043-452b-aa2f-a9cd4f6a4562","block_type":"box","text":"Dividend Allocation Plan","page_number":166,"box":{"x":69,"y":823,"width":176,"height":9}},{"id":"267a2ad6-d84f-486a-b0a5-007083d627a3","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":166,"box":{"x":101,"y":846,"width":807,"height":11}},{"id":"0557a8dd-7d94-43a1-be36-011b34e38ead","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":166,"box":{"x":69,"y":861,"width":763,"height":11}},{"id":"37eb5c7e-a19b-4e94-b5f5-f677fc05ba88","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":166,"box":{"x":69,"y":876,"width":814,"height":11}},{"id":"da6e53d0-44ab-4408-b886-1cc1ffbfbb7b","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":166,"box":{"x":70,"y":891,"width":771,"height":11}},{"id":"45bad883-fdd2-4480-81b1-8e5edc55119b","block_type":"box","text":"II-121","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3af08802-0149-461d-b225-bf82ab6a5cb4","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4247b61e-b782-44c0-8e35-f932e5005218","block_type":"box","text":"PRICING OF SHARES","page_number":167,"box":{"x":406,"y":45,"width":167,"height":10}},{"id":"4e74f842-b3c4-470d-b547-182bf79b7179","block_type":"box","text":"Determination of Net Asset Value","page_number":167,"box":{"x":69,"y":76,"width":243,"height":8}},{"id":"42fc63c0-8f89-4a52-abb6-17b64e23268b","block_type":"box","text":"Valuation of Shares.","page_number":167,"box":{"x":101,"y":98,"width":145,"height":9}},{"id":"3d768f3c-16b8-4c40-8aa3-35678b93c80f","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":167,"box":{"x":252,"y":98,"width":626,"height":11}},{"id":"12a295f3-54ae-4b24-bb41-e9f6659990ea","block_type":"box","text":"regular trading hours on the NYSE (currently 4:00 p.m. Eastern Time) on each business day the NYSE is open.","page_number":167,"box":{"x":69,"y":113,"width":785,"height":12}},{"id":"23d09dc1-b56f-49f6-b889-3d974befc79d","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":167,"box":{"x":68,"y":128,"width":343,"height":12}},{"id":"43393051-7905-401d-82d5-cee5071897e4","block_type":"box","text":"Equity Investments.","page_number":167,"box":{"x":102,"y":151,"width":143,"height":11}},{"id":"123a2dbd-095c-4790-8e25-7b596cbc0d4f","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":167,"box":{"x":252,"y":151,"width":439,"height":11}},{"id":"cac92e77-45c3-481f-a41e-f6b2d722105a","block_type":"box","text":"e.g.","page_number":167,"box":{"x":693,"y":153,"width":25,"height":9}},{"id":"d4ad64f1-8d49-4322-9d63-ebc40b009ff4","block_type":"box","text":", NYSE), on separate","page_number":167,"box":{"x":720,"y":151,"width":147,"height":11}},{"id":"8650d0a4-3ca0-460f-82b9-ff3e90478179","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":167,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"bfc08ccc-aaa9-4b30-b35a-95af8637e50e","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":167,"box":{"x":70,"y":181,"width":808,"height":12}},{"id":"5ee492ff-79fa-41a9-a0ea-204ca53ed985","block_type":"box","text":"generally at the Exchange closing price or if an Exchange closing price is not available, the last traded price on that","page_number":167,"box":{"x":68,"y":196,"width":820,"height":12}},{"id":"e888c742-880e-4478-b830-09a39ac451f2","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under cer tain circumstances,","page_number":167,"box":{"x":70,"y":212,"width":805,"height":11}},{"id":"da7780c1-a18e-43ed-91d7-dd89e6f68268","block_type":"box","text":"other means of determining current market value may be used. If an equity security is traded on more than one","page_number":167,"box":{"x":69,"y":227,"width":793,"height":11}},{"id":"6a73e269-c9ae-4ce7-9630-aaecd4051e49","block_type":"box","text":"Exchange, the current market value of the security where it is primarily traded generally will be used. In the event that","page_number":167,"box":{"x":70,"y":242,"width":836,"height":11}},{"id":"339bf4e8-431a-4962-ab01-91535c176f44","block_type":"box","text":"there are no sales involving an equity security held by a Fund on a day on which the Fund values such security, the","page_number":167,"box":{"x":68,"y":257,"width":815,"height":11}},{"id":"635844c0-ba17-4055-bff9-cf361265863e","block_type":"box","text":"last bid (long positions) or ask (shor t positions) price, if available, will be used as the value of such security. If a Fund","page_number":167,"box":{"x":70,"y":272,"width":837,"height":11}},{"id":"64b2f4d7-7c21-4278-b7c2-c20cf7fccd3a","block_type":"box","text":"holds both long and shor t positions in the same security, the last bid price will be applied to securities held long and","page_number":167,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"734286a2-3788-462f-af52-9d5d91ba482a","block_type":"box","text":"the last ask price will be applied to securities sold shor t. If no bid or ask price is available on a day on which a Fund","page_number":167,"box":{"x":68,"y":302,"width":828,"height":11}},{"id":"6b17d947-681e-4184-879a-ab028ba00b6d","block_type":"box","text":"values such security, the prior day’s price will be used, unless BlackRock determines that such prior day’s price no","page_number":167,"box":{"x":68,"y":318,"width":819,"height":11}},{"id":"98d0b958-2180-4c9a-b43b-9657cbdca819","block_type":"box","text":"longer reflects the fair value of the security, in which case such asset would be treated as a Fair Value Asset (as","page_number":167,"box":{"x":70,"y":332,"width":798,"height":12}},{"id":"e345433a-79da-4739-8795-0ee2e29062c2","block_type":"box","text":"defined below).","page_number":167,"box":{"x":69,"y":348,"width":106,"height":11}},{"id":"f272c72a-5e5b-4547-a997-a1ff0f8c1b19","block_type":"box","text":"Fixed-Income Investments.","page_number":167,"box":{"x":102,"y":370,"width":194,"height":9}},{"id":"2bca306e-d1aa-472d-98f2-3aeb4b8112ad","block_type":"box","text":"Fixed-income securities are generally valued using bid prices provided by dealers or","page_number":167,"box":{"x":304,"y":371,"width":592,"height":11}},{"id":"f9d999b2-9209-40eb-83db-565d7004b68f","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":167,"box":{"x":70,"y":386,"width":825,"height":11}},{"id":"5e8ab235-f2e1-4c62-8ab3-4703db05b0f4","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":167,"box":{"x":69,"y":401,"width":823,"height":11}},{"id":"bdfa21e8-22e7-4d3f-a7a4-17650ae0520c","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":167,"box":{"x":69,"y":416,"width":443,"height":11}},{"id":"22319e88-e1b9-4a4d-a945-5108aa2bb000","block_type":"box","text":"e.g.","page_number":167,"box":{"x":514,"y":417,"width":24,"height":10}},{"id":"2be7ae8f-4da3-4219-b2af-2a752386e3fd","block_type":"box","text":", recent representative bids and offers), credit","page_number":167,"box":{"x":541,"y":416,"width":328,"height":11}},{"id":"1fd4cee2-7cb5-48a6-a3c8-02c7298d3d0c","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":167,"box":{"x":69,"y":431,"width":834,"height":11}},{"id":"4d32cf05-90b5-4589-9326-5c424ae84d71","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":167,"box":{"x":69,"y":446,"width":769,"height":11}},{"id":"c0e9545a-a374-4e55-8be4-8ab87378b39b","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":167,"box":{"x":70,"y":461,"width":797,"height":11}},{"id":"997824c3-0036-40c7-97cd-5459386a0d13","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":167,"box":{"x":69,"y":476,"width":821,"height":11}},{"id":"57e6ca27-3d4e-4418-8c3c-a64f1c52cc96","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in cer tain asset","page_number":167,"box":{"x":68,"y":491,"width":798,"height":11}},{"id":"fec48e2b-e2f8-4270-9830-d3036047a78c","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":167,"box":{"x":69,"y":507,"width":825,"height":11}},{"id":"4b67b49c-187a-44bf-ba4f-34f493f7d9f7","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amor tized cost method of valuation may be used with","page_number":167,"box":{"x":69,"y":521,"width":791,"height":12}},{"id":"df7a4b0c-87b5-40f9-a432-cf429f214118","block_type":"box","text":"respect to debt obligations with 60 days or less remaining to maturity unless such method does not represent fair","page_number":167,"box":{"x":69,"y":537,"width":814,"height":11}},{"id":"4df3a6b8-1c3a-440a-8761-29617eab1892","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":167,"box":{"x":68,"y":552,"width":802,"height":11}},{"id":"19079be3-9641-481b-8781-a172fcad01df","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":167,"box":{"x":69,"y":567,"width":773,"height":10}},{"id":"6ec10455-149f-49e5-b062-d9ac3a1429dc","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":167,"box":{"x":69,"y":582,"width":795,"height":11}},{"id":"d86be244-6fc3-4759-b144-844a12e09ac7","block_type":"box","text":"attributes of the tranche.","page_number":167,"box":{"x":69,"y":597,"width":176,"height":9}},{"id":"2e4583b1-b35e-4650-b2e0-5ef083fe993d","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":167,"box":{"x":101,"y":620,"width":344,"height":11}},{"id":"f470878b-9b6f-42e6-b8c0-ab6ed7066e7c","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":167,"box":{"x":453,"y":620,"width":416,"height":11}},{"id":"138be3f0-ba7d-48b7-8489-ddb7df6c9f1a","block_type":"box","text":"index options or those that are customized) for which market quotations are readily available are valued at the mean","page_number":167,"box":{"x":70,"y":635,"width":829,"height":11}},{"id":"97812185-582e-4f9d-a733-d428aa7568dd","block_type":"box","text":"of the last bid and ask prices as quoted on the Exchange or the board of trade on which such options are traded. In","page_number":167,"box":{"x":69,"y":650,"width":824,"height":11}},{"id":"8f98ed36-128d-49b5-ba81-cf666e4095be","block_type":"box","text":"the event that there is no mean price available for an exchange-traded equity option held by a Fund on a day on which","page_number":167,"box":{"x":68,"y":665,"width":838,"height":11}},{"id":"2e2c81d1-545f-45cf-81aa-4d2be9e009bf","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (shor t positions) price, if available, will be used as","page_number":167,"box":{"x":68,"y":680,"width":820,"height":12}},{"id":"d32083be-e177-4540-bd8f-f29fa24d22ff","block_type":"box","text":"the value of such option. If no bid or ask price is available on a day on which a Fund values such option, the prior","page_number":167,"box":{"x":68,"y":695,"width":808,"height":11}},{"id":"6218cf56-7aaa-460c-89bb-46c070870f55","block_type":"box","text":"day’s price will be used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of","page_number":167,"box":{"x":69,"y":710,"width":824,"height":12}},{"id":"345c8f99-7cd1-42d1-9e52-9725ed6952d4","block_type":"box","text":"the option, in which case such option will be treated as a Fair Value Asset. Customized exchange-traded equity","page_number":167,"box":{"x":68,"y":726,"width":789,"height":11}},{"id":"7c27a423-3746-46b8-8c3f-e1321dd9b610","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":167,"box":{"x":69,"y":741,"width":807,"height":11}},{"id":"1b0b2201-3e41-47ad-ba53-acc6cb6967a0","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":167,"box":{"x":69,"y":756,"width":824,"height":11}},{"id":"28a32f6d-3e9a-4248-8b83-c9fb9bbc911d","block_type":"box","text":"on exchanges, are valued at their last sale price or settle price as of the close of such exchanges. Swap agreements","page_number":167,"box":{"x":69,"y":771,"width":833,"height":11}},{"id":"7e56b93d-368b-4508-90d3-456141a5e73b","block_type":"box","text":"and other derivatives are generally valued daily based upon quotations from market makers or by a pricing service in","page_number":167,"box":{"x":69,"y":786,"width":830,"height":11}},{"id":"2159a631-3725-465c-9b34-26db8c4975eb","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":167,"box":{"x":69,"y":801,"width":301,"height":9}},{"id":"0b85d8f2-c7b4-44b8-b6d5-c0f1f630fbbf","block_type":"box","text":"Underlying Funds.","page_number":167,"box":{"x":102,"y":824,"width":128,"height":11}},{"id":"44c40ecf-ac97-46a1-ba40-d23c6ac7a59d","block_type":"box","text":"Shares of underlying open-end funds (including money market funds) are valued at NAV.","page_number":167,"box":{"x":237,"y":824,"width":621,"height":11}},{"id":"07f83057-221c-4497-819a-9327857beae7","block_type":"box","text":"Shares of underlying exchange-traded closed-end funds or other ETFs will be valued at their most recent closing price.","page_number":167,"box":{"x":69,"y":839,"width":837,"height":11}},{"id":"c66109a6-0058-42f3-8ce7-32dd428951d0","block_type":"box","text":"General Valuation Information.","page_number":167,"box":{"x":101,"y":862,"width":220,"height":9}},{"id":"13665e97-766c-4bef-8247-b47b327ead73","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":167,"box":{"x":328,"y":862,"width":564,"height":11}},{"id":"aaf4a2b1-fb1a-457d-913d-dbea1946d001","block_type":"box","text":"market makers to value each Fund’s securities and other assets and liabilities are based on information available at","page_number":167,"box":{"x":69,"y":877,"width":831,"height":9}},{"id":"9d02281b-0152-4b43-86f2-f93b46cbee42","block_type":"box","text":"the time the Fund values its assets and liabilities. In the event that a pricing service quotation is revised or updated","page_number":167,"box":{"x":68,"y":892,"width":828,"height":11}},{"id":"b20aaea5-699b-4fb2-bd41-9d1aab343586","block_type":"box","text":"II-122","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f02276b5-b41e-4040-b919-458212277f6d","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a1a8eaa7-0aca-4636-b638-4bd71e827c3a","block_type":"box","text":"subsequent to the day on which the Fund valued such security, the revised pricing service quotation generally will be","page_number":168,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"d1bda8e2-0795-4431-8b0c-d025b638475b","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":168,"box":{"x":69,"y":60,"width":817,"height":11}},{"id":"279059a1-f9a3-4fe4-8592-fbba960e550c","block_type":"box","text":"the revision.","page_number":168,"box":{"x":68,"y":75,"width":87,"height":9}},{"id":"23640678-8b7f-4f7b-bbba-d617c824d05c","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":168,"box":{"x":102,"y":98,"width":784,"height":11}},{"id":"241f70da-0f07-40e4-b09c-fcda1716da57","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":168,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"5e4a51dd-d1c3-4e77-9b89-aaecb5234c2a","block_type":"box","text":"matrices, yield curves and other specified inputs and assumptions. This may result in the assets being valued at a","page_number":168,"box":{"x":69,"y":128,"width":818,"height":11}},{"id":"695c4d48-6a7a-47b3-ac6b-914ffe6e3b13","block_type":"box","text":"price different from the price that would have been determined had the evaluated pricing method not been used. The","page_number":168,"box":{"x":70,"y":143,"width":832,"height":11}},{"id":"4428659c-d98a-448a-92ea-1ae27cfb7764","block_type":"box","text":"price the Fund could receive upon the sale of any par ticular por tfolio investment may differ from the Fund’s valuation","page_number":168,"box":{"x":70,"y":158,"width":832,"height":11}},{"id":"822b7b38-c6e7-4891-8405-e6d8d94d7036","block_type":"box","text":"of the investment, par ticularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":168,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"a0c48d14-6d8f-49b4-89d4-3af323bf7738","block_type":"box","text":"methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an","page_number":168,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"6e32c421-fe41-4d8f-8fa1-bef4956f4a10","block_type":"box","text":"investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss","page_number":168,"box":{"x":70,"y":204,"width":833,"height":11}},{"id":"34eaecab-c580-48f0-ae2b-4952c6534914","block_type":"box","text":"or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investment may also be","page_number":168,"box":{"x":69,"y":218,"width":827,"height":12}},{"id":"9ee8fe72-67a3-4903-b00a-22484db1faed","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":168,"box":{"x":70,"y":234,"width":741,"height":11}},{"id":"c5277f95-8150-4f2b-b5f2-86513dc30c59","block_type":"box","text":"In the event that application of the methods of valuation discussed above result in a price for a security which is","page_number":168,"box":{"x":102,"y":256,"width":800,"height":11}},{"id":"f092f31a-d8e1-4714-a451-20a00b71d880","block_type":"box","text":"deemed not to be representative of the fair market value of such security, the security will be valued by, under the","page_number":168,"box":{"x":69,"y":271,"width":811,"height":12}},{"id":"a9afacbf-d7ef-4928-83d8-aa9c50fb6394","block_type":"box","text":"direction of or in accordance with a method approved by BlackRock, the Fund’s valuation designee, as reflecting fair","page_number":168,"box":{"x":69,"y":286,"width":827,"height":12}},{"id":"d274b62c-6174-4b01-aaa7-c2f8e8d16630","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":168,"box":{"x":68,"y":302,"width":824,"height":11}},{"id":"2f278044-236b-466b-8cb5-ac40f1635d7b","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":168,"box":{"x":69,"y":317,"width":817,"height":11}},{"id":"94ceaf04-5d13-4491-91ad-835776f01cf3","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":168,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"f4bc7171-777c-4ce2-abaf-28dec5a14ebb","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":168,"box":{"x":69,"y":347,"width":685,"height":11}},{"id":"ec4b6333-e332-49fc-b0b1-e2ee36049995","block_type":"box","text":"Cer tain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":168,"box":{"x":102,"y":370,"width":795,"height":11}},{"id":"26797621-fe12-4b73-b6dc-6e966a10d92d","block_type":"box","text":"which a Fund’s NAV is not calculated. In such cases, the NAV of a Fund’s shares may be significantly affected on","page_number":168,"box":{"x":68,"y":385,"width":805,"height":11}},{"id":"763cfe0e-f989-4587-ab99-7653186d9a4e","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":168,"box":{"x":69,"y":400,"width":529,"height":11}},{"id":"a586b224-314f-43cf-9d92-771387ce5309","block_type":"box","text":"Fair Value.","page_number":168,"box":{"x":102,"y":423,"width":74,"height":9}},{"id":"567b5bc0-8e04-46d5-9927-a4a92f428d69","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":168,"box":{"x":183,"y":423,"width":693,"height":11}},{"id":"9cd0214e-3708-48a7-8651-3d427f556010","block_type":"box","text":"Fund’s investments are valued at fair value (“Fair Value Assets”). Fair Value Assets are valued by BlackRock in","page_number":168,"box":{"x":70,"y":438,"width":785,"height":11}},{"id":"01f3d863-105d-4777-9f6d-4f59e0bbf5cc","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":168,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"2a4e7608-9b4f-4d6e-a7e0-bb450ffe4f78","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":168,"box":{"x":70,"y":468,"width":779,"height":11}},{"id":"be2878b0-d2c9-4551-a00f-b94190d5ddb2","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":168,"box":{"x":70,"y":483,"width":773,"height":11}},{"id":"15881e41-c8eb-41e5-9e38-0f060c3c16e3","block_type":"box","text":"unreliable if, among other things, a security or other asset or liability does not have a price source due to its","page_number":168,"box":{"x":69,"y":498,"width":772,"height":11}},{"id":"cda8b153-c25c-405a-8168-ef50c85f1a8c","block_type":"box","text":"complete lack of trading, if BlackRock believes a market quotation from a broker-dealer or other source is unreliable","page_number":168,"box":{"x":69,"y":513,"width":826,"height":12}},{"id":"ded1c119-3754-4d36-be3f-e34383e4c765","block_type":"box","text":"(","page_number":168,"box":{"x":69,"y":529,"width":3,"height":10}},{"id":"c3cefe6d-7378-4881-b010-fcc382ae2071","block_type":"box","text":"e.g.","page_number":168,"box":{"x":74,"y":530,"width":25,"height":10}},{"id":"ba987b6a-46e3-4428-8d37-41cb5bc1537e","block_type":"box","text":", where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":168,"box":{"x":101,"y":528,"width":806,"height":12}},{"id":"c23aeb9d-c662-4bab-aca4-fb2d728b712c","block_type":"box","text":"or liability subsequent to the most recent market quotation), or where the security or other asset or liability is only","page_number":168,"box":{"x":69,"y":544,"width":813,"height":11}},{"id":"83568e50-e25c-4460-a2c6-97a28c4816c9","block_type":"box","text":"thinly traded or due to the occurrence of a significant event subsequent to the most recent market quotation. For this","page_number":168,"box":{"x":68,"y":559,"width":837,"height":11}},{"id":"a46455a5-c044-46b5-8bba-5e282150de15","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":168,"box":{"x":70,"y":574,"width":838,"height":11}},{"id":"44dbbf3f-9aad-4f67-a4bd-a420e42629f7","block_type":"box","text":"an event has occurred after the close of trading for an asset or liability but prior to or at the time of pricing a Fund’s","page_number":168,"box":{"x":69,"y":589,"width":824,"height":11}},{"id":"933313f8-a842-49b4-88d1-cecc9387c28e","block_type":"box","text":"assets or liabilities, is likely to cause a material change to the last exchange closing price or closing market price of","page_number":168,"box":{"x":69,"y":604,"width":828,"height":11}},{"id":"c5048f29-91b6-456f-b09e-f351c34b7c8b","block_type":"box","text":"one or more assets held by, or liabilities of, the Fund. On any day the NYSE is open and a foreign market or the","page_number":168,"box":{"x":69,"y":619,"width":793,"height":11}},{"id":"b41a1d44-c652-4be1-b8a7-f11681560fce","block_type":"box","text":"primary exchange on which a foreign asset or liability is traded is closed, such asset or liability will be valued using","page_number":168,"box":{"x":70,"y":634,"width":819,"height":12}},{"id":"53c9af45-fa3e-420a-9760-a6c08091de57","block_type":"box","text":"the prior day’s price, provided that BlackRock is not aware of any significant event or other information that would","page_number":168,"box":{"x":68,"y":649,"width":810,"height":12}},{"id":"34231731-83f5-4636-a9e7-864b67561c23","block_type":"box","text":"cause such price to no longer reflect the fair value of the asset or liability, in which case such asset or liability would","page_number":168,"box":{"x":69,"y":664,"width":828,"height":12}},{"id":"dead411e-a5a7-406e-aab6-55d39dad15af","block_type":"box","text":"be treated as a Fair Value Asset. For cer tain foreign assets, a third-par ty vendor supplies evaluated, systematic fair","page_number":168,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"b6e8d64e-e8f7-4350-9907-18e5485ed046","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":168,"box":{"x":68,"y":695,"width":814,"height":11}},{"id":"8ee89276-3ffc-4c3a-9057-182d197f3149","block_type":"box","text":"closed. This systematic fair value pricing methodology is designed to correlate the prices of foreign assets in one or","page_number":168,"box":{"x":69,"y":710,"width":827,"height":11}},{"id":"7259f62e-148a-4cfe-8ef4-d2df596ae657","block_type":"box","text":"more non-U.S. markets following the close of the local markets to the prices that might have prevailed as of a Fund’s","page_number":168,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"55c59f79-f6d3-4f85-ab15-0ad069bb31a0","block_type":"box","text":"pricing time.","page_number":168,"box":{"x":70,"y":740,"width":85,"height":11}},{"id":"f40ecbfb-03c8-4f33-a73f-494b588eb1fb","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":168,"box":{"x":102,"y":763,"width":794,"height":11}},{"id":"9491b38e-e665-403a-b9f0-e9baf2480e81","block_type":"box","text":"and significant inputs used in the fair valuation of Fund assets or liabilities. In addition, the Funds’ accounting agent","page_number":168,"box":{"x":69,"y":778,"width":829,"height":11}},{"id":"e8d35e0a-80f0-43bf-9834-1488d539bcd3","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":168,"box":{"x":69,"y":793,"width":813,"height":11}},{"id":"39af396b-d18b-4793-b4ad-4791e475dbdd","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":168,"box":{"x":70,"y":808,"width":808,"height":11}},{"id":"1b0c9a61-eaca-4e49-bb50-8985cd121b8b","block_type":"box","text":"assets and liabilities of the Funds.","page_number":168,"box":{"x":69,"y":823,"width":245,"height":9}},{"id":"4e3d30b7-24d0-4b6a-8de3-dccae8c0b1ea","block_type":"box","text":"When determining the price for a Fair Value Asset, BlackRock will seek to determine the price that a Fund might","page_number":168,"box":{"x":101,"y":846,"width":795,"height":11}},{"id":"b3678c60-5c8b-4fd5-a274-f8c36e293669","block_type":"box","text":"reasonably expect to receive from the current sale of that asset or liability in an arm’s-length transaction on the date","page_number":168,"box":{"x":69,"y":861,"width":832,"height":11}},{"id":"e59850cd-7d41-4b7d-9ea0-893a7be14165","block_type":"box","text":"on which the asset or liability is being valued, and does not seek to determine the price a Fund might reasonably","page_number":168,"box":{"x":69,"y":876,"width":805,"height":11}},{"id":"25a4d2db-9f86-4c4a-a7fc-b43c72165e60","block_type":"box","text":"expect to receive for selling an asset or liability at a later time or if it holds the asset or liability to maturity. Fair value","page_number":168,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"6a3e5466-f9da-45bb-ae5a-e9f7c686ff8f","block_type":"box","text":"II-123","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5f2457f3-2c1c-400a-87b1-23ad6c75923a","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"88e346ca-0f6c-47f8-9f8b-be1972af5cb5","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":169,"box":{"x":69,"y":45,"width":744,"height":11}},{"id":"961f46e9-c063-45f5-b564-baf95f741229","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":169,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"b8376275-d285-431d-a3cd-990940c617c0","block_type":"box","text":"valuation models.","page_number":169,"box":{"x":68,"y":75,"width":125,"height":9}},{"id":"09a4bace-b30d-4868-8dd2-56c035b16c72","block_type":"box","text":"Fair value represents a good faith approximation of the value of an asset or liability. When determining the fair","page_number":169,"box":{"x":102,"y":98,"width":785,"height":11}},{"id":"1557625c-def4-47aa-9bc2-dc754f7a9bdd","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on cer tain factors, including","page_number":169,"box":{"x":68,"y":113,"width":822,"height":11}},{"id":"7839d31d-f11c-4b37-8070-97e6e5c780d3","block_type":"box","text":"the asset type). For example, the investment may be initially priced based on the original cost of the investment or,","page_number":169,"box":{"x":68,"y":128,"width":820,"height":11}},{"id":"2ade2f71-0658-41f3-9774-4aa3b7965cdb","block_type":"box","text":"alternatively, using proprietary or third-par ty models that may rely upon one or more unobservable inputs. Prices of","page_number":169,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"87c2aab9-6179-4de5-b84d-04bd1b7cf677","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":169,"box":{"x":69,"y":158,"width":766,"height":11}},{"id":"81899fd5-0e10-46a8-b3aa-c3060af317af","block_type":"box","text":"appropriate, an appraisal by a third-par ty experienced in the valuation of similar instruments, may also be used as a","page_number":169,"box":{"x":69,"y":173,"width":828,"height":11}},{"id":"02dbff45-09f6-43a4-9d2d-1c7e2326c828","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":169,"box":{"x":69,"y":188,"width":378,"height":12}},{"id":"4d079d73-cebe-4e62-bc3d-233c8a41458d","block_type":"box","text":"The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those assets or","page_number":169,"box":{"x":101,"y":211,"width":784,"height":11}},{"id":"e5f0876b-6d29-4ad0-81ad-1d105c7548ca","block_type":"box","text":"liabilities could have been sold during the period in which the par ticular fair values were used in determining a Fund’s","page_number":169,"box":{"x":70,"y":226,"width":836,"height":11}},{"id":"0e6efdc6-b7a9-407a-a67a-192062f88290","block_type":"box","text":"NAV. As a result, a Fund’s sale or redemption of its shares at NAV, at a time when a holding or holdings are valued at","page_number":169,"box":{"x":70,"y":241,"width":834,"height":11}},{"id":"75d6a2de-2f53-49f1-8aa5-1d07fcba966c","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":169,"box":{"x":68,"y":256,"width":728,"height":12}},{"id":"05a3721f-79ae-4b60-a129-8b1c66abcaa9","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":169,"box":{"x":102,"y":279,"width":786,"height":11}},{"id":"d7ce4d3d-052c-401f-835b-208a4c9a2d01","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set for th in","page_number":169,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"5bf71484-1530-4988-8456-0faedf55440c","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":169,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"7f0bbeb6-fe83-4283-8c67-c22023b495a1","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":169,"box":{"x":70,"y":324,"width":818,"height":12}},{"id":"75cffc18-29ca-474f-a1ac-78a7cf54a11b","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":169,"box":{"x":69,"y":339,"width":641,"height":12}},{"id":"e94c3daf-c912-4a12-9736-b78686ca0cb7","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":169,"box":{"x":102,"y":362,"width":786,"height":11}},{"id":"30aabfa9-9375-42e5-ac04-bba7d010bd94","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":169,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"e8be5cb8-c320-4fd6-8212-62e615b07d12","block_type":"box","text":"of the fair market value of assets or liabilities, to the extent such rules become more stringent, would tend to","page_number":169,"box":{"x":69,"y":392,"width":780,"height":12}},{"id":"5a8f9753-ecea-4c1e-8621-6eb2ff178554","block_type":"box","text":"increase the cost and/or reduce the availability of third-par ty determinations of fair market value. This may in turn","page_number":169,"box":{"x":70,"y":407,"width":810,"height":12}},{"id":"c34ef2a4-8e97-49b9-b9b6-c8389425944f","block_type":"box","text":"increase the costs associated with selling assets or affect their liquidity due to a Fund’s inability to obtain a third","page_number":169,"box":{"x":70,"y":423,"width":810,"height":11}},{"id":"bc82450a-8e34-4cd6-920f-ff197f587791","block_type":"box","text":"par ty determination of fair market value.","page_number":169,"box":{"x":70,"y":438,"width":285,"height":11}},{"id":"b1a787d7-1d3a-478c-9edb-e3c4fd9c969c","block_type":"box","text":"Computation of Offering Price Per Share","page_number":169,"box":{"x":69,"y":468,"width":292,"height":11}},{"id":"b7a76538-d163-4b57-b696-c9e8e9cf8216","block_type":"box","text":"See “Computation of Offering Price Per Share” in Par t I of a Fund’s SAI for an illustration of the computation of","page_number":169,"box":{"x":102,"y":491,"width":791,"height":11}},{"id":"5a772020-e549-47dd-95a9-067f263536b9","block_type":"box","text":"the offering price for shares of your Fund.","page_number":169,"box":{"x":68,"y":506,"width":295,"height":11}},{"id":"818823cf-3a05-460b-a07d-fb6148a777d3","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":169,"box":{"x":303,"y":535,"width":373,"height":10}},{"id":"0001390d-c439-42b9-8214-21883b15e866","block_type":"box","text":"Transactions in Portfolio Securities","page_number":169,"box":{"x":68,"y":566,"width":257,"height":9}},{"id":"0f5bad18-4eb9-4f4d-bd7b-cb769bfa5e0b","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":169,"box":{"x":102,"y":588,"width":798,"height":11}},{"id":"0cf41c4e-7372-49a4-bb46-c693ee0b465c","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":169,"box":{"x":69,"y":603,"width":839,"height":12}},{"id":"f3401043-d9b4-4c32-b16c-05a170f5d60b","block_type":"box","text":"par ticular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account cer tain factors","page_number":169,"box":{"x":70,"y":618,"width":822,"height":12}},{"id":"b78ce24c-f783-4442-a2f9-feb0de8d799c","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":169,"box":{"x":69,"y":634,"width":820,"height":11}},{"id":"2adff96c-4417-4746-9cea-f2c01469f1e9","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":169,"box":{"x":68,"y":649,"width":798,"height":11}},{"id":"7d5c2aab-859a-435c-8c15-0c394f27787f","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":169,"box":{"x":69,"y":664,"width":765,"height":11}},{"id":"b9b75909-3bd7-43a3-ac27-fb4be105df6e","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":169,"box":{"x":69,"y":679,"width":768,"height":11}},{"id":"42499eb7-390b-4cfb-9dc0-ea4c6e0f483e","block_type":"box","text":"BlackRock and its clients, including a Fund. In return for such services, BlackRock may cause a Fund to pay a higher","page_number":169,"box":{"x":70,"y":694,"width":830,"height":11}},{"id":"a4923bb6-bab9-4acf-bbee-14d00fce44cd","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":169,"box":{"x":69,"y":709,"width":760,"height":11}},{"id":"1eb8e2f2-1e97-46c7-abb8-f8f0bbd88060","block_type":"box","text":"reasonable in relation to the services provided.","page_number":169,"box":{"x":69,"y":725,"width":336,"height":10}},{"id":"f1a4121b-ff35-464f-9733-fc1d2ea79af5","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":169,"box":{"x":102,"y":747,"width":794,"height":11}},{"id":"9733e115-97aa-4f9e-b609-8247ad1880f6","block_type":"box","text":"Master Por tfolio, it is expected that all transactions in por tfolio securities will be entered into by the Master Por tfolio.","page_number":169,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"3161da78-7172-4281-b5b6-12917d7ce2c3","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":169,"box":{"x":102,"y":785,"width":784,"height":11}},{"id":"37e096cc-d7ad-41b9-ad67-ac6e6e5a4bd2","block_type":"box","text":"the best price and most favorable execution for a Fund, taking into account a variety of factors including: (i) the size,","page_number":169,"box":{"x":68,"y":800,"width":829,"height":11}},{"id":"e36de2c5-2f21-4866-abdd-5236ce432a47","block_type":"box","text":"nature and character of the security or instrument being traded and the markets in which it is purchased or sold;","page_number":169,"box":{"x":69,"y":815,"width":802,"height":11}},{"id":"7e8d3e6e-73c3-4957-93df-91162d3db3a3","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":169,"box":{"x":69,"y":830,"width":826,"height":11}},{"id":"dc0ab28c-7010-4a43-b43d-d793ee18b30a","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":169,"box":{"x":69,"y":845,"width":789,"height":12}},{"id":"1b72e9a7-66e5-4466-b777-a1ef4c3c458a","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":169,"box":{"x":70,"y":860,"width":818,"height":12}},{"id":"a3e0b868-2c02-4aed-a02b-547c89d8795f","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":169,"box":{"x":69,"y":875,"width":769,"height":12}},{"id":"01a7e6c1-9fe0-4321-ac78-a38aa8d5a3c2","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":169,"box":{"x":69,"y":891,"width":837,"height":11}},{"id":"a669ded0-220b-4668-8d2f-2d4ea1b28692","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":169,"box":{"x":69,"y":906,"width":391,"height":11}},{"id":"3ec4a40d-f158-44bf-b308-185bb2f0f1b4","block_type":"box","text":"II-124","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1d2d04c4-122a-4e60-ade6-233271bd0f92","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ee233212-ef17-4e81-b695-4f31fdfdbc73","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":170,"box":{"x":102,"y":45,"width":801,"height":11}},{"id":"6ce2ba42-77fc-4688-9799-bb6400be1177","block_type":"box","text":"to cause an account to pay a broker or dealer a commission for effecting a transaction that exceeds the amount","page_number":170,"box":{"x":68,"y":60,"width":802,"height":11}},{"id":"75226067-eca0-4e08-a6ae-dcef078d3171","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":170,"box":{"x":69,"y":75,"width":775,"height":11}},{"id":"1c86e8f4-f02f-4d4c-b463-0a2c78be1906","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":170,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"5598bd08-bd30-440c-bdb2-7e3c2a1f1e61","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":170,"box":{"x":70,"y":105,"width":827,"height":11}},{"id":"689c34fd-ca05-47c7-b933-5d19a4a60638","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":170,"box":{"x":68,"y":120,"width":753,"height":12}},{"id":"f08316c2-0eeb-4feb-9561-dee2898fdc39","block_type":"box","text":"per formance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":170,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"9e51362b-51d7-47d9-a14b-cca941a13337","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":170,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"0dbb160a-77ea-4cda-b180-dfcd97f8742f","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":170,"box":{"x":70,"y":166,"width":775,"height":11}},{"id":"7d6878af-923c-4e94-a6eb-e7091c8147b1","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":170,"box":{"x":69,"y":181,"width":764,"height":11}},{"id":"7f426dc5-7845-4de4-8f9c-d302f4cc2ddf","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":170,"box":{"x":69,"y":196,"width":770,"height":11}},{"id":"ff5024a5-0f8e-4a85-bf71-b674128150ad","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":170,"box":{"x":69,"y":211,"width":599,"height":11}},{"id":"d8e0cd37-df8e-45fb-b8f4-2f2554e21203","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":170,"box":{"x":102,"y":234,"width":796,"height":11}},{"id":"16caf7c5-d073-45f5-ae59-c39729a7ad73","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a por tion of","page_number":170,"box":{"x":70,"y":249,"width":829,"height":11}},{"id":"4a771905-958c-404e-b871-546bc9866361","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":170,"box":{"x":68,"y":264,"width":839,"height":11}},{"id":"c25237c7-93da-4f32-8a91-ad6f0937c70a","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":170,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"ba6b065f-95d0-4757-b2be-cde384cf2df4","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":170,"box":{"x":69,"y":294,"width":809,"height":11}},{"id":"63a39566-fb44-47ba-af75-7b3d485b5a5f","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":170,"box":{"x":69,"y":309,"width":808,"height":11}},{"id":"b5fa7949-1b82-4805-999d-46cad85e0f4e","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":170,"box":{"x":69,"y":325,"width":818,"height":11}},{"id":"cdaa76a0-ba95-41d2-953f-c9d437e04006","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":170,"box":{"x":70,"y":339,"width":813,"height":12}},{"id":"e39fca66-acc9-4b44-9e0b-a56a0da909e3","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":170,"box":{"x":70,"y":355,"width":801,"height":11}},{"id":"0fa1884c-bee5-4d12-9010-03bb6c9aae5e","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":170,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"fbed3486-d7bc-4d63-bbc9-8e551b4a6013","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":170,"box":{"x":69,"y":385,"width":790,"height":11}},{"id":"ef9f2744-1a6c-4f04-a40d-232b088e5900","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":170,"box":{"x":70,"y":400,"width":361,"height":11}},{"id":"56e791ee-0dbb-4bf9-9bdf-6a2d000d93ab","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":170,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"b4e41f0a-bf12-4774-ac0a-780e0f0f46aa","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-par ty and provided to BlackRock by the broker-dealer)","page_number":170,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"d26d5f03-eb98-4a1b-bc4f-3dd8bee1f3e2","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":170,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"163a651e-c883-42ad-bb23-dfbf67a219b6","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":170,"box":{"x":70,"y":468,"width":785,"height":11}},{"id":"19b6fc50-fa85-45ac-affe-bb4adf246fb3","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":170,"box":{"x":70,"y":483,"width":806,"height":11}},{"id":"22bc0e4d-e466-41a6-a6d5-c536a75178ee","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":170,"box":{"x":68,"y":498,"width":772,"height":11}},{"id":"ab8f566d-99eb-44d1-ae32-afc83fd0597b","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":170,"box":{"x":69,"y":513,"width":838,"height":12}},{"id":"4f7bb77b-4faa-4bf5-a4e0-5f599147b3db","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":170,"box":{"x":68,"y":528,"width":769,"height":12}},{"id":"bf18c547-a4fa-4019-8991-128384e1faa8","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":170,"box":{"x":69,"y":543,"width":801,"height":12}},{"id":"00196ab1-44d8-4931-a488-1748255ca529","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":170,"box":{"x":69,"y":559,"width":778,"height":11}},{"id":"d27f2d7b-9951-47ce-8f15-5be3d6fda6c9","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":170,"box":{"x":69,"y":574,"width":363,"height":11}},{"id":"a28f546a-bb45-4134-9c72-beb7f94d42f3","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":170,"box":{"x":102,"y":596,"width":749,"height":12}},{"id":"de60b360-6270-43e3-a179-ce1940c05161","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":170,"box":{"x":69,"y":612,"width":799,"height":11}},{"id":"a09e3f5d-8e1e-4cd6-aebd-65c9092a86bf","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":170,"box":{"x":70,"y":627,"width":752,"height":11}},{"id":"cc3bcc12-688a-4729-add3-70007b412322","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":170,"box":{"x":70,"y":642,"width":823,"height":11}},{"id":"ed624cb7-7f03-4238-ab3f-32cbec51bf95","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":170,"box":{"x":70,"y":657,"width":822,"height":11}},{"id":"4085b7de-cc0c-4219-9dee-9c70f03d3547","block_type":"box","text":"used in servicing some or all client accounts and not all services may be used in connection with the Fund or account","page_number":170,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"d8631abc-bd81-43ed-bd85-26354a818518","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":170,"box":{"x":68,"y":687,"width":805,"height":11}},{"id":"ab429aee-28d4-4ff0-938a-3b0a71379e61","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":170,"box":{"x":69,"y":702,"width":798,"height":12}},{"id":"d8f41ab7-260b-40e5-a371-d88a39b6bb2f","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":170,"box":{"x":69,"y":717,"width":836,"height":12}},{"id":"5612e3bf-b4fd-4916-88b4-df2e91ef1714","block_type":"box","text":"paid by a Fund to BlackRock are not reduced as a result of BlackRock’s receipt of research services. In some cases,","page_number":170,"box":{"x":70,"y":732,"width":832,"height":12}},{"id":"7e8d8328-6376-4d94-aff7-2900fa568e19","block_type":"box","text":"BlackRock may receive a service from a broker that has both a “research” and a “non-research” use. When this","page_number":170,"box":{"x":70,"y":748,"width":798,"height":11}},{"id":"2613dc9f-cc05-4747-bc80-f8429508c0e0","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":170,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"0721e8df-0e64-48f3-8702-5bc11362bc0e","block_type":"box","text":"research uses of the service. The percentage of the service that is used for research purposes may be paid for with","page_number":170,"box":{"x":69,"y":778,"width":827,"height":11}},{"id":"07c729a4-a995-4d80-8ffa-4f34c38aaaa4","block_type":"box","text":"client commissions, while BlackRock will use its own funds to pay for the percentage of the service that is used for","page_number":170,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"be15c37a-3275-438f-8b4b-827d6bfb73a6","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":170,"box":{"x":69,"y":808,"width":797,"height":11}},{"id":"5ff2dfde-1b50-474d-bdc0-cb7108c6af37","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":170,"box":{"x":70,"y":823,"width":815,"height":12}},{"id":"561a3759-ceae-49b2-a22f-f6aec8a68279","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":170,"box":{"x":68,"y":838,"width":555,"height":11}},{"id":"b242b254-55b8-40d8-9eee-dc46b559a71f","block_type":"box","text":"Under MiFID II, investment managers in the EU, including BIL, are not able to use soft dollars to pay for research","page_number":170,"box":{"x":102,"y":861,"width":802,"height":11}},{"id":"ba82a10a-fb7f-4355-b84e-385ab6f5d437","block_type":"box","text":"from brokers. Investment managers in the EU are required to either pay for research out of their own profit and loss","page_number":170,"box":{"x":68,"y":876,"width":825,"height":11}},{"id":"0793f81f-b5f2-4f13-b96c-27b6a8c2a435","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":170,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"c1a215e5-aff5-4808-b056-8eba9c7b3d4b","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":170,"box":{"x":68,"y":906,"width":824,"height":12}},{"id":"72694758-a0a5-41fc-b51f-a89387711143","block_type":"box","text":"II-125","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a586b8f6-0ba0-41b7-b2d7-c8d5e666dd68","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c41a9426-abd5-44ba-8d88-0f33f21dabe3","block_type":"box","text":"payments for research are unbundled from the payments for execution. BIL will pay for any research out of its own","page_number":171,"box":{"x":70,"y":45,"width":812,"height":11}},{"id":"6e46c883-0b0b-48ee-b079-fc1ab02873c9","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":171,"box":{"x":69,"y":60,"width":547,"height":11}},{"id":"e0f0f9e1-65b9-45df-9467-2a9bbfd3c016","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Por tfolio with respect","page_number":171,"box":{"x":102,"y":82,"width":804,"height":12}},{"id":"103157ea-026d-44f0-aa5d-78dc361700f7","block_type":"box","text":"to the Feeder Fund (or affiliated persons of such persons), will be made in accordance with Rule 17e-1 under the","page_number":171,"box":{"x":68,"y":98,"width":806,"height":11}},{"id":"7013be9a-e231-4a42-883c-ee642f9d2808","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":171,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"3ded16de-dd2a-4644-872a-e47662ced642","block_type":"box","text":"is primarily responsible for the execution of the Master Por tfolio’s por tfolio transactions and the allocation of","page_number":171,"box":{"x":70,"y":128,"width":777,"height":11}},{"id":"d3769949-a52b-4c46-a87c-bd762aa54ee9","block_type":"box","text":"brokerage.","page_number":171,"box":{"x":69,"y":143,"width":74,"height":11}},{"id":"e4b5f1e3-ef8c-4153-8270-aac7dcdd34ca","block_type":"box","text":"From time to time, a Fund may purchase new issues of securities in a fixed price offering. In these situations,","page_number":171,"box":{"x":102,"y":166,"width":781,"height":11}},{"id":"5228fbab-ecb5-4735-9010-59b23a1585c7","block_type":"box","text":"the broker may be a member of the selling group that will, in addition to selling securities, provide BlackRock with","page_number":171,"box":{"x":68,"y":181,"width":810,"height":11}},{"id":"4f6ccc96-73d3-4bf1-9779-8cf828ef03e8","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":171,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"ecc630fe-1abe-489e-9544-902dd2a1ce8e","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":171,"box":{"x":69,"y":211,"width":818,"height":11}},{"id":"59e121c5-6d9a-4491-b6d6-7e857686c67d","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":171,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"6e637113-a4e0-4232-9358-5ec18e3f1c96","block_type":"box","text":"Section 28(e).","page_number":171,"box":{"x":69,"y":241,"width":99,"height":11}},{"id":"637bc5e9-b6d0-4c64-a499-d5b9685bf912","block_type":"box","text":"BlackRock does not consider sales of shares of the mutual funds it advises as a factor in the selection of","page_number":171,"box":{"x":102,"y":264,"width":755,"height":9}},{"id":"94978054-2abf-4d48-9f17-db6ea9ba3d46","block_type":"box","text":"brokers or dealers to execute por tfolio transactions for a Fund; however, whether or not a par ticular broker or dealer","page_number":171,"box":{"x":69,"y":279,"width":828,"height":11}},{"id":"a91a3790-d028-4e07-a985-412905746796","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":171,"box":{"x":69,"y":294,"width":799,"height":11}},{"id":"6f2abedd-2160-4c3a-95d9-d1ba104b925e","block_type":"box","text":"execute transactions for those mutual funds.","page_number":171,"box":{"x":69,"y":309,"width":319,"height":9}},{"id":"10fe03a0-3c92-463c-92ba-60dc1ef8cb9e","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":171,"box":{"x":102,"y":332,"width":770,"height":11}},{"id":"db08f857-c7d9-480f-8bb3-42747356d5e1","block_type":"box","text":"primarily on the principal stock exchanges of the applicable country. Foreign equity securities may be held by a Fund","page_number":171,"box":{"x":70,"y":347,"width":825,"height":11}},{"id":"9b4cce0c-9a33-4a18-b36d-894e24a4b329","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":171,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"8ca8cea7-26ec-4d0a-95a1-1135c6680687","block_type":"box","text":"may be listed on stock exchanges, or traded in OTC markets in the United States or Europe, as the case may be.","page_number":171,"box":{"x":69,"y":377,"width":805,"height":12}},{"id":"46320c96-5fbf-4d3e-80d0-580088168eb0","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":171,"box":{"x":68,"y":392,"width":773,"height":12}},{"id":"2452d4c0-9509-4767-966a-94c81f92b63b","block_type":"box","text":"commission rates. Because the shares of each Fund are redeemable on a daily basis in U.S. dollars, each Fund","page_number":171,"box":{"x":69,"y":407,"width":798,"height":12}},{"id":"af8a45d0-4ac3-4c17-b329-6ee96e2ec0ea","block_type":"box","text":"intends to manage its por tfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":171,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"fba272b8-dbf4-47d8-8708-909f66d887f9","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":171,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"8ab390a0-dc1e-42e7-93a2-bb0544d458c3","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":171,"box":{"x":69,"y":453,"width":540,"height":11}},{"id":"8b7d461b-5b6b-4d5a-bcdd-185be2e3b3c2","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":171,"box":{"x":102,"y":475,"width":798,"height":12}},{"id":"14268f2f-3c76-401f-9f2c-99cfb41b78b0","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":171,"box":{"x":68,"y":491,"width":597,"height":11}},{"id":"a437f7a5-a5ca-494a-ab69-cd439a63bdd3","block_type":"box","text":"Each Fund may invest in cer tain securities traded in the OTC market and intends to deal directly with the dealers","page_number":171,"box":{"x":102,"y":513,"width":802,"height":11}},{"id":"5eb62971-d6aa-45cb-9171-f35bad293daa","block_type":"box","text":"who make a market in the par ticular securities, except in those circumstances in which better prices and execution","page_number":171,"box":{"x":68,"y":529,"width":822,"height":10}},{"id":"9e2fdb3d-63aa-48f0-a4e7-33882f3a2bb8","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":171,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"fc62ae66-8fcf-4254-94d4-e0c01a433887","block_type":"box","text":"affiliated with such affiliated persons are prohibited from dealing with the Fund as principal in the purchase and sale","page_number":171,"box":{"x":69,"y":559,"width":832,"height":11}},{"id":"5d30569e-7522-430b-8c59-6fae7ff07443","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":171,"box":{"x":69,"y":574,"width":762,"height":11}},{"id":"439cf662-30ad-4231-9297-8d036890265c","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":171,"box":{"x":68,"y":589,"width":770,"height":11}},{"id":"6a173754-5feb-4341-a83b-f0987a1a2e27","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":171,"box":{"x":69,"y":604,"width":828,"height":11}},{"id":"17f7f72a-cc13-462d-a8df-e1ac082828b1","block_type":"box","text":"person of a Fund may serve as its broker in OTC transactions conducted on an agency basis provided that, among","page_number":171,"box":{"x":70,"y":619,"width":814,"height":11}},{"id":"6b488485-56b8-47c9-b64e-9b427ed5c48a","block_type":"box","text":"other things, the fee or commission received by such affiliated broker is reasonable and fair compared to the fee or","page_number":171,"box":{"x":69,"y":634,"width":825,"height":12}},{"id":"b9eb9615-1eac-4f7e-a0bd-b65cad38e593","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":171,"box":{"x":69,"y":649,"width":645,"height":12}},{"id":"9b5e232c-ba41-4951-a8f8-7a02e34aa55c","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":171,"box":{"x":102,"y":672,"width":797,"height":11}},{"id":"0ef53494-4cf1-40df-80f2-c345d47e7cbc","block_type":"box","text":"normally traded on a “net” basis without a stated commission, through dealers acting for their own account and not","page_number":171,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"b9512b7e-5663-48a0-b908-bfe7e71caeb5","block_type":"box","text":"as brokers. The Funds will primarily engage in transactions with these dealers or deal directly with the issuer unless a","page_number":171,"box":{"x":69,"y":703,"width":839,"height":11}},{"id":"bf2de617-c4f6-4f6b-b688-fcfe6114869e","block_type":"box","text":"better price or execution could be obtained by using a broker. Prices paid to a dealer with respect to both foreign and","page_number":171,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"68911771-974a-43d6-a2be-6c4527fdf194","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":171,"box":{"x":69,"y":732,"width":826,"height":12}},{"id":"f9476118-c090-4cbf-a2c5-470ea8c4ab60","block_type":"box","text":"is willing to purchase and sell the specific security at the time, and includes the dealer’s normal profit.","page_number":171,"box":{"x":70,"y":748,"width":730,"height":11}},{"id":"7cbdef9a-299e-4858-9188-c18ff72b6528","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":171,"box":{"x":102,"y":770,"width":800,"height":11}},{"id":"3f362c07-4a1f-4add-99fc-0d308954e760","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":171,"box":{"x":69,"y":786,"width":807,"height":11}},{"id":"8c0548c4-72ea-4a6a-8176-43989eee9323","block_type":"box","text":"instruments are generally traded on a “net” basis with dealers acting as principal for their own accounts without a","page_number":171,"box":{"x":70,"y":801,"width":812,"height":11}},{"id":"78c5794f-00c6-4373-9999-399ad8859d0f","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":171,"box":{"x":69,"y":816,"width":807,"height":11}},{"id":"eea6a26f-5521-4656-b6fb-6216ce33c231","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":171,"box":{"x":68,"y":831,"width":827,"height":11}},{"id":"70bdda7a-00e4-4e0b-9322-91a612bd474c","block_type":"box","text":"with the rules of the Commission. As a result, the por tfolio turnover rates of a money market fund will be relatively","page_number":171,"box":{"x":68,"y":846,"width":817,"height":11}},{"id":"ca39730e-e0f3-4334-9b73-2d3053b46a37","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":171,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"30ad7ba4-6ab7-435d-ba50-3fa569d41cc7","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":171,"box":{"x":69,"y":876,"width":700,"height":11}},{"id":"22667fff-ec9a-4b4d-8385-b6ff47275a19","block_type":"box","text":"II-126","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a49730ce-6aad-4088-8fe7-2075689ee9ae","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ca89ccb6-3fd7-4e14-b3fa-f507cea9061c","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":172,"box":{"x":102,"y":45,"width":756,"height":11}},{"id":"8d97506c-ec44-49b2-9170-8814f95650ce","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":172,"box":{"x":68,"y":60,"width":804,"height":11}},{"id":"09371684-5f8a-451f-912c-b1e2cee43cd9","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":172,"box":{"x":69,"y":75,"width":766,"height":11}},{"id":"70ba46f0-7469-4a7c-bd43-b856d67648bd","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an under taking from issuers of commercial paper or dealers","page_number":172,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"73111a37-8ea0-4188-a29c-84514f1019be","block_type":"box","text":"selling commercial paper to consider the repurchase of such securities from a Fund prior to maturity at their original","page_number":172,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"9dce6188-b480-493c-b2f5-9b895733b985","block_type":"box","text":"cost plus interest (sometimes adjusted to reflect the actual maturity of the securities), if it believes that a Fund’s","page_number":172,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"9922fab7-676e-44f4-a18b-6af42ab9b401","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":172,"box":{"x":69,"y":143,"width":776,"height":11}},{"id":"97249497-0cbd-4898-ab23-e8d23bdda635","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":172,"box":{"x":70,"y":158,"width":800,"height":11}},{"id":"634897c8-0cea-4b0b-950a-7a6e4b725a82","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":172,"box":{"x":69,"y":173,"width":352,"height":11}},{"id":"b7075b5f-e446-49a5-ad51-4ffc56f39ffa","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":172,"box":{"x":102,"y":196,"width":800,"height":11}},{"id":"6954a0d3-2004-41c4-9d26-c7d691036816","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":172,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"10b70142-0cb3-4d94-8568-6e4e2c06f240","block_type":"box","text":"accounts in a fair and equitable manner over time. A variety of factors will be considered in making such allocations.","page_number":172,"box":{"x":69,"y":226,"width":828,"height":11}},{"id":"acd4af35-f1a6-4d92-91a5-7f4fbec2cd72","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":172,"box":{"x":68,"y":241,"width":788,"height":11}},{"id":"bf1a9d58-f72f-447e-992e-cb56b08ff259","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":172,"box":{"x":69,"y":256,"width":759,"height":12}},{"id":"1e16154a-8658-46b4-aa36-8b718e726e20","block_type":"box","text":"concentration parameters for an account, (iv) supply or demand for a security at a given price level, (v) size of","page_number":172,"box":{"x":69,"y":271,"width":780,"height":12}},{"id":"6b815ef3-06b0-478a-a1db-5960ae908472","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":172,"box":{"x":69,"y":286,"width":777,"height":12}},{"id":"50816850-c4ab-4e49-bba3-a467d1d7843f","block_type":"box","text":"(viii) minimum investment size of an account, (ix) relative size of account, and (x) such other factors as may be","page_number":172,"box":{"x":69,"y":302,"width":788,"height":11}},{"id":"6bff5249-ddba-43b0-87d8-3863a9a7f236","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":172,"box":{"x":69,"y":317,"width":811,"height":11}},{"id":"7c77eba7-75db-403e-bace-7e9e39754701","block_type":"box","text":"another based on any of the following considerations: (i) to favor one client account at the expense of another, (ii) to","page_number":172,"box":{"x":69,"y":332,"width":829,"height":11}},{"id":"b5d28b75-c879-4d62-bbcc-91499ba65585","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":172,"box":{"x":68,"y":347,"width":808,"height":11}},{"id":"bd66bfcc-faa1-43aa-bfbf-f728b73a0677","block_type":"box","text":"BlackRock, (iii) to develop or enhance a relationship with a client or prospective client, (iv) to compensate a client for","page_number":172,"box":{"x":70,"y":362,"width":832,"height":11}},{"id":"ae0bb43f-c7b9-4c28-af22-7917846cb922","block_type":"box","text":"past services or benefits rendered to BlackRock or to induce future services or benefits to be rendered to BlackRock,","page_number":172,"box":{"x":70,"y":377,"width":836,"height":11}},{"id":"1e043111-5660-4c61-8670-27cb0d14acda","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":172,"box":{"x":69,"y":392,"width":613,"height":12}},{"id":"9cda4e2e-5216-4162-8eb4-60ac5e9c5622","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":172,"box":{"x":102,"y":415,"width":802,"height":11}},{"id":"f9f8e74b-4914-4f7c-9a79-d572ce5d3352","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":172,"box":{"x":69,"y":430,"width":800,"height":11}},{"id":"8e4db4fd-4acc-456c-a78d-9ad85354bb13","block_type":"box","text":"accounts and compliance constraints.","page_number":172,"box":{"x":69,"y":446,"width":269,"height":10}},{"id":"72dfe5fe-35c0-458f-94af-4a0a3a631ff6","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":172,"box":{"x":102,"y":468,"width":736,"height":11}},{"id":"35f43d55-94f2-4a01-b704-73706c48ebcc","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":172,"box":{"x":69,"y":483,"width":808,"height":11}},{"id":"a235895e-e613-4a03-a02d-38f757b3ecf9","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":172,"box":{"x":69,"y":498,"width":821,"height":11}},{"id":"9ab2d787-16c1-4d27-953d-4320385e8756","block_type":"box","text":"among client accounts over time, each por tfolio manager or a member of his or her respective investment team will","page_number":172,"box":{"x":69,"y":513,"width":823,"height":12}},{"id":"6bed65c3-9ea9-4e43-8ffd-bea8f0a2e89c","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a par ticular offering with respect to eligible client","page_number":172,"box":{"x":70,"y":528,"width":783,"height":12}},{"id":"88c149de-699b-4c6c-b894-290ee4cee764","block_type":"box","text":"accounts for which that team is responsible. Initial public offerings of U.S. equity securities will be identified as","page_number":172,"box":{"x":69,"y":543,"width":793,"height":12}},{"id":"14d37643-dd29-4d0a-b274-382478ef36fc","block_type":"box","text":"eligible for par ticular client accounts that are managed by por tfolio teams who have indicated interest in the offering","page_number":172,"box":{"x":69,"y":559,"width":831,"height":11}},{"id":"584f240e-f853-4dfa-8a86-b9e8d75f8eb7","block_type":"box","text":"based on market capitalization of the issuer of the security and the investment mandate of the client account and in","page_number":172,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"055a81fd-353f-4108-8bb5-3434ef92c8d2","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":172,"box":{"x":68,"y":589,"width":839,"height":11}},{"id":"0c604c23-25ec-4124-bbb4-677a5595d646","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":172,"box":{"x":69,"y":604,"width":835,"height":11}},{"id":"b3f297e6-2d9f-43bd-923e-ad3ae590b933","block_type":"box","text":"client accounts within each investment mandate on a pro rata basis. In situations where supply is too limited to be","page_number":172,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"0a075da2-718b-4cfe-bec2-dc534fcffae2","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":172,"box":{"x":69,"y":634,"width":808,"height":12}},{"id":"6f6578e5-c6cb-4341-a081-98ed3819a51d","block_type":"box","text":"oppor tunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":172,"box":{"x":69,"y":649,"width":791,"height":12}},{"id":"52e59e66-85f8-4816-bab4-ee93dd8ecb6f","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":172,"box":{"x":69,"y":664,"width":799,"height":12}},{"id":"99c3cdd1-85da-4b16-a9b4-22e3c4870aff","block_type":"box","text":"clients may be used as well.","page_number":172,"box":{"x":69,"y":680,"width":200,"height":11}},{"id":"52e167ba-314f-4a48-8d2c-21538af63d05","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":172,"box":{"x":102,"y":702,"width":789,"height":12}},{"id":"234181e5-f15a-440f-add5-5a8421134bbe","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":172,"box":{"x":68,"y":717,"width":815,"height":12}},{"id":"f55887dd-6532-4de5-9b30-7093556f0d72","block_type":"box","text":"and strategies of those accounts. For example, BlackRock may decide that it may be entirely appropriate for a growth","page_number":172,"box":{"x":69,"y":732,"width":835,"height":12}},{"id":"8158770c-1fc5-418d-a6d6-f707877d4c8e","block_type":"box","text":"fund to sell a security at the same time a value fund is buying that security. To the extent that transactions on behalf","page_number":172,"box":{"x":68,"y":748,"width":833,"height":11}},{"id":"ce5eef76-5a32-449b-8a6e-6952f363f716","block_type":"box","text":"of more than one client of BlackRock or its affiliates during the same period may increase the demand for securities","page_number":172,"box":{"x":69,"y":763,"width":829,"height":11}},{"id":"b26621fd-7f44-4c1f-ab90-fd5f25402b10","block_type":"box","text":"being purchased or the supply of securities being sold, there may be an adverse effect on price. For example, sales","page_number":172,"box":{"x":69,"y":778,"width":825,"height":11}},{"id":"56828876-e50b-43fb-9af9-726fbcdef20d","block_type":"box","text":"of a security by BlackRock on behalf of one or more of its clients may decrease the market price of such security,","page_number":172,"box":{"x":69,"y":793,"width":806,"height":11}},{"id":"a644207a-1d78-466d-9ef4-66d1ce7e09a8","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":172,"box":{"x":69,"y":808,"width":814,"height":11}},{"id":"ba09a9ad-75fb-4394-b4ce-351917d45b75","block_type":"box","text":"consideration at or about the same time that would involve a Fund or other clients or funds for which BlackRock or an","page_number":172,"box":{"x":69,"y":823,"width":836,"height":9}},{"id":"ad37acd7-10b2-4a39-b232-4f4b6f985a3f","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":172,"box":{"x":69,"y":838,"width":773,"height":12}},{"id":"f5d98f73-e8ee-4620-9e67-586b2fef1a00","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":172,"box":{"x":69,"y":853,"width":467,"height":11}},{"id":"f7e50808-e927-413d-8b02-c5aaa577ecf4","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":172,"box":{"x":102,"y":876,"width":741,"height":11}},{"id":"7ce13ff6-c4be-470e-8880-979533db5a37","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":172,"box":{"x":69,"y":891,"width":721,"height":12}},{"id":"d9d46793-5783-416c-b618-933d5631d2ee","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":172,"box":{"x":69,"y":906,"width":824,"height":12}},{"id":"457c936d-d101-47df-b477-2df96e0555fd","block_type":"box","text":"II-127","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"be2662cf-3f0c-42e5-8764-81c509daf419","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"907585b4-925d-47f4-a8e2-51f798826797","block_type":"box","text":"will be aggregated in a single order if the trader believes the aggregated trade would provide each client with an","page_number":173,"box":{"x":68,"y":45,"width":795,"height":11}},{"id":"f0d86e19-6278-4519-82f4-47bdba9d562b","block_type":"box","text":"oppor tunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":173,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"e5478642-d58b-4b0c-b481-10888bbadf4e","block_type":"box","text":"aggregated order will be shared pro rata among the clients in the aggregated order. Generally, if an order for a","page_number":173,"box":{"x":69,"y":75,"width":783,"height":11}},{"id":"474d85bd-50cc-45aa-99eb-a49f7d23f142","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":173,"box":{"x":70,"y":90,"width":796,"height":11}},{"id":"6870211a-47dd-4b23-ae43-3baed2f4bf51","block_type":"box","text":"accounts par ticipating in the order will receive the average price except in the case of cer tain international markets","page_number":173,"box":{"x":69,"y":105,"width":821,"height":11}},{"id":"fab19f0e-fbdb-4e78-a5c6-23f4531a3cec","block_type":"box","text":"where average pricing is not permitted. While in some cases this practice could have a detrimental effect upon the","page_number":173,"box":{"x":68,"y":120,"width":819,"height":12}},{"id":"8e16023c-9fbd-47c7-9a85-1868865102c2","block_type":"box","text":"price or value of the security as far as a Fund is concerned, in other cases it could be beneficial to the Fund.","page_number":173,"box":{"x":70,"y":135,"width":771,"height":11}},{"id":"d5affd12-5581-469d-95f1-ccb8b6b9c91a","block_type":"box","text":"Transactions effected by BlackRock on behalf of more than one of its clients during the same period may increase","page_number":173,"box":{"x":68,"y":150,"width":815,"height":12}},{"id":"3f3001ee-f7f9-4dfb-af25-b763edee6460","block_type":"box","text":"the demand for securities being purchased or the supply of securities being sold, causing an adverse effect on price.","page_number":173,"box":{"x":68,"y":166,"width":835,"height":11}},{"id":"5ab81093-5201-48e6-a101-03e81b03f75c","block_type":"box","text":"The trader will give the aggregated order to the broker-dealer that the trader has identified as being able to provide","page_number":173,"box":{"x":68,"y":181,"width":817,"height":11}},{"id":"25862263-62fe-41f9-a5a7-345135ff8732","block_type":"box","text":"the best execution of the order. Orders for purchase or sale of securities will be placed within a reasonable amount","page_number":173,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"d7bb1e35-6a35-497c-b4dc-1627feb5a150","block_type":"box","text":"of time of the order receipt and aggregated orders will be kept aggregated only long enough to execute the order.","page_number":173,"box":{"x":69,"y":211,"width":803,"height":11}},{"id":"78dfc5e7-2616-4178-b4de-dccebca9be8f","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":173,"box":{"x":101,"y":234,"width":767,"height":11}},{"id":"1769f089-678c-403d-852a-d96d01151295","block_type":"box","text":"securities of which BlackRock, BRIL or any affiliated person (as defined in the Investment Company Act) thereof is a","page_number":173,"box":{"x":69,"y":249,"width":826,"height":11}},{"id":"26d441be-3153-4fe7-9b64-26c414b278f8","block_type":"box","text":"member except pursuant to procedures adopted by the Board of Directors in accordance with Rule 10f-3 under the","page_number":173,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"e6159d9e-eff3-40a9-b2dd-fae17fe650ca","block_type":"box","text":"Investment Company Act. In no instance will por tfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":173,"box":{"x":70,"y":279,"width":833,"height":11}},{"id":"e3a5d40e-719b-4f58-8cc7-e0a6a66881cb","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":173,"box":{"x":69,"y":294,"width":818,"height":11}},{"id":"218a4869-df30-4e30-bd51-783e1f9f0f48","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":173,"box":{"x":101,"y":317,"width":786,"height":11}},{"id":"c449fc66-08ba-4fdf-ab30-eee24b588cbf","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of por tfolio securities of a Fund and","page_number":173,"box":{"x":69,"y":332,"width":814,"height":11}},{"id":"9b3d946f-26a7-4483-b980-c277ed151de0","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":173,"box":{"x":69,"y":347,"width":751,"height":11}},{"id":"a3d1a0ec-4385-45cc-8fd5-3c8cc8a11120","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":173,"box":{"x":68,"y":362,"width":829,"height":11}},{"id":"9e109a97-31b9-4dc1-a16d-a77c2076e507","block_type":"box","text":"to all by BlackRock. In some cases, this procedure could have a detrimental effect on the price or volume of the","page_number":173,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"8c1c5e14-a56b-4ae5-8ece-c6f528584a96","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to par ticipate in volume","page_number":173,"box":{"x":69,"y":392,"width":834,"height":12}},{"id":"97916ef6-1ceb-419a-b4ec-e39b97777c46","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":173,"box":{"x":68,"y":407,"width":820,"height":12}},{"id":"5376255c-a861-45d6-8be8-008c9d37a3b4","block_type":"box","text":"invest for its own account in the types of securities in which a Fund may invest. BlackRock may, from time to time,","page_number":173,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"cdc45eb4-e568-44b6-83a8-2f8f29b2e76c","block_type":"box","text":"effect trades on behalf of and for the account of a Fund with brokers or dealers that are affiliated with BFA, in","page_number":173,"box":{"x":69,"y":438,"width":781,"height":10}},{"id":"82fc7b26-c77b-4619-bbbf-9be50cf0857e","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":173,"box":{"x":69,"y":453,"width":805,"height":11}},{"id":"a8d09578-bb26-4128-9cd5-1ed630bed4a9","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":173,"box":{"x":69,"y":468,"width":840,"height":11}},{"id":"6cf62202-01d5-460a-a800-7c5e9730e9fa","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":173,"box":{"x":69,"y":483,"width":815,"height":11}},{"id":"01f7d20e-5ff9-4946-9db9-dd89d364d02a","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":173,"box":{"x":69,"y":498,"width":713,"height":11}},{"id":"81dd9a2e-bfdc-4db7-bf54-9349a2ea0467","block_type":"box","text":"Portfolio Turnover","page_number":173,"box":{"x":69,"y":528,"width":129,"height":9}},{"id":"d36de4b2-5426-416a-87a7-184b93832c03","block_type":"box","text":"The por tfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of por tfolio","page_number":173,"box":{"x":101,"y":551,"width":798,"height":11}},{"id":"0c33c77b-ea2a-44ed-9015-423719923222","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":173,"box":{"x":69,"y":566,"width":839,"height":11}},{"id":"a66f0743-2a0b-41a1-b261-35eeefc67c34","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the por tfolio during","page_number":173,"box":{"x":68,"y":581,"width":814,"height":12}},{"id":"f154123d-f42d-4e13-a978-3f23ee472f99","block_type":"box","text":"the year. A high rate of por tfolio turnover results in cer tain tax consequences, such as increased capital gain","page_number":173,"box":{"x":68,"y":596,"width":777,"height":12}},{"id":"23a7c9fe-a3bb-4cae-8a70-cfd0a8089338","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":173,"box":{"x":69,"y":612,"width":818,"height":11}},{"id":"3eceafb4-abfb-46cf-b193-13dfda2de95b","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":173,"box":{"x":69,"y":627,"width":519,"height":11}},{"id":"3d7e5a26-2c91-4bfa-9481-5969fa1de027","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":173,"box":{"x":396,"y":656,"width":186,"height":10}},{"id":"c6da1ae6-1825-4bb5-bd8d-8aa0674e5798","block_type":"box","text":"Dividends","page_number":173,"box":{"x":69,"y":687,"width":69,"height":9}},{"id":"bd1181ff-a339-483e-8b64-bc865a870c29","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":173,"box":{"x":102,"y":709,"width":776,"height":11}},{"id":"9d624832-71b6-41dd-b7e6-b681e6bf096a","block_type":"box","text":"investment income are paid as set for th in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":173,"box":{"x":70,"y":724,"width":795,"height":11}},{"id":"4ade1470-df91-4b36-9832-410931ac3192","block_type":"box","text":"realized capital gains, if any, as set for th in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":173,"box":{"x":69,"y":739,"width":837,"height":12}},{"id":"3c3aad6e-1f29-4b69-96c4-1f1855383951","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that cer tain","page_number":173,"box":{"x":69,"y":755,"width":836,"height":11}},{"id":"daad9daf-af90-49ff-bba4-f5a02df71317","block_type":"box","text":"percentages of its ordinary income and capital gains be distributed during the year. If, in any fiscal year, a Fund has","page_number":173,"box":{"x":70,"y":770,"width":822,"height":11}},{"id":"f1a5c1ee-2755-4294-a73d-038b82a2ccee","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":173,"box":{"x":69,"y":785,"width":739,"height":11}},{"id":"e372fe1e-4a49-427f-95b5-4c45efdfe4f6","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":173,"box":{"x":102,"y":807,"width":773,"height":12}},{"id":"2bf76993-ca80-4d19-a42d-6ba3af0adb5d","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":173,"box":{"x":70,"y":823,"width":819,"height":11}},{"id":"60058457-f807-4f96-b2d1-644da796879b","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":173,"box":{"x":69,"y":838,"width":807,"height":11}},{"id":"bf93fda9-2467-4964-a479-de93ade2ccb3","block_type":"box","text":"whether they are reinvested in shares of the Fund or received in cash. The per share dividends on front-end load","page_number":173,"box":{"x":68,"y":853,"width":800,"height":11}},{"id":"96f4afc7-e088-4802-9fdb-5400d91c4910","block_type":"box","text":"shares, CDSC shares and Service Shares will be lower than the per share dividends on Institutional Shares as a","page_number":173,"box":{"x":69,"y":868,"width":801,"height":11}},{"id":"23f02dfb-0e63-4832-9f2c-779d4fc2a04d","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":173,"box":{"x":69,"y":883,"width":783,"height":11}},{"id":"eb3a8e92-d037-40b8-aba3-1644dcad66d8","block_type":"box","text":"applicable to front-end load shares and Service Shares, and the service and distribution fees applicable to Class R","page_number":173,"box":{"x":69,"y":898,"width":820,"height":11}},{"id":"6802b58e-0911-471d-9dd0-69ade0ccf38d","block_type":"box","text":"II-128","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"dc38cc70-5159-4346-8f52-f420877494a4","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6a59b544-81f0-414b-a4be-707e90d25c6a","block_type":"box","text":"Shares. Similarly, the per share dividends on CDSC shares and Class R Shares will be lower than the per share","page_number":174,"box":{"x":69,"y":45,"width":794,"height":11}},{"id":"4dc2bc1a-96d3-4ce2-8fd5-84b577039e5a","block_type":"box","text":"dividends on front-end load shares and Service Shares as a result of the distribution fees and higher transfer agency","page_number":174,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"3a2af349-c45d-49cf-8248-710fe3802f40","block_type":"box","text":"fees applicable to CDSC shares and the distribution fees applicable to Class R Shares, and the per share dividends","page_number":174,"box":{"x":68,"y":75,"width":826,"height":11}},{"id":"14581b50-2af8-4d4a-8972-0494908bbc88","block_type":"box","text":"on CDSC shares will be lower than the per share dividends on Class R Shares as a result of the higher distribution","page_number":174,"box":{"x":69,"y":90,"width":816,"height":11}},{"id":"9a08b3b7-da13-4ce5-af6c-61781c8c24cf","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":174,"box":{"x":68,"y":105,"width":461,"height":11}},{"id":"32e1c968-7d87-430e-b597-9dca5837fe3c","block_type":"box","text":"Taxes","page_number":174,"box":{"x":68,"y":136,"width":42,"height":8}},{"id":"d6aecacd-55eb-4459-a1e1-c6fde0897745","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":174,"box":{"x":102,"y":158,"width":732,"height":11}},{"id":"746968d6-e861-4388-8ca9-0b9e2b02ed59","block_type":"box","text":"companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not be subject to","page_number":174,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"7fbf9f99-8858-4bdb-838d-c79a5569c583","block_type":"box","text":"U.S. federal income tax on the par t of its investment company taxable income and net realized capital gains that it","page_number":174,"box":{"x":70,"y":188,"width":817,"height":12}},{"id":"6054f640-10f2-4980-995f-c591f7823fe9","block_type":"box","text":"distributes to its shareholders in years in which it distributes at least 90% of its investment company taxable income","page_number":174,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"bf6e2bea-6662-41b3-a1d9-83af3db8b42c","block_type":"box","text":"and at least 90% of its net tax-exempt interest income, if any, for the year. To qualify as a regulated investment","page_number":174,"box":{"x":69,"y":218,"width":791,"height":12}},{"id":"c1868f36-c35c-45a9-bbc0-36331236800f","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":174,"box":{"x":69,"y":234,"width":786,"height":11}},{"id":"8031a8f0-f2b6-4bbb-b611-583a3f41d8f7","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":174,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"3c9fc288-fd37-4e73-8963-04edc1d3be5c","block_type":"box","text":"for a discussion of the asset diversification requirements. In the case of a Feeder Fund, such Fund may look to the","page_number":174,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"825f1d45-1525-4d3e-a5d1-8ec887942425","block_type":"box","text":"underlying assets of the Master Por tfolio in which it has invested for purposes of satisfying the asset diversification","page_number":174,"box":{"x":69,"y":279,"width":824,"height":11}},{"id":"5cfc414f-a756-4cee-b083-bb73d859f350","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":174,"box":{"x":69,"y":294,"width":739,"height":11}},{"id":"1145b733-aa58-41dd-ade6-8b948fbe1893","block_type":"box","text":"A Fund may be able to cure a failure to derive at least 90% of its income from the sources specified above or a","page_number":174,"box":{"x":101,"y":317,"width":792,"height":11}},{"id":"37e104d7-851a-45ce-91fc-7e6df37a86cd","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of cer tain assets, or by","page_number":174,"box":{"x":68,"y":332,"width":819,"height":11}},{"id":"7d5f01b8-5f75-40ea-a3a7-acbd41acb65c","block_type":"box","text":"paying a tax and disposing of assets. If, in any taxable year, a Fund fails one of these tests and does not timely cure","page_number":174,"box":{"x":70,"y":347,"width":830,"height":11}},{"id":"c3f6c1bc-76d7-4604-b36a-d41be4f45482","block_type":"box","text":"the failure, the Fund will be taxed in the same manner as an ordinary corporation and distributions to its","page_number":174,"box":{"x":68,"y":362,"width":744,"height":11}},{"id":"c7eb2baf-099e-4727-9fb4-9d5ebd022f89","block_type":"box","text":"shareholders will not be deductible by the Fund in computing its taxable income. Although in general the passive loss","page_number":174,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"222f7e7f-294d-4179-a676-69d796c612bb","block_type":"box","text":"rules of the Code do not apply to regulated investment companies, such rules do apply to a regulated investment","page_number":174,"box":{"x":69,"y":392,"width":808,"height":12}},{"id":"fdc22832-43c9-4d0a-8103-333c0d12e92f","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded par tnership. A Fund’s","page_number":174,"box":{"x":69,"y":407,"width":767,"height":12}},{"id":"92fc5e94-11bf-480a-822b-7450783c175b","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":174,"box":{"x":70,"y":423,"width":826,"height":11}},{"id":"86fdff01-33fc-4620-b0be-d3ed2a3546ae","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":174,"box":{"x":68,"y":438,"width":521,"height":11}},{"id":"9e6eaec5-de8e-4386-9201-7766b34d94f1","block_type":"box","text":"Each Fund intends to distribute substantially all of such income and gains. If, in any taxable year, a Fund fails to","page_number":174,"box":{"x":102,"y":460,"width":798,"height":12}},{"id":"dbfda2be-5c9b-4184-8bcf-488c53b09859","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":174,"box":{"x":69,"y":475,"width":762,"height":12}},{"id":"6da8f733-2972-4959-bfe2-1a4cda5ccd50","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":174,"box":{"x":70,"y":491,"width":789,"height":11}},{"id":"061fa12e-7460-480e-8b79-1618cc235e92","block_type":"box","text":"earnings and profits (as determined under U.S. federal income tax principles) to its shareholders would be taxable as","page_number":174,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"72e1a40b-9b98-4486-b045-1a5e9fcb5f99","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":174,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"99632e8c-ceeb-4eda-8064-f54576b058dd","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":174,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"b0beadc2-37ba-48d2-8f30-da736d2d3906","block_type":"box","text":"exempt obligations, as defined herein, would no longer qualify for treatment as exempt interest. Each Fund that is a","page_number":174,"box":{"x":69,"y":551,"width":825,"height":11}},{"id":"70748125-86cd-41e8-a814-19bfbbdb6274","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":174,"box":{"x":69,"y":566,"width":811,"height":11}},{"id":"929e7e07-95b7-4706-a180-86284dbe4ed9","block_type":"box","text":"U.S. federal income tax purposes, and therefore is considered to be a separate entity in determining its treatment","page_number":174,"box":{"x":70,"y":581,"width":813,"height":12}},{"id":"c8dcbd05-eff5-45af-a899-7cc651aea952","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":174,"box":{"x":69,"y":596,"width":834,"height":12}},{"id":"96cd4484-aa47-4482-88f5-e013cea7e4d3","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":174,"box":{"x":69,"y":612,"width":790,"height":11}},{"id":"06807fdb-e59c-4b4a-8563-2615a2c5164f","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":174,"box":{"x":69,"y":627,"width":771,"height":11}},{"id":"eadded35-8ba9-431d-a0c1-7e683fa97b5c","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":174,"box":{"x":69,"y":642,"width":512,"height":11}},{"id":"f4b6946b-d608-4050-91c4-47af0d24dbda","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":174,"box":{"x":101,"y":665,"width":759,"height":11}},{"id":"60ca5e71-9c8b-4b54-b9a1-6ae3130d1715","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":174,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"8f44a2e1-e1d1-46fa-83f0-5cfbc7691067","block_type":"box","text":"determined on a calendar year basis, and at least 98.2% of its capital gain net income, determined, in general, as if","page_number":174,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"6cf88165-3306-4960-a8cc-dc229fd42abb","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":174,"box":{"x":68,"y":710,"width":832,"height":11}},{"id":"6e6a72ec-a9e7-4a80-82ca-5146e9a54784","block_type":"box","text":"previous years. While each Fund intends to distribute its income and capital gains in the manner necessary to avoid","page_number":174,"box":{"x":70,"y":725,"width":825,"height":11}},{"id":"94dc1c1d-97eb-41ef-8424-7d4d22d417fe","block_type":"box","text":"imposition of the 4% excise tax, there can be no assurance that a sufficient amount of the Fund’s taxable income","page_number":174,"box":{"x":70,"y":740,"width":810,"height":11}},{"id":"05f61095-92cb-4bfb-9cbb-b57ab7fd114e","block_type":"box","text":"and capital gains will be distributed to avoid entirely the imposition of the tax. In such event, a Fund will be liable for","page_number":174,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"5e80794b-9e4c-4834-9f3a-92bb5d60eb20","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":174,"box":{"x":68,"y":770,"width":666,"height":12}},{"id":"f5a30649-cad8-4031-a34a-3f39cca8fd51","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":174,"box":{"x":102,"y":793,"width":790,"height":11}},{"id":"1aeb651a-c507-4945-a222-885b341df131","block_type":"box","text":"have been reduced to zero. In the event that the Fund were to experience an ownership change as defined under the","page_number":174,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"9f9909ab-9631-4401-9b79-6b3e889818bc","block_type":"box","text":"Code, the Fund’s loss carryforwards and other favorable tax attributes of the Fund, if any, may be subject to","page_number":174,"box":{"x":69,"y":823,"width":770,"height":11}},{"id":"486b62f9-2595-4277-909c-2e97ddb0af04","block_type":"box","text":"limitation.","page_number":174,"box":{"x":70,"y":839,"width":68,"height":8}},{"id":"35f3d3bb-7229-475f-af3d-926cd136a525","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net shor t-term capital gain over net long","page_number":174,"box":{"x":102,"y":861,"width":803,"height":11}},{"id":"801adbe6-04f5-4375-9334-d32f938063ea","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":174,"box":{"x":68,"y":876,"width":790,"height":11}},{"id":"f7ce3697-5c3b-472a-b882-db1e89ba6f47","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net shor t-term capital loss (including","page_number":174,"box":{"x":70,"y":891,"width":815,"height":12}},{"id":"b58c131c-0a05-48d0-a5ff-5fe7958cc4f5","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":174,"box":{"x":68,"y":906,"width":748,"height":12}},{"id":"5fe7998d-0d79-4df1-8c78-346725e39e81","block_type":"box","text":"II-129","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4dca7e69-c604-4300-91dd-738f013aeb36","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3369f67f-47d8-4371-b369-8db37b02367e","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":175,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"5e5eeeeb-e754-45a6-afd0-40553a9334ff","block_type":"box","text":"Distributions paid by a Fund that are repor ted as exempt-interest dividends will not be subject to regular U.S. federal","page_number":175,"box":{"x":70,"y":60,"width":829,"height":11}},{"id":"8e45dbcf-2453-4f98-aee9-519443dbf42d","block_type":"box","text":"income tax. Cer tain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":175,"box":{"x":70,"y":75,"width":785,"height":11}},{"id":"28a92254-40f6-45b3-8efb-5617371fc90d","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":175,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"673bc647-145d-4143-be55-9f596587567e","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":175,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"244c919e-16d6-4307-b3a5-73bf1581b7a5","block_type":"box","text":"taxable to such shareholder at long-term capital gain rates provided the shareholder has held the shares on which","page_number":175,"box":{"x":68,"y":120,"width":814,"height":12}},{"id":"d7dbe6ef-5b3e-423d-af0c-05a4d315c5cf","block_type":"box","text":"the dividend was paid for at least 61 days during the 121-day period that begins on the date that is 60 days before","page_number":175,"box":{"x":68,"y":135,"width":822,"height":12}},{"id":"4565a12c-52ad-4b27-a4e9-6397d2e7a645","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of cer tain","page_number":175,"box":{"x":68,"y":150,"width":751,"height":11}},{"id":"c5e565ef-2d20-4495-9ada-268712cc8a14","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":175,"box":{"x":69,"y":166,"width":823,"height":11}},{"id":"e6ade06b-1a7d-4415-a2d4-4e4e8c372af4","block_type":"box","text":"was paid for at least 91 days during the 181-day period that begins on the date that is 90 days before the date on","page_number":175,"box":{"x":68,"y":181,"width":817,"height":11}},{"id":"d10b028b-3254-4b39-b905-af71777de3b0","block_type":"box","text":"which the shares become ex-dividend with respect to such dividend). However, to the extent a Fund’s distributions","page_number":175,"box":{"x":68,"y":196,"width":813,"height":11}},{"id":"460df750-df7f-4cf4-ab05-140476d8d0e1","block_type":"box","text":"are derived from income on debt securities, cer tain types of preferred stock treated as debt for U.S. federal income","page_number":175,"box":{"x":69,"y":211,"width":825,"height":11}},{"id":"03e28c06-51de-48ed-9503-d616341008ac","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":175,"box":{"x":68,"y":226,"width":789,"height":11}},{"id":"9b5acc12-6768-4f04-afbd-d9c2510e3e50","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":175,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"94f31608-f6b6-43b5-811e-9c7d9395b705","block_type":"box","text":"constitute “qualified dividend income.”","page_number":175,"box":{"x":69,"y":256,"width":275,"height":11}},{"id":"3980d9c6-a17b-4344-be01-a9fbd05c76a1","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":175,"box":{"x":101,"y":279,"width":806,"height":11}},{"id":"6443c133-4731-486c-9b3b-2dd8bf9265e1","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":175,"box":{"x":70,"y":294,"width":368,"height":11}},{"id":"1dbe8f26-8b6a-47c6-a4ef-56d39c2edbee","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net shor t-term capital losses) is not","page_number":175,"box":{"x":101,"y":317,"width":772,"height":11}},{"id":"b166e2c8-34b9-4b72-aea9-363f6cac0f4c","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":175,"box":{"x":69,"y":332,"width":811,"height":11}},{"id":"fa15d059-a816-46ed-85d3-c5858824df09","block_type":"box","text":"Fund retains net capital gain, it is subject to tax on that gain, and may designate the retained amount as","page_number":175,"box":{"x":70,"y":347,"width":745,"height":11}},{"id":"663399e7-094e-4f89-85bc-5a98f51889a1","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":175,"box":{"x":69,"y":362,"width":795,"height":11}},{"id":"bac8732c-f4d0-4167-9068-cb0dd67eb084","block_type":"box","text":"income, as long-term capital gain, their propor tionate shares of such undistributed net capital gain, will be deemed to","page_number":175,"box":{"x":70,"y":377,"width":838,"height":12}},{"id":"a8137b8f-2ab3-4a1b-8dc4-5b72cd44bf9e","block_type":"box","text":"have paid and may claim as a credit against their U.S. federal income tax liability (and as a refund to the extent it","page_number":175,"box":{"x":69,"y":392,"width":809,"height":12}},{"id":"83016b69-7133-4a7e-a73a-c0877b23e3ab","block_type":"box","text":"exceeds that liability) their propor tionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":175,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"57fb3890-c029-48e0-a1b2-0be3aad5adc0","block_type":"box","text":"basis of their shares in the Fund by the excess of the amount included in income over the amount allowed as a credit","page_number":175,"box":{"x":69,"y":423,"width":838,"height":11}},{"id":"252cf430-1a70-4f43-9c2c-49ea5ceb236a","block_type":"box","text":"against their taxes.","page_number":175,"box":{"x":69,"y":438,"width":135,"height":11}},{"id":"2e37f1f2-db97-4792-9bc7-216cceed792d","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":175,"box":{"x":102,"y":460,"width":783,"height":12}},{"id":"e0b4303f-1866-4001-9030-1c8795d2b329","block_type":"box","text":"tax basis of a holder’s shares and after such adjusted tax basis is reduced to zero, will constitute capital gains to","page_number":175,"box":{"x":68,"y":475,"width":812,"height":12}},{"id":"9f4f4a97-c845-4de0-a3e7-2836397b31c9","block_type":"box","text":"such holder (assuming the shares are held as a capital asset). Distributions in excess of a Fund’s minimum","page_number":175,"box":{"x":69,"y":491,"width":769,"height":11}},{"id":"c1964f14-392f-49a5-b7c2-ed6b3136eb53","block_type":"box","text":"distribution requirements (or taxable income) but not in excess of a Fund’s earnings and profits will be taxable to","page_number":175,"box":{"x":69,"y":506,"width":805,"height":11}},{"id":"90b954eb-4ca4-445f-a815-64dbdee43506","block_type":"box","text":"shareholders and will not constitute nontaxable returns of capital. In the case of a Fund with a non-calendar taxable","page_number":175,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"4bee58b2-43ad-466b-a1fc-714f4ec98ae0","block_type":"box","text":"year, a Fund’s earnings and profits are allocated first to distributions made on or before December 31 of the taxable","page_number":175,"box":{"x":68,"y":536,"width":831,"height":11}},{"id":"61c52d28-611d-49ee-b55e-8ecc16fd076c","block_type":"box","text":"year, and then to distributions made after December 31 of the taxable year. Any loss upon the sale or exchange of","page_number":175,"box":{"x":68,"y":551,"width":817,"height":11}},{"id":"0cd2bd36-4976-42bc-b8ab-1eb1d4bc9a09","block_type":"box","text":"Fund shares held for six months or less will be treated as long-term capital loss to the extent of any capital gain","page_number":175,"box":{"x":70,"y":566,"width":797,"height":11}},{"id":"856d1828-5cf4-424d-b5a3-735f2aea34f2","block_type":"box","text":"dividends received by the shareholder.","page_number":175,"box":{"x":69,"y":582,"width":272,"height":10}},{"id":"bf55cfe1-0d07-4b98-aafe-7b01eea1b2dd","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":175,"box":{"x":102,"y":604,"width":792,"height":11}},{"id":"3d511c55-6546-445b-8253-19afc408b2da","block_type":"box","text":"shares of a Fund. Distributions by a Fund, whether from ordinary income or capital gains, generally will not be eligible","page_number":175,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"ac0aee0d-f241-45d2-87e0-5cf547741818","block_type":"box","text":"for the dividends received deduction allowed to corporations under the Code. If a Fund pays a dividend in January","page_number":175,"box":{"x":68,"y":634,"width":809,"height":11}},{"id":"712cb2e3-6ec0-431e-b77c-8928f5917b86","block_type":"box","text":"that was declared in the previous October, November or December to shareholders of record on a specified date in","page_number":175,"box":{"x":68,"y":649,"width":819,"height":11}},{"id":"d5848240-1c8a-4144-9924-968a9d68e834","block_type":"box","text":"one of such months, then such dividend will be treated for tax purposes as being paid by the Fund and received by its","page_number":175,"box":{"x":69,"y":664,"width":839,"height":12}},{"id":"5bd87694-f16a-4b93-a56b-73d08ce45cab","block_type":"box","text":"shareholders on December 31 of the year in which the dividend was declared. In the case of a Fund with a non","page_number":175,"box":{"x":69,"y":680,"width":794,"height":11}},{"id":"bf755252-989b-4342-a58b-ec7eab1bdd28","block_type":"box","text":"calendar taxable year, if the Fund repor ts more capital gain dividends than it earns in such taxable year, then the","page_number":175,"box":{"x":69,"y":695,"width":804,"height":11}},{"id":"d177c539-5079-484f-a830-30ca42b9692c","block_type":"box","text":"Fund will reduce the amounts repor ted as capital gains. Where possible, such reduction will first be allocated to","page_number":175,"box":{"x":70,"y":710,"width":797,"height":11}},{"id":"831e5659-a5e7-4b06-82f3-92939fcb2c21","block_type":"box","text":"dividends made after December 31 of such taxable year. A Fund may elect to defer recognizing, until the following","page_number":175,"box":{"x":69,"y":725,"width":810,"height":11}},{"id":"b26c4456-1e5a-4346-b23a-ef81bd51004d","block_type":"box","text":"taxable year, cer tain net capital losses arising after October 31 of the current taxable year, and cer tain net ordinary","page_number":175,"box":{"x":68,"y":740,"width":826,"height":11}},{"id":"210ee210-7af1-4bf7-8cc4-43168fb83e22","block_type":"box","text":"losses arising after October 31 and/or December 31 of the current taxable year. This may have the effect of","page_number":175,"box":{"x":70,"y":755,"width":772,"height":11}},{"id":"271682ae-46fc-4bcf-89a7-d5b876f4c9e9","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":175,"box":{"x":70,"y":770,"width":795,"height":12}},{"id":"c6a2291a-2b46-4518-82cc-c699431de989","block_type":"box","text":"taxable year.","page_number":175,"box":{"x":68,"y":786,"width":89,"height":11}},{"id":"c9fd83c6-1ff1-4fd6-a7a1-a00a1dc0d5b2","block_type":"box","text":"No gain or loss will be recognized by Investor C shareholders on the conversion to Investor A Shares. A","page_number":175,"box":{"x":102,"y":808,"width":733,"height":11}},{"id":"f9a3c50a-8c94-4d50-8b10-769e236ab93b","block_type":"box","text":"shareholder’s tax basis in the Investor A Shares acquired upon conversion will be the same as the shareholder’s tax","page_number":175,"box":{"x":69,"y":823,"width":832,"height":11}},{"id":"78dee057-145b-4304-a7d5-5c9d2a3a9164","block_type":"box","text":"basis in the conver ted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":175,"box":{"x":69,"y":838,"width":809,"height":12}},{"id":"c20376dc-cd10-4fe9-94b2-de742727a7f1","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":175,"box":{"x":69,"y":853,"width":362,"height":12}},{"id":"4360ae9f-80d5-4783-9fd1-b843d387f817","block_type":"box","text":"If a shareholder of a Fund exercises an exchange privilege within 90 days of acquiring the shares of a Fund, but","page_number":175,"box":{"x":102,"y":876,"width":795,"height":11}},{"id":"ea2be3b8-04eb-48f0-9951-018b8c181cae","block_type":"box","text":"on or before January 31 of the following year, then the loss that the shareholder recognizes on the exchange will be","page_number":175,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"81de1084-7640-4701-b250-cb62e324dc40","block_type":"box","text":"reduced (or the gain increased) to the extent any sales charge paid on the exchanged shares reduces any sales","page_number":175,"box":{"x":69,"y":907,"width":797,"height":11}},{"id":"651b957b-a7f0-4699-9eaf-a1db8de7d9b8","block_type":"box","text":"II-130","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3271cef1-afb1-42a3-a388-8459d2a76df0","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e9dcc003-8af2-40f1-a64f-8f413e8815aa","block_type":"box","text":"charge the shareholder would have owed upon the purchase of the new shares in the absence of the exchange","page_number":176,"box":{"x":69,"y":45,"width":791,"height":11}},{"id":"19263773-00fe-4b84-9873-5bd8b2968381","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":176,"box":{"x":70,"y":60,"width":646,"height":11}},{"id":"5fe3bdb9-c167-40d6-812e-3aa5e375f628","block_type":"box","text":"A loss realized on a sale or exchange of shares of a Fund will be disallowed if other substantially identical shares","page_number":176,"box":{"x":101,"y":82,"width":807,"height":12}},{"id":"53516e5d-8d70-4eee-92c7-4ff828bdf0de","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":176,"box":{"x":69,"y":98,"width":839,"height":11}},{"id":"685eeeaf-16c2-4658-8efa-1eaaa440d67f","block_type":"box","text":"30 days before and ending 30 days after the date on which the shares are sold or exchanged. In such case, the","page_number":176,"box":{"x":69,"y":113,"width":799,"height":11}},{"id":"2a803eae-a669-4c4d-86c6-7aac26510097","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":176,"box":{"x":69,"y":128,"width":534,"height":11}},{"id":"08d7d729-0abc-4bd4-a7fb-ece036ad105e","block_type":"box","text":"A Fund is also generally required by law to repor t to each shareholder and to the IRS cost basis information for","page_number":176,"box":{"x":101,"y":150,"width":792,"height":12}},{"id":"032284fd-1ae8-43e2-adfb-4ac48e24e291","block_type":"box","text":"shares of the Fund acquired on or after January 1, 2012, and sold or redeemed after that date. This information","page_number":176,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"5e9839f5-285c-4800-a29e-a55a553cac46","block_type":"box","text":"includes the adjusted cost basis of the shares, the gross proceeds from disposition, and whether the gain or loss is","page_number":176,"box":{"x":70,"y":181,"width":828,"height":11}},{"id":"d5130f45-5e8d-41ff-94c8-5ce3eccdb01e","block_type":"box","text":"long-term or shor t-term. The adjusted cost basis of shares will be based on the default cost basis repor ting method","page_number":176,"box":{"x":70,"y":196,"width":824,"height":11}},{"id":"e74af29e-fd95-4221-ac81-02dec5cd2d7b","block_type":"box","text":"selected by the Fund, unless a shareholder, before the sale or redemption, informs the Fund that it has selected a","page_number":176,"box":{"x":69,"y":211,"width":816,"height":11}},{"id":"4493f93e-2ab1-4b9c-b220-3df137dcfac3","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":176,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"8f58a6e2-8a06-45e1-a40a-c78579d54a3a","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":176,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"a2274ee3-c0a8-4fdf-bfbf-32fb87241898","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis repor ting","page_number":176,"box":{"x":69,"y":256,"width":788,"height":12}},{"id":"5ad44cdf-0982-499d-b0bd-703cada19f4b","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":176,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"9c1b99e4-3b48-4718-9087-e232f92f734d","block_type":"box","text":"apply, but the Fund will continue to repor t to the IRS the gross proceeds received by a shareholder from the sale or","page_number":176,"box":{"x":69,"y":286,"width":821,"height":12}},{"id":"45e290ba-f376-443b-a844-83ecedbe1699","block_type":"box","text":"redemption of such shares.","page_number":176,"box":{"x":69,"y":302,"width":195,"height":11}},{"id":"da1938f8-5181-4d8e-9c16-6f24fdde2603","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":176,"box":{"x":102,"y":324,"width":799,"height":11}},{"id":"7c9809d7-d606-453c-939c-c3d593d5269b","block_type":"box","text":"agreements. The U.S. federal income tax treatment of a derivative contract may not be as favorable as a direct","page_number":176,"box":{"x":69,"y":339,"width":791,"height":12}},{"id":"c8f6bb9d-4ec7-4a85-8d4e-205009018a80","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":176,"box":{"x":70,"y":355,"width":826,"height":11}},{"id":"1edfce8f-e743-49e8-be3c-480437d7fa56","block_type":"box","text":"realizes from its investments. As a result, a larger por tion of the Fund’s distributions may be treated as ordinary","page_number":176,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"63de064e-8e73-4b7f-8f02-e9942a7f3dd6","block_type":"box","text":"income rather than capital gains. In addition, section 1256 contracts held by a Fund at the end of each taxable year","page_number":176,"box":{"x":70,"y":385,"width":825,"height":11}},{"id":"8b6ac13f-6840-4459-963d-fa902f6f1493","block_type":"box","text":"(and, for purposes of the 4% excise tax, cer tain other dates as prescribed under the Code) are generally “marked-to","page_number":176,"box":{"x":69,"y":400,"width":829,"height":11}},{"id":"7ec6983d-0eee-41b9-a4b1-626d66c0d615","block_type":"box","text":"market,” such that unrealized gains or losses are treated as though they were realized (with such gain or loss being","page_number":176,"box":{"x":69,"y":415,"width":826,"height":11}},{"id":"5d7c8651-b0c4-40ad-b977-044cad14e4c1","block_type":"box","text":"considered 60% long-term and 40% shor t-term capital gain or loss), which may increase the amount that must be","page_number":176,"box":{"x":69,"y":430,"width":808,"height":11}},{"id":"4ecc3fe4-8e65-4228-ad25-37253b739748","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":176,"box":{"x":69,"y":445,"width":787,"height":11}},{"id":"988177de-ba6d-4815-b926-0b5580b3bfc1","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":176,"box":{"x":69,"y":460,"width":816,"height":12}},{"id":"bcb72973-1a5b-4998-8f14-e78ef2b2dc8f","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":176,"box":{"x":69,"y":475,"width":832,"height":12}},{"id":"6904b28b-c353-4a19-8abf-5172a3b78541","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":176,"box":{"x":68,"y":491,"width":542,"height":11}},{"id":"5ae87306-97bd-40a0-965c-f49477784545","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":176,"box":{"x":102,"y":513,"width":744,"height":12}},{"id":"f7f689c0-9877-4e9f-b779-045bbc6b42bf","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":176,"box":{"x":69,"y":528,"width":751,"height":12}},{"id":"72519b4b-d4dc-4ab8-97c9-5a6dc63dfc1b","block_type":"box","text":"agreements since all the income on a notional principal contract may be ordinary income, whereas 40% of the gain","page_number":176,"box":{"x":69,"y":543,"width":819,"height":12}},{"id":"f4678894-6e75-4a2c-b47c-e8ec9aa207f7","block_type":"box","text":"on a section 1256 contract is treated as shor t-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":176,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"6d7f1f11-8549-45d7-9435-8fe3ab2ddbea","block_type":"box","text":"term capital gain taxed at more favorable rates when distributed to shareholders. The rest is long-term capital gain,","page_number":176,"box":{"x":68,"y":574,"width":823,"height":11}},{"id":"85480f75-24c8-4a5a-9352-6b723e3dc898","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":176,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"5a4f613b-a52c-42a2-aa64-b3429a157841","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":176,"box":{"x":69,"y":604,"width":797,"height":11}},{"id":"a7d3ff27-d9a0-4b48-977e-d45536f918e3","block_type":"box","text":"finalized, these regulations could result in the Fund having to treat more of its income on swap agreements and more","page_number":176,"box":{"x":68,"y":619,"width":838,"height":11}},{"id":"e3712924-5b53-40d7-8dc8-fbbe18b566bb","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":176,"box":{"x":69,"y":634,"width":695,"height":12}},{"id":"a54adfbc-07b9-4377-8e78-a1cd86b5cc38","block_type":"box","text":"Cer tain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":176,"box":{"x":102,"y":657,"width":768,"height":11}},{"id":"91b7cc77-3535-4e27-a7b7-e928a8648a71","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":176,"box":{"x":69,"y":672,"width":769,"height":11}},{"id":"ac539a68-ea81-48cc-ae5b-406e0892b3ed","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a por tion of the excess of the stated redemption","page_number":176,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"e78cbd77-fac8-41ed-9cd0-95262ca66b9d","block_type":"box","text":"price of the securities over their issue price (“original issue discount”) each year that the securities are held. Since","page_number":176,"box":{"x":70,"y":702,"width":819,"height":12}},{"id":"412f11b5-35ae-4383-b64b-fea354c8363a","block_type":"box","text":"the original issue discount income earned by a Fund in a taxable year may not be represented by cash income, the","page_number":176,"box":{"x":68,"y":718,"width":818,"height":11}},{"id":"5a51097d-dead-4039-abf3-549915eed33d","block_type":"box","text":"Fund may have to dispose of securities, which it might otherwise have continued to hold, or borrow to generate cash","page_number":176,"box":{"x":70,"y":732,"width":830,"height":12}},{"id":"fe2d8549-2bc5-48a6-811f-09c24b1d2410","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":176,"box":{"x":70,"y":748,"width":792,"height":11}},{"id":"ced69789-2588-4d21-9b44-e93bcdb0feb7","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":176,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"589500ce-053e-4cab-a6ae-ef81b7854b24","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":176,"box":{"x":70,"y":778,"width":812,"height":11}},{"id":"1738ef40-41c2-4ad7-8ad5-191b48cfbf0d","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":176,"box":{"x":69,"y":793,"width":789,"height":11}},{"id":"d85744ba-c4cd-4209-a2e1-31f19a56369d","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":176,"box":{"x":68,"y":808,"width":777,"height":11}},{"id":"0e114cc4-2ea3-4b8d-b5d7-d10b47a57f76","block_type":"box","text":"contracts or forward contracts (or similar instruments) may give rise to ordinary income or loss to the extent such","page_number":176,"box":{"x":69,"y":823,"width":810,"height":12}},{"id":"63e888ac-faa7-4024-aa8b-795838af4c9b","block_type":"box","text":"income or loss results from fluctuations in the value of the foreign currency concerned. Any such net gains could","page_number":176,"box":{"x":70,"y":838,"width":801,"height":12}},{"id":"3b983e44-9740-47d7-8efb-cd5df5654209","block_type":"box","text":"require a larger dividend toward the end of the calendar year. Any such net losses will generally reduce and","page_number":176,"box":{"x":69,"y":853,"width":762,"height":12}},{"id":"0828e780-5836-4575-95f7-6a30659d0a8c","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":176,"box":{"x":70,"y":869,"width":827,"height":11}},{"id":"e72ceb2f-6937-49ca-b910-115559da214f","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":176,"box":{"x":69,"y":884,"width":787,"height":11}},{"id":"051e271b-4648-4e0d-acb3-4048239b3a15","block_type":"box","text":"II-131","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ac69eca4-d0a8-4199-9872-66dc808475ec","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"992aad20-0393-46ec-8ff8-f56070f6d156","block_type":"box","text":"income. Any net ordinary losses so created cannot be carried forward by the Fund to offset income or gains earned","page_number":177,"box":{"x":70,"y":45,"width":822,"height":11}},{"id":"2f0c7c92-ad54-4346-8113-d6c776ec378d","block_type":"box","text":"in subsequent taxable years.","page_number":177,"box":{"x":70,"y":60,"width":203,"height":11}},{"id":"16dbc82c-6cb7-43da-a642-6c1e463789cd","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":177,"box":{"x":102,"y":82,"width":795,"height":12}},{"id":"83943f76-0630-4894-99ab-def1be59db95","block_type":"box","text":"through entities to the extent owned by U.S. persons) generally will be subject to a 30% U.S. withholding tax under","page_number":177,"box":{"x":68,"y":98,"width":816,"height":11}},{"id":"b960b697-97b0-4536-9b73-a2b07ec62658","block_type":"box","text":"existing provisions of the Code applicable to foreign individuals and entities unless a reduced rate of withholding or a","page_number":177,"box":{"x":69,"y":113,"width":835,"height":11}},{"id":"e7f81f92-7534-40da-8373-4afa615fedb0","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":177,"box":{"x":68,"y":128,"width":815,"height":11}},{"id":"2745213e-3887-4929-ac70-0d6175eaaf4d","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly repor ted as capital gain dividends, generally will","page_number":177,"box":{"x":69,"y":143,"width":816,"height":11}},{"id":"f19bf7f7-0ad9-411b-90a6-318bed5afbf8","block_type":"box","text":"not be subject to a 30% withholding tax, unless cer tain exceptions apply. Dividends derived by a regulated investment","page_number":177,"box":{"x":69,"y":158,"width":840,"height":11}},{"id":"8f899e42-b401-401b-a0ba-20e82602c553","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":177,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"18195417-3189-49ce-a378-0e31bde6ebfb","block_type":"box","text":"discount and market discount) and paid to shareholders who are nonresident aliens or foreign entities, if and to the","page_number":177,"box":{"x":69,"y":188,"width":824,"height":12}},{"id":"330523df-5da2-4d50-934f-3b73250db17f","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":177,"box":{"x":69,"y":204,"width":832,"height":11}},{"id":"0a6851cb-20e8-4b5d-938b-2032550d7ccb","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to repor t such dividends as interest","page_number":177,"box":{"x":68,"y":219,"width":808,"height":11}},{"id":"edc56c32-870b-4a65-8a2e-6561e4b5e5ee","block_type":"box","text":"related dividends or shor t-term capital gain dividends. However, depending on its circumstances, a Fund may repor t","page_number":177,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"23b5d652-cc56-4b90-a778-cbf4ac749bd6","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as shor t-term capital gain dividends, and/","page_number":177,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"f23325a4-d60d-4ae4-8d96-6844836974f6","block_type":"box","text":"or treat such dividends, in whole or in par t, as ineligible for this exemption from withholding. In order to qualify for","page_number":177,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"c644b2ab-8cdd-48cc-9570-471e1d347b69","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":177,"box":{"x":68,"y":279,"width":784,"height":11}},{"id":"0a5ace4f-b140-4b01-8b4a-c071b94c6452","block_type":"box","text":"relating to its foreign status (including, in general, furnishing an IRS Form W-8BEN, IRS Form W-8BEN-E or substitute","page_number":177,"box":{"x":69,"y":294,"width":828,"height":11}},{"id":"74fda5a5-72c6-4fa9-8167-0ca5bc23c7cc","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund repor ts the","page_number":177,"box":{"x":70,"y":309,"width":839,"height":11}},{"id":"fee5d4a5-5849-4b71-b8b5-98b41cd1e948","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":177,"box":{"x":70,"y":325,"width":772,"height":11}},{"id":"14800cef-821d-4c11-8f82-ede11e83db7a","block_type":"box","text":"intermediaries with respect to the application of these rules to their accounts. It is not possible to predict what","page_number":177,"box":{"x":70,"y":339,"width":791,"height":11}},{"id":"846aeaf3-eef5-4f7a-9533-2da81c45a9e7","block_type":"box","text":"por tion, if any, of a Fund’s distributions will be repor ted as interest-related dividends or shor t-term capital gain","page_number":177,"box":{"x":70,"y":355,"width":787,"height":11}},{"id":"d115084a-9293-4500-9001-17da5e741c53","block_type":"box","text":"dividends under these rules.","page_number":177,"box":{"x":69,"y":370,"width":201,"height":9}},{"id":"fea5c774-8bf5-416b-bb9d-98a32c79a191","block_type":"box","text":"Distributions to cer tain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":177,"box":{"x":102,"y":392,"width":747,"height":12}},{"id":"c7b7ab99-264a-4295-97e6-12c37b87789e","block_type":"box","text":"proper ty interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":177,"box":{"x":70,"y":407,"width":838,"height":12}},{"id":"6333bb36-85e7-4920-97a4-6570c70f5703","block_type":"box","text":"the date of the distributions, to the extent the distributions are attributable to gains from sales or exchanges of U.S.","page_number":177,"box":{"x":68,"y":423,"width":829,"height":11}},{"id":"c37d171c-7705-4922-9119-c4713d8b49f6","block_type":"box","text":"real proper ty interests (including shares in cer tain “U.S. real proper ty holding corporations” such as cer tain REITs,","page_number":177,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"25695848-d273-44c3-84b3-3055dd747bac","block_type":"box","text":"although exceptions may apply if any class of stock of such a corporation is regularly traded on an established","page_number":177,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"84c475e8-8016-4b50-b947-2f768f307ac5","block_type":"box","text":"securities market and the Fund has held no more than 5% of such class of stock at all times during the five-year","page_number":177,"box":{"x":69,"y":468,"width":800,"height":11}},{"id":"20b733bb-1fd5-4ca5-ba9e-1bd6c3644c06","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":177,"box":{"x":70,"y":483,"width":807,"height":11}},{"id":"96009ba4-f778-4254-9273-7c87ec905d91","block_type":"box","text":"effectively connected to a trade or business within the United States, which is generally subject to tax at the","page_number":177,"box":{"x":69,"y":498,"width":772,"height":11}},{"id":"d652a644-08d6-453d-bda6-9b38331b5184","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":177,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"d90f0e40-3581-481e-bac4-e04593129deb","block_type":"box","text":"than 5% of any class of stock of the Fund at all times during the previous one-year period ending on the date of the","page_number":177,"box":{"x":68,"y":528,"width":820,"height":12}},{"id":"918dfb3b-4a6f-44ba-8a81-d9a300fbaee7","block_type":"box","text":"distributions. Such distributions will be subject to U.S. income and withholding tax and generally will require a foreign","page_number":177,"box":{"x":69,"y":543,"width":833,"height":12}},{"id":"e28d99d3-d1d6-4f6a-ac9d-d9885a9fad96","block_type":"box","text":"shareholder to file a U.S. federal income tax return. If the foreign shareholder held no more than 5% of any class of","page_number":177,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"2a4c841a-ba15-485a-beee-32d5ec6a0781","block_type":"box","text":"stock of the Fund at all times during the previous one-year period ending on the date of the distributions, the","page_number":177,"box":{"x":69,"y":574,"width":774,"height":11}},{"id":"bacc62d0-1b70-4888-9ca7-0a6ba82efe06","block_type":"box","text":"distributions will be taxable as ordinary dividends and subject to withholding at a 30% or lower treaty rate. In addition,","page_number":177,"box":{"x":69,"y":589,"width":839,"height":11}},{"id":"4c7b1c12-78a5-4ef3-9fce-5aa3f67bdbc0","block_type":"box","text":"sales or redemptions of shares held by cer tain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":177,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"8a2d095c-bf36-4ad6-8b9e-a5f900159063","block_type":"box","text":"income and withholding tax and generally will require the foreign shareholder to file a U.S. federal income tax return,","page_number":177,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"f301f620-7cc1-45fa-9f9f-20683220df0c","block_type":"box","text":"although exceptions may apply if more than 50% of the value of the Fund’s shares are held by U.S. shareholders or","page_number":177,"box":{"x":69,"y":634,"width":823,"height":12}},{"id":"ac1eace2-c6da-43a4-af1d-0ba83e6d8341","block_type":"box","text":"the foreign shareholder selling or redeeming the shares has held no more than 5% of any class of stock of the Fund","page_number":177,"box":{"x":68,"y":649,"width":827,"height":12}},{"id":"8de46bfb-2ae5-45da-a1e4-eebdf0a8bdb8","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":177,"box":{"x":69,"y":664,"width":596,"height":12}},{"id":"3ed115a0-2708-4a91-8a7d-7536d598cd14","block_type":"box","text":"Provided that more than 50% of the value of a Fund’s stock is held by U.S. shareholders, redemptions and other","page_number":177,"box":{"x":102,"y":687,"width":802,"height":11}},{"id":"6ee23b0a-d681-4df7-8603-c9151fa68fc0","block_type":"box","text":"distributions made in the form of U.S. real proper ty interests (including shares in cer tain “U.S. real proper ty holding","page_number":177,"box":{"x":69,"y":702,"width":827,"height":12}},{"id":"1937faa2-aad1-48af-bd02-40ed20e4a445","block_type":"box","text":"corporations”, although exceptions may apply if any class of stock of such a corporation is regularly traded on an","page_number":177,"box":{"x":69,"y":717,"width":804,"height":12}},{"id":"c93f2436-6a6d-4f2d-90e3-378318159c17","block_type":"box","text":"established securities market and the Fund has held no more than 5% of such class of stock at all times during the","page_number":177,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"d02e1426-157a-411a-b6c8-919002c4f42b","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a por tion of any","page_number":177,"box":{"x":68,"y":748,"width":801,"height":11}},{"id":"f85218e6-9276-4bed-8b54-f87fbef36732","block_type":"box","text":"unrecognized gain in the U.S. real proper ty interests equal to the product of (i) the excess of fair market value of","page_number":177,"box":{"x":69,"y":763,"width":803,"height":11}},{"id":"02f4f341-0b95-4942-a673-0f4d90e12602","block_type":"box","text":"such U.S. real proper ty interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":177,"box":{"x":69,"y":778,"width":785,"height":11}},{"id":"fea19864-bd03-4bc4-b35b-704f8c6ba2ce","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":177,"box":{"x":69,"y":793,"width":676,"height":11}},{"id":"76aa85e7-1bbd-4ff7-90e6-160437863ef0","block_type":"box","text":"A foreign shareholder may also be subject to cer tain “wash sale” rules to prevent the avoidance of the tax filing","page_number":177,"box":{"x":101,"y":816,"width":798,"height":11}},{"id":"de81bc1b-312e-42b5-ba8e-9ba56c30342f","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":177,"box":{"x":69,"y":831,"width":651,"height":11}},{"id":"8d498a0a-7eb8-4b17-b943-458bd28790b3","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":177,"box":{"x":102,"y":853,"width":731,"height":12}},{"id":"cded054e-c298-48b2-b55d-efead36315c3","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":177,"box":{"x":69,"y":869,"width":570,"height":11}},{"id":"0c0d49c2-b4de-4b15-a57b-90a6b8d70f68","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":177,"box":{"x":102,"y":891,"width":763,"height":12}},{"id":"d10e69c6-7173-499c-9d71-c5323971458b","block_type":"box","text":"items paid to (i) cer tain foreign financial institutions and investment funds, and (ii) cer tain other foreign entities. To","page_number":177,"box":{"x":70,"y":906,"width":820,"height":12}},{"id":"4aa21d98-e2f2-443c-8162-0690162115ba","block_type":"box","text":"II-132","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0805dda1-f948-41e5-988e-ce2d0ed82899","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3bb9ce69-5bd8-4f8d-bef0-24a6f38ce785","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":178,"box":{"x":69,"y":45,"width":794,"height":11}},{"id":"c1567044-8681-413e-a832-4b8017cf7f64","block_type":"box","text":"repor t to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":178,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"e055b4f9-f6ef-417c-842a-2289876dbf9a","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":178,"box":{"x":69,"y":75,"width":791,"height":11}},{"id":"b76a7f73-95c3-4c93-9b94-de853f1f4fbb","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":178,"box":{"x":68,"y":90,"width":791,"height":11}},{"id":"22f37ab0-f066-4fc7-bbd7-928697eab1e1","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":178,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"f33ed42d-e4ac-4967-839d-f9e22eab82d9","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":178,"box":{"x":70,"y":120,"width":739,"height":12}},{"id":"f0c09f68-ca09-4ac3-b6a8-5edeb8a44341","block_type":"box","text":"Under cer tain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":178,"box":{"x":102,"y":143,"width":786,"height":11}},{"id":"a0ecc25c-646c-463c-8023-7794b06255a3","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":178,"box":{"x":70,"y":158,"width":820,"height":11}},{"id":"8c0a15a9-17f3-41bc-a6eb-02023019a616","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":178,"box":{"x":69,"y":173,"width":837,"height":11}},{"id":"a37a785b-6e57-44f5-9f47-d1da523571c2","block_type":"box","text":"is on file with the Fund or who, to the Fund’s knowledge, have furnished an incorrect number. When establishing an","page_number":178,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"f19f88aa-3d5e-45a6-9e5a-efa87a8d5fa9","block_type":"box","text":"account, an investor must cer tify under penalty of perjury that such number is correct and that such investor is not","page_number":178,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"7deb731c-6ae4-4257-9acd-967383b5c78a","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":178,"box":{"x":69,"y":219,"width":826,"height":11}},{"id":"3d9f9590-16fd-4706-93d9-af856c8ec967","block_type":"box","text":"may be allowed as a refund or a credit against a shareholder’s U.S. federal income tax liability, provided that the","page_number":178,"box":{"x":69,"y":234,"width":802,"height":11}},{"id":"942abdb6-f9f3-4d09-b187-48ea838f9a6f","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":178,"box":{"x":69,"y":249,"width":364,"height":11}},{"id":"58c7866d-7a58-4927-931e-f2740a4929cf","block_type":"box","text":"If a shareholder recognizes a loss with respect to a Fund’s shares of at least $2 million in any single taxable","page_number":178,"box":{"x":102,"y":271,"width":774,"height":12}},{"id":"6be63716-60f3-40e0-ad99-996fc66323fa","block_type":"box","text":"year or $4 million in any combination of taxable years for an individual shareholder or $10 million in any single","page_number":178,"box":{"x":68,"y":286,"width":787,"height":12}},{"id":"8bb4ed26-c8a6-4da4-acb2-536812636404","block_type":"box","text":"taxable year or $20 million in any combination of taxable years for a corporate shareholder in any single taxable year,","page_number":178,"box":{"x":68,"y":301,"width":835,"height":12}},{"id":"aa7b7c48-ff21-4282-ad48-0072d7f8ae21","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of por tfolio","page_number":178,"box":{"x":68,"y":317,"width":809,"height":11}},{"id":"04c91924-e270-487e-ae5c-fc62195be1b7","block_type":"box","text":"securities are in many cases exempted. That a loss is repor table under these regulations does not affect the legal","page_number":178,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"09a7a642-651f-4d3b-aeb8-b83392b1b289","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":178,"box":{"x":69,"y":347,"width":783,"height":11}},{"id":"8b2b4531-5b5c-47be-a7ce-582f0ba21146","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":178,"box":{"x":69,"y":362,"width":710,"height":11}},{"id":"8c3562e9-1ca2-4077-be20-bb00cb9aa65f","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":178,"box":{"x":102,"y":385,"width":758,"height":11}},{"id":"4bcfd2c0-20e6-456c-9aed-7757617f4ef2","block_type":"box","text":"mor tgage pools or other investments may cause the Fund to repor t some or all of its distributions as “excess","page_number":178,"box":{"x":69,"y":400,"width":782,"height":11}},{"id":"62687581-ccdc-4d74-8f6e-e4ae1c603e6f","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":178,"box":{"x":70,"y":415,"width":783,"height":11}},{"id":"ca91ae48-4645-42ce-91f3-3e0ad8a0320a","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":178,"box":{"x":69,"y":430,"width":797,"height":11}},{"id":"c768acbb-27c3-4658-bbbf-e86801d53fdd","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":178,"box":{"x":70,"y":445,"width":822,"height":12}},{"id":"459e223b-53ea-45f4-a565-71efeab69182","block_type":"box","text":"be offset by otherwise allowable deductions for tax purposes; (iii) not be eligible for reduced U.S. withholding for non","page_number":178,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"4b8e7342-deff-416b-935a-d1e40d33b40d","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if cer tain “disqualified","page_number":178,"box":{"x":70,"y":475,"width":826,"height":12}},{"id":"38f15322-8967-4795-a0b2-6f11ec956605","block_type":"box","text":"organizations,” as defined by the Code, are Fund shareholders. The Fund tries to avoid investing in REITs that are","page_number":178,"box":{"x":69,"y":491,"width":808,"height":11}},{"id":"403b72fa-1956-46b1-8cda-3326bf478452","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":178,"box":{"x":69,"y":506,"width":800,"height":11}},{"id":"008b12de-12f2-4451-834e-50f8d872ad11","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":178,"box":{"x":70,"y":521,"width":770,"height":11}},{"id":"d8b25775-265b-48b0-98a7-1f49db0ddae0","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":178,"box":{"x":70,"y":536,"width":816,"height":11}},{"id":"ad743b39-bd18-443b-9e45-d7305c25dcf1","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":178,"box":{"x":70,"y":551,"width":796,"height":11}},{"id":"8a5b0926-e680-49ac-8f2d-9b946f475aeb","block_type":"box","text":"investment oppor tunities.","page_number":178,"box":{"x":70,"y":566,"width":180,"height":11}},{"id":"0992a82b-2109-447e-a598-a3b1f343a4f3","block_type":"box","text":"Dividends and interest received and capital gains realized by a Fund may give rise to withholding and other taxes","page_number":178,"box":{"x":102,"y":589,"width":801,"height":11}},{"id":"32f82f3d-c505-4c45-95c0-9acd85f0468f","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":178,"box":{"x":70,"y":604,"width":839,"height":11}},{"id":"ae18e76b-c92a-460c-aa45-119ba3be6d2b","block_type":"box","text":"eliminate such taxes. Shareholders of a Fund more than 50% by value of the assets of which at the close of a taxable","page_number":178,"box":{"x":69,"y":619,"width":840,"height":11}},{"id":"550c8402-0a3a-4de2-b11d-ce7ac0e72e89","block_type":"box","text":"year are foreign securities may be able to claim U.S. foreign tax credits with respect to such foreign taxes paid by the","page_number":178,"box":{"x":68,"y":634,"width":837,"height":12}},{"id":"135aeaeb-d567-4e9f-ba0f-97e5655e314b","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":178,"box":{"x":70,"y":649,"width":774,"height":11}},{"id":"b384952a-91f4-4f65-a86d-0908b74febd7","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":178,"box":{"x":69,"y":664,"width":820,"height":12}},{"id":"1d4bbc5e-95a7-491a-981f-d982549d2d8e","block_type":"box","text":"held in a Fund. In addition, a foreign tax credit may be claimed with respect to withholding tax on payments with","page_number":178,"box":{"x":69,"y":680,"width":795,"height":11}},{"id":"f59844b3-9c0c-478f-8c65-cd7a9f56ea0f","block_type":"box","text":"respect to a security only if the holder of the security meets cer tain holding period requirements. Both the","page_number":178,"box":{"x":69,"y":695,"width":755,"height":11}},{"id":"d2492891-e2e6-419d-bd83-82f2551e49c1","block_type":"box","text":"shareholder and the Fund must meet these holding period requirements, and if a Fund fails to do so, it will not be","page_number":178,"box":{"x":69,"y":710,"width":811,"height":11}},{"id":"1def45ae-e978-4c1e-abdf-6fe9da85bc0d","block_type":"box","text":"able to “pass through” to shareholders the ability to claim a credit or a deduction for the related foreign taxes paid by","page_number":178,"box":{"x":69,"y":725,"width":839,"height":11}},{"id":"d14d9380-b0c5-412a-851d-a2fa8b90eacc","block_type":"box","text":"the Fund. Fur ther, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":178,"box":{"x":68,"y":740,"width":812,"height":11}},{"id":"d969e12d-351d-475a-b88a-1e395abddf90","block_type":"box","text":"subject to foreign taxes, it may not be able to pass through to its shareholders the ability to take a foreign tax credit","page_number":178,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"2e11bb6d-7c33-49f3-95fb-62e572b33340","block_type":"box","text":"for those taxes. If a Fund satisfies the applicable requirements, such Fund will be eligible to file an election with the","page_number":178,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"a04729df-7974-4cd7-9ab4-878ed0a89bbd","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their propor tionate shares of such foreign","page_number":178,"box":{"x":70,"y":785,"width":829,"height":12}},{"id":"14e20f41-c485-4ad5-a328-fbe3f60c9697","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such propor tionate shares as taxes paid by them, and","page_number":178,"box":{"x":68,"y":801,"width":825,"height":11}},{"id":"abc6def3-dafe-44d7-a752-83d43a149d2b","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":178,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"16176158-b40b-4774-abc4-b28f31418ab3","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":178,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"db3224ce-5c2e-4bf3-8571-0a1b3414d637","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":178,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"f1ee081c-9293-4ca8-a830-2d55c26cdafe","block_type":"box","text":"corporation may be subject to U.S. withholding tax on the income resulting from a Fund’s election described in this","page_number":178,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"7252fabb-e27b-42cf-b0c1-4ae42ba09346","block_type":"box","text":"paragraph but may not be able to claim a credit or deduction against such U.S. tax for the foreign taxes treated as","page_number":178,"box":{"x":70,"y":876,"width":814,"height":11}},{"id":"ce9d4974-b467-40cb-86bb-89df8d65e64a","block_type":"box","text":"having been paid by such shareholder. A Fund will repor t annually to its shareholders the amount per share of such","page_number":178,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"de9e6f16-3178-4a61-a9c8-438c4ccea21d","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":178,"box":{"x":68,"y":906,"width":527,"height":12}},{"id":"9773db81-f4b4-4894-a09a-fd6eaeb873f1","block_type":"box","text":"II-133","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f74797b0-f194-4321-a9da-c55052ebf989","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4fc9c204-4bd7-4cdf-8a40-392a00b3a7dc","block_type":"box","text":"Cer tain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":179,"box":{"x":102,"y":45,"width":768,"height":11}},{"id":"d1069c34-15a9-46a7-87e1-515cad35c33c","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":179,"box":{"x":69,"y":60,"width":780,"height":11}},{"id":"1bc05be6-671d-4bec-ae67-82b3bf656a70","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":179,"box":{"x":69,"y":75,"width":797,"height":11}},{"id":"be1df809-59e5-43b0-b669-39383c347b20","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":179,"box":{"x":69,"y":90,"width":802,"height":11}},{"id":"f89a99e0-d92d-4e1a-8e45-9105fa260d93","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":179,"box":{"x":69,"y":105,"width":831,"height":11}},{"id":"85362c51-27b3-4004-ad31-7b4504d1e5a4","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market cer tain types of","page_number":179,"box":{"x":69,"y":120,"width":776,"height":11}},{"id":"8f9480ff-6873-455d-b88a-c742497109af","block_type":"box","text":"positions in its por tfolio (","page_number":179,"box":{"x":70,"y":135,"width":177,"height":11}},{"id":"92d1952a-4816-4862-a7ac-d4f9157b09da","block_type":"box","text":"i.e.","page_number":179,"box":{"x":249,"y":136,"width":20,"height":8}},{"id":"01fb7573-17d5-4ab8-af49-32f3aa88e67d","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":179,"box":{"x":272,"y":135,"width":636,"height":12}},{"id":"279b2b5b-7046-40fc-be5d-e8d4c750360b","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":179,"box":{"x":69,"y":150,"width":795,"height":12}},{"id":"0f0c2b03-4f8f-4601-b7b7-efa705293bc1","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":179,"box":{"x":70,"y":166,"width":830,"height":11}},{"id":"ca27c1c1-623d-41b4-abce-614838ff5648","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":179,"box":{"x":69,"y":181,"width":804,"height":11}},{"id":"d6af7b0e-05ad-48cc-afc1-45bc346955c8","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":179,"box":{"x":69,"y":196,"width":415,"height":11}},{"id":"a79e67e7-6144-4314-a163-ac8b4aedcb8d","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":179,"box":{"x":102,"y":218,"width":781,"height":12}},{"id":"5780a2f5-b05e-475c-80d5-a43e247f936c","block_type":"box","text":"any of the Fund’s transactions in foreign currencies and hedging activities, are likely to produce a difference between","page_number":179,"box":{"x":69,"y":234,"width":835,"height":11}},{"id":"9711bb53-d7e7-4798-b930-8ccc2d5a4e9e","block_type":"box","text":"its book income and the sum of its taxable income and net tax-exempt income (if any). If such a difference arises,","page_number":179,"box":{"x":70,"y":249,"width":811,"height":11}},{"id":"8e4e2640-432d-4cff-be18-9f0132f82e6c","block_type":"box","text":"and the Fund’s book income is less than the sum of its taxable income and net tax-exempt income, the Fund could","page_number":179,"box":{"x":69,"y":264,"width":818,"height":11}},{"id":"648503fb-2884-47ab-ad0c-8f4835d617b9","block_type":"box","text":"be required to make distributions exceeding book income to qualify as a RIC that is accorded special tax treatment","page_number":179,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"19e333c0-ec5a-4747-a47c-59d131dd343f","block_type":"box","text":"and to avoid an entity-level tax. In the alternative, if the Fund makes any distribution based on book income and such","page_number":179,"box":{"x":69,"y":294,"width":834,"height":11}},{"id":"bdb5e94f-566b-462a-a260-37680607c0bb","block_type":"box","text":"book income exceeds the sum of its taxable income (including realized capital gains) and net tax-exempt income, the","page_number":179,"box":{"x":69,"y":309,"width":833,"height":11}},{"id":"83212ff0-12bd-44cc-be51-a3741e855ed5","block_type":"box","text":"distribution (if any) of such excess generally will be treated as (i) a dividend to the extent of the Fund’s remaining","page_number":179,"box":{"x":69,"y":324,"width":805,"height":12}},{"id":"5ecb1c3d-8181-45a4-9420-5f62a0c15bd3","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":179,"box":{"x":69,"y":339,"width":805,"height":12}},{"id":"d908ee49-d90c-488b-8b78-96b20dee9242","block_type":"box","text":"capital to the extent of the recipient’s basis in its shares, and (iii) thereafter as gain from the sale or exchange of a","page_number":179,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"e6d232d1-3456-4f71-9a23-9d4c52c134b7","block_type":"box","text":"capital asset.","page_number":179,"box":{"x":69,"y":370,"width":95,"height":11}},{"id":"2d53185e-b72c-4b9c-9e1b-de18b1d37e1a","block_type":"box","text":"If a Fund invests in underlying funds, the Fund’s realized losses on sales of shares of underlying funds may be","page_number":179,"box":{"x":102,"y":392,"width":787,"height":12}},{"id":"d13622c7-71b4-49de-a73a-d6938a5b5edd","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":179,"box":{"x":70,"y":407,"width":836,"height":12}},{"id":"cd072366-f859-4ea3-95a1-409ea9f43fe1","block_type":"box","text":"be recognized as ordinary income by the Fund and would not be offset by the Fund’s capital loss carryforwards, if","page_number":179,"box":{"x":69,"y":423,"width":812,"height":11}},{"id":"242e3589-9bbd-4317-baad-1ce49105cb9c","block_type":"box","text":"any. Capital loss carryforwards of underlying funds, if any, would not offset net capital gains of the Fund. Each of","page_number":179,"box":{"x":69,"y":438,"width":805,"height":11}},{"id":"e312918a-b016-4943-aecd-bf981793be8a","block_type":"box","text":"these effects is caused by the Fund’s expected investment in the underlying funds and may result in distributions to","page_number":179,"box":{"x":68,"y":453,"width":829,"height":11}},{"id":"4f7f339d-9254-40be-a7f2-e1f7e97844c8","block_type":"box","text":"Fund shareholders being of higher magnitudes and less likely to qualify for lower capital gain tax rates than if the","page_number":179,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"3daded86-d49f-4f51-b046-f4333d1731ce","block_type":"box","text":"Fund were to invest otherwise.","page_number":179,"box":{"x":70,"y":483,"width":216,"height":9}},{"id":"bfbce4c7-d4c8-4bed-94e7-e0a6ab646dd4","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":179,"box":{"x":101,"y":506,"width":721,"height":11}},{"id":"f5c18923-944a-44ae-aa08-03b2214ef1b5","block_type":"box","text":"“Subsidiary”). It is expected that the Subsidiary will be a “controlled foreign corporation” and that all of its net","page_number":179,"box":{"x":70,"y":521,"width":787,"height":11}},{"id":"b7340725-4c43-41ef-956e-56b33eb20f73","block_type":"box","text":"income will be “subpar t F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":179,"box":{"x":70,"y":536,"width":831,"height":11}},{"id":"da4abca2-7c02-477d-9a48-7f2deffdccdd","block_type":"box","text":"to repor t all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":179,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"c614c5d9-890f-4d6c-b0aa-78fa30a367a5","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":179,"box":{"x":69,"y":566,"width":825,"height":11}},{"id":"857dd288-0404-414c-a0b2-e2be4c28f56e","block_type":"box","text":"to the Fund. (Previously taxed income will not, however, be taxable again when distributed.) If a net loss is realized by","page_number":179,"box":{"x":68,"y":581,"width":838,"height":12}},{"id":"00b33ba1-ed30-4224-a0a4-ad3861589adb","block_type":"box","text":"the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s other income. It is not","page_number":179,"box":{"x":68,"y":596,"width":830,"height":12}},{"id":"f645fb1b-e01d-42dd-8ad0-62055ee16b91","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":179,"box":{"x":69,"y":612,"width":515,"height":11}},{"id":"7f780ca0-6f5c-4985-bd2b-6958ec9c96ec","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":179,"box":{"x":102,"y":634,"width":798,"height":12}},{"id":"d8ccc33b-c054-47ad-949e-5375f167c83f","block_type":"box","text":"the Fund will generally be treated as owning shares in a passive foreign investment company (“PFIC”) for U.S. federal","page_number":179,"box":{"x":68,"y":649,"width":835,"height":12}},{"id":"390d8779-1e32-4e0f-88a4-892a5691d29c","block_type":"box","text":"income tax purposes. A Fund may be subject to U.S. federal income tax, and interest charges (at the rate applicable","page_number":179,"box":{"x":70,"y":664,"width":827,"height":12}},{"id":"2086df31-3cdc-4a46-9138-768f2d302711","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to cer tain distributions from such","page_number":179,"box":{"x":68,"y":680,"width":830,"height":11}},{"id":"a916359c-f656-4f54-91ee-455ba2ed9722","block_type":"box","text":"a company and on gain from the disposition of the shares of such a company (collectively referred to as “excess","page_number":179,"box":{"x":69,"y":695,"width":802,"height":11}},{"id":"bac56b1a-9bcf-43ec-9741-e317b955d1fb","block_type":"box","text":"distributions”), even if such excess distributions are paid by the Fund as a dividend to its shareholders. However, a","page_number":179,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"30a3ac59-3323-4bdd-b9e7-bfc96da92f65","block_type":"box","text":"Fund may elect to “mark-to-market” at the end of each taxable year shares that it holds in PFICs. The election is","page_number":179,"box":{"x":70,"y":725,"width":797,"height":11}},{"id":"98d49483-febc-4f3c-a172-4b851617be6c","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":179,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"78ed9630-5331-4dd4-af23-f535e6b144a7","block_type":"box","text":"revoked with consent from the IRS. Under this election, a Fund would recognize as ordinary income any increase in","page_number":179,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"aeeaada3-2b2f-43a1-bb59-e730b2953d81","block_type":"box","text":"the value of its shares as of the close of the taxable year over their adjusted tax basis and as ordinary loss any","page_number":179,"box":{"x":68,"y":770,"width":797,"height":11}},{"id":"e5b53a7c-f4dc-44ef-b89a-afd2fefca162","block_type":"box","text":"decrease in such value, but only to the extent of previously recognized “mark-to-market” gains. By making the mark","page_number":179,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"f4ccc106-ee40-47ff-a72d-f0f04d2c3bbe","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":179,"box":{"x":68,"y":801,"width":804,"height":11}},{"id":"740eda80-d4ef-4fb2-bd3f-c2d3f879d353","block_type":"box","text":"PFICs, but in any par ticular year might be required to recognize income in excess of the distributions it received from","page_number":179,"box":{"x":69,"y":816,"width":831,"height":11}},{"id":"afee5c52-8a12-4308-be46-3c37c62b8e3f","block_type":"box","text":"PFICs.","page_number":179,"box":{"x":69,"y":831,"width":42,"height":9}},{"id":"90750973-dc51-4b08-828a-bf87b2175ce2","block_type":"box","text":"If a Fund were to invest in a PFIC and elect to treat the PFIC as a “qualified electing fund” under the Code, in lieu","page_number":179,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"a98e6b79-4c9e-4518-8c48-bc38b7858a79","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a por tion of the ordinary","page_number":179,"box":{"x":69,"y":869,"width":816,"height":11}},{"id":"dc2f2f48-3511-4254-ae0b-c1585735fd2b","block_type":"box","text":"earnings and net capital gains of the qualified electing fund, even if not distributed to the Fund, and such amounts","page_number":179,"box":{"x":69,"y":884,"width":816,"height":11}},{"id":"a7219c48-4102-466f-b387-2db10fa42e4c","block_type":"box","text":"would be subject to the 90% and excise tax distribution requirements described above. In order to make this election,","page_number":179,"box":{"x":68,"y":899,"width":840,"height":11}},{"id":"cba621b7-4f8f-4572-b883-56b8f5711ebf","block_type":"box","text":"II-134","page_number":179,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"73fa48d9-fde1-4825-9f42-3ef1657676da","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"735a4aba-f62b-49c0-bf1d-c93598229007","block_type":"box","text":"the Fund would be required to obtain cer tain annual information from the PFICs in which it invests, which may be","page_number":180,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"61a4aeed-6af9-4172-b6ae-ddf862d6dd18","block_type":"box","text":"difficult or impossible to obtain.","page_number":180,"box":{"x":69,"y":60,"width":225,"height":11}},{"id":"5e2128c5-b683-43c2-86de-40bf0a59bb01","block_type":"box","text":"In cer tain situations, a Fund may, for a taxable year, defer all or a por tion of its net capital loss (or if there is no","page_number":180,"box":{"x":102,"y":82,"width":796,"height":12}},{"id":"a6e987da-8f68-47f0-a3b7-79c80c49a3b0","block_type":"box","text":"net capital loss, any net long-term or shor t-term capital loss) realized after October and its late-year ordinary loss","page_number":180,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"13f79ff8-4025-4efb-9edb-035a94854841","block_type":"box","text":"(defined as the sum of the excess of post-October foreign currency and PFIC losses over post-October foreign","page_number":180,"box":{"x":69,"y":113,"width":778,"height":11}},{"id":"f36276f9-c600-4da1-82ec-b8ffc85a3eb0","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":180,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"7472b6c7-0dce-4cb5-b232-93a767d0ce55","block_type":"box","text":"the next taxable year in computing its investment company taxable income and net capital gain, which will defer the","page_number":180,"box":{"x":68,"y":143,"width":824,"height":11}},{"id":"44db44f8-3616-4440-b5dc-a66045a66965","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":180,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"7cfa98fe-d7dc-4dd1-9cd3-1fcdb00aef3d","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":180,"box":{"x":69,"y":173,"width":511,"height":11}},{"id":"f2c7adb4-8ad4-4d51-8c59-d175c2eb0b10","block_type":"box","text":"Municipal Funds","page_number":180,"box":{"x":102,"y":196,"width":115,"height":11}},{"id":"6d190a0d-db70-4a0e-840b-0d91b9041cc2","block_type":"box","text":"Each Municipal Fund intends to qualify to pay “exempt-interest dividends” as defined in Section 852(b)(5) of the","page_number":180,"box":{"x":102,"y":218,"width":798,"height":12}},{"id":"a2eaf65f-b7ae-48ae-85bc-850e905de726","block_type":"box","text":"Code. Under such section if, at the close of each quar ter of a Fund’s taxable year, at least 50% of the value of the","page_number":180,"box":{"x":69,"y":234,"width":815,"height":11}},{"id":"06d97034-d278-4805-904d-9b3177a299fa","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":180,"box":{"x":70,"y":249,"width":803,"height":11}},{"id":"1a7d3d5a-564d-4b45-a3d8-764121807155","block_type":"box","text":"Section 103(a) of the Code (relating generally to obligations of a state or local governmental unit), the Fund shall be","page_number":180,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"0bddcba8-cdbe-41ce-b7dc-4f6359764e61","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":180,"box":{"x":69,"y":279,"width":752,"height":11}},{"id":"ed124f7c-c9fa-49c4-a541-165d33fc16d0","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any par t thereof paid by a Fund that are attributable to","page_number":180,"box":{"x":70,"y":294,"width":817,"height":11}},{"id":"5f1aecf3-441a-46ff-9191-552ec6647da0","block_type":"box","text":"interest on tax-exempt obligations and repor ted by the Fund as exempt-interest dividends. A Fund will allocate","page_number":180,"box":{"x":70,"y":309,"width":780,"height":11}},{"id":"b786dffb-74ee-4ff4-a090-98a9131aa610","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":180,"box":{"x":70,"y":324,"width":815,"height":12}},{"id":"d4d841a4-6856-459f-91b0-451498ad61e2","block_type":"box","text":"below) among the Fund’s shareholders according to a method (that it believes is consistent with the Commission rule","page_number":180,"box":{"x":69,"y":340,"width":839,"height":11}},{"id":"7364dd8e-a0dc-4f7b-ad51-0ae24937a79d","block_type":"box","text":"permitting the issuance and sale of multiple classes of shares) that is based upon the gross income that is allocable","page_number":180,"box":{"x":70,"y":355,"width":835,"height":11}},{"id":"8db5ab59-c57f-40e0-97cf-419019f0c78d","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":180,"box":{"x":68,"y":370,"width":730,"height":11}},{"id":"cb33841b-b953-499a-acd3-e4f9a550e7d9","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":180,"box":{"x":102,"y":392,"width":763,"height":12}},{"id":"5ec50ea6-c9b4-4405-ba76-b6e3cd807c62","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the por tion, if any, of a person’s social","page_number":180,"box":{"x":70,"y":407,"width":809,"height":12}},{"id":"0819af93-b378-48e6-852e-5fa4d403859e","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":180,"box":{"x":69,"y":423,"width":821,"height":11}},{"id":"b5c36e02-2cad-461f-9c3f-7fc9013d3bff","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":180,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"3c5c600d-baf1-402c-a491-913833b84211","block_type":"box","text":"the Fund, will not be deductible by the investor for U.S. federal income tax purposes to the extent attributable to","page_number":180,"box":{"x":68,"y":453,"width":800,"height":11}},{"id":"48cd424c-e51f-4214-a7d0-e8df7788c48c","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":180,"box":{"x":69,"y":468,"width":810,"height":11}},{"id":"68d857ea-68fb-4263-bdb8-9e1769473ac5","block_type":"box","text":"interest dividends retain the exclusion under Code Section 103(a) if a shareholder would be treated as a “substantial","page_number":180,"box":{"x":70,"y":483,"width":836,"height":11}},{"id":"9c2191a8-57b7-4f9a-9ae4-3edcdd04bec9","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to proper ty financed with the proceeds of an issue","page_number":180,"box":{"x":69,"y":498,"width":835,"height":11}},{"id":"dd9b4ac9-0b48-43d3-8c74-426b0132ffa7","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":180,"box":{"x":69,"y":513,"width":217,"height":11}},{"id":"2cae5ae4-ea7e-4d17-8572-0f165420afe8","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":180,"box":{"x":102,"y":536,"width":788,"height":11}},{"id":"8fe73e5b-3a83-42df-a9d4-5afa3c22b0aa","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":180,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"016cf5d2-1516-4abc-9315-a997dfd9ba7c","block_type":"box","text":"constitute exempt-interest dividends.","page_number":180,"box":{"x":69,"y":566,"width":261,"height":11}},{"id":"ff1bbb87-6d92-4c66-8978-bee3894f50a1","block_type":"box","text":"Distributions in excess of a Fund’s earnings and profits will first reduce the adjusted tax basis of a holder’s","page_number":180,"box":{"x":102,"y":589,"width":765,"height":11}},{"id":"ae5faa60-0a9a-49ce-b1f9-9748a1b9e45a","block_type":"box","text":"shares and, after such adjusted tax basis is reduced to zero, will constitute capital gains to such holder (assuming","page_number":180,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"8dbca67f-4547-4926-95ae-8f33c873caa8","block_type":"box","text":"the shares are held as a capital asset). Any loss upon the sale or exchange of Fund shares held for six months or","page_number":180,"box":{"x":68,"y":619,"width":813,"height":11}},{"id":"dc104128-6b22-4940-a681-c9823686792e","block_type":"box","text":"less will be disallowed to the extent of any exempt-interest dividends received by the shareholder. In addition, any","page_number":180,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"7a2f9e54-90e8-4e0a-82b4-95c709130146","block_type":"box","text":"such loss that is not disallowed under the rule stated above will be treated as long-term capital loss to the extent of","page_number":180,"box":{"x":69,"y":649,"width":829,"height":12}},{"id":"126bd93d-4156-4c86-a985-cb66492f78b6","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":180,"box":{"x":69,"y":665,"width":388,"height":11}},{"id":"7c9e5148-d7d3-4526-8355-aeee3524ac24","block_type":"box","text":"All or a por tion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":180,"box":{"x":101,"y":687,"width":787,"height":11}},{"id":"6b615cae-31ae-4065-a911-7499a54eb3e9","block_type":"box","text":"discount will be treated as ordinary income rather than capital gain. This rule may increase the amount of ordinary","page_number":180,"box":{"x":69,"y":702,"width":817,"height":12}},{"id":"cd38a46b-fe6b-4371-8b91-bde873878f39","block_type":"box","text":"income dividends received by shareholders.","page_number":180,"box":{"x":70,"y":718,"width":309,"height":11}},{"id":"4f6f8372-fb75-46bc-bb04-1f8d4a137cf7","block_type":"box","text":"Any market discount recognized on a bond is taxable as ordinary income. A market discount bond is a bond","page_number":180,"box":{"x":101,"y":740,"width":766,"height":11}},{"id":"da9d89ee-9ce4-44ca-89c9-78e0711b557d","block_type":"box","text":"acquired in the secondary market at a price below redemption value or adjusted issue price if issued with original","page_number":180,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"5ae58762-9d4f-41e0-9c00-818540790a3e","block_type":"box","text":"issue discount. Absent an election by the Fund to include the market discount in income as it accrues, gain on the","page_number":180,"box":{"x":70,"y":771,"width":815,"height":11}},{"id":"b2d65928-285d-42a0-9637-a5374e98a389","block_type":"box","text":"Fund’s disposition of such an obligation will be treated as ordinary income rather than capital gain to the extent of","page_number":180,"box":{"x":70,"y":785,"width":815,"height":12}},{"id":"4936733b-0515-4210-93df-70ffc18e5b88","block_type":"box","text":"the accrued market discount.","page_number":180,"box":{"x":68,"y":801,"width":208,"height":9}},{"id":"fcdfb1c0-123f-49df-ad97-d4c90c38cba6","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":180,"box":{"x":101,"y":823,"width":801,"height":11}},{"id":"5b6aad74-3070-4d3a-8ca0-c2cb6cc33119","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on cer tain “PABs” issued after August 7, 1986. PABs","page_number":180,"box":{"x":68,"y":838,"width":818,"height":12}},{"id":"e103c292-69b4-448f-aedf-fb4d8488d310","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":180,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"a88c7919-c1fa-41ce-8940-985799fdc62e","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":180,"box":{"x":69,"y":869,"width":351,"height":11}},{"id":"f55fc7e2-ab9e-46af-81fc-599000b3cc12","block_type":"box","text":"e.g.","page_number":180,"box":{"x":422,"y":870,"width":24,"height":10}},{"id":"fad3a41c-4483-4d74-bf4d-6122d731b450","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":180,"box":{"x":449,"y":869,"width":441,"height":11}},{"id":"b370aaa6-1bc1-4efa-b4bd-7a0254895fbe","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject cer tain investors in","page_number":180,"box":{"x":70,"y":884,"width":827,"height":11}},{"id":"42337665-1d83-41e6-bc35-af8ea86b1866","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":180,"box":{"x":69,"y":899,"width":786,"height":11}},{"id":"de556d79-3b2b-48d4-b8ec-30d1823b8eae","block_type":"box","text":"II-135","page_number":180,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"53b4a4f3-9586-4bd9-9ed9-c82073c4c683","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eb5d01d5-a928-477f-b9d2-dfaeca63d5a2","block_type":"box","text":"“PABs” and will repor t to shareholders after the close of the calendar year the por tion of the Fund’s dividends","page_number":181,"box":{"x":70,"y":45,"width":782,"height":11}},{"id":"ff67e0af-7886-4178-bb13-f9e758f9d27f","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":181,"box":{"x":69,"y":60,"width":740,"height":11}},{"id":"a8570c5b-07f0-4c3e-b160-7c6692530328","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":181,"box":{"x":102,"y":82,"width":802,"height":12}},{"id":"a35ef246-904b-4ebb-b377-96b578c686a0","block_type":"box","text":"the taxation of interest rate swaps are not entirely clear and may require a Fund to treat payments received under","page_number":181,"box":{"x":68,"y":98,"width":812,"height":11}},{"id":"a42f6cf8-c22e-4a18-8f19-a352792cb11f","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":181,"box":{"x":69,"y":113,"width":794,"height":11}},{"id":"d58f40f9-17e1-4fdb-a8a1-05df9110e459","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":181,"box":{"x":70,"y":128,"width":776,"height":11}},{"id":"636e860b-317d-48e7-83fa-c2d17da99c70","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income propor tionately, they","page_number":181,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"19e12fa7-7309-4a58-8b92-ec38c09b2fdc","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":181,"box":{"x":69,"y":158,"width":436,"height":11}},{"id":"52408d3b-fc5f-4f41-8889-b7e815d8f6b2","block_type":"box","text":"Please see Par t I of your Fund’s SAI for cer tain state tax information relevant to an investment in BlackRock","page_number":181,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"730ea552-7653-4904-a32d-5181caa8047e","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":181,"box":{"x":69,"y":196,"width":828,"height":11}},{"id":"d81d8542-0ae3-4ba7-ad0f-36c90cfdf477","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":181,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"18799374-6177-4f83-8e1e-a18d27dd6d02","block_type":"box","text":"within each applicable state.","page_number":181,"box":{"x":68,"y":226,"width":203,"height":11}},{"id":"68ab90a9-1f84-47be-afef-9fdbd16f4e97","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Por tfolio in","page_number":181,"box":{"x":102,"y":249,"width":774,"height":11}},{"id":"f2d6624a-fe5e-47ef-ad8e-2bf82be2082c","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":181,"box":{"x":68,"y":264,"width":837,"height":11}},{"id":"5d50bd9c-67f6-476c-bffd-78868ee26f3f","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":181,"box":{"x":70,"y":279,"width":816,"height":11}},{"id":"3e279da1-2c33-4b0e-9d2f-558ded90033d","block_type":"box","text":"(depending on the par ticular Master Por tfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":181,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"fb1490a4-c740-41cd-a8f7-23f3c1f3fc8b","block_type":"box","text":"to change the classification of a Master Por tfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":181,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"b60b9a9a-b828-4972-9c09-143f2b35a121","block_type":"box","text":"its discretion, the appropriate course of action for the Feeder Fund. One possible course of action would be to","page_number":181,"box":{"x":70,"y":324,"width":783,"height":11}},{"id":"e65d3bf9-45ca-4ef2-8292-ff390659de48","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Por tfolio and to retain an investment manager to manage","page_number":181,"box":{"x":68,"y":339,"width":822,"height":12}},{"id":"7ad898b5-408d-4276-af80-4c4131869f43","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":181,"box":{"x":68,"y":355,"width":710,"height":11}},{"id":"e1b8bcd8-f2d3-407f-ab9e-3054509d4d68","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Cer tain states exempt","page_number":181,"box":{"x":102,"y":377,"width":796,"height":12}},{"id":"1c9ee735-c623-4e67-b268-30301272f999","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":181,"box":{"x":68,"y":392,"width":828,"height":12}},{"id":"cdc463b5-9808-42d5-b9f0-91707044e51f","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":181,"box":{"x":68,"y":408,"width":841,"height":11}},{"id":"40f1749e-36df-470d-b602-74d5b5cea115","block_type":"box","text":"exempt from state income tax.","page_number":181,"box":{"x":69,"y":423,"width":216,"height":11}},{"id":"bcb9f284-10d2-4a73-920a-a0c985cb553b","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":181,"box":{"x":102,"y":445,"width":771,"height":12}},{"id":"7b2bcdfd-10e9-4bbb-9fc0-22da64479a56","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":181,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"d2bc2f99-259b-4c10-9e02-03a04c589f63","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":181,"box":{"x":68,"y":475,"width":309,"height":9}},{"id":"4a2b0cc2-6a8f-4793-89d3-af960ee35274","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":181,"box":{"x":101,"y":498,"width":749,"height":11}},{"id":"b4646713-6d35-4f7f-88c6-ac722f83b1fb","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":181,"box":{"x":69,"y":513,"width":803,"height":12}},{"id":"b8bfa69e-8039-4d07-826b-902fb059833a","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":181,"box":{"x":69,"y":528,"width":801,"height":12}},{"id":"4d3f5e7e-2122-4c4c-bcb9-0b8e42cd7d88","block_type":"box","text":"decisions may have a retroactive effect.","page_number":181,"box":{"x":69,"y":543,"width":283,"height":12}},{"id":"31d96dde-8e93-4b6e-b21f-bfc3701719d4","block_type":"box","text":"PERFORMANCE DATA","page_number":181,"box":{"x":403,"y":573,"width":173,"height":10}},{"id":"ecd512a0-2811-41e4-83c2-9475239a7021","block_type":"box","text":"From time to time a Fund may include its average annual total return and other total return data, and, if","page_number":181,"box":{"x":102,"y":596,"width":738,"height":11}},{"id":"24d69bab-9a6c-4b96-9681-0b2cc4d5c7a2","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":181,"box":{"x":69,"y":611,"width":779,"height":11}},{"id":"db0a56ef-a7d5-404a-9fa5-a313deb5954e","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical per formance and is not","page_number":181,"box":{"x":69,"y":626,"width":833,"height":11}},{"id":"06d01ce1-e017-400a-8895-f5b2abf151a4","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":181,"box":{"x":70,"y":641,"width":792,"height":11}},{"id":"1418ce3d-4f2c-470d-b26b-1f1519de1023","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":181,"box":{"x":69,"y":656,"width":473,"height":11}},{"id":"1d1daaae-94bb-4e7b-8bbf-3e334816c1f6","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":181,"box":{"x":102,"y":679,"width":761,"height":11}},{"id":"6b758172-2c07-4b64-8ac0-337e55374a8d","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":181,"box":{"x":69,"y":694,"width":836,"height":11}},{"id":"56b62379-dd98-4064-bab3-38847a80748e","block_type":"box","text":"gains or losses on por tfolio investments over such periods) that would equate the initial amount invested to the","page_number":181,"box":{"x":68,"y":709,"width":798,"height":11}},{"id":"9477b88a-5202-490d-80c9-a63904aa22e1","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":181,"box":{"x":69,"y":724,"width":765,"height":12}},{"id":"f4186eed-2d26-4067-858a-b669d2da9de8","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":181,"box":{"x":69,"y":740,"width":808,"height":11}},{"id":"2350f0ec-9d11-4a0d-bc2a-a34f72469cbe","block_type":"box","text":"expenses, including the maximum sales charge, in the case of front-end load shares, and the CDSC that would be","page_number":181,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"d6bedc43-e70f-4cbc-94ae-6c16953f3728","block_type":"box","text":"applicable to a complete redemption of the investment at the end of the specified period in the case of CDSC shares,","page_number":181,"box":{"x":69,"y":770,"width":839,"height":11}},{"id":"129a767d-7e70-4cac-aed5-c6a36aa368e9","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":181,"box":{"x":69,"y":785,"width":546,"height":11}},{"id":"277cd2d4-68df-4edc-92e4-c1d4efb427ee","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":181,"box":{"x":102,"y":807,"width":781,"height":12}},{"id":"400bd5e6-a61f-49d5-994c-a50506e6876f","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":181,"box":{"x":68,"y":823,"width":819,"height":11}},{"id":"32c92e96-433a-4fe3-8823-4de8de3db101","block_type":"box","text":"value of such investment at the end of each period assuming payment of taxes on dividends received during such","page_number":181,"box":{"x":68,"y":838,"width":810,"height":11}},{"id":"52e50db3-cd50-4285-b432-bef7ea432f16","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":181,"box":{"x":70,"y":853,"width":823,"height":11}},{"id":"269a46b4-faf1-473f-9604-ee5bdb8ddcce","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":181,"box":{"x":69,"y":868,"width":780,"height":11}},{"id":"9cbc08b5-82eb-4b16-8c88-dbff44273a93","block_type":"box","text":"including the maximum sales charge, in the case of front-end load shares and the CDSC that would be applicable to","page_number":181,"box":{"x":70,"y":883,"width":825,"height":11}},{"id":"bad37160-68d2-4156-9bb2-9fc40694c657","block_type":"box","text":"a complete redemption of the investment at the end of the specified period in the case of CDSC shares. The taxes","page_number":181,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"998b1c7e-c9c0-473b-8798-aaca30e4336f","block_type":"box","text":"II-136","page_number":181,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"17e293d2-ad51-4b8a-a4ba-aaf90789cf50","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1ab12426-0683-464a-94a2-6a6ea9428a6e","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":182,"box":{"x":69,"y":45,"width":820,"height":11}},{"id":"4009bf37-f59f-44ef-8a85-417f421d303e","block_type":"box","text":"income tax rates in effect on the reinvestment date for that dividend. The rates used correspond to the tax character","page_number":182,"box":{"x":70,"y":60,"width":833,"height":11}},{"id":"4c350b14-cc69-41c9-ac62-10a71f71425d","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":182,"box":{"x":69,"y":75,"width":797,"height":11}},{"id":"0422be23-2dfb-467a-b016-51d9ddcbb167","block_type":"box","text":"taxable amount and tax character of each dividend are specified by each Fund on the dividend declaration date, but","page_number":182,"box":{"x":68,"y":90,"width":824,"height":11}},{"id":"fd93ab51-4e00-4c4b-abbf-7f33bd5f4da5","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":182,"box":{"x":69,"y":105,"width":837,"height":11}},{"id":"1654b300-f360-42f1-81f4-470a94cf6c4a","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":182,"box":{"x":69,"y":120,"width":814,"height":12}},{"id":"42e17141-7494-48f0-a296-09736bb35185","block_type":"box","text":"credits, are taken into account according to U.S. federal tax law. The ending value is determined assuming complete","page_number":182,"box":{"x":69,"y":135,"width":830,"height":12}},{"id":"a1fa32bd-8d79-4b85-9d9b-0bab730d3374","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":182,"box":{"x":69,"y":150,"width":774,"height":11}},{"id":"dcb9cce7-a72c-4f9a-a41b-ad845af7016d","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":182,"box":{"x":102,"y":173,"width":752,"height":11}},{"id":"d4ba9203-23c4-458b-bb27-907c630c78dd","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":182,"box":{"x":70,"y":188,"width":835,"height":12}},{"id":"2526f3b2-4d77-4339-971a-9eaf31c7bb7d","block_type":"box","text":"invested to the ending value of such investment at the end of each period assuming payment of taxes on dividends","page_number":182,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"af694a15-13b6-48fb-b7c9-6ca175479fac","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":182,"box":{"x":69,"y":218,"width":756,"height":12}},{"id":"d93871c5-d015-4093-a86e-12e1fd12e186","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":182,"box":{"x":69,"y":234,"width":772,"height":11}},{"id":"a29e5bcc-7db6-46e1-937b-d30f25f48599","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":182,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"adba7aa1-3fa9-422e-b1e7-f34a92843eca","block_type":"box","text":"charge in the case of front-end load shares and the CDSC that would be applicable to a complete redemption of the","page_number":182,"box":{"x":69,"y":264,"width":825,"height":11}},{"id":"69971ff2-3d3e-4caa-a2ae-aa8c172b873f","block_type":"box","text":"investment at the end of the specified period in the case of CDSC shares and assuming, for all classes of shares,","page_number":182,"box":{"x":70,"y":279,"width":812,"height":11}},{"id":"a3116ccc-f590-4864-b617-4aa49cfcd43b","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":182,"box":{"x":69,"y":294,"width":795,"height":11}},{"id":"515087e7-6f07-4ff5-93ef-6b86b92f3536","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":182,"box":{"x":69,"y":309,"width":768,"height":11}},{"id":"7f23df38-b3f7-43ec-903b-e3ee1a49282d","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":182,"box":{"x":69,"y":324,"width":810,"height":12}},{"id":"960ccda3-f105-4523-a278-1253b6a36c27","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":182,"box":{"x":69,"y":339,"width":802,"height":12}},{"id":"bcd1c4db-1d41-484e-bd34-2b425c3741b5","block_type":"box","text":"individual income tax rates in effect on the reinvestment and/or the redemption date. The rates used correspond to","page_number":182,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"464ecce0-e016-413b-8155-b8686753d7d2","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":182,"box":{"x":68,"y":370,"width":823,"height":11}},{"id":"b08786f0-d8ee-40fa-97b9-628edda3683c","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":182,"box":{"x":69,"y":385,"width":743,"height":11}},{"id":"f003ba9e-18e3-497f-a5c4-8c4db3c58d88","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":182,"box":{"x":69,"y":400,"width":814,"height":11}},{"id":"a48a8795-2b93-4be6-8073-aef510e30366","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":182,"box":{"x":68,"y":415,"width":422,"height":11}},{"id":"c7ab45c6-02e7-4778-8214-1ef8a9d105c6","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":182,"box":{"x":101,"y":438,"width":720,"height":11}},{"id":"62fda039-afaa-410b-aca7-fdfa0a1120b9","block_type":"box","text":"per formance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":182,"box":{"x":70,"y":452,"width":813,"height":12}},{"id":"addff363-687d-492c-a19d-9a56aaba4586","block_type":"box","text":"some other amount, for various periods other than those noted in Par t I of each Fund’s SAI. Such data will be","page_number":182,"box":{"x":69,"y":468,"width":781,"height":11}},{"id":"9b0a7eac-7a1a-434f-94f2-324b6c8bc3dc","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":182,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"6d98fe3e-2f90-4e89-b6d5-9a4b902b51c6","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":182,"box":{"x":69,"y":498,"width":817,"height":11}},{"id":"c767918e-f5ea-49fb-a4a0-23bcea318854","block_type":"box","text":"will not be included with respect to annual or annualized rates of return calculations. Aside from the impact on the","page_number":182,"box":{"x":68,"y":513,"width":815,"height":11}},{"id":"46c56761-1214-463c-b18f-01662875f97f","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":182,"box":{"x":70,"y":528,"width":801,"height":12}},{"id":"07ad52b7-2520-4ed5-b5b9-2e8f0f453fa9","block_type":"box","text":"annualized total return data generally will be lower than average annual total return data since the average rates of","page_number":182,"box":{"x":69,"y":543,"width":819,"height":12}},{"id":"f2fa9c32-5ea3-4619-9f7d-402eda0ade08","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":182,"box":{"x":69,"y":559,"width":811,"height":11}},{"id":"cb7bab34-113f-4525-bfb3-47f029bf2eff","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":182,"box":{"x":69,"y":574,"width":686,"height":11}},{"id":"c04cd585-6824-4605-8b5d-8b5dbe4dca6f","block_type":"box","text":"Yield quotations will be computed based on a 30-day period by dividing (a) the net income based on the yield of","page_number":182,"box":{"x":101,"y":596,"width":796,"height":12}},{"id":"131c0cad-e246-4ef7-94f6-3a8f4f1c1404","block_type":"box","text":"each security earned during the period by (b) the average daily number of shares outstanding during the period that","page_number":182,"box":{"x":69,"y":612,"width":821,"height":11}},{"id":"d1fbd090-2323-4415-92fd-fddf1101f1c4","block_type":"box","text":"were entitled to receive dividends multiplied by the maximum offering price per share on the last day of the period.","page_number":182,"box":{"x":68,"y":627,"width":817,"height":11}},{"id":"48659a50-bc07-4bf1-a1a8-1210d0d1954b","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the par t of a Fund’s yield that is tax-exempt by (b) one","page_number":182,"box":{"x":68,"y":642,"width":837,"height":11}},{"id":"756afdce-5ebf-43e3-b252-4f2aa937c6f0","block_type":"box","text":"minus a stated tax rate and adding the result to that par t, if any, of the Fund’s yield that is not tax-exempt.","page_number":182,"box":{"x":69,"y":657,"width":759,"height":11}},{"id":"7ba04fdd-7d88-4705-b10a-e211ef9d52d1","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s por tfolio, a","page_number":182,"box":{"x":101,"y":680,"width":779,"height":11}},{"id":"ed3e5156-f6bd-4f5d-8312-4b9d46c02da6","block_type":"box","text":"Fund’s operating expenses and the amount of realized and unrealized net capital gains or losses during the period.","page_number":182,"box":{"x":70,"y":695,"width":819,"height":11}},{"id":"c56f51a2-0ea0-4bbe-a604-72a972bd30c4","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be wor th more or","page_number":182,"box":{"x":68,"y":710,"width":830,"height":11}},{"id":"fef71ebb-78b1-46ef-ab15-f7ffba6247eb","block_type":"box","text":"less than their original cost.","page_number":182,"box":{"x":70,"y":725,"width":196,"height":11}},{"id":"cbfff391-ebb6-4878-8056-5c4b84898e26","block_type":"box","text":"In order to reflect the reduced sales charges in the case of front-end load shares or the waiver of the CDSC in","page_number":182,"box":{"x":102,"y":748,"width":782,"height":11}},{"id":"00e21857-ccfc-4da0-b0d3-1e8313532763","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":182,"box":{"x":68,"y":763,"width":836,"height":11}},{"id":"3ab64366-322a-4bde-856c-0af2c83925e3","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in adver tisements directed to such investors may","page_number":182,"box":{"x":69,"y":778,"width":807,"height":11}},{"id":"a646c983-3edc-4cea-a96c-467d1b65ae2c","block_type":"box","text":"take into account the reduced, and not the maximum, sales charge or may take into account the CDSC waiver and,","page_number":182,"box":{"x":68,"y":793,"width":820,"height":11}},{"id":"1bcafcb2-a548-4e53-82df-dc53121df07f","block_type":"box","text":"therefore, may reflect greater total return since, due to the reduced sales charges or the waiver of sales charges, a","page_number":182,"box":{"x":68,"y":808,"width":824,"height":11}},{"id":"4f8b34c1-6a88-4567-9678-c22b8bd2c119","block_type":"box","text":"lower amount of expenses is deducted.","page_number":182,"box":{"x":70,"y":823,"width":278,"height":11}},{"id":"1262a97d-4bf3-4886-ac03-7cc5fa8ac738","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":182,"box":{"x":102,"y":846,"width":741,"height":11}},{"id":"76a60e39-55cb-4ded-ac13-3e79cf2487b0","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":182,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"29e17eff-cc73-4127-9b08-a3567ff25cb1","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":182,"box":{"x":70,"y":876,"width":646,"height":11}},{"id":"00bb1f4f-6815-4434-a946-218d624f8ffb","block_type":"box","text":"Money Magazine, U.S.","page_number":182,"box":{"x":724,"y":876,"width":156,"height":11}},{"id":"9fe110a9-f435-4dfd-be70-ede12e3fc086","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":182,"box":{"x":70,"y":891,"width":533,"height":12}},{"id":"9b179163-c5a3-4114-a626-f80d8c6779ec","block_type":"box","text":"or other industry publications. When","page_number":182,"box":{"x":608,"y":891,"width":257,"height":11}},{"id":"3586cf0b-b8ec-4184-be9f-60f5372625af","block_type":"box","text":"comparing its per formance to a market index, a Fund may refer to various statistical measures derived from the","page_number":182,"box":{"x":69,"y":906,"width":797,"height":12}},{"id":"55d085fe-4c88-44de-9355-03ffedad6f76","block_type":"box","text":"II-137","page_number":182,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ab1f5775-a51a-4708-a677-57bac278bacf","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dec3e50d-4886-4229-9f3e-1c003ba66878","block_type":"box","text":"historical per formance of a Fund and the index, such as standard deviation and beta. As with other per formance","page_number":183,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"e4659ee7-a08c-4962-9d19-6712e856b1ee","block_type":"box","text":"data, per formance comparisons should not be considered indicative of a Fund’s relative per formance for any future","page_number":183,"box":{"x":69,"y":60,"width":824,"height":11}},{"id":"36106278-2ac7-4491-9550-2ab29adeb299","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted per formance ratings","page_number":183,"box":{"x":70,"y":75,"width":818,"height":11}},{"id":"da2c98af-5094-4b4b-bdc2-5349207e2a5e","block_type":"box","text":"assigned by Morningstar in adver tising or supplemental sales literature. From time to time a Fund may quote in","page_number":183,"box":{"x":69,"y":90,"width":793,"height":11}},{"id":"4763ac88-a45d-4183-8d75-512ccb1511d0","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":183,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"d129d357-35a8-4a27-bc66-bcda33bf3da4","block_type":"box","text":"awards that may be given to the Manager. Cer tain Funds may also compare their per formance to composite indices","page_number":183,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"c3d4f1f5-65a1-412f-a733-f7f474d9743e","block_type":"box","text":"developed by Fund management.","page_number":183,"box":{"x":69,"y":136,"width":233,"height":11}},{"id":"da55d102-1806-4a48-b96f-dae78dff13b0","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":183,"box":{"x":101,"y":158,"width":780,"height":11}},{"id":"1916c13e-2248-4174-9ccf-1fbaccd7ca32","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":183,"box":{"x":70,"y":173,"width":810,"height":11}},{"id":"8a2afe3e-7dd4-4aff-9bd5-ff8900cbe9d0","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":183,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"c3f8a39e-9783-45c3-b4da-82012adcd9ae","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":183,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"0f5429ba-3d6f-4702-b94e-2358087ce8b0","block_type":"box","text":"techniques, comparisons of the Fund’s per formance or por tfolio composition to that of other funds or types of","page_number":183,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"9cfb9996-95cb-49b1-ab14-01959d823eaa","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model por tfolio. A Fund may also","page_number":183,"box":{"x":70,"y":234,"width":835,"height":11}},{"id":"dac3b8bb-a252-4cd5-95c0-44154485677c","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":183,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"ac6514d0-8fbf-4b27-8cab-ac1c97b45134","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":183,"box":{"x":68,"y":264,"width":461,"height":11}},{"id":"5a793067-4d67-4033-a66c-334f0befb831","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":183,"box":{"x":308,"y":293,"width":362,"height":10}},{"id":"ad7812e5-344d-463b-9c4e-7675d49fe3ab","block_type":"box","text":"The Board of Directors of the Funds has delegated the voting of proxies for the Funds’ securities to the Manager","page_number":183,"box":{"x":101,"y":316,"width":802,"height":11}},{"id":"7cc3238c-eb3c-4d96-ab67-f17638ea5b99","block_type":"box","text":"pursuant to (i) the Open-End Active and Fixed Income Index Fund Proxy Voting Policy (the “Active Fund Proxy Voting","page_number":183,"box":{"x":70,"y":331,"width":809,"height":12}},{"id":"f5c8f219-a88e-44ae-800f-a63f1c129232","block_type":"box","text":"Policy”), with respect to cer tain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to cer tain other","page_number":183,"box":{"x":69,"y":347,"width":833,"height":11}},{"id":"4bc1e711-a25e-400b-bdb9-ae4b57e8d47f","block_type":"box","text":"Funds, as applicable. Please refer to Par t I of this SAI, which discloses the policy applicable to each Fund.","page_number":183,"box":{"x":70,"y":361,"width":755,"height":12}},{"id":"69db4007-b3d9-49e8-840e-15950044fc1d","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":183,"box":{"x":101,"y":384,"width":785,"height":11}},{"id":"25921a58-4cc3-4485-853c-7d8a966a6d82","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":183,"box":{"x":68,"y":399,"width":822,"height":12}},{"id":"e9ad65fa-6b0d-415c-927b-3a91e68b876f","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Par t I of this SAI, follow supplemental","page_number":183,"box":{"x":70,"y":414,"width":824,"height":12}},{"id":"1361fd5d-bd62-407b-9605-7c530739bd36","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":183,"box":{"x":68,"y":430,"width":812,"height":11}},{"id":"3da59054-5e4d-4d59-962d-432311e6a1d6","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":183,"box":{"x":69,"y":445,"width":392,"height":11}},{"id":"2a6789e3-9534-4e7b-83ff-09dafa607027","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":183,"box":{"x":101,"y":468,"width":749,"height":11}},{"id":"9dd0fe36-c86b-4717-8216-ebe06a22df90","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":183,"box":{"x":70,"y":482,"width":759,"height":12}},{"id":"69c1784e-ffb1-4bd9-9121-a44ce001180a","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":183,"box":{"x":70,"y":498,"width":830,"height":11}},{"id":"432c8433-442e-4f72-90d9-16e455e34691","block_type":"box","text":"addition, cer tain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Par t I of","page_number":183,"box":{"x":69,"y":513,"width":838,"height":11}},{"id":"feb85acc-274d-4722-8324-71acff083217","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":183,"box":{"x":68,"y":528,"width":822,"height":11}},{"id":"3bd4a066-505c-4002-b15d-f053884040a5","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":183,"box":{"x":69,"y":543,"width":392,"height":11}},{"id":"b22c6a4e-cb95-44e9-b3c6-a66ca3a76e92","block_type":"box","text":"If a Fund invests in an underlying fund managed by BlackRock, the Fund will use its proxy voting policy when","page_number":183,"box":{"x":102,"y":566,"width":767,"height":11}},{"id":"8b6ff802-9b88-453b-a5ec-c13f6b241b6f","block_type":"box","text":"voting on proxies for the underlying fund while the underlying fund will use its proxy voting policy when voting proxies","page_number":183,"box":{"x":68,"y":581,"width":827,"height":11}},{"id":"4333aa44-8016-4a39-9f8e-565a2258970d","block_type":"box","text":"on investments the underlying fund holds. Therefore, the Fund may use the Active Fund Proxy Voting Policy while an","page_number":183,"box":{"x":69,"y":596,"width":819,"height":11}},{"id":"1fade089-6da0-47cc-9d72-8f782b303a6f","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":183,"box":{"x":69,"y":611,"width":684,"height":11}},{"id":"8c207573-53d3-47d6-ae62-0217e9860b3b","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":183,"box":{"x":102,"y":634,"width":766,"height":11}},{"id":"94449740-fa03-4e21-8a6d-ec81549cb1bc","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":183,"box":{"x":69,"y":649,"width":784,"height":11}},{"id":"3cd1032d-3da6-4b7d-a884-546c109171bd","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a par ticular Fund pursuant to the","page_number":183,"box":{"x":69,"y":664,"width":805,"height":11}},{"id":"135d4aff-ac9b-4d61-ab14-a22d9b4e6e25","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a par t of the","page_number":183,"box":{"x":68,"y":679,"width":790,"height":11}},{"id":"98eadca6-21bd-412b-94d3-d569513ad784","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to por tfolio securities during the most recent 12-","page_number":183,"box":{"x":70,"y":694,"width":810,"height":11}},{"id":"4663d77a-a261-4941-84f9-728be6d1c911","block_type":"box","text":"month period ended June 30 is available without charge, (i) at www.blackrock.com/proxyrecords and (ii) on the","page_number":183,"box":{"x":69,"y":709,"width":788,"height":11}},{"id":"8ed6bc1f-82b6-4866-8dc4-2c393567e4fe","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":183,"box":{"x":69,"y":724,"width":327,"height":12}},{"id":"c4e5a611-8c78-411f-959a-51c86016df23","block_type":"box","text":"GENERAL INFORMATION","page_number":183,"box":{"x":391,"y":754,"width":195,"height":10}},{"id":"f1a41832-f138-48e3-bc8f-46fe26e2bd0c","block_type":"box","text":"Description of Shares","page_number":183,"box":{"x":69,"y":784,"width":156,"height":11}},{"id":"27444a1b-bf00-429c-8c3e-340b50e04675","block_type":"box","text":"Shareholders of a Fund are entitled to one vote for each full share held and fractional votes for fractional shares","page_number":183,"box":{"x":102,"y":807,"width":800,"height":9}},{"id":"af47ad86-516c-4528-ad75-dd7b755cbe78","block_type":"box","text":"held in the election of Directors and generally on other matters submitted to the vote of shareholders of the Fund.","page_number":183,"box":{"x":69,"y":822,"width":811,"height":11}},{"id":"debe6adf-976a-4932-bd74-44f55cd7fa1f","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":183,"box":{"x":69,"y":837,"width":825,"height":11}},{"id":"4ef0f147-1d4f-405e-8099-e704e2bc029c","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":183,"box":{"x":69,"y":852,"width":838,"height":11}},{"id":"d87b0897-3409-45d2-b84e-2a0e0034ea5f","block_type":"box","text":"more than 50% of the shares voting in the election of Directors can, if they choose to do so, elect all the Directors of","page_number":183,"box":{"x":69,"y":867,"width":835,"height":12}},{"id":"dce490cc-01c8-45a8-84f3-d80a8aef7bc2","block_type":"box","text":"a Fund, in which event the holders of the remaining shares would be unable to elect any person as a Director.","page_number":183,"box":{"x":69,"y":882,"width":781,"height":12}},{"id":"db8f1a69-ecef-49ad-aac4-cdc1cbbbb0c7","block_type":"box","text":"II-138","page_number":183,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d1dcdc01-53d9-4a76-850e-a47a7ac54cb7","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fdd3de2c-f586-4aec-9e88-781b7e9ce368","block_type":"box","text":"No Fund intends to hold annual meetings of shareholders in any year in which the Investment Company Act does","page_number":184,"box":{"x":102,"y":45,"width":801,"height":11}},{"id":"0b8c6f32-5168-46e3-a35d-5556c28450a3","block_type":"box","text":"not require shareholders to act upon any of the following matters: (i) election of Directors; (ii) approval of a","page_number":184,"box":{"x":69,"y":60,"width":760,"height":11}},{"id":"fe046091-2406-457a-ac23-8c0a19f212e7","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":184,"box":{"x":69,"y":75,"width":810,"height":11}},{"id":"4dcecbd8-f5c9-4697-a3b3-55c063c46f1a","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":184,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"9d8a9e5c-6146-4319-aba5-8821182fd11b","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":184,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"024217eb-fe55-4cae-b0e5-c41803f77952","block_type":"box","text":"Common Stock is entitled to par ticipate equally in dividends and distributions declared by a Fund and in the net","page_number":184,"box":{"x":69,"y":120,"width":797,"height":11}},{"id":"da14e14b-1af9-4d70-936e-b6ddf42c896e","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":184,"box":{"x":69,"y":135,"width":658,"height":12}},{"id":"ae861350-233d-4ee0-871a-5267594a541b","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":184,"box":{"x":102,"y":158,"width":741,"height":11}},{"id":"203d3950-3d6d-4bed-b8d5-15a35222a711","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":184,"box":{"x":69,"y":173,"width":790,"height":11}},{"id":"109b21f2-1450-487a-a83e-279bbe409d43","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":184,"box":{"x":69,"y":188,"width":546,"height":12}},{"id":"8bb3bf1c-683e-4861-b98d-83cfeac29986","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":184,"box":{"x":102,"y":211,"width":712,"height":11}},{"id":"a3dd6850-6d2b-49b5-9ffc-0d8702425e94","block_type":"box","text":"shareholders of such a trust may, under cer tain circumstances, be held personally liable as par tners for its","page_number":184,"box":{"x":69,"y":226,"width":765,"height":11}},{"id":"23e46d7e-d4b0-484d-a346-598b26e02ec2","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":184,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"97261a77-b152-41c8-be7c-52faef32f705","block_type":"box","text":"with all amendments thereto (the “Declaration of Trust”), is on file in the office of the Secretary of the","page_number":184,"box":{"x":68,"y":256,"width":729,"height":11}},{"id":"fde5df2a-504b-4ca7-bc85-6c2251ba3e88","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":184,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"06b3634b-2bc0-4861-bbec-8389ef134c5a","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":184,"box":{"x":68,"y":286,"width":761,"height":12}},{"id":"696c8a3c-0cce-4234-81e3-c16117222d2d","block_type":"box","text":"shareholder held personally liable for the obligations of the trust. The Declaration of Trust also provides that a trust","page_number":184,"box":{"x":69,"y":302,"width":824,"height":11}},{"id":"880e1787-6c1b-4207-8764-1dfda4518cf5","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":184,"box":{"x":69,"y":317,"width":839,"height":11}},{"id":"c6217038-6cff-47a5-8cb7-1e7e22628d9e","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":184,"box":{"x":69,"y":332,"width":813,"height":11}},{"id":"d24e3eb4-c624-44c2-97ff-1cedd01c974c","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":184,"box":{"x":68,"y":347,"width":827,"height":11}},{"id":"4feb586f-131a-4d54-987d-256b6b6980d2","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":184,"box":{"x":70,"y":362,"width":699,"height":11}},{"id":"acaa5cf4-9573-4134-b408-2615840bc414","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":184,"box":{"x":102,"y":385,"width":413,"height":11}},{"id":"64399fc5-4d87-44d8-adca-a2f7410bceb6","block_type":"box","text":"Additional Information","page_number":184,"box":{"x":68,"y":415,"width":161,"height":9}},{"id":"b29346fd-2a28-422b-8874-55296b03c546","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":184,"box":{"x":102,"y":438,"width":789,"height":11}},{"id":"3d9ac6e9-d735-4f72-81dc-d027784b3d71","block_type":"box","text":"has reserved the right to (i) withdraw its consent to the use of such name by a Fund if the Fund ceases to retain","page_number":184,"box":{"x":69,"y":453,"width":799,"height":11}},{"id":"ab5b2282-ea4b-470b-abfc-7da75b1d8438","block_type":"box","text":"BlackRock Advisors, LLC or BlackRock Fund Advisors, as applicable, as investment adviser and (ii) to grant the use of","page_number":184,"box":{"x":70,"y":468,"width":837,"height":11}},{"id":"e793db78-fa40-4e37-87ff-009f20eb2275","block_type":"box","text":"such name to any other company.","page_number":184,"box":{"x":69,"y":483,"width":238,"height":11}},{"id":"268e8301-5e16-49ca-a24b-a32e9018b126","block_type":"box","text":"II-139","page_number":184,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fca7005c-7376-4995-b6fc-7117ab022540","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"45843407-ed35-487a-b447-6faf3275eabf","block_type":"box","text":"APPENDIX A","page_number":185,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"6a5ebf19-8783-4bab-bad2-0f7fc90e91bc","block_type":"box","text":"Description of Bond Ratings","page_number":185,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"f0534240-875b-4c4e-a7d6-8d0516ab94be","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating agency","page_number":185,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"d3e3edab-91ad-4596-a746-3b46736a7518","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the SEC. While NRSROs may from","page_number":185,"box":{"x":69,"y":106,"width":827,"height":12}},{"id":"b4d7014a-b8ba-4e52-bb9d-88a280357493","block_type":"box","text":"time to time revise such ratings, they under take no obligation to do so, and the ratings given to securities at","page_number":185,"box":{"x":68,"y":122,"width":775,"height":11}},{"id":"3b60359c-cc6e-4e20-b702-665802eb0d8c","block_type":"box","text":"issuance do not necessarily represent ratings which would be given to these securities on a par ticular subsequent","page_number":185,"box":{"x":70,"y":137,"width":815,"height":11}},{"id":"370f1d30-13ac-438a-af10-15230bbf4c6f","block_type":"box","text":"date.","page_number":185,"box":{"x":69,"y":152,"width":34,"height":9}},{"id":"188289ff-8dcb-445e-987e-23716c88b71e","block_type":"box","text":"NRSROs may rate specific investments (","page_number":185,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"c7273ee0-51f2-4078-a66e-f05adc5cd6c6","block_type":"box","text":"e.g.","page_number":185,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"96821821-cba5-4f98-aa9b-b3c0263de29c","block_type":"box","text":", bonds), issuers (","page_number":185,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"d7f03b4c-5714-4b3c-986f-70061a718526","block_type":"box","text":"e.g.","page_number":185,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"7cf503a1-1633-41d5-a441-d4d4c3f8211d","block_type":"box","text":", corporations, governments and financial","page_number":185,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"cdd2de40-ef1c-45d0-be37-cf4d7691ad6c","block_type":"box","text":"institutions) and/or programs (","page_number":185,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"966daec4-4ecf-448e-bd41-b2606aa3d868","block_type":"box","text":"e.g.","page_number":185,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"02e7f052-fa82-47aa-90e9-173bc693fe0d","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":185,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"6bd7a277-90c3-443a-92a7-c1bdc7cc2490","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":185,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"8a16fbdd-bd05-419e-a84d-25c49c58ed0c","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":185,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"58e3cd98-d4ff-4c83-8926-9274fa997fa4","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where a NRSRO has not rated the","page_number":185,"box":{"x":70,"y":235,"width":798,"height":11}},{"id":"621183fe-a9f9-43cb-af5e-4d0677eb6b69","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":185,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"b7906ba6-896e-4f65-b2be-cb291ad7fd58","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":185,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"a10010c5-fbc0-4eed-80c0-bd42ce103474","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":185,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"c943df86-f7f9-47f8-80b2-1b2d0e8a7d95","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":185,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"0a7a6021-d61d-45b2-8c0b-17687aff272f","block_type":"box","text":"security (","page_number":185,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"a212bd01-30bb-458f-ba1c-f064d9fb5846","block_type":"box","text":"e.g.","page_number":185,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"528bf0d3-9fa7-4200-8175-9c93674a7086","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":185,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"413c0837-982c-4370-9387-8e48aa2e83f0","block_type":"box","text":"highest of the multiple ratings.","page_number":185,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"5edfa2b3-a69b-4542-9e7b-24432e840c8f","block_type":"box","text":"New issue securities (regardless of type) may not be rated by a NRSRO at the time of their initial offering.","page_number":185,"box":{"x":102,"y":348,"width":751,"height":12}},{"id":"c50d0bd2-e1d1-49cb-80ad-2999ff6cb3e6","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":185,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"ce28d3df-27ad-48ac-8e9c-615b3be09178","block_type":"box","text":"determined by the underwriter and/or issuer) or a NRSRO rating for the issuer of the security. If applicable, when","page_number":185,"box":{"x":69,"y":378,"width":804,"height":12}},{"id":"7971ff97-3f88-4828-959c-7a52a2d5001f","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by a NRSRO, BlackRock may attribute","page_number":185,"box":{"x":69,"y":394,"width":831,"height":11}},{"id":"7db025f5-9416-4c60-a96e-cdb5c21ce8f5","block_type":"box","text":"an expected rating to the security based on: (i) the expected rating of the security set for th in the preliminary","page_number":185,"box":{"x":69,"y":409,"width":777,"height":11}},{"id":"39bade93-c20f-412d-9ff2-0248d62a6d08","block_type":"box","text":"prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in the","page_number":185,"box":{"x":70,"y":424,"width":779,"height":11}},{"id":"5b1a5f24-164c-46e9-ac7d-2c1dc3aa221f","block_type":"box","text":"preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of a","page_number":185,"box":{"x":70,"y":439,"width":819,"height":11}},{"id":"f42a7fff-cc35-4b36-ad3b-289a03cf89cd","block_type":"box","text":"prior issuance having a similar structure or the same sponsor.","page_number":185,"box":{"x":70,"y":454,"width":441,"height":11}},{"id":"4065cc43-e613-4c4c-9619-4fa3635de56a","block_type":"box","text":"Where the investment objective of a fund is to track the per formance of an index that includes credit ratings","page_number":185,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"02860b76-11fb-452b-a6f6-e9ec04604bfd","block_type":"box","text":"eligibility criteria as par t of its index methodology, the fund may purchase any security within the index, such security","page_number":185,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"8cacdf6c-4ed1-4865-b393-4968f0ba83bd","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":185,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"b1ea23de-c262-4c38-b1c2-80930a4cddb9","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Fur ther, the fund may","page_number":185,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"238b60de-e04b-44fe-8164-843c56889598","block_type":"box","text":"invest, directly or indirectly, in securities that are not rated by a rating agency or securities with a credit rating that","page_number":185,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"41a4b0dd-6546-46fd-9f6b-5fb370955d7f","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":185,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"e19f2ce5-4990-46f1-9f7a-089ecc11aa5b","block_type":"box","text":"downgraded but not yet removed from an index, following the removal of a security from an index prior to its sale by","page_number":185,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"c978f2e7-ec1a-4db0-9ec1-eb400f180102","block_type":"box","text":"the fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the fund.","page_number":185,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"33fd0d4f-b77c-49d0-a557-50f88d1e7013","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":185,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"3fcf848a-a437-4aa6-bc3b-bdfdbd0e1816","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds. Evaluation of these","page_number":185,"box":{"x":70,"y":620,"width":773,"height":12}},{"id":"55370800-46a8-437a-ba39-a4a5e6b282c2","block_type":"box","text":"securities is dependent on BlackRock’s judgment, analysis and experience in the evaluation of such securities.","page_number":185,"box":{"x":69,"y":635,"width":791,"height":12}},{"id":"b4d3269d-df4f-4b6f-90c3-23cd450df837","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the effect of","page_number":185,"box":{"x":102,"y":658,"width":776,"height":11}},{"id":"4e6f4beb-1fc2-4c42-a5d4-23eb02373932","block_type":"box","text":"recent developments on the issuer’s ability to make interest and principal payments or on the likelihood of default.","page_number":185,"box":{"x":69,"y":673,"width":818,"height":11}},{"id":"fe258a17-eeba-4d51-b4e8-c3e02e7bf3c0","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global Ratings and","page_number":185,"box":{"x":102,"y":696,"width":799,"height":11}},{"id":"c767ac97-6d83-454e-873b-88cb22026889","block_type":"box","text":"Fitch.","page_number":185,"box":{"x":70,"y":711,"width":35,"height":9}},{"id":"921dba4d-5d3d-4d03-b7d3-3a41b1366129","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":185,"box":{"x":101,"y":734,"width":643,"height":11}},{"id":"7e1e2773-286a-4c88-81c8-0c069b481aac","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":185,"box":{"x":68,"y":764,"width":616,"height":11}},{"id":"9d7603d1-7cf4-4bd9-b8c5-9e3acc4f149a","block_type":"box","text":"Ratings assigned on Moody’s global long-term and shor t-term rating scales are forward-looking opinions of the","page_number":185,"box":{"x":102,"y":787,"width":787,"height":11}},{"id":"a4f61920-0c4e-4c7b-9aea-c13e439d5fde","block_type":"box","text":"relative credit risks of financial obligations issued by non-financial corporates, financial institutions, structured","page_number":185,"box":{"x":69,"y":802,"width":785,"height":11}},{"id":"82edba99-3417-4d73-a2d0-c857e5ef881f","block_type":"box","text":"finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the risk that an","page_number":185,"box":{"x":68,"y":817,"width":820,"height":11}},{"id":"43ff948a-4f36-46eb-9bbb-29c9dd5e01b5","block_type":"box","text":"entity may not meet its contractual financial obligations as they come due and any estimated financial loss in the","page_number":185,"box":{"x":69,"y":832,"width":807,"height":11}},{"id":"193214c5-4eac-4219-a403-0ee3114dc39b","block_type":"box","text":"event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are those that call","page_number":185,"box":{"x":69,"y":847,"width":835,"height":11}},{"id":"ff9285e2-a5e1-4dee-a032-478d8583090b","block_type":"box","text":"for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based upon standard","page_number":185,"box":{"x":68,"y":862,"width":822,"height":12}},{"id":"ab6a12e6-4b47-46b9-be78-79c4f108736b","block_type":"box","text":"sources of variation (","page_number":185,"box":{"x":69,"y":877,"width":149,"height":11}},{"id":"bc986655-932f-43b5-88ff-53f91a89caf8","block_type":"box","text":"e.g.","page_number":185,"box":{"x":220,"y":879,"width":25,"height":10}},{"id":"fd96e7ae-4e21-4494-a8fc-be091e78ceab","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses the issuer’s","page_number":185,"box":{"x":247,"y":877,"width":637,"height":12}},{"id":"cc130800-07b9-421c-a323-b016ef8b5336","block_type":"box","text":"ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do not address","page_number":185,"box":{"x":69,"y":892,"width":820,"height":12}},{"id":"b4cc15f1-ed93-42a0-84df-5df8434885ce","block_type":"box","text":"non-standard sources of variation in the amount of the principal obligation (","page_number":185,"box":{"x":69,"y":908,"width":536,"height":11}},{"id":"6a85c04b-a2ba-4b0e-9f83-f85ad0fa5ea5","block_type":"box","text":"e.g.","page_number":185,"box":{"x":607,"y":909,"width":25,"height":10}},{"id":"2192e3b4-f656-4133-80b3-07d6c5af0c65","block_type":"box","text":", equity indexed), absent an express","page_number":185,"box":{"x":634,"y":908,"width":257,"height":11}},{"id":"2ae657a4-54e6-4fe0-bfe0-c83c07617ae2","block_type":"box","text":"A-1","page_number":185,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"3c33428f-c787-4fe0-b133-974aa47b63a5","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2d2bb616-b25a-456d-ba9d-77ddd0ad4b95","block_type":"box","text":"statement to the contrary in a press release accompanying an initial rating. Long-term ratings are assigned to issuers","page_number":186,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"3175d5cd-db6e-408a-8bc5-7ede6d58db53","block_type":"box","text":"or obligations with an original maturity of one year or more and reflect both on the likelihood of a default or","page_number":186,"box":{"x":69,"y":60,"width":761,"height":11}},{"id":"a3d573c3-2c42-49c9-a0dd-4dbab6bfe286","block_type":"box","text":"impairment on contractual financial obligations and the expected financial loss suffered in the event of default or","page_number":186,"box":{"x":70,"y":75,"width":806,"height":11}},{"id":"b1a1468c-def9-42ae-8d7e-50b12174baf9","block_type":"box","text":"impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen months or less and","page_number":186,"box":{"x":70,"y":90,"width":818,"height":11}},{"id":"1068b31b-2aaf-473c-a027-eee381969410","block_type":"box","text":"reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected","page_number":186,"box":{"x":69,"y":105,"width":775,"height":11}},{"id":"72d8c375-b05c-47dc-97ef-cf6acb671f1c","block_type":"box","text":"financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level and","page_number":186,"box":{"x":68,"y":120,"width":764,"height":12}},{"id":"acacb7ae-f886-49b1-95aa-e172f32a500e","block_type":"box","text":"instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly available","page_number":186,"box":{"x":70,"y":136,"width":819,"height":11}},{"id":"800a3d13-bf24-4f27-b3d4-1d502646d862","block_type":"box","text":"although private and unpublished ratings may also be assigned.","page_number":186,"box":{"x":69,"y":151,"width":454,"height":11}},{"id":"71ed30e0-e92e-4b11-abfd-aeae5e7d71e5","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":186,"box":{"x":102,"y":173,"width":542,"height":11}},{"id":"0ec43f16-b280-429a-b9ab-196403bdd376","block_type":"box","text":"i.e.","page_number":186,"box":{"x":646,"y":173,"width":20,"height":9}},{"id":"833b346c-56da-41e1-a468-160266d2ae31","block_type":"box","text":", ratings on nonfinancial","page_number":186,"box":{"x":669,"y":173,"width":169,"height":11}},{"id":"ec1ed726-af29-4c07-bf3d-410a6ad4a2ee","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to all structured","page_number":186,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"9344bda2-6f18-412c-97b4-daa6b8c96106","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":186,"box":{"x":68,"y":203,"width":828,"height":12}},{"id":"bffa4c95-8d4d-4174-b466-ee9784abe436","block_type":"box","text":"and fundamental ratings at the same letter grade level will behave the same. The (sf) indicator for structured finance","page_number":186,"box":{"x":69,"y":218,"width":832,"height":12}},{"id":"3788a185-bc28-48c5-b098-547bba691700","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":186,"box":{"x":69,"y":234,"width":797,"height":11}},{"id":"1cb37a30-a20d-4bdf-8328-4f3fdfba864a","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":186,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"499ff53b-162c-49fa-ba1e-b96c404940ef","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":186,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"6bebc98f-0cad-42b3-b16f-48158783c243","block_type":"box","text":"of time.","page_number":186,"box":{"x":69,"y":279,"width":53,"height":9}},{"id":"7ecca070-7747-4b31-b4d0-0ad233c4bb8d","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":186,"box":{"x":69,"y":309,"width":395,"height":11}},{"id":"ce98e744-0413-4985-a753-524db9856e15","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit","page_number":186,"box":{"x":68,"y":337,"width":815,"height":11}},{"id":"f54cf68c-a7f4-4285-9cbf-9000f96809c8","block_type":"box","text":"risk.","page_number":186,"box":{"x":197,"y":352,"width":28,"height":9}},{"id":"fb38d4d4-0aae-42d9-aca5-57d9b3560945","block_type":"box","text":"Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.","page_number":186,"box":{"x":68,"y":372,"width":773,"height":11}},{"id":"9679b59f-838a-4a14-aa7b-0dc053ec8c63","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":186,"box":{"x":68,"y":392,"width":776,"height":12}},{"id":"4e4b925c-2b8c-4520-a7ce-3bd5d56557bf","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":186,"box":{"x":70,"y":413,"width":813,"height":11}},{"id":"35c89f63-22d1-4607-b1a0-91bdd9410bf2","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":186,"box":{"x":196,"y":428,"width":385,"height":11}},{"id":"7b3f30c5-87e8-4b76-a0f5-c5de403f5729","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":186,"box":{"x":70,"y":448,"width":775,"height":11}},{"id":"5018485a-9de1-4700-94f1-b15a263de2fe","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":186,"box":{"x":70,"y":468,"width":707,"height":11}},{"id":"828d933c-6f6c-4a49-95dd-0b6515ca59ea","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":186,"box":{"x":69,"y":488,"width":810,"height":11}},{"id":"1e4c9327-6e05-4ee3-8a46-acdac96bc454","block_type":"box","text":"credit risk.","page_number":186,"box":{"x":196,"y":503,"width":74,"height":9}},{"id":"c64ca10b-e752-4004-b7d3-876ace43b40f","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":186,"box":{"x":69,"y":523,"width":783,"height":12}},{"id":"74c63c3b-bee9-4674-889f-8ab300708a64","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":186,"box":{"x":197,"y":538,"width":322,"height":12}},{"id":"75b4f44b-6149-4674-bb17-94b5b8c4a3a2","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":186,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"81c9b4f8-3872-4170-9295-6dbcf6a5e97b","block_type":"box","text":"of principal or interest.","page_number":186,"box":{"x":196,"y":574,"width":160,"height":11}},{"id":"b4aa4633-d3af-4c51-847e-4792da22bd47","block_type":"box","text":"Note:","page_number":186,"box":{"x":102,"y":594,"width":37,"height":9}},{"id":"ac127891-f4b8-45fb-b293-ea270fb6465f","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":186,"box":{"x":146,"y":594,"width":731,"height":11}},{"id":"898d265d-1ad6-49ef-9bb6-01f92e5d12e7","block_type":"box","text":"Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2","page_number":186,"box":{"x":69,"y":609,"width":831,"height":11}},{"id":"e06b6eaf-34fe-4e1d-b876-a94ef467a454","block_type":"box","text":"indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.","page_number":186,"box":{"x":70,"y":624,"width":829,"height":11}},{"id":"95c6cdee-9c77-4504-960a-060c9d053acd","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":186,"box":{"x":68,"y":639,"width":795,"height":12}},{"id":"2a1297eb-72c5-4594-875d-27847fae510b","block_type":"box","text":"companies, and securities firms.","page_number":186,"box":{"x":69,"y":654,"width":232,"height":11}},{"id":"681423fc-6ed1-4dbf-af0d-2b7beebf810d","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":186,"box":{"x":102,"y":677,"width":787,"height":11}},{"id":"40d9785f-0b3b-429b-aa51-12361df75a97","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":186,"box":{"x":68,"y":692,"width":788,"height":11}},{"id":"a32507f5-f1e9-48c0-bbf5-d4aff92af3a6","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":186,"box":{"x":69,"y":707,"width":833,"height":12}},{"id":"78058c84-1270-46f1-a527-139277b6e8c3","block_type":"box","text":"long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with","page_number":186,"box":{"x":70,"y":722,"width":809,"height":12}},{"id":"f77d5fad-e13c-481a-89ab-530cefcf7139","block_type":"box","text":"that security.","page_number":186,"box":{"x":68,"y":738,"width":91,"height":11}},{"id":"4e48708f-83cd-4854-b89f-9ed88e3e2d20","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":186,"box":{"x":69,"y":768,"width":400,"height":11}},{"id":"8854a429-7320-44bd-8c35-8d7a4ce1bd0f","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":186,"box":{"x":69,"y":795,"width":658,"height":12}},{"id":"3d74856b-0035-4da9-8c52-dee1cd7593fd","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":186,"box":{"x":69,"y":816,"width":645,"height":11}},{"id":"2c2d22c4-e488-45fe-b62e-9e9ce200ed97","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":186,"box":{"x":69,"y":836,"width":686,"height":11}},{"id":"09de6989-a93e-4717-859a-2e72a01f4492","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":186,"box":{"x":70,"y":856,"width":778,"height":11}},{"id":"d770910c-9e17-4db5-8344-18c83c130803","block_type":"box","text":"categories.","page_number":186,"box":{"x":196,"y":871,"width":77,"height":11}},{"id":"ec959bf5-311f-400a-9860-ce806595cdb9","block_type":"box","text":"A-2","page_number":186,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"0b37e44d-a6ce-4d78-9da1-2b1099cd905d","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e1334bb9-02a8-49b8-893f-b9573d897765","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":187,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"a7b568a0-fabd-4adc-b9b7-d69537ab9289","block_type":"box","text":"Description of Moody’s Short-Term Obligation Ratings","page_number":187,"box":{"x":69,"y":75,"width":391,"height":11}},{"id":"875a513c-4b88-4311-ba6c-afeec089eb3c","block_type":"box","text":"Moody’s uses the global shor t-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":187,"box":{"x":102,"y":98,"width":784,"height":11}},{"id":"c3b48abc-0802-490b-8233-23d0bba942b1","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":187,"box":{"x":69,"y":113,"width":824,"height":11}},{"id":"844a29b5-3b66-4681-a4aa-3920bdeecf61","block_type":"box","text":"an issuer’s self-liquidity.","page_number":187,"box":{"x":69,"y":128,"width":170,"height":11}},{"id":"81935ee3-8358-4cf7-9461-351a8a36d632","block_type":"box","text":"For other shor t-term municipal obligations, Moody’s uses one of two other shor t-term rating scales, the","page_number":187,"box":{"x":102,"y":150,"width":736,"height":12}},{"id":"1227b65d-59a0-4bb9-9c2a-2eaf009c78e0","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":187,"box":{"x":70,"y":166,"width":796,"height":11}},{"id":"c9b1cebe-f62c-4de0-9add-e74026648d2a","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and cer tain other shor t","page_number":187,"box":{"x":102,"y":188,"width":803,"height":11}},{"id":"266306bc-31b7-4011-89e3-6d29203808df","block_type":"box","text":"term obligations, which typically mature in three years or less. Under cer tain circumstances, Moody’s uses the MIG","page_number":187,"box":{"x":68,"y":203,"width":823,"height":12}},{"id":"74939242-2479-40dd-9649-33bd6f703fb7","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":187,"box":{"x":69,"y":218,"width":480,"height":12}},{"id":"e55e4c1a-f906-4553-aeb4-0186b0e18379","block_type":"box","text":"MIG Scale","page_number":187,"box":{"x":102,"y":241,"width":71,"height":9}},{"id":"28d02e9e-b069-4107-b234-dae134313a9d","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":187,"box":{"x":70,"y":269,"width":802,"height":11}},{"id":"08d95b6e-4375-4bb6-9cae-5912678b9764","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":187,"box":{"x":196,"y":284,"width":703,"height":11}},{"id":"c19518ca-133b-432c-9df1-f231c84f14ee","block_type":"box","text":"refinancing.","page_number":187,"box":{"x":197,"y":299,"width":80,"height":11}},{"id":"4a3718dc-5563-47b0-bed6-81ba9caa0548","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":187,"box":{"x":70,"y":319,"width":809,"height":12}},{"id":"b21f01cc-84b2-423f-8afd-e5a3ab552105","block_type":"box","text":"large as in the preceding group.","page_number":187,"box":{"x":197,"y":335,"width":224,"height":11}},{"id":"78055119-f7e8-43e2-a764-c5b561caec93","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":187,"box":{"x":70,"y":355,"width":785,"height":11}},{"id":"838df77d-666a-4239-b7d5-eef6aa51b3af","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":187,"box":{"x":197,"y":370,"width":554,"height":11}},{"id":"37f4794f-8732-4fb5-97e4-2261efee1dcc","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":187,"box":{"x":69,"y":390,"width":813,"height":11}},{"id":"d2837916-6b33-48b9-934a-2a33db50c5a5","block_type":"box","text":"lack sufficient margins of protection.","page_number":187,"box":{"x":197,"y":405,"width":259,"height":11}},{"id":"8cfd19a5-c4c1-4eac-90f7-ffddf5b2e6ea","block_type":"box","text":"Description of Moody’s Demand Obligation Ratings","page_number":187,"box":{"x":69,"y":433,"width":371,"height":11}},{"id":"25cec2cc-205a-4e0f-b081-5d25abd799bf","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":187,"box":{"x":102,"y":455,"width":804,"height":12}},{"id":"9936985f-50ee-4b3d-823d-e74dd871109c","block_type":"box","text":"are a long-term rating and a shor t-term demand obligation rating. The long-term rating addresses the issuer’s ability","page_number":187,"box":{"x":69,"y":471,"width":826,"height":11}},{"id":"3abbe1fa-470c-42ba-ba49-9eeb9a19aa65","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term demand obligation rating addresses the ability of","page_number":187,"box":{"x":68,"y":486,"width":832,"height":11}},{"id":"564d6f2d-0b39-4b8b-a440-d9729081b65c","block_type":"box","text":"the issuer or the liquidity provider to make payments associated with the purchase-price-upon-demand feature","page_number":187,"box":{"x":68,"y":501,"width":784,"height":11}},{"id":"3facb934-04f8-4915-8601-1faa1c754587","block_type":"box","text":"(“demand feature”) of the VRDO. The shor t-term demand obligation rating uses the VMIG scale. VMIG ratings with","page_number":187,"box":{"x":69,"y":516,"width":811,"height":11}},{"id":"d6e317a1-01a3-404d-b4e6-a90a65c3731b","block_type":"box","text":"liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t provider, or the long","page_number":187,"box":{"x":70,"y":531,"width":819,"height":11}},{"id":"63693c03-1345-4573-89e6-85559e3da977","block_type":"box","text":"term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of VMIG ratings of","page_number":187,"box":{"x":68,"y":546,"width":802,"height":11}},{"id":"9949e57c-c1e6-423a-9959-adb7ee404409","block_type":"box","text":"demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to reflect the risk that","page_number":187,"box":{"x":69,"y":561,"width":833,"height":11}},{"id":"10550a93-fa00-44b6-bb7e-2f041f7285f6","block_type":"box","text":"external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment grade.","page_number":187,"box":{"x":69,"y":576,"width":719,"height":12}},{"id":"732cdafb-90e8-451d-8ef6-592037a3fbf5","block_type":"box","text":"Moody’s typically assigns the VMIG shor t-term demand obligation rating if the frequency of the demand feature is","page_number":187,"box":{"x":102,"y":599,"width":807,"height":11}},{"id":"f442b52d-698f-4ef8-aad9-2f7c4147670f","block_type":"box","text":"less than every three years. If the frequency of the demand feature is less than three years but the purchase price is","page_number":187,"box":{"x":70,"y":614,"width":833,"height":11}},{"id":"e1abd580-5a75-44a1-915a-b657e55eb006","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":187,"box":{"x":70,"y":629,"width":635,"height":11}},{"id":"1c63864f-ad22-4150-b853-8c8acab54f27","block_type":"box","text":"VMIG Scale","page_number":187,"box":{"x":101,"y":652,"width":81,"height":9}},{"id":"8bea7768-9c5c-44c1-9fc6-f9f68ccb6675","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":187,"box":{"x":68,"y":680,"width":808,"height":11}},{"id":"d9bb3397-a483-4bc0-b4ba-caa90a3f7100","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections that ensure","page_number":187,"box":{"x":196,"y":695,"width":695,"height":11}},{"id":"e78e0f21-776c-437a-a7ad-4d5ad5afc7c9","block_type":"box","text":"the timely payment of purchase price upon demand.","page_number":187,"box":{"x":195,"y":710,"width":370,"height":11}},{"id":"48f55c20-6778-45ca-b0d3-044da93d7171","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":187,"box":{"x":68,"y":730,"width":834,"height":11}},{"id":"73c64c54-a5dd-4a03-be82-d1f66fec2690","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections that ensure the timely","page_number":187,"box":{"x":196,"y":745,"width":691,"height":11}},{"id":"11e0c637-2897-4c37-b9c1-b99e1d1236aa","block_type":"box","text":"payment of purchase price upon demand.","page_number":187,"box":{"x":197,"y":760,"width":294,"height":11}},{"id":"1ab6de62-5ee9-46db-ab6d-8e44b7b825f5","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":187,"box":{"x":68,"y":780,"width":768,"height":12}},{"id":"f1c6f9a5-2837-48fa-8a3f-57e8d63342e1","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections","page_number":187,"box":{"x":196,"y":795,"width":697,"height":12}},{"id":"460aba29-6c4e-4062-85dc-da375edb34de","block_type":"box","text":"that ensure the timely payment of purchase price upon demand.","page_number":187,"box":{"x":195,"y":811,"width":457,"height":11}},{"id":"b5d61563-95e9-4790-a2de-a943f88410ca","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":187,"box":{"x":69,"y":831,"width":820,"height":11}},{"id":"bd6a6708-676f-46a8-9776-9894192bd61c","block_type":"box","text":"may be suppor ted by a liquidity provider that does not have a sufficiently strong shor t-term rating or","page_number":187,"box":{"x":197,"y":846,"width":711,"height":11}},{"id":"21d38a49-b38c-4a44-ba8b-0babe8698ec3","block_type":"box","text":"may lack the structural or legal protections necessary to ensure the timely payment of purchase","page_number":187,"box":{"x":197,"y":861,"width":684,"height":11}},{"id":"27ee9dd5-5c93-4f48-b2c9-82fc43322b4e","block_type":"box","text":"price upon demand.","page_number":187,"box":{"x":197,"y":876,"width":139,"height":11}},{"id":"da6ac7d4-48f8-466f-915b-cca1070e655f","block_type":"box","text":"A-3","page_number":187,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"1d55c2a3-891f-42aa-a1d7-5a5d15bd1284","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":187,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"05a96363-4c8b-41cc-91b5-590a51d4938a","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":188,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"21b84e17-b3b7-4162-a4e1-5d414ff4c6b8","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditwor thiness of an obligor with respect to a","page_number":188,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"6e404e14-ce34-4a98-accd-a20d34f3ecb1","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":188,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"6cfb93f5-e0e3-45f2-b671-bd8e317b5c2a","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":188,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"d5597a76-909c-4f59-acf6-c6e8da52f38b","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":188,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"7fadbb7f-c292-44f0-9c35-b06fcbc3cb7f","block_type":"box","text":"which the obligation is denominated. The opinion reflects S&P’s view of the obligor’s capacity and willingness to meet","page_number":188,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"c8110485-cbf8-4beb-80ff-e2cc8efb4b13","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":188,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"a14d436d-3e30-4941-86b0-79e6b060d8c7","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":188,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"b71a4b1a-58e5-4bd0-abe9-f85c3a91d108","block_type":"box","text":"Issue credit ratings can be either long-term or shor t-term. Shor t-term issue credit ratings are generally assigned","page_number":188,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"e8c43641-30d1-40be-a450-390ab26d9b6c","block_type":"box","text":"to those obligations considered shor t-term in the relevant market, typically with an original maturity of no more than","page_number":188,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"2f6559ad-34d6-47fa-acfb-d5d44a55b45f","block_type":"box","text":"365 days. Shor t-term issue credit ratings are also used to indicate the creditwor thiness of an obligor with respect to","page_number":188,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"8971a06d-9a01-4c5b-b948-f7e7c2743eb5","block_type":"box","text":"put features on long-term obligations. S&P would typically assign a long-term issue credit rating to an obligation with","page_number":188,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"5346041a-7fe2-4ea1-b6d0-f6a598c73066","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to cer tain instruments may diverge","page_number":188,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"73febc41-f26b-442c-90e8-0989a1d70f23","block_type":"box","text":"from these guidelines based on market practices. Medium-term notes are assigned long-term ratings.","page_number":188,"box":{"x":68,"y":256,"width":724,"height":12}},{"id":"c3bc4c35-1916-4b48-ae98-a8f2881695a3","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":188,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"cac3d838-7fbb-4aa8-aeba-f152a889d315","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"20fabb65-fd22-4993-a2aa-89c41d7963d7","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":188,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"2f4ff8bf-5d55-4049-84ed-9512c24ef4e2","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":188,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"73424666-4c65-416e-8a05-273f432082bd","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"01f13a27-7c29-4835-8c39-650fe44646d3","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":188,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"004ba69f-3e47-4937-8b0a-f50752f007bf","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"09682645-9e2f-462d-ae60-fff6d0f8264c","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":188,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"c1498985-0741-4a6e-a119-c052d88e4c17","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":188,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"89b91ca9-5cb1-4dc2-b13d-e99c41c853f4","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":188,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"b177d8a1-3993-4645-b4f9-cb22ddffba51","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":188,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"51ae1f6c-c729-40f7-86ee-6facf06207d6","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":188,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"f3b27816-2aba-452e-854a-7216690a6c8f","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":188,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"4a27e91e-626c-42e6-9b1b-12bf6bc30077","block_type":"box","text":"obligations.)","page_number":188,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"9a78d72f-5982-401a-967d-70aa05a8b123","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":188,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"54e31565-c29d-42c8-9162-be778f66c463","block_type":"box","text":"AAA An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity to meet its","page_number":188,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"8e0d6b2d-cee7-4c01-ae48-d80b8985f734","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":188,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"6ec40fea-693b-4421-876c-0f239b160657","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":188,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"c6d3c2ed-ce07-4fe4-a370-c0d55a7c4855","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":188,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"3abaa8cd-5d2e-45df-91e9-e7d3a35d4630","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":188,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"9ecfea51-57be-4e43-94fe-5ba97b059a6e","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":188,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"124694bb-de01-4e75-914d-3d262d336bfa","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":188,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"95d9477b-aa51-44dd-b7d4-ff39e8bf41c3","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":188,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"5e19d801-b55e-4192-9b6a-d46558d098fe","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":188,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"960c3d6e-bffa-49d2-9a55-6ceee0c1ba3f","block_type":"box","text":"financial commitments on the obligation.","page_number":188,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"0bae5b67-c2dc-46b2-9eac-64a921b0cafc","block_type":"box","text":"BB,","page_number":188,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"dda4b328-87d3-4006-8716-70c907a8a79b","block_type":"box","text":"B,","page_number":188,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"e89a387a-d9bc-405d-a770-d933c5d2024b","block_type":"box","text":"CCC,","page_number":188,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"3427c48f-a5d2-4678-8d3a-2d8e55642d68","block_type":"box","text":"CC,","page_number":188,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"b2c792b0-1b19-4a43-a7a0-75413ec30596","block_type":"box","text":"and C","page_number":188,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"7b609622-ef8c-4402-80ef-672545ed55ee","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":188,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"560baacb-709f-4ed3-8feb-7c47168d0b0f","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":188,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"2d593a54-1839-4de3-875d-71b2b9b33026","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":188,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"6bc714e0-ba78-49ba-bee6-9a1e06a90fcb","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":188,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"666939d0-800c-4831-a6bd-d9149d3bcfb6","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":188,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"0678a592-44c4-4da4-a927-3ded5c121abd","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":188,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"df102581-ad09-4885-8ff1-00a5b455a25e","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":188,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"6ddcb024-5f7a-487f-95fb-03cdd45830a2","block_type":"box","text":"on the obligation.","page_number":188,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"546331e3-62b3-46a2-bc6f-8ef8456fa3f5","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":188,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"0c8a8ab1-c73b-4fc2-895a-d6b25e56090f","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":188,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"f7fc75f2-10c2-4573-9871-81e2c7429f71","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":188,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"eac5e9a6-f16d-4e14-b05a-92e777217a66","block_type":"box","text":"financial commitments on the obligation.","page_number":188,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"d009c602-d8b4-4f9e-bac0-1f0c9613cb1f","block_type":"box","text":"A-4","page_number":188,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"b7473060-d1a7-4854-a84a-cc8193ed9e74","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":188,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"20e4c5a7-1f0c-475c-bc71-7a312e3498ad","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":189,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"deeb88a7-f65c-428c-880a-294cff2ca752","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":189,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"2878017d-a858-4e94-b74f-0c998f8d0be0","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":189,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"6c2c2ac0-ce72-4529-9f7f-68c0f2f24e2f","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":189,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"ba581fc5-5d2c-4bbe-94b4-533ad2da9065","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":189,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"30e0b866-03e4-4d55-b285-4299281aead9","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a vir tual cer tainty, regardless of the","page_number":189,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"15fb350a-e686-47cb-af64-93483a603717","block_type":"box","text":"anticipated time to default.","page_number":189,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"2b409c9d-807f-45c5-aa07-1369100ecdbe","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":189,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"22d4f544-2f7d-434a-8563-5dd288404116","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":189,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"f99a7c91-0661-454c-8b0c-ace82506e449","block_type":"box","text":"higher.","page_number":189,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"b221a67e-7c04-4a1a-bf08-1c559f1d15a3","block_type":"box","text":"D An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid capital","page_number":189,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"8c85bebc-7c06-4f39-af0d-9f531ccc41c7","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":189,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"debd9f69-2d00-4206-b0ce-06481487b2c5","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":189,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"ec2f3c1d-e5d4-4010-9966-7c5c30a9245b","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":189,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"7754ff16-ded1-4a58-ab8d-7458bead725a","block_type":"box","text":"days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of similar","page_number":189,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"d94b6352-c2d8-4c94-a046-bf9c47f9f109","block_type":"box","text":"action and where default on an obligation is a vir tual cer tainty, for example due to automatic stay","page_number":189,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"3f74b475-3cbc-4634-bac7-b96989f13e30","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":189,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"61bd7a35-0bcf-4b0a-849d-deba06ca9f9b","block_type":"box","text":"restructuring.","page_number":189,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"08ee9d1f-a990-4fe0-b18f-084d9cbc8cc5","block_type":"box","text":"*Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative","page_number":189,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"849ebe0d-fd3d-45be-94de-36aec34bd8d4","block_type":"box","text":"standing within the rating categories.","page_number":189,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"35be243e-b9c9-4561-920b-77022bdae600","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":189,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"1b96b825-28fc-48df-b65a-3888c41d701f","block_type":"box","text":"A-1 A shor t-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":189,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"9bdeee24-2e43-4ef9-b9a3-e572473850a1","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":189,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"ef5306b9-5581-4968-bee7-7089449af2b6","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":189,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"c0ef29b0-dc49-46a2-8149-d0cd52197d4a","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":189,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"1c959088-794c-44cb-94ce-e02a0f0f8178","block_type":"box","text":"A-2 A shor t-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":189,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"4f458864-eddb-4872-a3c5-e27abbb32646","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":189,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"0cbbc9fa-a04c-4784-8bee-4c0edd0268f2","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":189,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"e1ca188a-6906-4752-8b25-41a70725489b","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":189,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"797cee6d-f861-43cd-b204-0aa613900f3f","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":189,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"74cf7477-ac62-4e9a-a4b5-0395cf9b14b8","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":189,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"43b7fed9-fdb8-44fa-b393-868810dd00b7","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":189,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"d6b173e7-3374-4977-ae81-82b4a3bd4e92","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":189,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"79119c7a-a991-44e6-a41a-663467c39641","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":189,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"8a289c6c-8a73-4236-b9fd-f06736b6fbec","block_type":"box","text":"financial commitments.","page_number":189,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"1ea4d2b9-2e7c-44d6-8ffd-2390a9d8d982","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":189,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"9ce40eaf-f31c-465a-bd6b-2fe9d4549026","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":189,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"333621e2-b896-4fab-ad46-e9f8f85ddc9e","block_type":"box","text":"commitments on the obligation.","page_number":189,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"d0f074c3-9b7b-4d9b-919c-898ef6c527fe","block_type":"box","text":"D A shor t-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":189,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"e6d52c7d-ac66-4b5d-9b3c-238facffb7c0","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":189,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"040c6c7b-dc8b-4b78-9017-d7af2d1bd3b2","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":189,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"a2f2479a-7197-4d70-8be8-4cc7e4d1c913","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":189,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"dea93b8b-4cea-47ca-b09b-36164aa73f0b","block_type":"box","text":"business days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking","page_number":189,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"48891452-c583-4baf-8c6f-26a42c85fb3f","block_type":"box","text":"of a similar action and where default on an obligation is a vir tual cer tainty, for example due to","page_number":189,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"c0677165-b48d-4c1b-ae71-9791c870ff81","block_type":"box","text":"automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed","page_number":189,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"fa6658ab-a2c5-43cd-a04e-e38765032e50","block_type":"box","text":"debt restructuring.","page_number":189,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"d257ef0d-79ac-48b3-b524-88b2fba83125","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":189,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"316f2938-cb23-437b-a734-ec1fa1452be2","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access risks","page_number":189,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"ee9727cc-0641-40da-ac01-1d1cdd3d23fa","block_type":"box","text":"unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with an original maturity","page_number":189,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"df7eac48-caa5-4f9a-b7c2-2ad8d93fc7a1","block_type":"box","text":"of more than three years will most likely receive a long-term debt rating. In determining which type of rating, if any, to","page_number":189,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"4f264c3d-ad53-4c26-aa57-6cdb34d9c0d6","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":189,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"8d878fa7-8de5-42d5-b210-bf5500699efe","block_type":"box","text":"A-5","page_number":189,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"811aeb24-d951-48c7-838c-68a751d04780","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"310587a1-e776-45d2-872a-bcc6f7bc2d43","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"2f6f042b-781f-4f70-980b-60a4ef0343b3","block_type":"box","text":"Amor tization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":190,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"7202146f-0415-4f45-89e5-887b857d0d35","block_type":"box","text":"as a note; and","page_number":190,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"91a5b13d-79ee-427c-a385-885f19bcd15c","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"a52c7e24-98bd-44f7-a826-95f90f5a234d","block_type":"box","text":"Source of payment—the more dependent the issue is on the market for its refinancing, the more likely it will be","page_number":190,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"ce570c6c-2ed7-40d3-8a9d-8a3e7032285a","block_type":"box","text":"treated as a note.","page_number":190,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"deed7717-fac5-406c-b0f3-d32b399e886c","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":190,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"44312b49-6994-4679-aa87-b7d372ef84a3","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":190,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"471a2f31-c5b9-47e7-bcfc-ead718ef60d5","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":190,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"e828e1b0-e059-408c-bfa5-b18d8f77d02a","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":190,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"fa4a1e30-10da-4687-9374-f675e088f6e4","block_type":"box","text":"economic changes over the term of the notes.","page_number":190,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"31418d64-1853-4593-9978-b7c7e1fb35c5","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":190,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"bbf6e92c-0c99-415b-9418-91c93a316cf3","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":190,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"725a7e0f-a4b7-49da-8d28-d9139910c3d2","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":190,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"b554e7ec-31f3-49af-a993-71b5c7716a99","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":190,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"e5351c89-a7a0-4076-bf39-9facf51a3299","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch’s”) Credit Ratings Scales","page_number":190,"box":{"x":69,"y":294,"width":455,"height":11}},{"id":"d4851039-ce19-4935-bfed-46ec0d8f8023","block_type":"box","text":"Fitch Ratings publishes opinions on a variety of scales. The most common of these are credit ratings, but the","page_number":190,"box":{"x":102,"y":317,"width":778,"height":11}},{"id":"c700d0a1-04c2-461b-949a-062c8a841a5d","block_type":"box","text":"agency also publishes ratings, scores and other relative opinions relating to financial or operational strength. For","page_number":190,"box":{"x":69,"y":332,"width":804,"height":11}},{"id":"8e6ea9da-41b3-4807-bb0d-f92f985807be","block_type":"box","text":"example, Fitch also provides specialized ratings of servicers of residential and commercial mor tgages, asset","page_number":190,"box":{"x":69,"y":347,"width":776,"height":11}},{"id":"dfc1d0c9-bebc-4a8c-aea9-fceeb9d0de56","block_type":"box","text":"managers and funds. In each case, users should refer to the definitions of each individual scale for guidance on the","page_number":190,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"a626179e-1368-488a-9757-58dcd45539f2","block_type":"box","text":"dimensions of risk covered in each assessment.","page_number":190,"box":{"x":69,"y":377,"width":344,"height":9}},{"id":"261bb236-bce8-455b-ad8b-3811c8c89dfc","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet financial","page_number":190,"box":{"x":102,"y":400,"width":747,"height":11}},{"id":"b36b4509-eb92-46a7-b288-da64e5090b39","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":190,"box":{"x":69,"y":415,"width":782,"height":11}},{"id":"d3dd8ab0-9e27-4e28-8244-f75c28a178dd","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":190,"box":{"x":69,"y":430,"width":793,"height":11}},{"id":"570de0e4-bad3-4cd8-a2b6-ab17feed41ff","block_type":"box","text":"Credit ratings are used by investors as indications of the likelihood of receiving the money owed to them in","page_number":190,"box":{"x":69,"y":445,"width":761,"height":12}},{"id":"243d58e3-d917-4260-96d1-c8d3751b6f91","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":190,"box":{"x":69,"y":460,"width":766,"height":12}},{"id":"e95de39b-7668-49be-9450-a1b66f75ab4e","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":190,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"65a579cd-9a57-4c63-8dad-681d9476f3b9","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":190,"box":{"x":69,"y":491,"width":779,"height":11}},{"id":"5e8937c6-65f9-4f70-a35b-0f0a75878179","block_type":"box","text":"receivables or other financial assets.","page_number":190,"box":{"x":69,"y":506,"width":262,"height":9}},{"id":"ca48bb10-bb7c-40b9-8615-640a4e49e082","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":190,"box":{"x":101,"y":529,"width":794,"height":11}},{"id":"5d27432c-1729-4e16-bc67-1b15fca5c70f","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":190,"box":{"x":69,"y":544,"width":826,"height":11}},{"id":"75bcbbc5-85de-41dc-bdf2-31aa6e0e4161","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":190,"box":{"x":68,"y":559,"width":800,"height":11}},{"id":"a044329b-4e95-46ec-8270-2d8222d1454e","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":190,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"b2b0754e-6bd0-4707-bb11-19ca10f7d885","block_type":"box","text":"while ratings in the speculative categories either signal a higher level of credit risk or that a default has already","page_number":190,"box":{"x":68,"y":589,"width":793,"height":11}},{"id":"570f330a-00ac-407c-87e5-5ac0f86d5ffd","block_type":"box","text":"occurred.","page_number":190,"box":{"x":69,"y":604,"width":65,"height":9}},{"id":"a7c02c17-a16f-47cf-a7a0-92cb4cc6f0b6","block_type":"box","text":"For the convenience of investors, Fitch may also include issues relating to a rated issuer that are not and have","page_number":190,"box":{"x":102,"y":627,"width":788,"height":11}},{"id":"c3a34ab4-1bda-49d4-9773-e030ed326d22","block_type":"box","text":"not been rated on its web page. Such issues are also denoted as ‘NR’.","page_number":190,"box":{"x":69,"y":642,"width":506,"height":11}},{"id":"5cf55f6c-82c6-4aec-b248-79a7ba142178","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk and are","page_number":190,"box":{"x":102,"y":664,"width":797,"height":12}},{"id":"d494b936-ae7a-4c06-a5bc-bc37a0184ad7","block_type":"box","text":"not predictive of a specific frequency of default or loss. For information about the historical per formance of ratings","page_number":190,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"8b0d8b90-b469-46ac-bc10-f828b3770980","block_type":"box","text":"please refer to Fitch’s Ratings Transition and Default studies which detail the historical default rates and their","page_number":190,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"2a9cefec-2f4f-44c5-be54-575e934c1ec6","block_type":"box","text":"meaning. The European Securities and Markets Authority also maintains a central repository of historical default","page_number":190,"box":{"x":69,"y":710,"width":801,"height":11}},{"id":"66a5b0b8-e006-4231-8f07-ad44ad215767","block_type":"box","text":"rates.","page_number":190,"box":{"x":69,"y":726,"width":39,"height":8}},{"id":"5ac863c8-76c7-4aed-be20-80b513611dd4","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In par ticular, ratings do not deal with","page_number":190,"box":{"x":102,"y":748,"width":798,"height":11}},{"id":"cd57f2eb-a3f4-4f20-af1a-bfc65f95a79d","block_type":"box","text":"the risk of a market value loss on a rated security due to changes in interest rates, liquidity and other market","page_number":190,"box":{"x":68,"y":763,"width":780,"height":11}},{"id":"3de2d9d9-51f6-4a6c-a62b-d7362aacd9a7","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":190,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"e6f25ba5-7f37-412d-bdfb-ad62d2129458","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":190,"box":{"x":69,"y":793,"width":531,"height":11}},{"id":"eb2e29fd-953b-4a31-a9a0-5c7dc0cf0732","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other conditionality of","page_number":190,"box":{"x":102,"y":816,"width":801,"height":11}},{"id":"f9daf58f-69c1-4076-8b7e-02a8876da548","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":190,"box":{"x":68,"y":831,"width":639,"height":11}},{"id":"2f311ebf-a2fe-44e3-88fe-54618057e032","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":190,"box":{"x":102,"y":853,"width":799,"height":12}},{"id":"cac22a09-5bc6-4c28-9fdd-67cc148eaf3f","block_type":"box","text":"to the likelihood of non-payment or default in accordance with the terms of that instrument’s documentation. In","page_number":190,"box":{"x":68,"y":869,"width":794,"height":11}},{"id":"ee627305-f58c-4c8f-869d-c18cd1ae5360","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":190,"box":{"x":70,"y":884,"width":420,"height":11}},{"id":"aa023576-0ee6-4ec8-8125-01b89af16bb8","block_type":"box","text":"i.e.","page_number":190,"box":{"x":492,"y":884,"width":20,"height":9}},{"id":"ac09af1a-4df7-4830-a2d7-56d7519ee28d","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":190,"box":{"x":519,"y":884,"width":380,"height":11}},{"id":"2dfa3ef8-b564-4b5d-98aa-092c5e78245f","block_type":"box","text":"the obligation’s documentation).","page_number":190,"box":{"x":68,"y":899,"width":230,"height":11}},{"id":"47f0145e-8c99-4063-89e2-db48a4a47993","block_type":"box","text":"A-6","page_number":190,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"e262b840-58d6-483e-a106-f526a628a235","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3f01f343-a623-4662-9f4b-16e5067e9aff","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or cer tain note","page_number":191,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"9f0fd9e8-9d57-4bfc-b7c3-640774c52904","block_type":"box","text":"issuance programs or for private ratings. In this case the rating is not published, but only provided to the issuer or its","page_number":191,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"e3cc6a96-7f3f-4c8b-9a4f-262c4cb8a2a0","block_type":"box","text":"agents in the form of a rating letter.","page_number":191,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"90849be3-adab-487a-9479-2db9b34d23d9","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope, including interest","page_number":191,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"f6c9e371-4bb7-43b8-a8c4-ba80d3468283","block_type":"box","text":"strips and return of principal or in other forms of opinions such as credit opinions or rating assessment services.","page_number":191,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"07923571-5dcb-4587-a24b-0171c4611999","block_type":"box","text":"Credit opinions are either a notch- or category-specific view using the primary rating scale and omit one or more","page_number":191,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"9b7b7dec-51e8-43d6-bd01-3792877ead39","block_type":"box","text":"characteristics of a full rating or meet them to a different standard. Credit opinions will be indicated using a lower","page_number":191,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"e5cfce8f-aefb-4aba-9a5a-fafb846f381b","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":191,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"3f54568c-08f0-4173-ac53-6dc36b9a0e2f","block_type":"box","text":"e.g.","page_number":191,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"05c0221b-7194-4ab4-8830-a157714db338","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":191,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"236b841b-b8b9-4685-9e28-0dad50375679","block_type":"box","text":"opinions will be point-in-time typically but may be monitored if the analytical group believes information will be","page_number":191,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"2e9f02d1-5c00-4eed-ab8a-97c036062f16","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":191,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"e3012a43-b196-41f4-9389-1f882b15c800","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":191,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"17419b9a-7fb0-4bcc-9ed5-5e4d40da6cdf","block_type":"box","text":"rating assessment services are point-in-time and are not monitored, they may have a directional watch or outlook","page_number":191,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"001f5f0e-eb8e-4dd2-98e7-456e01f0dde6","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":191,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"1855cb22-8dea-4486-b4aa-cc13e2ca964a","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":191,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"dd224b53-6263-4135-8768-48d9b76f8124","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":191,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"80342498-6b37-4317-a498-95cc4e34152f","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":191,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"699a6fa6-4f03-4f82-8a0c-d4176c25a2d1","block_type":"box","text":"default on that liability is also included in the rating assessment. This notably applies to covered bonds ratings, which","page_number":191,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"3f6c0704-125e-47ac-965c-fa176ded8e1d","block_type":"box","text":"incorporate both an indication of the probability of default and of the recovery given a default of this debt instrument.","page_number":191,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"e9653899-a7d9-4c2e-a4c2-dd5b52b01be1","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":191,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"24e123d3-c357-49f2-baf4-a50f831a070e","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":191,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"ef752d8f-1bc7-4bea-bc5a-c50a68826425","block_type":"box","text":"Individual obligations can be assigned ratings higher, lower, or the same as that entity’s issuer rating or issuer","page_number":191,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"39931c31-956f-486c-88b5-aab8c55b8819","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":191,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"febcf75d-4d17-409b-8c03-504e9c60d733","block_type":"box","text":"Ratings.","page_number":191,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"d4626f98-b79d-41ca-bf5e-2eceb6cf13e7","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":191,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"ceb14810-1e59-462b-bfac-f74da9d9207a","block_type":"box","text":"same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an IDR. At the lower","page_number":191,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"770472a7-336a-45ae-9006-e4a5d39cdc1f","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":191,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"77291a67-0237-4996-bfd8-575239a91425","block_type":"box","text":"obligation ratings.","page_number":191,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"e1bfa25e-12e5-4bca-80c1-1e8ff2988338","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":191,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"476212e0-b090-4f95-9a38-648eaf7b18eb","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are assigned","page_number":191,"box":{"x":68,"y":533,"width":833,"height":12}},{"id":"dc1ceb95-3d6b-4dc3-8e97-01c539d325c3","block_type":"box","text":"only in cases of exceptionally strong capacity for payment of financial commitments. This capacity","page_number":191,"box":{"x":196,"y":549,"width":697,"height":11}},{"id":"5395c6cc-af80-44aa-b8db-c40ac1bf4325","block_type":"box","text":"is highly unlikely to be adversely affected by foreseeable events.","page_number":191,"box":{"x":197,"y":564,"width":457,"height":11}},{"id":"ff44f5b0-0021-4209-981d-29a8ae0d4e3d","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate very","page_number":191,"box":{"x":68,"y":584,"width":829,"height":11}},{"id":"f4be2d07-c4d0-4b9f-ac5b-12436ad5c5bf","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":191,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"418e2365-19c8-4085-8cde-ea9fd538c89c","block_type":"box","text":"to foreseeable events.","page_number":191,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"e2399384-8d84-4905-9373-751efabc93c9","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment of","page_number":191,"box":{"x":68,"y":634,"width":819,"height":12}},{"id":"e3d92268-5cf6-4cdf-8568-bb5fe8700043","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":191,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"2fd6ba48-f361-400e-9a66-5cb62393b893","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":191,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"bcee8bae-3236-40a5-88d2-d400a53e175b","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently low. The","page_number":191,"box":{"x":70,"y":685,"width":805,"height":11}},{"id":"9881d90c-a4a8-422f-80ba-64997c773ee7","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":191,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"6b02bdf3-60b0-4005-80c0-18fc8d84abf7","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":191,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"fc7a423d-0c8f-4c2e-bcda-0a60737c8d7b","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to credit risk, par ticularly in the event of","page_number":191,"box":{"x":70,"y":735,"width":830,"height":11}},{"id":"abe9a984-c793-48a9-99bd-33792df1e0a5","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":191,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"0f4eccc9-442f-4db2-940f-2a33717b160c","block_type":"box","text":"alternatives may be available to allow financial commitments to be met.","page_number":191,"box":{"x":196,"y":765,"width":511,"height":11}},{"id":"68cbdff5-d415-4104-9209-4756cd0d7252","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material credit risk is present.","page_number":191,"box":{"x":70,"y":786,"width":650,"height":11}},{"id":"0ea729ba-8e1a-4b27-9373-ea7df01065e6","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate that substantial credit risk is present.","page_number":191,"box":{"x":69,"y":806,"width":727,"height":11}},{"id":"0ac3ea59-7b88-414c-b0ee-99c4f00f65b4","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate very high levels of credit risk.","page_number":191,"box":{"x":69,"y":826,"width":712,"height":11}},{"id":"f2a185d4-5330-4e14-8766-35c306b1a170","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ indicates exceptionally high levels of credit risk.","page_number":191,"box":{"x":69,"y":846,"width":780,"height":11}},{"id":"4c52c6ad-3dd2-4cde-873e-7848fd96fae1","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":191,"box":{"x":101,"y":866,"width":808,"height":11}},{"id":"225bdb89-a194-4154-a163-01c6c5918b98","block_type":"box","text":"relative status within major rating categories.","page_number":191,"box":{"x":69,"y":881,"width":320,"height":11}},{"id":"bb496d6b-86b7-4a0c-a063-7a0931079196","block_type":"box","text":"A-7","page_number":191,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"54bba5b2-ec44-42c1-b8ed-577eec5bb314","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ef9ddde1-0f79-4d76-813c-eac966e95d94","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":192,"box":{"x":102,"y":45,"width":761,"height":11}},{"id":"3d218979-2cf7-4907-938e-ebc8a15a1e2c","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the shor t-term rating","page_number":192,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"39a36192-9296-43b1-89de-7b528e9e64a7","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":192,"box":{"x":69,"y":75,"width":289,"height":11}},{"id":"d413d90c-a1e0-4d55-a2f7-7b38ae02a8d6","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":192,"box":{"x":69,"y":105,"width":568,"height":11}},{"id":"8c8bbc53-5143-40b0-9a54-11a50f7c73db","block_type":"box","text":"A shor t-term issuer or obligation rating is based in all cases on the shor t-term vulnerability to default of the rated","page_number":192,"box":{"x":101,"y":128,"width":806,"height":11}},{"id":"9ca731ad-2241-44bb-8176-847bcb7d7634","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":192,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"eb5268df-62b8-4166-918d-2b57eb97f4f9","block_type":"box","text":"relevant obligation. Shor t-term deposit ratings may be adjusted for loss severity. Shor t-term ratings are assigned to","page_number":192,"box":{"x":69,"y":158,"width":822,"height":11}},{"id":"7f1950a2-b8bf-49ad-9066-7a07b0894b2a","block_type":"box","text":"obligations whose initial maturity is viewed as “shor t term” based on market convention. Typically, this means up to","page_number":192,"box":{"x":69,"y":173,"width":827,"height":11}},{"id":"520b9368-b80d-41a9-99ad-631832e647be","block_type":"box","text":"13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public","page_number":192,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"61152034-bcfa-4f6c-9838-18b54f9c2590","block_type":"box","text":"finance markets.","page_number":192,"box":{"x":68,"y":203,"width":118,"height":9}},{"id":"45319b3c-8117-484b-8d52-95dd3bbb2e32","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":192,"box":{"x":102,"y":226,"width":273,"height":11}},{"id":"dc05e834-297b-4716-a2a1-7d672de0d456","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":192,"box":{"x":70,"y":254,"width":816,"height":11}},{"id":"0478355d-b319-43eb-84ac-68dca7da7ff9","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":192,"box":{"x":196,"y":269,"width":692,"height":11}},{"id":"6e148ab2-f00a-4682-91dc-339fac4dc498","block_type":"box","text":"F2 Good Shor t-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":192,"box":{"x":70,"y":289,"width":734,"height":11}},{"id":"d872b3f1-00a2-4553-9277-6fa7394cbec6","block_type":"box","text":"commitments.","page_number":192,"box":{"x":196,"y":304,"width":100,"height":9}},{"id":"e257536f-a3d6-49bb-aba4-a9d9f26d81ff","block_type":"box","text":"F3 Fair Shor t-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":192,"box":{"x":70,"y":324,"width":831,"height":11}},{"id":"d8f10df6-7603-423c-81d0-b91720985581","block_type":"box","text":"adequate.","page_number":192,"box":{"x":196,"y":340,"width":70,"height":10}},{"id":"971b4938-03f5-43f8-91ac-7c51b6d307b7","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":192,"box":{"x":70,"y":360,"width":737,"height":11}},{"id":"d01a1d86-bbf8-4cca-aaae-efd61fdfc491","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":192,"box":{"x":196,"y":375,"width":641,"height":11}},{"id":"f4c17023-0892-4179-8ef6-bbd8ce6e7909","block_type":"box","text":"economic conditions.","page_number":192,"box":{"x":196,"y":390,"width":149,"height":9}},{"id":"058f3b28-3ff2-4bbb-8c06-efdcebd67f0a","block_type":"box","text":"C High Shor t-Term Default Risk. Default is a real possibility.","page_number":192,"box":{"x":69,"y":410,"width":535,"height":11}},{"id":"8746e872-6a58-44c9-a710-60a847b8d2da","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":192,"box":{"x":70,"y":430,"width":749,"height":11}},{"id":"20071bc9-9fb9-492f-9e07-397cffc8cd59","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":192,"box":{"x":196,"y":445,"width":714,"height":12}},{"id":"28a445e2-d9c5-4782-8dd0-2def9e377ca0","block_type":"box","text":"ratings only.","page_number":192,"box":{"x":197,"y":461,"width":83,"height":11}},{"id":"5464b609-f345-4237-be32-47d42e523cd0","block_type":"box","text":"D Default. 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The Guidelines include “climate and decarbonization” guidelines which","page_number":193,"box":{"x":102,"y":491,"width":766,"height":12}},{"id":"4d571387-2b12-4906-9572-f631ba5709ee","block_type":"box","text":"apply to the Funds listed in Appendix A, if any.","page_number":193,"box":{"x":102,"y":506,"width":325,"height":12}},{"id":"a1515a2c-bb0a-4f2d-9834-872ef8b5b962","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy issues in","page_number":193,"box":{"x":135,"y":529,"width":751,"height":11}},{"id":"49356903-3cb3-4fbc-85b3-355f54d32b74","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines.","page_number":193,"box":{"x":102,"y":544,"width":765,"height":11}},{"id":"e509a722-0f33-4bda-bae8-ff45b30d882c","block_type":"box","text":"Conflicts Management","page_number":193,"box":{"x":101,"y":567,"width":165,"height":11}},{"id":"9a82db2a-e766-4a01-8283-24d3400ef102","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to prevent","page_number":193,"box":{"x":135,"y":590,"width":758,"height":11}},{"id":"77b27be4-d092-4aac-8d6f-ad74c599f080","block_type":"box","text":"undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise","page_number":193,"box":{"x":102,"y":605,"width":797,"height":11}},{"id":"95bbeb99-e3df-4bc9-a86a-f89d29b0fc75","block_type":"box","text":"of proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":193,"box":{"x":102,"y":620,"width":805,"height":11}},{"id":"60847498-944a-476c-9995-07197012c7d8","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":193,"box":{"x":102,"y":635,"width":797,"height":11}},{"id":"5e7519c4-c6fb-4395-81b2-3a81edb84a57","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":193,"box":{"x":102,"y":650,"width":756,"height":11}},{"id":"5cb52d4c-faaf-4813-8e26-749107f05a2c","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":193,"box":{"x":101,"y":665,"width":800,"height":11}},{"id":"c97df0ea-2d4c-4556-bf7a-641d612b3b7d","block_type":"box","text":"BAIS will adhere to the Guidelines.","page_number":193,"box":{"x":102,"y":680,"width":244,"height":9}},{"id":"924b4daa-cbfe-485d-a181-d2a853645926","block_type":"box","text":"In cer tain instances, BAIS will engage an independent third-par ty voting service provider to make proxy","page_number":193,"box":{"x":135,"y":703,"width":731,"height":11}},{"id":"81bd1424-d5a4-4a6f-bdfc-e197227fad0d","block_type":"box","text":"voting recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory","page_number":193,"box":{"x":101,"y":718,"width":763,"height":11}},{"id":"1dcb703e-5f13-4541-9b6b-7df1eb376dd9","block_type":"box","text":"compliance requirements, or as may be otherwise required by applicable law.","page_number":193,"box":{"x":101,"y":733,"width":550,"height":11}},{"id":"e469c8e9-933e-41b7-8d25-986d00e79e8b","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":193,"box":{"x":134,"y":756,"width":774,"height":11}},{"id":"c17b0ee8-823c-411e-a87a-049f12171113","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":193,"box":{"x":102,"y":771,"width":791,"height":11}},{"id":"56c3c2c8-6bdd-4eeb-9edf-123411933b7f","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":193,"box":{"x":102,"y":786,"width":778,"height":11}},{"id":"87cbfc2f-1d6f-4cdf-9971-e8a264b94fef","block_type":"box","text":"connection with proxy voting.","page_number":193,"box":{"x":101,"y":801,"width":203,"height":11}},{"id":"334016b4-c707-40a4-a525-6520ebece935","block_type":"box","text":"Reports to the Board","page_number":193,"box":{"x":102,"y":824,"width":153,"height":11}},{"id":"2583bfed-cfe6-4439-a884-a92866162110","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":193,"box":{"x":135,"y":846,"width":755,"height":12}},{"id":"e54532f3-d346-4c58-b914-e1bac88e2f14","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all 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with","page_number":197,"box":{"x":69,"y":83,"width":785,"height":11}},{"id":"dbadb042-67d4-4cfa-9671-c751d09258b3","block_type":"box","text":"issuers.","page_number":197,"box":{"x":70,"y":98,"width":54,"height":9}},{"id":"e635b8a3-6bbf-42a4-9770-55cddc000190","block_type":"box","text":"1","page_number":197,"box":{"x":131,"y":94,"width":4,"height":4}},{"id":"19dc503a-0650-43f6-81d7-6af77bba1cf6","block_type":"box","text":"BAIS works in par tnership with BlackRock’s investment teams, excluding index equity","page_number":197,"box":{"x":141,"y":98,"width":606,"height":11}},{"id":"d4dd3cd5-9b8e-4d56-b562-9ff8699822a4","block_type":"box","text":"2","page_number":197,"box":{"x":747,"y":98,"width":4,"height":4}},{"id":"31d9282c-5ce6-43b2-a91a-69933505220b","block_type":"box","text":", providing exper tise","page_number":197,"box":{"x":753,"y":98,"width":143,"height":11}},{"id":"374dcd5c-7e8d-41b3-a91d-b226155bd308","block_type":"box","text":"on investment stewardship and engaging with companies alongside and on behalf of those teams when appropriate.","page_number":197,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"5e6a22d9-8458-4bd4-aa8f-697cdf3525a6","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":197,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"499a3596-1ed0-4da6-9574-b682b2da99bf","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":197,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"20178d03-8dd7-44b3-b87b-e3469fd08dbd","block_type":"box","text":"makes to BlackRock’s active por tfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":197,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"fe5946fd-5c2c-4b4a-bc8b-3d0f33051ecd","block_type":"box","text":"equity, systematic equity and multi-asset solutions strategies. It also may apply to holdings in BlackRock’s index and","page_number":197,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"4a77a16b-b43d-4817-9ff1-58ce00ab64dd","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":197,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"6616d4eb-5947-4e83-a238-74e3d16454b6","block_type":"box","text":"The guidelines are not prescriptive as active por tfolio managers have discretion as to how they integrate these","page_number":197,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"ccb38dde-6a23-4d8b-aea8-d1a3dc494b1c","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":197,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"6736d400-794a-4461-8772-ab9fd071d306","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":197,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"549300a4-41c6-4315-81b8-1dc3ebaf9b68","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":197,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"a05e3760-5795-418e-8f17-da43b155692c","block_type":"box","text":"1","page_number":197,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"a7a0244a-65f1-4ca7-ac75-ba56229dbe6d","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":197,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"71e17326-f6eb-4b98-827d-9800e800bef4","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":197,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"0241435c-0a86-47ea-9410-c51c5679932d","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":197,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"76824b98-bfe7-46b0-be3d-31a58473ef17","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":197,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"8dd7df3d-addb-4618-b18e-04d3851e6550","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":197,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"330d7dfc-4e02-4ecc-b13d-3cdb8ba55dc7","block_type":"box","text":"2","page_number":197,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"b434beb4-0d42-4dbe-8bab-841870d8dae1","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as par t","page_number":197,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"71f3351f-c5b3-484c-a394-a0468ace0558","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":197,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"61d3a8f8-d312-42e8-99a3-b42547be71c8","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":197,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"585fdab5-5d61-4c40-8337-eec6504bf455","block_type":"box","text":"policies.","page_number":197,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"b9f611d3-7b00-4b28-89bc-25424a899557","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"27ae72a4-20d3-4390-91e7-95e6c2122a77","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":197,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"da0fa729-7780-4764-9bef-2e4bbfcf0560","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f02a7395-2719-4943-80ac-f14bb4865ef3","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":198,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"ef8142f6-9f2a-4c56-b854-8a2d5cccc937","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":198,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"086e1630-ec89-459a-9907-5782b6b32968","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":198,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"6d3dd2e3-17d7-43fb-a3b3-82bac1a636e1","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":198,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"5a6a2d69-46bf-4873-a095-52d74b3da995","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":198,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"a49f1c99-03e2-43e2-b547-499e253a92d5","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":198,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"53eb99a2-06a2-4889-b454-0d4f163d4692","block_type":"box","text":"this work with research, data and analytics.","page_number":198,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"4882f268-ad94-4f70-8438-a174c5c5ce33","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":198,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"8ff520b3-2e24-4b8c-bc94-fd32e2bf56fd","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":198,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"a5340fa7-3a3c-4792-952a-e318b6c3533b","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":198,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"812ec192-efa0-48ff-8745-d70820811ea5","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":198,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"be6d99fb-0d4f-416d-9c68-1ea16ab53841","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":198,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"dc0949de-2648-4d32-bc1d-0901987bad64","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":198,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"f9a91f67-4d3f-44a3-9ae0-dc557f375421","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":198,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"edb403ad-ea41-4104-91b6-c12a6220449f","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":198,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"2250f802-7967-4f5b-bedb-586245bb3714","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":198,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"8535103a-5681-4b22-8528-6e23d14863e0","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":198,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"64ece47c-32b7-4e22-974d-c337af2ab2b5","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":198,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"17d70078-5211-445f-bf9e-547192a177c2","block_type":"box","text":"shareholder meetings.","page_number":198,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"cda4150e-ff71-4f15-adca-cdfb8130463e","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":198,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"1963f4b0-815e-48f0-8bc9-1df6b4024317","block_type":"box","text":"investing.","page_number":198,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"d47b2196-e25f-4a73-b759-a2281cdfbbae","block_type":"box","text":"3","page_number":198,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"ef3f016e-5a06-48ff-9bd0-23a12c4fd408","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":198,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"e29890a9-c02b-400a-a074-bac1d2bafa2b","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":198,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"7b707480-adfe-47f4-8b5a-ebc1a6489201","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":198,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"01194424-5923-4db3-adbd-8a63d5404303","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":198,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"3f9d9269-c7fa-4ac9-907b-4f5b9f19bc8a","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":198,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"a9c95fb9-4951-4230-b24f-42e1edee5eeb","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":198,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"638e5c74-d023-4036-9b50-d79a8eb2e5f4","block_type":"box","text":"suppor tive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":198,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"55c0775d-34d2-4c95-b4ca-ebf6b05ab41c","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":198,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"26a6e5ef-2151-4560-bdee-974a85ad0308","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":198,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"bc7f9fa0-92f9-4c3a-94c6-ae70489d0667","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":198,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"ce40cea1-7175-4a45-88da-5d6387fe13a8","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":198,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"f2ee09c7-0e2c-4075-ae34-d01949b5f852","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":198,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"b81e8f84-f13d-46ae-b299-2e20c989ec73","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":198,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"970f3ba5-d400-43b6-bba2-db257d9e0c8b","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":198,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"6adb8ec6-4a84-49f7-8a5a-684a742d8466","block_type":"box","text":"management teams and board directors","page_number":198,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"0366b948-d452-4714-a7c6-108db5f82d35","block_type":"box","text":"4","page_number":198,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"a59c4f73-6bf7-4601-9ab6-f4eea89e4bc6","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":198,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"5a171f46-e5a8-4724-a8fb-deb1a011da9d","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":198,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"9f6474ee-a94a-4881-a907-3723c90ca0e2","block_type":"box","text":"applicable elements of governance that suppor t a company’s ability to manage material risks and oppor tunities and","page_number":198,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"ad168579-c1c8-4a26-824a-c8c2490ca90c","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":198,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"192ca824-431a-4077-84a4-a68d9dcf1eb2","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":198,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"d7dd54f6-3967-4698-804b-0c84cc7db77b","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":198,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"5fac7deb-6e99-4a15-832e-df0415225e7f","block_type":"box","text":"to – direct a company’s strategy or its implementation. We look to companies to provide disclosures that explain how","page_number":198,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"4b46befc-9bdf-41eb-9e93-5e1b765231e8","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":198,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"c00241ca-4fdf-46be-8d6f-20c5751ff920","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":198,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"d4516d45-239a-4b65-8bcf-878bc4174149","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of corporate","page_number":198,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"46dae700-07bc-4371-9a22-4b91854917e6","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":198,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"e4ef2aaa-50c3-49ab-ae8e-f4263e2d2c8c","block_type":"box","text":"suppor t for, or concern about, a company’s per formance. As a fiduciary, BlackRock is legally required to make proxy","page_number":198,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"4281d36c-e31e-4d35-a2e6-d24a6aad7bc0","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":198,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"5d3d9424-f6fb-44af-9340-7a294bab0859","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":198,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"aee485cc-7b3c-4dd7-8685-c3516fff720f","block_type":"box","text":"3","page_number":198,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"08bc7be0-1cb4-4c5f-923c-19fc0eebe92e","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":198,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"48b3fdc4-d10e-4649-a13d-5d4bf2284c36","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":198,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"17aea4aa-ec9b-445a-9da3-c24d136d4310","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":198,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"850c701d-e81c-4f2c-a5ef-5a4c3e5f741c","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":198,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"5abbdde4-a3bc-4f4e-a162-1436abe1b2c7","block_type":"box","text":"4","page_number":198,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"e504f669-1d83-48b0-a3f8-e4d63b2d6af8","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":198,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"8aef2d87-90c1-457b-81a1-67aff631db65","block_type":"box","text":"boards and their members, where relevant.","page_number":198,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"704d027b-d4d2-4226-b448-bb92a4a55369","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"12a445e9-f006-49da-acf7-cab21f45b0dc","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":198,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"b6eaafb7-2202-4cc1-ade3-9dac0e17666b","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e499025d-5de4-4d5f-a08a-355b1481e81c","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":199,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"d8c625f5-7c31-4d83-81df-8e2984715d20","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":199,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"f2f12224-4f6c-4cda-87ec-af97ec30e6a5","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":199,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"a58bc250-8a94-4869-bf61-5dab0dc46036","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":199,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"b20524e2-afe7-4a6c-a1a5-6f752b0b2af7","block_type":"box","text":"on a case-by-case basis, in the context of a company’s situation and the investment mandate we have from clients.","page_number":199,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"468df78a-9c6e-4571-9848-8be3ce37dda7","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":199,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"7cefbbbc-7aaf-4faa-bdf8-b923429c9022","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":199,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"7256767f-c83e-483d-b0bc-733e94ad4b52","block_type":"box","text":"5","page_number":199,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"afa31e92-4c8b-4dd0-b9bc-fb8bde23e13e","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":199,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"ff0d6335-353f-4b8a-87cb-f0b044d571ea","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":199,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"ef849fec-cb3e-4fee-bd5e-bc279afb592a","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":199,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"668e7f9f-64c5-47d6-8533-e3134309f5c3","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":199,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"3ab690f9-8861-43be-926a-529661105cb1","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":199,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"82131ad1-8caf-4806-9489-92f17f67e54f","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":199,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"d8ae502d-1385-4c86-906e-565b5b4d5422","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":199,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"027bdcad-bc2d-4b0a-99c4-87e348e2cd07","block_type":"box","text":"5","page_number":199,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"2123a7aa-ab75-4fac-8179-2e9a6218875d","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":199,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"a781b100-c0da-44f2-8cca-acd8f1068d71","block_type":"box","text":"multi-asset solutions strategies, as well as holdings in BlackRock’s index and active fixed income strategies, to the","page_number":199,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"afb8ad7b-5f9c-4154-a69f-8c9d63513d6e","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":199,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"ce19a50f-2216-41e0-90cc-dc1abdb8263a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"829aa1fa-cc4f-4f16-ad94-25e8988de0ec","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":199,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"ab5a4729-9418-4503-af35-8623bb727e40","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aac5bc88-ad92-4943-b1cd-af3d73ea7dd1","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":200,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"2fe06454-05df-49df-834a-7d81f1b421c4","block_type":"box","text":"Roles and responsibilities","page_number":200,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"52b208cd-f70b-4e55-b7e9-5748f75fef26","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":200,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"b060b226-cda4-4d50-b2c3-204a9559c7e6","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":200,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"5c73ff27-0c6d-43c4-b1ab-7c113dc2d9c9","block_type":"box","text":"6","page_number":200,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"7a41df8e-0e9d-4640-8070-765be552becd","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment and","page_number":200,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"ae2b2e66-ca39-4080-8cfc-becdb6c53669","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":200,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"57ff0539-155d-43fe-8a29-012c7585f3ce","block_type":"box","text":"can better position a company to be resilient in the face of a changing business environment, help reduce the risks","page_number":200,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"f327449c-60e8-4800-815c-bb09b9f43cdd","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":200,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"f40593f2-7305-454e-a6bf-f4c6b40bf4b7","block_type":"box","text":"per formance over time.","page_number":200,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"7b6d1b96-380e-42e9-9369-ad73f0e0a657","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":200,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"0920f2e2-b39c-459f-b303-0387ce5310e9","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":200,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"022678d5-0b7e-4dd9-bc46-75518a798682","block_type":"box","text":"One of the most impor tant responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":200,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"49999591-a4ed-4c13-b8f7-e6d46991fda8","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the per formance of the CEO","page_number":200,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"03121bf7-1959-4d03-8fcc-4c980d0f9d09","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":200,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"93992055-86cd-4eef-a3b9-954be0848298","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":200,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"1fb4f88a-0696-4688-92e3-0f7fecc131f4","block_type":"box","text":"Composition and effectiveness","page_number":200,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"aa33acac-9537-4516-bfde-e9c69e3f21bf","block_type":"box","text":"Appointment process","page_number":200,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"6fbacbb2-f2c4-4de5-a056-9801490ad85a","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":200,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"13562bed-23cb-4a06-9d6f-9204c9519a7a","block_type":"box","text":"board is composed of directors with the appropriate mix of skills and experience. Generally, the board or a sub","page_number":200,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"4b1860b5-bc5d-458f-ac1f-331da9a3e258","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":200,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"bdd8c54d-751f-4643-b987-d7199eb2d82e","block_type":"box","text":"e.g.","page_number":200,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"f0ccdfd0-3b21-4c49-8621-c671cc5a1162","block_type":"box","text":", sector, maturity, geographic","page_number":200,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"e9101055-8557-4c43-b68c-138eacc7480e","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":200,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"701a9786-fd49-4868-bb8f-526fb661e03b","block_type":"box","text":"e.g.","page_number":200,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"944ad6a8-3cf4-4a69-8cf6-69d69b66e00a","block_type":"box","text":", financial exper tise, industry track record). To","page_number":200,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"a1100a4a-d437-4898-a407-b4e7c4b21d8c","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":200,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"d2ed8f71-4999-4d3a-b13b-b059ab97bd08","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":200,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"10fa2d83-96f5-45c0-b31a-eb02666e1611","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":200,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"05da51cb-971e-466a-a925-4da0830af2bf","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":200,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"de9804af-20b9-4bd5-8bc5-ebb9c7c3ab39","block_type":"box","text":"and local market requirements.","page_number":200,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"ded1f946-d0e1-45b7-b348-b4f39202b295","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any par ticular board","page_number":200,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"a6139d54-905f-4ef0-9d2d-43d1f5e24123","block_type":"box","text":"composition in our engagements or voting but seek to understand how well placed a board is to act in investors’","page_number":200,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"2f13fcc2-dee7-47d2-a48e-bff235dad3e5","block_type":"box","text":"interests. We may vote against the election of the most senior independent director, or the chair of the relevant","page_number":200,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"4cddd9b3-3cff-4128-8a60-89bbda26c75c","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":200,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"3a065bec-1419-4ecc-b47a-ef560ad963c7","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":200,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"7b753a5c-09aa-474b-9568-dd337adf8f6a","block_type":"box","text":"per formance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":200,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"5413e52a-8008-49ff-9e70-24c00a612c74","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":200,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"768e945a-299c-41bc-a54a-5c3907c96920","block_type":"box","text":"Independence","page_number":200,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"9c1401f0-384c-4ede-bd44-f17c06e7d290","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":200,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"76637cbd-c02b-410e-b8e5-20d3760be40b","block_type":"box","text":"e.g.","page_number":200,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"8404adc6-b5de-4f92-8ab5-223208e7336a","block_type":"box","text":", government or","page_number":200,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"0b843032-2b0e-4d70-a8ce-bca9343bb7cf","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":200,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"c7ea4ef0-fb1c-4cc6-bd4b-6f7830ae888f","block_type":"box","text":"BlackRock’s clients. We consider it good practice for at least half the directors to be independent and free from","page_number":200,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"5ace0024-fd4e-4ab5-b20f-a70ae0788a99","block_type":"box","text":"conflicts of interest or undue influence.","page_number":200,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"48750e58-b295-4a54-ab73-b05339f10991","block_type":"box","text":"7","page_number":200,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"7f92b7ed-f9a8-4fdd-a8d5-46ef66ae10ef","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":200,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"63372896-fd22-49c1-98a1-0093bdbbef55","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":200,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"e3a58f60-072e-4e92-93a5-4cba4254d874","block_type":"box","text":"independence should meet those local requirements.","page_number":200,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"6c8467d7-4fcb-4f09-8a24-b72f2e9a40fe","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient balance of","page_number":200,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"bed521fa-5cf1-4fc9-816c-0ede23711f52","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":200,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"45dc4018-7ad9-4c34-9b5e-7940e810d323","block_type":"box","text":"composition if this is a perennial issue.","page_number":200,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"da164a3e-6231-47d3-ab53-639e8b019629","block_type":"box","text":"6","page_number":200,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"db7182b7-b255-42f0-9696-b8444fd9695c","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":200,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"0022641c-a2f3-42a6-a5ee-d8ebde2f7c25","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":200,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"28a5540c-19ce-455d-9ae7-6342f5a22909","block_type":"box","text":"7","page_number":200,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"e72e13b6-0cf2-47b8-9d78-1fac4410acf9","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":200,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"faf0db2d-3c87-4b3b-8edb-107bddd22355","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":200,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"f4a99195-3452-4af7-a9bc-1799b58356cd","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":200,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"e29c7a35-6da9-4064-b5a8-b6ee643f85ed","block_type":"box","text":"could, or could reasonably be perceived to, materially inter fere with a director’s ability to act in the best interests","page_number":200,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"966757f7-c46f-4f87-8e92-84fb8e29af71","block_type":"box","text":"of the company and shareholders.","page_number":200,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"90fdc8e6-da39-4bff-a94c-8f79c0eb0fd2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ffb91dc7-68dc-4ccf-8b87-6d1c52aaebfa","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":200,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"ec626548-9b6d-4c54-be5f-67497cd6062d","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bec8f3f0-e096-4096-8cd6-cace075cf271","block_type":"box","text":"Independent board leadership","page_number":201,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"ed23bad3-d3d2-47f4-8e71-6a2b5bcfb7c3","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":201,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"9b45c817-9fcd-4e56-b2e2-622ff454af5f","block_type":"box","text":"board leadership. One is a non-executive, independent chair of the board who is responsible for leading the board in","page_number":201,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"a576ec24-2750-4efd-8097-5651f58af8c7","block_type":"box","text":"the effective exercise of its duties. The other is a lead or senior independent director, who is responsible for","page_number":201,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"d8d7dfdc-dcf2-4609-9a96-e5b986ca7fa9","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":201,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"42c4bf23-a5e2-4e15-ac88-bbafd6da54a8","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":201,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"8b0213a5-240b-4773-b8a7-82c7a17b7f0f","block_type":"box","text":"ensure the board is effectively fulfilling its responsibilities. In our view, the independent leader of the board, and/or","page_number":201,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"4d9679fe-302f-41aa-82b8-4a36ed1d2966","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":201,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"87934b28-f804-4c0c-b0b6-03563972e659","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":201,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"635a2b19-7b38-429c-bf8d-a7016d5e41e5","block_type":"box","text":"how it serves the interests of shareholders.","page_number":201,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"9c7e636d-5dcd-48a6-a341-45f947dbd48e","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if there is not","page_number":201,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"d5be0375-13fe-4c47-8b03-b735dae08bf7","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":201,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"4e828949-19e1-46b1-ab5b-4fd5af3eb6c1","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":201,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"2211239d-8053-4006-a834-45a766c53927","block_type":"box","text":"Tenure and succession","page_number":201,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"8c349443-b92a-496c-abf2-75d8ddf05579","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be expected to","page_number":201,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"f72377c2-3dff-42e2-b043-a94d77a4d736","block_type":"box","text":"serve, in line with market norms where those exist. We find it helpful when companies disclose their approach to","page_number":201,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"b1c09ef8-4417-4260-9ce2-45df91596a1c","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":201,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"d00ef83c-32d1-4062-8312-d7ab78ab61d1","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":201,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"1134e14b-dd23-4573-ab45-a90b089e149c","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":201,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"4694f4ac-2ece-44c7-ad20-5aabb1986472","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":201,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"5479853c-7936-4ae0-8e88-cf83387e8d2c","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":201,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"c916f942-ccec-41f4-a994-b2281cac910e","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":201,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"6caa0ff7-a68a-4545-ae9e-f093ecdf02e2","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":201,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"3d5ea396-9b2a-4026-89aa-398e21d03773","block_type":"box","text":"practices, we may vote against the election of the chair of the committee responsible for board composition if a","page_number":201,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"56b30993-0a0f-4389-bc58-fc897e4143c7","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":201,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"c09779fb-601d-4714-89c8-a44998185922","block_type":"box","text":"election of directors who have served for more years than is typical in markets with specific guidance, where the case","page_number":201,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"181d0e1e-d7e2-4b35-a4f7-9db7e6ca8880","block_type":"box","text":"for their continued service is not evident.","page_number":201,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"2a0364c2-2630-41d7-9855-a3a340d594ca","block_type":"box","text":"Capacity","page_number":201,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"429d3e5b-cb86-40a5-923d-2f6922c5ed25","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our view, an","page_number":201,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"d63bdae4-79ef-46c8-8b42-227ec2598073","block_type":"box","text":"effective board will assess the ability of its members to maintain an appropriate focus on board matters and the","page_number":201,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"92ffca06-f25d-4872-a307-248569aa2cb7","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":201,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"d408612f-f06c-4e5f-99ca-96339c6d6b49","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":201,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"5faa929c-7b76-4972-9ab8-d3660968a366","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":201,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"53d8a7e5-f3ea-46e7-81f0-419a9bcfc732","block_type":"box","text":"determinations across markets.","page_number":201,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"91f2df56-4318-4c6a-bf85-36734c25b810","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively fulfill","page_number":201,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"48864550-28e5-472b-922e-5f2566b9581c","block_type":"box","text":"their duties to the board and company.","page_number":201,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"f537135e-27dd-4224-b66e-0fbc3d78a862","block_type":"box","text":"Director elections","page_number":201,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"01e2f894-3a7f-4733-814c-579f56cb7ec3","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":201,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"625e7deb-215c-4dae-ba7e-d6888fa92103","block_type":"box","text":"structure","page_number":201,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"fe66aea2-9237-47b0-811a-ce199e94ed57","block_type":"box","text":"8","page_number":201,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"93f9a190-956a-435c-8a2e-f967007d061b","block_type":"box","text":"may be justified by a company when it needs consistency and stability during a time of transition, or on the","page_number":201,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"937a1587-1423-49cd-8317-398798b18c8a","block_type":"box","text":"basis of its business model (","page_number":201,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"a96624e5-964b-420f-b0b5-465d57137021","block_type":"box","text":"e.g.","page_number":201,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"aedcc532-59f9-484b-a6dc-78f2e5e2ef0d","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":201,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"f84645c6-f2e5-4487-9dd5-7431cc8defdd","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":201,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"4fd2364f-6aae-4b4b-b19d-fc94acb01f0f","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":201,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"4c1da7d1-5cee-404d-ad48-1507623ee728","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":201,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"b3f3036c-509a-412d-b65a-e384ec399779","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":201,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"7b753c98-608c-4c64-9843-1999491e063d","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":201,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"543b4b4d-88aa-4bc7-85f8-99c802caaa7c","block_type":"box","text":"shareholder meeting. Where a company’s practices differ, we look to the board to provide a detailed explanation as","page_number":201,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"617bfc29-cefb-479e-97ea-a7dd414b546d","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":201,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"0aa3c8a5-8883-4a5b-b97e-dd72cebab1ac","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":201,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"60c7915c-1957-447e-afbf-d9f81c51386c","block_type":"box","text":"a simple majority vote standard for director elections. We may vote against all the directors standing for election as","page_number":201,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"f52aea1e-210a-4c99-ac86-282bfb6ebbdf","block_type":"box","text":"par t of a single slate if we have concerns about the profile or per formance of an individual director.","page_number":201,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"21d5396f-6b4c-407c-887e-7da7a32cecee","block_type":"box","text":"8","page_number":201,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"6540e003-a6ae-4759-af31-b624eca88146","block_type":"box","text":"A classified board divides the directors into classes with different overlapping terms. As a result, only one class of","page_number":201,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"1ef756b4-aa0a-4b6e-9998-62343d9dc482","block_type":"box","text":"directors stands for election in any one year.","page_number":201,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"321f7829-2110-422f-9d9b-a0ca6b04d3d6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"79bfe462-8350-4ed8-ba6b-feec3f13b7cf","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":201,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"ff7862bb-d814-408c-9ce2-3815c4cb1fca","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a90e62d4-e1b4-4ca7-9ba6-7ba7742f93e7","block_type":"box","text":"Committees","page_number":202,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"6aedf9d1-cac9-4a79-9d04-6399bea69b11","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":202,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"74097ffd-558b-41fb-ae2f-ecc45b9f5b7b","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":202,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"770a0990-14a1-43c9-b82a-984e26ab580b","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":202,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"25d0918c-bf99-48ba-a13c-58f58eca3938","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":202,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"d4af10e1-e2a9-46b1-8ecb-d85b61121167","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":202,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"c24c2563-8026-4139-9554-28578a451124","block_type":"box","text":"matters are assigned either to the full board or to one of the committees. It is helpful to investor understanding when","page_number":202,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"d0e215c3-510c-4d6e-ac9a-727ec196dbf4","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":202,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"2fd363e4-b741-47e6-aa89-9490670f87f1","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":202,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"da99fafd-3f25-4b6a-bf23-1a773a6a5f29","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"9f806963-7c8f-4d73-8d7c-f3dafaa2bfca","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":202,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"2c0dbd20-9fad-449f-9480-65572ea71bed","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":202,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"b9ec42bb-7bda-489a-85fb-601c748d67ac","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":202,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"dc0950d9-4cd7-48d9-8e21-79aa04e4fd71","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"f72429f8-2b78-4333-a0a4-c263559c3abc","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":202,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"d6c13cd0-7063-495c-8f36-b6974be99b7c","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":202,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"c7ef0ae6-ed79-48ce-8638-69333c43decc","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":202,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"eed5fa63-596a-490e-b053-3097e5d5b34d","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":202,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"66a1bc09-b482-47cb-ae05-a1ccc75c0724","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"5e04edcc-7475-4be3-9d7f-a6778722b3c7","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":202,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"d4abb2fb-79a7-43af-ba20-23749155f74e","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":202,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"e41a784b-9f81-4c9e-b06c-a143977aaa39","block_type":"box","text":"firm-wide compensation policies.","page_number":202,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"d9e1d461-29c1-46fd-a63f-c7040e1e53b8","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee members","page_number":202,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"26d04366-b214-458a-8561-6b69ef5d0426","block_type":"box","text":"to convey concerns about how a committee has under taken its responsibilities. We may vote against the election of","page_number":202,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"d54ce39d-c3ca-42b2-ac49-9988eafa73ae","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":202,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"da9be565-91c1-49a9-859d-dea5cb912731","block_type":"box","text":"Board and director evaluation","page_number":202,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"6e3b8f6e-dcf9-4c3f-b3b5-0dfc9a99ca22","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the per formance of the board, the","page_number":202,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"0f97bb30-e011-4cb2-ba3a-fe7cfaa857ee","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":202,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"6ddb66ed-b593-4bb7-8cd7-1c4aaed372b9","block_type":"box","text":"par ty able to bring objective perspectives to the board on governance and per formance. We encourage companies to","page_number":202,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"025c781b-20a0-46fa-a0f5-c3d0c91c4348","block_type":"box","text":"disclose their approach to and the objectives of evaluations, including any changes made to the board’s approach as","page_number":202,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"687f1e2c-47d2-4265-a4a6-e2d575d00a80","block_type":"box","text":"a result.","page_number":202,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"7d5b37fb-3b53-4a05-9aaa-1cb750cd5db7","block_type":"box","text":"Access to independent advice","page_number":202,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"5f505353-cea0-44a4-88ec-61bb2e461a79","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":202,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"cade7a9b-060f-42bf-b7e9-1d056b5a6517","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":202,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"b639517a-bcbe-4aa0-93f6-f78d4f48d128","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":202,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"2fcc8481-fac6-4dff-a195-ec19263b1192","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":202,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"95d825b2-4f88-4a49-8c62-ec6b225053c7","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":202,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"85966dea-d20f-484f-a4ef-102b8e566599","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":202,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"e63a3500-e3c0-4d62-b25c-3eacfcedc478","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":202,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"c8420100-8cc4-4f20-8674-ab93e219160c","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":202,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"12df98ea-b2a3-4e17-86ca-aee0f858b0fd","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":202,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"ecd76ab3-ab29-4af0-9fa1-4984f4d637b6","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":202,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"2b25e0bb-cd71-4b90-89cc-3921bfdfe216","block_type":"box","text":"per formance.","page_number":202,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"de3dd5f6-9dad-42f1-a69c-ec781c8417e6","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":202,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"1577bef3-41f0-44a9-9544-81fdf151467d","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":202,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"0a3c7091-f387-48c5-bde0-597d20d114d8","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":202,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"b96e45a6-929f-471d-8b12-1c29019c549d","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":202,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"0c0b6dd0-918c-4cbf-b356-52983c5d2e89","block_type":"box","text":"to be tailored to the company, its sector and long-term strategy, as well as the individuals the board is seeking to","page_number":202,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"d0a2e42b-b271-41e4-b8ac-7198791fd4f4","block_type":"box","text":"recruit and motivate.","page_number":202,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"32dadca8-e36c-43c5-8656-4b39cd7824be","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":202,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"39d0cbb4-2cd8-468e-a09b-8f44e528e7bb","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":202,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"af4a11cd-0497-4160-88cf-3ebf1a6424db","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":202,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"f7a81a10-0d0d-424b-b678-5ea65d36dfed","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":202,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"581f7419-a314-4c88-8312-6ce5904cdb84","block_type":"box","text":"arrangements include:","page_number":202,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"ea469c5a-fd5e-43fa-856c-b94af0660f0b","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"9a0255b6-f823-4c89-a45f-3beb1fdd3c94","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":202,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"bdffc971-457b-47b1-8721-22d642555e64","block_type":"box","text":"the company’s size, sector and market.","page_number":202,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"c079eb7e-ff23-4f90-b4f2-3b935870a0aa","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9e4f4d55-51b8-458b-83e1-1a7a318099d7","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":202,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"2a74b2df-02c3-40af-be3a-a1c6ceb1116b","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d2937c51-40a5-4353-9082-40a39f7a90e1","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"1d4d00be-8fda-4c2a-8e72-42bc508f08be","block_type":"box","text":"Variable pay subject to per formance metrics that are closely linked to the company’s shor t- and long-term","page_number":203,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"a7b41dac-4b67-4e2e-a310-5ea8953f3fdb","block_type":"box","text":"strategic objectives.","page_number":203,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"29f4e105-bdbb-49cc-baf5-cf1e3419c010","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"8494992b-2996-4606-b0cc-8f1df1b31bfe","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":203,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"df1b06aa-9fac-4c88-aefb-b66a2869d4aa","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"5a09bad2-1232-4ba3-895f-9c2b44723912","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":203,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"4343039e-5783-4615-a9c4-7500d6a801b6","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":203,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"c3e24e3d-58d7-4586-ad48-814a47d68bdd","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"6cedbf44-c2a8-4ee5-971a-667295cc4449","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":203,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"2b24c253-df20-422b-bca2-9a81ff5eba76","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"78acf4c1-697e-42e2-8c01-54752e9186d7","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":203,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"64f3ccab-9b6e-47e1-9c1b-c6f1455f75cc","block_type":"box","text":"transparently.","page_number":203,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"acb7e05b-28de-4d4d-aaf9-5926d1e56875","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"88a9c458-a248-427a-ba3d-eb5045b25afc","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":203,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"a41e9e14-825b-4ec1-8aef-5022c57b6b10","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":203,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"146c0d64-7de3-42e6-a1fa-c08d72b6f958","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"f04a901b-3f97-4ae4-870a-4740b3c0c04b","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":203,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"0b222c40-3d60-4faf-81be-97bce2ac5463","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"3cdace56-c1ef-4792-9226-4d4695268b32","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":203,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"3a478757-9b9f-4499-826a-661e10b7f0c1","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":203,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"712ce516-291c-4d06-801c-e03296efd848","block_type":"box","text":"misconduct.","page_number":203,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"fbdaac21-af31-4af6-875d-a267e16f7411","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"42aee37a-270d-4214-acdd-cd7a85ff0d8a","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":203,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"7380ecf7-1cdd-4530-90f4-b2a2a0957cca","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":203,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"60e41230-0e4e-4531-9062-4881f363b488","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":203,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"aa7f7685-a256-4e49-93cb-f7ed2991bff0","block_type":"box","text":"and our clients’ financial interests. When there is not an alternative, or where there have been multi-year issues with","page_number":203,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"dfa16055-168b-4592-9eea-f2df3bd1685f","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":203,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"77612f4e-fd6e-45ed-b91a-3b704ccfb1f5","block_type":"box","text":"committee, or the most senior independent director.","page_number":203,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"3f394556-2f99-4eec-861a-fc6ea6b39c49","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":203,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"c4b7e027-36d2-4938-8d1f-5ae78f1f0ffb","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":203,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"c1c562b8-9522-4558-9311-4e606a64ea8a","block_type":"box","text":"the two. Some companies also pay additional fees for service on board committees or in board leadership roles. We","page_number":203,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"1b8d8f34-2ffb-4bb8-b2b2-1e0f2cae842b","block_type":"box","text":"do not suppor t non-executive directors par ticipating in per formance-based incentive plans as doing so may create a","page_number":203,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"8519dba0-0a01-4f5d-9970-eb291ad08702","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":203,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"6b2dfab6-6222-445a-a7d2-08c4376c8893","block_type":"box","text":"CAPITAL STRUCTURE","page_number":203,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"82236c12-75a2-4ee9-8679-c42db39b49ed","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":203,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"47bb4840-6422-4fff-a77e-54c114cbf9c9","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":203,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"f9ee658d-24d4-4243-badb-7c7ef5c54403","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":203,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"fd3d6168-0d14-4169-bab7-2a17e7357552","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":203,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"93d83244-c109-4610-b33d-31271f96f35a","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":203,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"e60e10d3-d790-40ba-8d27-12feeb256e09","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":203,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"293e55a1-4448-497b-bdbd-dfb4d3a3dc48","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":203,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"51968281-e46b-4f67-b6f0-36c22648f49d","block_type":"box","text":"Share issuance","page_number":203,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"c6836c2e-9117-4649-9a89-b6b786aec70b","block_type":"box","text":"We assess requests for share issuance for par ticular transactions on a case-by-case basis. We will generally","page_number":203,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"37a8bc72-4e92-4010-8db1-1abaf81686ff","block_type":"box","text":"suppor t authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":203,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"ddb01d75-9483-43e1-ab72-cadc8b9345f8","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":203,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"103c7407-ccda-44ca-9365-4a83f81144e1","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":203,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"95160661-983e-4f4b-ae54-2d97465399cd","block_type":"box","text":"market environment.","page_number":203,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"49739e8d-a7c0-4a63-9d4f-eb323b501d87","block_type":"box","text":"Share buybacks","page_number":203,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"c74d7124-89e5-4085-b127-aa27454f90f5","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":203,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"c6c41dd7-cb54-4db9-9b5c-1f1f79329ed9","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":203,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"1766ff3f-29fd-4622-8eff-d78e6a720e56","block_type":"box","text":"the company and returning cash to investors. We also take into consideration the effect of a buyback program on the","page_number":203,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"6fc4497a-50e2-4763-8f46-d4ec5b28a082","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":203,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"a0c3f140-eefb-4f07-9ae4-b4e12352a096","block_type":"box","text":"relative to market price. We consider it good practice for companies to seek regular approval of these authorities to","page_number":203,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"1f947d44-5a1d-4ede-9764-8f1fe927968f","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":203,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"5a5db43a-5627-4888-99e7-2bc704ec2c2e","block_type":"box","text":"of the company and the market environment.","page_number":203,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"b4ce673e-e3d9-45be-8f43-9921e2c3bf23","block_type":"box","text":"Dividends","page_number":203,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"4ef5aa16-4127-4a9b-b9a8-d6bc21c35330","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek fur ther clarification","page_number":203,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"36962171-7d59-4bf3-972a-458c62923ffb","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":203,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"908a12c1-6127-4d58-979e-f61efc13122a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8541ee7f-c44d-42bb-a0ee-96b54ecce8c8","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":203,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"004c94f1-ef6c-4d80-8106-afc437976e99","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1fa9b6c4-7597-4be6-aca0-f5f23551a916","block_type":"box","text":"Differentiated voting rights","page_number":204,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"8c734fb7-194f-45f5-bc36-da62eeda79ca","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":204,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"60e40ec9-b57f-40b7-b74a-5faa24e9b0df","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":204,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"40e75b3a-107a-4925-a169-f06d4f3186aa","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":204,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"492708c9-7785-43cb-8643-be268a69e6fa","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":204,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"63614433-d29c-4029-9c24-6d0ac1198d0a","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":204,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"7b3fc98e-2539-4220-9fd9-4c1a3ef46f29","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":204,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"2b50051f-ca08-4c01-a131-5e10f0abd149","block_type":"box","text":"analyses of proposals.","page_number":204,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"3b9ef3d4-9003-4c95-afe9-7bccd399b14b","block_type":"box","text":"Mergers and acquisitions","page_number":204,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"027d0bcd-8771-4ca9-a7f2-cfbd4d4efbe0","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":204,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"9bd419b5-f354-41c6-ba6b-ab5611faec90","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":204,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"d34c6498-e162-4b0c-a13c-955c79a0bb18","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":204,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"d6de5ac2-a2ff-4b25-8249-4e669775200c","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":204,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"78850115-4629-4d07-9c9f-e958694921ce","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":204,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"42194d96-2c97-44f2-97f8-dec07090d11f","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":204,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"0edc34a1-aa86-4f26-a49e-a4ff49129854","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":204,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"1dca1286-e74c-4ab2-8c5c-54badee4a080","block_type":"box","text":"Anti-takeover defenses","page_number":204,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"77740b61-a1f0-4eb0-8f0e-d99e32d8183a","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":204,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"3427cf49-ef2c-4d33-b868-22e88992ce78","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":204,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"61394cfd-dcf6-447f-bd49-d3e60981991c","block_type":"box","text":"shareholder value. By exception, a poison pill may be suppor ted if its purpose is to delay a takeover that is","page_number":204,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"c6994e16-08b3-42a4-afd5-ca735abfbbcf","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":204,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"6cd22c9f-c112-41e7-8ac9-5fdeab7c60a0","block_type":"box","text":"case to use a poison pill to block a shareholder activism campaign that may be counter to the interests of other","page_number":204,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"bfb51354-a573-4f52-b49e-a2ffe0f109e3","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":204,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"45bb9963-ebad-4f1b-8f0d-95ce47f4bf52","block_type":"box","text":"be closely monitored by the independent members of the board. We consider it good practice for companies to put to","page_number":204,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"07875a91-19c3-4d5c-abae-3da4c9f67828","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":204,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"70899ccb-23a3-4014-99ec-f05d453727ec","block_type":"box","text":"Shareholder activism","page_number":204,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"e4daa1f6-9f18-4b57-9837-5527f77db0b2","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":204,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"c34e491b-f3f5-4b07-96e5-8a0961828ccc","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":204,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"1c070a22-26a3-4e69-9eb3-65202e10f935","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":204,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"7cfb41a7-4c0a-40b4-a724-22c7a100d9ef","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":204,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"679fd6f2-796f-478e-be0b-b08e609ab84b","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each par ty’s candidates. We evaluate","page_number":204,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"1d78595e-6128-465e-846f-1e2a1b4b4614","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":204,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"d22fed1d-b091-4edb-8153-a85a9add3485","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":204,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"320fe22d-7b42-4a3a-944f-10b1c7c38c1e","block_type":"box","text":"the relevant por tfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":204,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"02c99341-1b72-46db-8b34-4cc881281a23","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and exper tise or have a poor track record of","page_number":204,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"003d69a6-760f-47de-86f1-fc69a5ad56c0","block_type":"box","text":"protecting shareholders’ interests.","page_number":204,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"a9d0f372-716b-4105-89f3-e6e20cbcf008","block_type":"box","text":"Significant shareholders and related party transactions","page_number":204,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"5e673373-fc3f-449d-9fdb-15acf85edd2d","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":204,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"af3856f5-341e-45c9-b7ba-df3580617b4d","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":204,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"cb5d41a1-ca15-40e7-90a2-86123e7d11c7","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":204,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"bc90b8c9-8029-49fc-bf84-76cc56f88877","block_type":"box","text":"affiliated with the public company, to be disclosed in detail and conducted on terms similar to what would objectively","page_number":204,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"3a5a97d6-3db7-459d-9098-821cf3a4dcc1","block_type":"box","text":"have been agreed with a non-related par ty. In our view, such transactions should be reviewed and approved by the","page_number":204,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"28f195c6-4fca-4b27-8705-e52a10702fef","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":204,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"d7039303-62a1-4451-a872-231a1e5acb1f","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":204,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"6e862bb1-7c83-4afa-b741-62760d237066","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":204,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"b03b9c57-a03d-4f2b-892d-aa20dde1bcfe","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":204,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"9332f5b9-243f-4a22-ab11-f258f53ba9e9","block_type":"box","text":"potential for the company to create shareholder value over time. We consider it good practice for the board to","page_number":204,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"8e4aacd6-c54a-4529-ae50-ff5c2e6a3dbf","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":204,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"abbb0ffe-dcd6-4f58-b125-80fe4e31cd15","block_type":"box","text":"audit.","page_number":204,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"19ed489e-6a28-494b-a746-a828eb5676e4","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":204,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"ca04ac45-6ac6-4dab-9309-5c2267a88d8c","block_type":"box","text":"on its financial per formance and position. It should provide an accurate and balanced assessment of the risks and","page_number":204,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"e7a97a37-1e73-4f00-936c-9c166184b3df","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":204,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"92c5e9f8-64eb-4e54-8bad-022bdb0f598a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e8dafb7f-e98d-464c-bc1d-58ed459c2ffd","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"c7c83002-d2aa-45a6-97fe-561aea61d91e","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9c22457b-0c82-4201-9e25-fe41881d8a4d","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":205,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"d3866b59-fb76-41c0-bdcb-8f2bd142d444","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":205,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"5f19c4ab-43d1-42d0-a403-16a3c1d33051","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":205,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"ab628a3c-33a3-4c99-87dc-dfd21552ff99","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":205,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"da72df12-26eb-413a-b733-fbdbc7e6a46c","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial repor ting system by providing","page_number":205,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"40abff9b-4222-4c7c-b922-2c80e8fb0e88","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":205,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"da0daac1-f62b-44e2-bb58-27c5c884d014","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":205,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"e28c854c-69a2-4eba-a187-8358fa477637","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":205,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"87d38b35-4095-4cd2-a21b-2c4c3b51115f","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":205,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"dc965abd-bcbf-4a1e-83c1-4bb158c95f25","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":205,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"1bc95c04-74d6-4bfa-a942-43842cf739c8","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":205,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"1b4c085a-6522-452d-81ca-0aacd52a87b7","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":205,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"a007c7f1-b4b1-4c67-8de4-8c9590b0344d","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":205,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"478db883-a3b3-409d-8b23-23aa2de688df","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":205,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"c9f7d947-0914-4efa-906a-d0816a7caed5","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":205,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"de6638c5-c8a5-40d6-a5db-b7accbc587fa","block_type":"box","text":"9","page_number":205,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"25bf6c0e-72c9-447b-a7fa-0a17dba65076","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":205,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"407be4c4-5aec-485b-98c6-4bdd588c38aa","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":205,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"ba4777c3-c365-4111-a7b8-2f5e73f00b74","block_type":"box","text":"standards specified by policy makers.","page_number":205,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"510ddf70-69a9-4d9a-97d0-75e2d848620c","block_type":"box","text":"10","page_number":205,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"7a9cd666-df34-47cc-8066-0ecd1b216bdc","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":205,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"3f650abf-c0ee-4ef6-9d1e-44b4d358ddc3","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":205,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"ecac979b-47a2-425d-8c24-dc389d442e0a","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":205,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"ee215b86-9875-418c-8ff1-2fd50b6e0a64","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":205,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"cb2efa21-193d-4934-a542-29e61c299533","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":205,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"adb37f25-03dd-4abf-b35d-bc378d838d03","block_type":"box","text":"of corporate repor ting. It is helpful when the audit repor t gives some insight into the scope and focus of the audit, as","page_number":205,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"425e6cb0-e0c3-4bd7-98e8-9ff5ba7ba797","block_type":"box","text":"well as any critical audit matters identified and how these were resolved. A comprehensive and effective audit is time","page_number":205,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"d6ec4e5d-9ced-4537-99d4-483af6d861e8","block_type":"box","text":"and resource intensive, and the audit fee should be commensurate. Fees paid to the audit firm for non-audit","page_number":205,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"4df5b52c-9041-47a8-abb9-2fa027406169","block_type":"box","text":"consulting should not exceed the audit fee to a degree that may prompt concerns about the independence of the","page_number":205,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"2e56d342-1edc-4d9a-b2dd-1f21d92c254a","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":205,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"cf64362e-bb83-46ac-a543-b94989252866","block_type":"box","text":"remained independent.","page_number":205,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"00546f84-c1ec-4d85-8aac-f96b7ef5a60d","block_type":"box","text":"We may vote against the election of the responsible directors if corporate repor ting is insufficient or there are","page_number":205,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"8f213a78-24bb-45ef-93cb-d08c7dc583e1","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":205,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"2ea2292b-7961-42dc-be31-4736505c68bb","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":205,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"eed3a831-c2db-41bf-a9b1-840a17053f6e","block_type":"box","text":"repor ting or the audit. We may vote against proposals to appoint the auditor, ratify the audit repor t, or approve the","page_number":205,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"63a36575-ee9b-4b44-8069-c6f4a11049de","block_type":"box","text":"audit fee if we are concerned about the auditor’s independence, the quality of the audit, or there are material","page_number":205,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"9f0931f0-4ca2-4c89-b71a-7b1c10fee0e9","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":205,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"38d6afc0-fbec-436c-864e-1715973fb11d","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":205,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"ddc271ac-013d-4c49-891f-3b37e85876f0","block_type":"box","text":"General shareholder meetings","page_number":205,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"2c5610fc-2270-4ad8-a6e8-f53ed75f9017","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":205,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"93c6314b-775a-492c-8123-fb536e6c1999","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":205,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"d9495121-d8de-496e-8d43-79b491ba4074","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":205,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"2d23a194-0276-4870-94f0-73589713df45","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":205,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"b5a551a0-450b-42dc-8520-94bff6f4aae4","block_type":"box","text":"meeting vir tually which, whilst welcome, should not limit the rights of shareholders to par ticipate as they would during","page_number":205,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"3ba34469-97bb-43e2-b3ad-75d281e16636","block_type":"box","text":"an in-person meeting.","page_number":205,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"b2f527bf-87e2-424a-8152-1a7813490816","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":205,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"fdcd403b-5ec0-4061-bf6a-039ddc21177f","block_type":"box","text":"provided in a timely manner or do not provide sufficient information for us to make an informed voting decision. We","page_number":205,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"077404b5-48a0-4f74-8494-113a96187a9d","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":205,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"e77e64bc-916e-4e45-9941-a455b2b7996e","block_type":"box","text":"par ticipation.","page_number":205,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"034f175b-73b1-4dfa-a5bb-2839be1c0581","block_type":"box","text":"9","page_number":205,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"c2188528-2e83-402d-b061-0c42eecd94d5","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":205,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"93711420-0490-4b05-a99c-1ad7e66597d0","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":205,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"2bc251e3-f81e-411b-9168-492b69835b35","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":205,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"0aefe855-845a-4f19-927e-58e9749e25d5","block_type":"box","text":"Disclosures.”","page_number":205,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"58491cab-15ee-4124-bf2d-414a2d4bf814","block_type":"box","text":"10","page_number":205,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"8ffe9afe-6c5f-4a29-b7f5-1354826f842e","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional- profiles\r\nissbstandards/ and https//financeeceropae/capitalmarketsnionandfinancialmarkets/compan","page_number":205,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"66ee2491-2a42-4d99-9834-029f10281663","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyrepor ting\r\nandaditing/companrepor ting/corporatesstainabilitrepor tingen","page_number":205,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"ad1f086c-23e7-4ece-9185-3d00b35da686","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":205,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"5f8c83f2-a7cc-43c7-80db-920a62975f9f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a3108725-45d4-4a20-a47f-3f2e654d7e2f","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":205,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"60eb97dc-57b7-4517-bd5b-91f5ede55d5c","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2df9722d-a31d-4622-b33b-29e76bfb828e","block_type":"box","text":"Bylaw amendments","page_number":206,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"4e6adf10-5358-4efa-a3a3-2825e04e46ed","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":206,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"01436f5c-6aed-4795-b950-49a0387a70af","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":206,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"f7719ce6-d385-4c91-b14d-8c1de1985ca2","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":206,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"ceb6297a-f7f6-44c5-8acf-d45be182e5b3","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":206,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"f0f9b172-b8a4-40c0-8308-afde01f069f2","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":206,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"5efdd2a7-b010-47e2-8cc3-788fcc330977","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":206,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"cdec4553-7f07-425f-a4b9-906bd139f853","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":206,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"7df659c0-ca2d-45c8-a3b1-a2cac617d3d7","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":206,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"7c554ccb-3ecb-4249-a1cd-2d9e447bd709","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":206,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"07e97b70-2023-43f8-877c-db3984f6326f","block_type":"box","text":"group, with a meaningful shareholding, the right to nominate directors to the company’s board. The threshold for this","page_number":206,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"e03d815a-8936-4cce-91f4-8f07be87f247","block_type":"box","text":"right should be set so that shareholders can exercise it without being unduly disruptive to the board’s own","page_number":206,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"7588d134-163f-44e4-a5c3-89bcf5e6c4fa","block_type":"box","text":"nomination process.","page_number":206,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"4ca73085-7a38-4a33-92d0-32aed401bf29","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":206,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"a9b120b0-6a2c-4a7f-b310-9f82a7e0adba","block_type":"box","text":"We may vote for a shareholder proposal seeking the addition of either of these provisions to a company’s bylaws.","page_number":206,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"7729a1a2-7417-43c3-a6cc-f207b1da4a3e","block_type":"box","text":"Change of domicile","page_number":206,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"a44834aa-59e3-4004-af9e-d12097ce65e2","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the rationale for","page_number":206,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"b6adb8c6-8f71-4359-ae33-baadb35379d5","block_type":"box","text":"doing so is consistent with the company’s long-term strategy and business model and the related costs are","page_number":206,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"8b236821-7c44-4fdb-90fe-120f55f8e17a","block_type":"box","text":"immaterial.","page_number":206,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"87d2047a-a04f-470f-aa32-a51b5b1b2258","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem aligned","page_number":206,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"6d8eddc8-a392-4529-a9b8-ad90896ab559","block_type":"box","text":"with our clients’ financial interests.","page_number":206,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"4043a003-07d4-4f73-b737-8c0437d78890","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":206,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"4ad42e36-c265-4f53-b6bd-e9de5995bd49","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and explained","page_number":206,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"d649cde8-e6ad-4442-8235-6db746e726b6","block_type":"box","text":"in the context of long-term strategy and business dynamics. Such changes may significantly alter an investor’s views","page_number":206,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"b9072d31-bf1a-4f51-acd4-2b45fe30c665","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":206,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"6248add4-0f2e-4037-a65e-10fd00af2d27","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its business if","page_number":206,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"454142aa-b755-4c45-87c9-d6539893abc2","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":206,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"34942597-c3cb-4a5e-9b19-ef76384857b8","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":206,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"55deab82-fb7e-48ff-9395-d994ecaf8378","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":206,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"af95f465-e7aa-49eb-b7b5-b3fc47fac661","block_type":"box","text":"general shareholder meeting asking a company to take a par ticular course of action subject to the proposal being","page_number":206,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"b6427601-08dd-425b-b9d5-5a683e683cd4","block_type":"box","text":"suppor ted by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":206,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"3e7a6fa4-65a7-4a3c-98a2-0b5e27d82130","block_type":"box","text":"relevant to a company’s business.","page_number":206,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"a8407439-8df7-4456-8680-321f372a210a","block_type":"box","text":"We vote on these proposals on a case-by-case basis. We assess the relevance of the topic raised to a","page_number":206,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"21878e6c-9717-4bd3-aee2-1a6696c20561","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":206,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"d6474efa-c675-4204-a4ee-23432521cd8b","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":206,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"923788ce-ec83-4f46-b0e3-35f8cbd6992c","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":206,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"49fbd11d-0427-470f-aa14-bb8ab85723fb","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":206,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"3677326c-6146-45a9-b369-61522aad984f","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":206,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"140a1841-09d5-4b1d-a610-92817ad90900","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":206,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"76ffc548-1d21-4526-8372-a6e7e2b16614","block_type":"box","text":"shareholder proposals that are legally binding on the company, seek to alter a company’s strategy or direct its","page_number":206,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"8f07f6bf-263d-4758-88f2-41da2a06ae4d","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":206,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"0980c467-1a49-43a0-ace0-cd65c3f225e8","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":206,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"271a1a33-008f-4936-8f31-6f405feb0b67","block_type":"box","text":"and limitations on how we can interact with the companies in which we invest on behalf of our clients, including our","page_number":206,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"45a47b67-feaf-40b8-8950-703b939efad5","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":206,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"a33d2bea-e4d0-4c54-9769-63fff37b1647","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":206,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"f8a8cf2d-f272-4e99-bad5-cce3d0dbe93e","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":206,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"8f2a3afa-256b-42b6-82c9-ebccdb5e7dd2","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the jurisdictions","page_number":206,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"8f3b1019-d4e1-404d-bb3c-4f22a771daf9","block_type":"box","text":"in which they engage. When a corporation repor ts material financial risk related to policy and or regulatory changes,","page_number":206,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"ddc35944-8137-4e1e-9855-a7351eb5eb55","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":206,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"fff38604-aa8a-46da-90ee-534c6a60fd55","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":206,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"a0de759f-a880-437a-bf7b-0d9622a67ecc","block_type":"box","text":"statements on policy matters material to the company’s long-term strategy. The board should be aware of the","page_number":206,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"dabe6099-326c-4fed-8dd7-71059579be20","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":206,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"b4d408b0-a280-443c-98c2-b9927e8abd6e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"aeb599ce-d52d-4bd4-9624-1c5051c19f42","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"9055396e-f329-40c8-a323-b4fb05e9b0e5","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f8a39c7d-6e0a-47fd-82b2-a811b6ca0a69","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":207,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"b6892e85-08dd-42cb-bf6e-64536f05bc57","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":207,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"c2c525f6-4f05-4e96-baee-40bb71c32cf8","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":207,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"e9f1d5a3-6420-44db-aa3d-d5526e9f8c30","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":207,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"d17c49d8-c2b7-468a-a039-ae1a659e3d0f","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":207,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"25e4c48d-4130-4243-a500-ea167c8a367f","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":207,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"af717040-da50-4f2a-8008-2a33ba07b827","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":207,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"803f031b-13ac-4721-9d6a-87b3b0956100","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":207,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"ed78fb97-83be-47c8-af1b-ee7e1dbdb9ee","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"93eedba7-287d-428e-b687-ea73001e7af7","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"c1661d2d-06c9-4ef4-9705-fd0d0a1e87bd","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fa3500bb-725c-428a-8022-a4b7fbb4b3b2","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":208,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"f884d4cd-6b39-48c9-ba9b-47ae0b877c15","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":208,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"000c8d35-de3f-488e-988d-5077afa6191a","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":208,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"08c94da2-5157-4c7f-a0ab-640b3304bde2","block_type":"box","text":"11","page_number":208,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"eff4adae-3822-4484-9941-55271899ea80","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":208,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"e9724754-6f54-407f-8350-abfa673b0f64","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":208,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"894271fd-d420-4d43-b550-977c431665f5","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":208,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"5b9851c7-7e6a-429d-808e-87568e5cc9b9","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":208,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"776813b8-3f4e-4356-95ab-02c911b2c068","block_type":"box","text":"regulatory requirements.","page_number":208,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"0b21a770-1781-4c6c-85a7-a73077685086","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":208,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"90a542d9-0568-4223-b4cb-9a15c313a67f","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":208,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"e92df418-dacb-4fb2-8f50-f3aa0d0332cc","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":208,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"841f3c4d-657d-4e4c-a12f-50bebeaea3c2","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":208,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"fe8564e2-5eb2-422e-a2c6-f2dd1da83da2","block_type":"box","text":"Doing so helps us under take a more holistic assessment of a company’s potential financial per formance and the","page_number":208,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"d643bc82-a50b-4c63-bbe9-e43f78290f9b","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":208,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"e537b9ab-87aa-4c7b-ab7a-2c88750a520e","block_type":"box","text":"We may vote against directors or suppor t a relevant shareholder proposal if we have concerns about how a","page_number":208,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"d2652e8e-8f03-4438-89be-07d287685291","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":208,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"5be5ee89-8645-49eb-a09f-1e97e4c2ccfd","block_type":"box","text":"returns.","page_number":208,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"ca581322-f707-4fa5-9cc6-3925650dc6f7","block_type":"box","text":"KEY STAKEHOLDERS","page_number":208,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"c8f30451-f00c-476d-8e20-caff238aff5c","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":208,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"9f4b7c7b-8306-42a6-88a0-1144b4bc84e1","block_type":"box","text":"whom they depend for their success over time. It is for each company to determine their key stakeholders based on","page_number":208,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"db256d72-64bb-4f6c-b35e-6a39bd5cdd37","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":208,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"5ba76bc6-aae9-44eb-b386-a82a24caefeb","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":208,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"c0e4bc29-3f18-48d2-9b8c-7e31a2282b80","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":208,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"3ca3181a-22ae-478f-a0e5-d157a76e8ef7","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":208,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"a0e555f9-29fa-4994-bfca-db13c4daadad","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":208,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"838885a6-b46f-4dad-b1e6-45b88e9d2ca4","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":208,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"d568c61f-6d77-4b96-8b29-4eefc61d2d25","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":208,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"8bef9c46-567a-4c04-a321-0274350c8961","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":208,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"351bc19f-cc1f-4021-866b-8d12f2088cb5","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":208,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"bca11304-1c8d-4f7e-84d3-398592440fc2","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":208,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"e2df3f18-a9a1-4038-b3cd-95cf31189ef5","block_type":"box","text":"i.e.","page_number":208,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"7ec6ad92-0e87-430e-b8fe-7ea7f6cb153f","block_type":"box","text":", one in which global","page_number":208,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"c36b6723-34f7-4f90-918a-9de480d6543f","block_type":"box","text":"temperature rise is limited to 1.5°C above pre-industrial levels. In addition, clients in separately managed accounts","page_number":208,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"6def78a5-836f-4e67-89c9-9ce4dc1e7da5","block_type":"box","text":"may instruct BlackRock to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":208,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"b41e6543-e9ee-47df-8423-24486e2a9aa6","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":208,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"a9e2557b-d50d-491d-91df-785f20d09369","block_type":"box","text":"client.","page_number":208,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"bc4a5698-25b1-4617-852e-0dd3e3716492","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":208,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"bb5569a0-410e-4095-ade5-8f16f8041476","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":208,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"ed5e9377-b99b-4193-aa8b-2ea7d724702c","block_type":"box","text":"the low carbon transition, based on repor ted and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":208,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"dc6748d5-c2f3-4fdf-b7bc-162e0f790f9c","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":208,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"97165e0b-97b3-40a2-b2d1-cef622ed27c6","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":208,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"8ad7358f-b98c-476c-a808-8e15b5efa03d","block_type":"box","text":"include an explanation of the decarbonization scenarios a company is using in its near- and long-term planning, as","page_number":208,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"5bed9a10-8183-4d2e-8ae3-a063a0263fbc","block_type":"box","text":"well as its scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for scope","page_number":208,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"fefae3a0-8c18-4cd3-9b6a-65937be21573","block_type":"box","text":"1 and 2 emissions.","page_number":208,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"5f1042d5-245d-4fe2-9995-fe88d7e70bf2","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":208,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"d06c51bc-6453-4fb2-ba88-b1f2c664aac2","block_type":"box","text":"suppor t for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":208,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"7fdb9dfd-96cd-4cf1-aec8-ff0188c40b5b","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":208,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"ebbc6909-084a-465b-9ecf-a369031fb0fc","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":208,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"11799054-0533-453b-bfa7-2fc209772550","block_type":"box","text":"11","page_number":208,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"590407d9-66aa-442f-b527-0d303f81ac69","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":208,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"5d4d312b-5f17-4c16-bdc1-abb3a42203fe","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":208,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"8c949306-f22c-472f-b6e6-d196e69308ae","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social","page_number":208,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"1aab42b9-488d-4c2b-9125-98333a308c76","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":208,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"a2497d23-dbc9-4a82-91d8-f63d6f1b3f3d","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":208,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"b2d074bc-6c93-4607-acb2-1975ef13da7e","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":208,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"f4b41620-3403-4225-8eb9-9d11d9efdec6","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":208,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"c2626a6d-2e9d-422a-98c3-079dadb95cd3","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":208,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"7600f2ea-6b2c-462d-b2ce-10fcb401608c","block_type":"box","text":"sound governance framework.","page_number":208,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"b467317c-9962-49fd-a7e4-728d25949187","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"44d0c828-b7fc-486b-af0f-dd835676f3d6","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":208,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"3fca0084-2564-4f62-8b40-51178b2e8b87","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":208,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ee319ba-9ccc-4559-ac7b-671c040a2145","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":209,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"79f258a9-70fb-43d9-a418-0643bc1cc209","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":209,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"519f0b0c-2c93-418e-ac63-d0b864285b23","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":209,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"527f997a-ebf0-4133-a6e2-1fc1831842c3","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":209,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"ef309b34-43bf-4317-8434-d36de00cf2cb","block_type":"box","text":"their investment mandate and fund objectives. For the funds and accounts in scope, voting on matters not related to","page_number":209,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"d13f5f51-e6b8-49a5-83ab-e6baefda76c8","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":209,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"5052a351-bc3f-4f55-9d2d-9ebacec315d5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"485cd522-2b76-4e44-9e6c-41f922763889","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":209,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"38f6cd2d-5c17-4ad6-a3fd-b1c2a854d238","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":209,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"58636da2-98b7-4f0f-8424-b8c38accbb5a","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":210,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"6e028a2b-ea38-44c2-a608-a39756de0ac5","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":210,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"d09617d5-903f-4d87-8ef3-8fcf98047b7e","block_type":"box","text":"Oversight","page_number":210,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"ddfbc3e5-7610-405c-9557-08514f88a01a","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including voting in","page_number":210,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"a6ec9dbf-3672-4156-a5d6-f6dcf19d39c4","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":210,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"697561d7-3bde-4f14-811c-78abfa509c98","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":210,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"b8dbc3c6-9a90-4ab2-a189-4b2c16342021","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":210,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"40a89cb8-b872-4220-ab26-bab999f081d7","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":210,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"e8d5f1a2-58c3-4dbd-98e6-609659dbc71b","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":210,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"a4aa2fb8-90a0-4868-bb5f-58a17ec7dd32","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":210,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"96abc30a-774e-4d2e-b2ba-19ba28e7663b","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":210,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"cfcf5223-3b73-47b0-a273-4da79ec4becd","block_type":"box","text":"to BAIS’ policies and practices. It does not determine voting decisions, which are the responsibility of BAIS and the","page_number":210,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"07e76ce8-d682-4761-98bd-3a9f131e40c0","block_type":"box","text":"relevant active equity investors.","page_number":210,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"e7d3145e-6232-4081-9445-8f96a3d72146","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":210,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"4080c185-6599-46a4-b3f4-6533afa8603d","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":210,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"fee21b7b-d304-4871-a025-5e06dd689d94","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":210,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"52074668-8fd6-4986-a2fd-2b1c0a248722","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":210,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"671318cb-9dfe-49c2-8a31-0c7eebb0c24b","block_type":"box","text":"par ties for cer tain of the foregoing activities and per forms oversight of those third par ties (see “Use and oversight of","page_number":210,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"36b6d573-582a-4e3f-ab93-a19acb8b68bc","block_type":"box","text":"third-par ty vote services providers” below).","page_number":210,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"36c8c995-f77a-4b99-974c-5cd605751532","block_type":"box","text":"Voting guidelines and vote execution","page_number":210,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"b8f5585b-c2d8-47a2-a5f2-fd94a862c821","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the voting items","page_number":210,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"4e13f54a-ce9d-43ab-b02b-c6e7363e9214","block_type":"box","text":"submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have voting authority. BlackRock votes","page_number":210,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"af5a3281-36b2-47f4-9392-404308f2f7d5","block_type":"box","text":"(or refrains from voting) for each Fund for which we have voting authority based on our evaluation of the alignment of","page_number":210,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"3f43a964-d25a-42b2-afea-a8312fb87b12","block_type":"box","text":"the voting items with the long-term economic interests of our clients, in the exercise of our independent business","page_number":210,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"ac1c314a-bca2-44d4-98dd-f41af1f7f513","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":210,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"5f6837be-0fc7-467a-8f3a-53051d3c0e67","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":210,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"8924488d-3cc3-4cbf-9f43-38f3b3dfd949","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":210,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"3cd3c539-aa02-4571-9e58-72d8360e8641","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":210,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"a677eed4-1427-4245-899c-836ad939ff6d","block_type":"box","text":"although por tfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":210,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"0a2d5ae9-4a0e-4b74-ab99-1fce53b7570c","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":210,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"e329c0a3-b291-4634-8c93-a6fc7aeb6b3a","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case basis, in the","page_number":210,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"2b372d2b-018f-43a7-8dfa-3bd8d2c7cb9e","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":210,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"74484f71-ae35-4b50-b405-498034f14df8","block_type":"box","text":"do not indicate how BAIS will vote in every instance. Rather, they reflect our view about corporate governance issues","page_number":210,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"176a05a2-2bb9-4d85-88db-eab35e47cea2","block_type":"box","text":"generally, and provide insight into how we typically approach issues that are commonly put to a shareholder vote. The","page_number":210,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"3afe6aea-0c51-4b52-9d66-b7bfec7ea088","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":210,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"a435ce28-ae6a-41e9-8465-5cbd5e1db5b6","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":210,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"091e0c94-7076-44e8-b7ae-92180ed4c98d","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":210,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"24fbcf42-2d27-4b0e-941d-34009111ee86","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":210,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"15486636-efc8-427f-ba27-6bb75f4c2148","block_type":"box","text":"well as the desirability of voting such proxies. These issues include, but are not limited to: i) untimely notice of","page_number":210,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"9ac4e396-20f1-4cd0-b88c-044bf6c87e31","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":210,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"ff5c9589-9a37-4347-a575-35d46c763cb3","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":210,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"239fa52e-e8b2-4d1f-8494-f6c0a3140d8b","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":210,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"48db5a9f-7b7f-40d1-8a72-1ab1100c0bbe","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":210,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"c8dcdd7e-ac09-486c-99d3-6063813243ff","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to the","page_number":210,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"842cd057-f848-4190-b5df-68e2b457e979","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":210,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"9b14aafa-d846-454e-9636-bb1faf8b9314","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. In addition, BAIS may determine that it is","page_number":210,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"888e3280-64c2-40a4-810e-82f15369f483","block_type":"box","text":"generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs","page_number":210,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"6a3f79a9-3bab-4ce6-837c-12cae6ff5db2","block_type":"box","text":"(including but not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising","page_number":210,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"7d6a6dba-b031-4243-b4ee-2c796f867f18","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":210,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"abdb2d9e-d2ae-4f4a-a19f-bba6c73903f9","block_type":"box","text":"Voting Choice","page_number":210,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"7ce8d0f5-4000-46f2-aa6f-8c9efce50c5f","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":210,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"66e80488-8a43-468d-9772-f5bfd847cf91","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":210,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"9b3a7be6-8e7e-41bb-91d5-8997d16853ed","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"60f1be98-ce13-4130-9460-d408b1edd717","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":210,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"77160937-b094-4b72-bed0-5c09475408bd","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":210,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"302fcfd3-348e-43ec-a566-9010224e6d55","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":211,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"38b357c1-0af0-48b9-a39f-6d612fbb46f9","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":211,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"de39bfb4-8a1b-4ae6-8689-4cb2a48a765b","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":211,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"5048a5ea-45f0-4b7d-b77f-0c1775090732","block_type":"box","text":"strategies.","page_number":211,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"8e9e005f-cc19-41d4-9656-cd8367338d94","block_type":"box","text":"12","page_number":211,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"20d3044b-7ad5-4f40-8008-2f55f771b29f","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":211,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"64a60062-67e7-483a-a058-3604a4d6be55","block_type":"box","text":"on whether our clients have authorized BAIS to vote on their behalf, have authorized BlackRock to vote in accordance","page_number":211,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"d38d1e4b-da0d-4b69-9c0c-2de81f4b2c02","block_type":"box","text":"with a third-par ty policy, or have elected to vote shares in accordance with their own policy. Our clients have greater","page_number":211,"box":{"x":68,"y":138,"width":823,"height":11}},{"id":"b7a4cf4f-7fe4-40f2-bb77-f46284e4f76d","block_type":"box","text":"control over proxy voting because of Voting Choice.","page_number":211,"box":{"x":69,"y":152,"width":360,"height":12}},{"id":"8ec7e07c-5723-483e-b8ce-e7b2ed3fe4f0","block_type":"box","text":"13","page_number":211,"box":{"x":431,"y":153,"width":9,"height":4}},{"id":"606f718f-a597-4c5d-9afb-a997faae812c","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":211,"box":{"x":69,"y":175,"width":403,"height":11}},{"id":"eef6fd03-07f7-47e8-8583-8a6654dc9503","block_type":"box","text":"Third-par ty vote services providers – or proxy research firms – provide research and recommendations on proxy","page_number":211,"box":{"x":101,"y":193,"width":794,"height":12}},{"id":"3fb54330-56b9-493c-867b-02982b65e6ba","block_type":"box","text":"votes, as well as voting infrastructure. BlackRock contracts primarily with the vote services provider ISS and","page_number":211,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"ebcd7b57-b52d-4f85-ba5d-9a08f5f08cb7","block_type":"box","text":"leverages its online platform to supply research and suppor t voting, record keeping, and repor ting processes. We","page_number":211,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"7bfa51ef-26c5-4653-aca2-de3e2e51fca0","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. It is impor tant to note that, although","page_number":211,"box":{"x":69,"y":238,"width":839,"height":11}},{"id":"61b870d5-42e1-4a93-b9c9-6a35b7330151","block_type":"box","text":"proxy research firms provide impor tant data and analysis, BAIS does not rely solely on their information or follow their","page_number":211,"box":{"x":70,"y":253,"width":839,"height":11}},{"id":"90052907-e2b6-4933-94a8-459960c36f70","block_type":"box","text":"voting recommendations. A company’s disclosures, our engagements and voting, investment colleagues’ insights and","page_number":211,"box":{"x":68,"y":268,"width":840,"height":11}},{"id":"d3aa6b3a-693b-46f8-a9dc-aa3b8b866d92","block_type":"box","text":"our Guidelines are impor tant inputs into our voting decisions on behalf of clients.","page_number":211,"box":{"x":69,"y":283,"width":578,"height":11}},{"id":"8e7c037e-218e-44d6-b4d5-037b023b2949","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to streamline the","page_number":211,"box":{"x":102,"y":301,"width":795,"height":12}},{"id":"3efb87f6-8bae-4f22-8b63-adb61c792626","block_type":"box","text":"voting process by making voting recommendations based on BAIS’ Guidelines when the items on a shareholder","page_number":211,"box":{"x":68,"y":316,"width":795,"height":12}},{"id":"79e7e4cd-d471-46ea-866f-6d7cfdf20580","block_type":"box","text":"meeting agenda are routine. Agenda items that are not routine are referred back to BAIS to assess, escalate as","page_number":211,"box":{"x":69,"y":331,"width":799,"height":11}},{"id":"4c788555-9ca3-4752-9483-c2f72ecfa393","block_type":"box","text":"necessary to the relevant por tfolio managers and vote. BAIS reviews and can override the recommendations of the","page_number":211,"box":{"x":69,"y":346,"width":819,"height":11}},{"id":"df3b0bd5-8d0d-437c-8a04-fc52d2cfac7d","block_type":"box","text":"vote services provider at any time prior to the vote deadline. Both BAIS and the vote services provider actively","page_number":211,"box":{"x":68,"y":361,"width":785,"height":11}},{"id":"39247019-c11d-466f-a3da-92acfacbda13","block_type":"box","text":"monitor securities filings, research repor ts, company announcements, and direct communications from companies to","page_number":211,"box":{"x":69,"y":376,"width":837,"height":11}},{"id":"45240567-fb60-4653-9af6-95fe1b134bb9","block_type":"box","text":"ensure awareness of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":211,"box":{"x":69,"y":390,"width":775,"height":12}},{"id":"cd119ce7-169f-42e9-b59f-3b59cf6dbf6b","block_type":"box","text":"BAIS closely monitors the third-par ty vote services providers we contract with to ensure that they are meeting our","page_number":211,"box":{"x":102,"y":409,"width":807,"height":11}},{"id":"4ecc0943-247d-454e-bb20-1500eea3b281","block_type":"box","text":"service level expectations and have effective policies and procedures in place to manage potential conflicts of","page_number":211,"box":{"x":69,"y":424,"width":788,"height":11}},{"id":"583050f0-e083-4860-8b15-93d49b826f67","block_type":"box","text":"interest. Our oversight of service providers includes regular meetings with client service teams, systematic","page_number":211,"box":{"x":70,"y":439,"width":760,"height":11}},{"id":"f1f130f3-93b6-4707-a482-f70c3cd2f63c","block_type":"box","text":"monitoring of vendor operations, as well as annual due diligence meetings in accordance with BlackRock’s firmwide","page_number":211,"box":{"x":69,"y":454,"width":824,"height":11}},{"id":"ad002add-0cef-4c2b-b62c-9798e444c0a4","block_type":"box","text":"policies.","page_number":211,"box":{"x":70,"y":469,"width":56,"height":11}},{"id":"7d787812-73a1-4611-a292-fe6cf8effe79","block_type":"box","text":"Conflicts management policies and procedures","page_number":211,"box":{"x":69,"y":491,"width":342,"height":11}},{"id":"c5cbd551-1a12-47b6-b79e-48b11966a2b8","block_type":"box","text":"BlackRock maintains policies and procedures that seek to prevent undue influence on BAIS’ proxy voting 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BlackRock","page_number":211,"box":{"x":102,"y":639,"width":767,"height":11}},{"id":"281eec85-3316-415c-9a5d-48439317a88c","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":659,"width":6,"height":5}},{"id":"05ba87aa-3d40-4f34-9e60-1c55724b8ede","block_type":"box","text":"Securities of BlackRock, Inc. or BlackRock investment funds held in Funds managed by BlackRock","page_number":211,"box":{"x":102,"y":656,"width":698,"height":11}},{"id":"53981925-7056-48bf-9916-84770e587311","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":676,"width":6,"height":5}},{"id":"b1d9e0f0-c6d7-4111-bad8-ec88e5525245","block_type":"box","text":"BlackRock, Inc. board members who serve as senior executives or directors of public companies held in Funds","page_number":211,"box":{"x":102,"y":673,"width":789,"height":11}},{"id":"26d88611-62cd-4455-95cf-cec136728c22","block_type":"box","text":"managed by BlackRock","page_number":211,"box":{"x":102,"y":689,"width":163,"height":11}},{"id":"52383e1a-60b0-44c8-9a1f-a4f79f0046eb","block_type":"box","text":"BlackRock has taken cer tain steps to mitigate perceived or potential conflicts including, but not limited to, the","page_number":211,"box":{"x":102,"y":707,"width":785,"height":11}},{"id":"d48e36bc-0aa5-4dbd-83b3-8170798c3762","block_type":"box","text":"following:","page_number":211,"box":{"x":68,"y":722,"width":66,"height":11}},{"id":"a6f7bb17-aef3-4d4b-aab4-00775b063bb1","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":742,"width":6,"height":5}},{"id":"bfe9c974-75bf-4036-a9b6-cb72d10f18a3","block_type":"box","text":"Adopted these Guidelines which are designed to advance our clients’ long-term financial interests in the","page_number":211,"box":{"x":101,"y":739,"width":741,"height":11}},{"id":"eafd7e26-5979-4dfc-9188-b920aa6513c3","block_type":"box","text":"companies in which BlackRock invests on their behalf","page_number":211,"box":{"x":101,"y":754,"width":383,"height":11}},{"id":"1296c3b9-5c25-4115-a50f-54264ea0f12f","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":774,"width":6,"height":5}},{"id":"f6ceda16-5f92-4705-91a6-88ce73ec02ad","block_type":"box","text":"Established a repor ting structure that separates BAIS from employees with sales, vendor management, or","page_number":211,"box":{"x":102,"y":771,"width":757,"height":12}},{"id":"a3277bcc-0bec-41cd-9fe8-6efe2af66cbe","block_type":"box","text":"business par tnership roles. 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In mitigating conflicts,","page_number":214,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"b7f52d99-8a9a-487a-9bc3-cd49bc683c5b","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":214,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"5057ca7a-d0ab-483f-b0ac-0a51199fcb0e","block_type":"box","text":"In cer tain instances, BIS will engage an independent third-par ty voting service provider to make proxy voting","page_number":214,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"1b0ce802-09fd-4b88-bb9c-118f3135922b","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":214,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"1599cfcd-ede9-4d25-8c83-d6f1db89a83a","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":214,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"de4c0dfd-e28c-44c4-88b1-70a5d9baa56a","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":214,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"f184c482-6d73-4dcf-b53d-645f5870fbe2","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":214,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"c1a1e1bc-e66e-4c0d-acca-28763d6c0b00","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":214,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"bbc45214-040c-4bf4-923e-274cedd88d60","block_type":"box","text":"connection with proxy voting.","page_number":214,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"4cb9a545-1036-439f-aa36-1b31d6c6b085","block_type":"box","text":"Reports to the Board","page_number":214,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"25cf554b-6eca-43c4-aaf6-aa5601d15888","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":214,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"73f8dc80-1d44-4d3e-afff-b2a2ebc5d69e","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all 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As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":219,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"94c9f000-8935-49fb-8943-4658e3d62ed0","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":219,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"af19bec7-ab4c-48c8-91fb-fba86d72ff30","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":219,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"d476bec4-4b97-4827-926b-014e2b971559","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. 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These are topics that shareholders may have","page_number":219,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"06234578-53c6-467e-88ba-a011698d7bc3","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":219,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"1fd8cd10-a0a7-45e3-a5ef-644c22d01c5f","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"1b498c0a-6762-49f3-a942-4d394a7dbf8d","block_type":"box","text":"Boards and directors","page_number":219,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"123bfe80-c0b0-4d2b-8f65-86cbd9e71079","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"fdb4b694-0a61-43e3-aa31-ad02569ce25e","block_type":"box","text":"Auditors and audit-related issues","page_number":219,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"f97173b5-1203-46fd-a2ba-92b854538e79","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"53671f14-6a5c-444a-952b-8e59f1256135","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":219,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"308afeea-c9c8-4e8d-9b46-f1f63c94629c","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"81426e29-cf52-4473-8399-0d361ce4b1c4","block_type":"box","text":"Executive compensation","page_number":219,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"f5db2fc4-07ad-456c-b1ef-3e4580560b9b","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"775d4fb7-b7a2-47f0-b551-a556db8b71eb","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":219,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"978565df-c263-4088-8c34-28e628b1bd1c","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"160ab49c-691f-4604-9d09-9181a96e0a61","block_type":"box","text":"Shareholder proposals","page_number":219,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"290e0d10-a3a7-42a3-8b88-8b0a3a55cfb7","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":219,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"237a7ea4-364c-4931-873d-f8eefd59a073","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":219,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"1f6ebaf4-32b8-481e-9966-55b1e175b53a","block_type":"box","text":"which companies operate.","page_number":219,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"9ebae989-3e6e-4396-907e-c0979d19d9f8","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":219,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"69f27e6d-ad0c-4f8a-9540-d268a6b7ff20","block_type":"box","text":"in their domestic market at a minimum, and we ask that, if they do not, they explain how their approach better","page_number":219,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"f61b86a6-e7b5-4f00-81ab-63747c63ea8a","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":219,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"f40539fc-6cfc-4546-9090-e96250adb60d","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":219,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"e42d6e6f-590f-46c3-9152-2930d59d0fd7","block_type":"box","text":"4","page_number":219,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"f59616e5-12bf-4be2-92dd-2767e3c5278a","block_type":"box","text":"3","page_number":219,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"7c1ca16d-a2a3-4e35-aed4-fc318e2f5fb6","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":219,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"3e1f7867-85eb-450f-9698-98e71174abde","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":219,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"c66b2aeb-bcaf-4ab9-abde-1da98e27a0da","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":219,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"7c7e9129-8ee2-46a8-b2e4-5010deaabc70","block_type":"box","text":"4","page_number":219,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"c884f596-045e-44bc-b451-d2b5487e53cf","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":219,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"affe01d3-387b-41dd-ad6d-43b1961b3d53","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":219,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"684ce898-fe1c-4442-a787-4b06e811fb2f","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":219,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"7d9d2155-56e3-4b8d-a4fc-6ecc9d1ea52d","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":219,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"e978f190-d229-42a7-a0e8-c55e7e28cbcf","block_type":"box","text":"guidelines.","page_number":219,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"f49ebfd5-1811-4142-9900-0df42ee26a9d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"9ef031a7-cad5-437d-8b89-e66c509699cb","block_type":"box","text":"Global Principles | 4","page_number":219,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"21f2fe9b-fde3-46bd-9d66-805e52b4f26d","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"76eb5fe6-0f6d-4dcf-8a56-8f46d73420db","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":220,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"0b3e9c15-0a22-46bc-8454-90077dfbc22b","block_type":"box","text":"Oversight role of the board","page_number":220,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"c6e21bc8-d24f-4db1-ba67-3cea1cb0cf39","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":220,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"273a8b53-6b5a-4ddd-bf8c-78f80a0a161a","block_type":"box","text":"characteristics relevant to a company’s business enhance the board’s ability to add long-term financial value and","page_number":220,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"7dbb5a4a-da69-4ae4-a2f5-db6d72d405b9","block_type":"box","text":"serve as the voice of shareholders in board discussions. In our view, a strong board gives a company a competitive","page_number":220,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"faa80f83-5e60-4e96-9526-7947f4753258","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":220,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"f000c3b6-5910-4942-b8d4-56cfddd593eb","block_type":"box","text":"long-term financial per formance.","page_number":220,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"86c4fb3e-af00-49b8-9862-17a28f23d2e9","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":220,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"26ffce3e-dfee-4a11-8c9a-622e69451ab1","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":220,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"b8a94540-3eb4-49d8-9d22-46a60891614e","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":220,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"a17cd48f-ec42-42b7-9241-dadb16964851","block_type":"box","text":"the business environment in which a company is operating.","page_number":220,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"e13d15af-a0a4-437e-b7c3-199142ed2e95","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":220,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"14a78f12-6c31-4ec6-9029-bc70e60db880","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":220,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"8844aaf8-128b-4eb8-9f40-aa66d7ea6ac3","block_type":"box","text":"long-term financial interests of investors. This includes having clear descriptions of the role of the board and the","page_number":220,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"3aa87a8b-eba7-4256-b128-f1c2a1ecd404","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":220,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"6e7fe87d-4f3f-4fc9-b302-2a4dd0d8d07f","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":220,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"9e15caed-d2f2-4c59-8a0f-8d2b29de0c2c","block_type":"box","text":"mitigating such risks.","page_number":220,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"1b7abdb9-530d-44cc-9472-40207c52df49","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":220,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"20c0a401-bbca-4969-9f84-3420593508b4","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":220,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"e386ff49-7dce-4ed3-99e3-7614760c3cc4","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":220,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"932ae290-5673-4845-ac32-8ec91dfd54c4","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to ar ticulate the effectiveness of these","page_number":220,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"6e494f8d-0ca5-4d3a-9bfb-c99a706c9f14","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":220,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"4e71d146-4e59-4ca1-b782-f44e22daa020","block_type":"box","text":"strategy.","page_number":220,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"9a8f086e-4a2f-44a4-bc73-fbe311e802e6","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":220,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"a18f6011-20d4-427e-9f59-ca5f4ab1de47","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":220,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"5c432bd2-4ef7-436a-bdb7-c6ed8bc7fcbd","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":220,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"be2f96e8-6ebc-4398-9746-56727082ce05","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that speak to","page_number":220,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"34dc34ac-49db-496f-9ea1-3f4bc21d54c9","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":220,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"db8d3caa-efba-4772-a376-c5b758d9d299","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":220,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"e9f9474f-6c06-49e5-9bf6-d89ab7edf786","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":220,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"720ff547-b532-4ddb-a9cd-b742572471bc","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":220,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"6abc8a63-d3eb-45ca-8710-a8dd65fa7373","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":220,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"75b6881a-7b4f-4b3b-9636-8e151d08b353","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":220,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"53a860c2-49dc-4a28-b2ee-eb57cf60a09d","block_type":"box","text":"Regular accountability through director elections","page_number":220,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"c9aea0bc-e3eb-4789-8937-56b3d98d1c86","block_type":"box","text":"The election of directors to the board is a right of shareholders and an impor tant signal of suppor t for, or","page_number":220,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"d2dbf65f-4f3c-4ffb-8f4a-d41ab4a71f00","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":220,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"e9148485-d988-4d55-bdb1-ee7ddfd9ad43","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":220,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"c2ea4aa4-ee5f-4001-aa1d-f993d7348220","block_type":"box","text":"5","page_number":220,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"fc7e2350-0bba-4c50-b37a-0c9f9324a3ff","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":220,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"e3b2c507-2860-4af5-aaf8-d06cd95c094e","block_type":"box","text":"decisions in a timely manner. When board members are not elected annually, we consider it good practice for boards","page_number":220,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"d24fbed8-70b7-47ec-a002-2262c211fc80","block_type":"box","text":"to have a rotation policy to ensure that, through a board cycle, all directors have had their appointment re-confirmed,","page_number":220,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"7327b570-4c66-4274-a0d7-2bffde040073","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":220,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"8fc5d10f-d8a4-42a2-b8b8-09347d97e825","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":220,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"1a54a8a5-b020-4b88-b9a7-8a0e84b41cbc","block_type":"box","text":"Regular director elections also give boards the oppor tunity to adjust their composition in an orderly way to reflect","page_number":220,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"afd2f5ca-b9a6-4e4e-9259-42dbde89ca0c","block_type":"box","text":"developments in the company’s strategy and the market environment. In our view, it is beneficial for new directors to","page_number":220,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"9d941e25-b576-4c43-975e-42a04a708a24","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":220,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"065a9325-ba86-4d69-90c5-edc46f122f1c","block_type":"box","text":"5","page_number":220,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"81b46e78-941d-4873-a065-b13a2f1ed98e","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law,","page_number":220,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"654f0c20-57df-47e1-beb9-e1e26fa44186","block_type":"box","text":"market regulation or voluntary best practice.","page_number":220,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"4b3494ed-341f-436e-8d82-f041a567930a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"508a954b-86ff-412b-b113-7c88cb57d16a","block_type":"box","text":"Global Principles | 5","page_number":220,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"ae826b62-2ee7-4cbe-b4e9-a06b11fb1dfc","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e7b27a5b-0f8b-4327-8b1b-bc5993c61876","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":221,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"c25d0104-2198-4d29-8fab-75b53c1920aa","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":221,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"dfc13c9e-a3f7-49ea-8258-73fb6eb92ed0","block_type":"box","text":"recently.","page_number":221,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"a990323b-baa4-48bf-bc32-9e850dd94d86","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":221,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"bd85f662-c735-49bd-88a1-c16d2aeb68c2","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":221,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"f920ba19-beea-4159-8e73-93d41b0be44e","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":221,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"aa4133bb-41ac-493c-9c08-2f0a98a0454f","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":221,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"e0f45627-a4bd-4b49-801e-b8769809fa14","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":221,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"ceef248e-6ce7-4419-aa3d-d69307b22c19","block_type":"box","text":"Director independence","page_number":221,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"b5217e3c-4bd6-4e00-9486-2d2dbc1c5afc","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":221,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"43326521-0aad-43b3-83ef-878162620363","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":221,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"01b12b28-b4a3-45ed-b765-4cd2527b68fe","block_type":"box","text":"6","page_number":221,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"cfaf79a8-24e2-42aa-a76a-beb4f8a004e0","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":221,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"e7d0916c-aa67-4e0a-aa96-0a1993d70ea6","block_type":"box","text":"directors, free from conflicts of interest or undue influence, to ensure objectivity in the decision-making of the board","page_number":221,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"9c14b2d5-8af5-4de8-815b-392a01ddb2cc","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":221,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"ccf6fa1f-c296-441e-918c-d057b28cdee8","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":221,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"5984f513-398f-488f-8d7d-36393ca0fbc2","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":221,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"383a706f-3ce2-40ed-a679-ed90f90bcf18","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"bef6fed6-c697-4d1c-8e44-c72e24f3a815","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":221,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"ce7a48d1-b38f-4ae1-a4e0-08ce2d0dd969","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"0b04f631-9655-4231-8173-efb0e2d81664","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":221,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"cd5692d9-6bb2-4747-a260-596bf925bd0f","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"0997d6a2-fa1f-4273-80c6-126ad9b159c8","block_type":"box","text":"Interlocking directorates","page_number":221,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"b4e652fd-8edb-44d5-8088-c8d814d18d03","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"04571cd6-2ba7-4541-a74a-0d9f4218c516","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":221,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"16f5484c-f438-467d-acb1-cc5ee8fa0248","block_type":"box","text":"materially inter fere with a director’s ability to act in the best interests of the company and shareholders","page_number":221,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"cfe9b3bb-9535-408a-96dd-30b1b10fa138","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":221,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"026c19f0-6643-4727-bf3a-42c285a60a96","block_type":"box","text":"independent board leader. This director may chair the board, or, where the chair is also the CEO (or is otherwise not","page_number":221,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"9953e2a4-c001-4333-96a5-d71bd624fe9b","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to suppor t independent board","page_number":221,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"d68262e3-5703-4bac-b9b8-645d2116c61b","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":221,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"df447a55-bdca-4dc3-9336-3b76060179a5","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":221,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"6a2d495f-df19-4b4c-b3cc-44af16f1498d","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":221,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"951cd2b9-a3b7-417a-84b0-af66b5267f3f","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":221,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"2c9be1d7-6cda-44c2-ac4b-fad4558eb0d7","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":221,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"981ae971-0842-4c48-8a7a-ba53e9d0c2bd","block_type":"box","text":"require additional focus. It is our view that objective oversight of such matters is best achieved when the board forms","page_number":221,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"5d6651f3-fb56-4b3b-830e-05c4007168d0","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":221,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"2fc40989-2758-454d-9746-4d1745204fcc","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":221,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"3454fd49-f056-4bfe-9be8-592a6738ed25","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":221,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"ff10d70d-4b5e-4d3b-b689-1bf4c7554393","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":221,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"db8c9050-b39f-4cb8-a49c-a398fc9ebdf9","block_type":"box","text":"Sufficient capacity","page_number":221,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"8ec6e235-e972-40f8-ad1c-63ca067ee069","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":221,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"74ef2705-df67-48fc-bdfa-fa8db7babdc6","block_type":"box","text":"appropriate amount of time to board and committee matters. It is impor tant that directors have the capacity to meet","page_number":221,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"8ed1a4a0-37d9-450c-81be-ff812075ed3c","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":221,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"7fbbf297-0914-48eb-a949-5cc429529bdd","block_type":"box","text":"practice when they don’t take on an excessive number of roles that would impair their ability to fulfill their duties.","page_number":221,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"8d808153-1613-40bc-9ece-78dec3d5548c","block_type":"box","text":"Board composition","page_number":221,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"a57dc8ce-7b4a-45d7-8a79-e99e2704f232","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":221,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"0d14c803-8a5e-4c4b-9d41-e43bf887e7ca","block_type":"box","text":"capitalization, and ownership structure, as well as the market in which the company operates. We find it helpful when","page_number":221,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"bc187492-6912-409b-aac5-54b933471547","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":221,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"7d3e10d7-3c8a-4613-ad8e-b35c520a246d","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":221,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"6a96d1e6-05c5-4ee3-8a43-75b049260219","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":221,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"3b51f639-84bd-4991-a4d9-fb687061c317","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":221,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"f939cdcd-14f8-496a-adfb-b13b65e90769","block_type":"box","text":"board, as well as the par ticular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":221,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"a8dd68f4-3b71-4371-a77a-5581cfc301bd","block_type":"box","text":"6","page_number":221,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"e2e1d0eb-7ee6-4344-a8d8-7a93e893db19","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":221,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"43717ebe-d79d-442a-a2a7-6b12ddc7a18d","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":221,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"4d963543-e193-4854-9c04-60a6af84777f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a52f4343-9643-48d3-899b-cd1af2287d16","block_type":"box","text":"Global Principles | 6","page_number":221,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"9ce6050a-52ac-4543-b7c1-4b4eddbbb93d","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"207ff165-e1eb-48f0-abdd-925d579d8465","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":222,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"7159028b-63bd-4678-8be3-3bfba5ad015b","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":222,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"538d74c3-b48f-4e90-812e-802a411b9153","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the board","page_number":222,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"1d8bd811-798b-4f2d-a3d3-dbb1fdd2dcd9","block_type":"box","text":"room. We see it as a means of avoiding “group think” in the board’s exercise of its responsibilities to advise and","page_number":222,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"9391d186-83ec-4f8d-a3b2-57432ba0bf7f","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":222,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"895054a7-fdd4-42ca-8adc-c3f62e148812","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":222,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"6d7c4c1f-568b-4fc5-8206-3c2a0ad55430","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":222,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"3377835b-e3ae-47f9-aee1-7f3b5014d7b7","block_type":"box","text":"BIS recognizes the critical impor tance of financial statements to provide a complete and accurate por trayal of a","page_number":222,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"7fddcaa2-eb55-46c8-9341-a870cb167cf7","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":222,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"ac27c18b-c102-4f5a-90fd-4af2759ae524","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":222,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"b9c7b9ec-af27-4efb-9ea7-e50bde48b7c2","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":222,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"19afaa81-a4f3-4a4e-8629-620e66e75478","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an impor tant role in a","page_number":222,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"74cc0360-6622-44d9-b04d-19a66f6f91ae","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":222,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"c5a41057-9bb6-4f87-a61d-aa243857405a","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":222,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"f4eafb75-415c-4203-9e00-62efabce8f39","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":222,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"6e923411-14cc-4ad6-99d9-bbc6526bf028","block_type":"box","text":"systems.","page_number":222,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"67fff43d-35ff-4e96-9cea-27618d3b07f8","block_type":"box","text":"7","page_number":222,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"6f3591f3-6f81-44d8-9ca3-37c6a350cf79","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":222,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"bcd22fba-c4b5-442b-859d-a0d217a521d5","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":222,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"00c332ef-fc49-41fc-a321-de46857c18f2","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly ar ticulated char ters that set out their","page_number":222,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"b81f4675-6055-4ad1-a69f-037dffb5b1dd","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":222,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"cc7ff845-3003-47fd-a0b9-b78abbf18c27","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":222,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"39ecf98f-0a57-4050-bc2e-3df86507f558","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":222,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"cc3df877-ca65-4116-9fde-2e3e9045d496","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":222,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"9e777f37-8e57-41cf-95d6-e3c480c055dc","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":222,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"5f647795-f5a0-40f6-a842-84ede0a676ac","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":222,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"2c9997c7-886a-4621-ab93-8fb883a79f8b","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":222,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"cb44f639-5644-4dd4-8996-8dc44ded3c12","block_type":"box","text":"or internal audit function.","page_number":222,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"22353d61-2438-474e-93e9-a99bcaaa94c7","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":222,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"7e0a8376-fd2b-407d-b8e2-318bfeaa76b2","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is impor tant that auditors are,","page_number":222,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"0c36833a-6a7f-439b-a572-4f2d268adb1d","block_type":"box","text":"and are seen to be, independent. Where an audit firm provides services to the company in addition to the audit, we","page_number":222,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"47413049-b5d5-4067-9118-a98a9181cff8","block_type":"box","text":"look for the fees earned to be disclosed and explained. We look for audit committees to have in place a procedure for","page_number":222,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"702c298b-068b-4396-b4ce-d08fa644e7b3","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":222,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"03ccb453-1b65-4f13-8563-04ed4ad5737c","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":222,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"3424f81b-ce4e-4966-ae30-c1f3ce5c5d88","block_type":"box","text":"management practices and, more broadly, the quality of the board’s oversight. We look to the audit or risk committee","page_number":222,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"074189e8-bb83-46e0-96d6-e5db954dba84","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":222,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"43b79f98-42d8-48b2-99a3-097e2c06d22e","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":222,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"aa552837-9f57-4735-adc3-5cdad8958410","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":222,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"3af5fcba-bf6f-498c-a745-40efc7396a27","block_type":"box","text":"risk.","page_number":222,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"4af4e2fe-b647-4b8c-914d-ac89e8a3b89a","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":222,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"516e0163-62c9-466a-8f08-13a2ff833247","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment and the","page_number":222,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"38dbb259-814f-49e2-a9a9-227e7372344f","block_type":"box","text":"priority of their interest in the company relative to that of other equity or debt investors. Pre-emptive rights are a key","page_number":222,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"91e1f1b8-f1ab-4884-9dcd-d7fbf5756d59","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":222,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"78c463a9-9942-42cc-ad1c-f6b2c1769a1e","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":222,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"cb26611e-1c12-4c11-a319-b185cd755fb6","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":222,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"2cbf5235-d735-4f02-91fa-da39808ceabe","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":222,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"528aecde-2610-479d-b6c3-0b73a439013d","block_type":"box","text":"7","page_number":222,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"da3f5270-e6dd-4f04-a0a0-c2d16deff62f","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":222,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"5caea04d-0cd2-4f27-ac40-7eeab0819eba","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":222,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"e0a014f5-4c06-40f8-89c4-802dc933a3c2","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":222,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"7b35e8a5-bc15-40a8-91bd-394c9a294795","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":222,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"8c7752b5-394b-4f16-84bc-d7cf39fbd80f","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":222,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"bfbdf073-9990-40a4-ba9d-57acca5c0258","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5e42498c-9699-45ec-a7e5-c75f2046ee61","block_type":"box","text":"Global Principles | 7","page_number":222,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"1e2b646e-c73f-4bac-80e6-aed535338e9a","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1da1323a-ae91-4a71-8f99-dc8d99bc9c08","block_type":"box","text":"However, we recognize that in cer tain markets, at least for a period of time, companies may have a valid reason","page_number":223,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"c41f5483-712a-4165-a48f-ddaede499796","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":223,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"6c1d1390-05a1-48e1-ae11-e1bbc4b10a9d","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":223,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"8adebfdc-41b4-4843-a1bf-cb859145adad","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":223,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"b90d87d2-6df9-44d7-8891-f78b8f4f6e53","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":223,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"255aa0d5-0ce7-4956-adaa-c2fd949ecaca","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":223,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"5d5c6240-adab-4337-8624-63bf247bac34","block_type":"box","text":"minimizing costs to shareholders.","page_number":223,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"0137bedd-f74c-4a5c-b2e7-9dd109ccaf8c","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":223,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"5fe88329-68aa-490d-a5b4-89f4837c8b2c","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":223,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"1d13310f-293f-4cbe-a020-1f148f321aa5","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous suppor t of the","page_number":223,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"ba7f59ae-ef1d-4bfc-a64a-064e4c886ff5","block_type":"box","text":"board and has been negotiated at arm’s length, and whether the board or management has clearly explained its","page_number":223,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"776dbf53-facd-4f38-abc3-604f7f83fd75","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":223,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"f4e8b2b6-8169-48a6-87e7-a786bf0c84f0","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":223,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"0815fe0d-7bb2-4661-add7-d359eec45502","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":223,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"9913a7d9-e91a-4bba-b045-8c5cce493c4a","block_type":"box","text":"suppor t should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":223,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"ccf2c89f-c3d0-4a73-9f69-9660d247e1c0","block_type":"box","text":"have been assessed through an independent appraisal process. In addition, it is good practice that it be approved by","page_number":223,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"bcf7a907-65f8-430b-8176-444e360ced01","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":223,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"ceb59999-06e6-418a-b95d-23d4c5b71755","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company shares in the","page_number":223,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"193e7683-d748-405d-a3fb-2d0d7302fa35","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":223,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"da219acd-0759-40f2-8bbd-6332b5de53e5","block_type":"box","text":"ability to sell their shares are contrary to basic proper ty rights. Such mechanisms can serve to protect and entrench","page_number":223,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"2627e121-b96a-4510-ba60-32441d3b419f","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":223,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"6556aef6-49f9-46a8-876e-83058973578e","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":223,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"2a47d798-91d9-42d4-9e59-c89de644c938","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":223,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"c4dcb6b3-2f4e-4ffa-ba86-af55dfbf9127","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":223,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"374da7c2-b0bb-4009-b405-d6b95384c09f","block_type":"box","text":"Executive compensation is an impor tant tool used by companies to suppor t long-term financial value creation. A","page_number":223,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"a1afffaa-fb3c-4e50-96cc-2ee68af90663","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":223,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"4e1ecf86-3739-46c3-9311-735de0a53d80","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":223,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"c342eba6-4f88-461d-b021-5e92d8c36b78","block_type":"box","text":"ownership.","page_number":223,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"1b29deb0-e751-4c7d-9be4-25d7f7b599bd","block_type":"box","text":"8","page_number":223,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"14ab2a5a-1afb-4a4f-a4df-26e0097a7da2","block_type":"box","text":"We look for a clear link between variable pay and operational and financial per formance that suppor t sustained","page_number":223,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"c9190c71-540a-42a5-bfb6-ad2951ad6082","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":223,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"817a0c40-f98e-44a1-880b-699559171e33","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":223,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"a5d6e4f9-1799-4049-a3e9-1f7ef7f9f364","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":223,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"a31ae7a4-b8cf-4a96-9cf0-868014081453","block_type":"box","text":"structures, but, where they are included, we look to companies to be as rigorous as they would be in setting other","page_number":223,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"8c048da4-5f40-4dcd-ac24-02c63756acef","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":223,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"b35056fc-321c-4ab8-984b-981607a9052c","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":223,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"fea0805b-2865-436d-9b01-4fab341fc146","block_type":"box","text":"results over a period of years.","page_number":223,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"3c634e6f-e3db-4308-8664-83a70a7f4b56","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":223,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"1d0d9cb1-447f-41ec-92d3-92595dcf6c31","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":223,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"b6328ee8-598d-4f2c-95ba-e827ddb23723","block_type":"box","text":"company’s risk profile, the environment it operates in, and the individuals the board is trying to attract and retain. We","page_number":223,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"b518229f-d06e-4515-9466-e364cb7499ba","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":223,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"916ddcff-58f8-4a1e-8cbf-af788ff91089","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":223,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"7caebe6d-f9b5-4cb1-9327-39af090bc0c6","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":223,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"8bfe209b-84f1-4c94-811c-9ab158c326de","block_type":"box","text":"executive compensation strategies.","page_number":223,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"e7ab8423-7085-4790-8879-10a6b85d6a7c","block_type":"box","text":"We are not suppor tive of one-off or special bonuses unrelated to company or individual per formance. Where","page_number":223,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"d6b56025-86e0-4bac-917f-0d10294f8271","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":223,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"1a2b872c-bc73-42d1-9d3f-5a1c4345408b","block_type":"box","text":"and why the discretion was used, and how the adjusted outcome is aligned with the interests of shareholders. In","page_number":223,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"f20bb9fa-501b-4cec-b764-bfc460c78ab1","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":223,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"fc94e206-d492-446e-a4be-8dd9c6c15d8b","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":223,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"71c7bd31-811c-4b04-8663-a9e89244bf57","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":223,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"bdc74a77-2788-4ed6-aa2c-93ff6a329d39","block_type":"box","text":"8","page_number":223,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"a971f2d6-ea84-400f-868e-7f76c2fe9d0e","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":223,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"6b331439-28d8-45a3-95dd-bc988bd3cb65","block_type":"box","text":"different markets.","page_number":223,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"5cb5f1f4-fdd7-489a-9cf9-0c9fa263af77","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"742a9f45-7df1-4c83-9f74-d836512fcafa","block_type":"box","text":"Global Principles | 8","page_number":223,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"b682e0b8-f9c6-462e-aa4d-4b83bc4033d6","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fae9cb29-eeaa-4b29-af2d-3e4f792e2118","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":224,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"3402c974-d2f4-4a75-a27f-793fe02f03d6","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":224,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"a007053c-2229-450c-be33-0f0a1834ad55","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":224,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"5caa0a01-7e0d-4500-b115-c7e8dacceb7f","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":224,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"e5ef4078-6022-47e2-accb-1e093bf875e2","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with the time and","page_number":224,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"087dd656-c165-44b9-b264-c004c0dee601","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":224,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"29f5ae45-bc26-4901-b935-e308c36ea358","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":224,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"ea54370a-42ea-4ced-9136-206355de803d","block_type":"box","text":"whom they are charged with overseeing.","page_number":224,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"6dde69b9-a7db-43e6-bbf4-3486c1d80982","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":224,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"34ba9f90-dd67-4b78-a6ba-ae38b0a0b81f","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":224,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"56956bba-ef19-474c-b9d2-eb56ede7d77f","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":224,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"4ddf9839-49f4-44e6-9734-9c423083fe85","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":224,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"055bb031-77f1-43f1-9aa5-044488833eea","block_type":"box","text":"suppor t management’s proposals to approve compensation, where they are on the agenda. We may also not suppor t","page_number":224,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"7cd3b022-bf46-46ee-a00b-10e4ba02e1a1","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":224,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"a790e7f5-4944-48d3-9751-c70d2e9b8b47","block_type":"box","text":"structures.","page_number":224,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"6082b50e-e550-49ba-a506-8761eae3727e","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":224,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"64ccd963-6527-483f-a1a0-910ef78638c5","block_type":"box","text":"Corporate form","page_number":224,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"8f9bd007-cbc1-47e7-8644-4b332cd1eef7","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate given","page_number":224,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"cc93d9fa-02b1-4c26-838d-759d5d7f713a","block_type":"box","text":"the company’s purpose and business model.","page_number":224,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"7155e32c-5fa6-4aad-8c9f-f8bc101846a2","block_type":"box","text":"9","page_number":224,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"45c44ebb-4a89-4939-a800-271f9d0e4abd","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":224,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"513e03f9-ed9f-4013-8109-3d4ba029fe86","block_type":"box","text":"public benefit corporation, or similar entity, to put it to a shareholder vote if not already required to do so under","page_number":224,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"e0ca7274-44a3-406c-bb75-a5eea4fa23b7","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":224,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"9751fe97-91d7-4cae-a0d9-4ed07a7e45d3","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":224,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"cad8e288-3333-46b6-b4e4-49b7af652ca3","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":224,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"c68bd919-3f0f-42dc-8339-ac01e9eebae2","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":224,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"deb613cc-2a97-436a-9f69-750e08efd329","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":224,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"cad13a79-c52c-4373-b45a-ed68839f0380","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":224,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"456c8dca-ef1a-481c-8d20-01b53612f336","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":224,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"9bf53239-234a-4da9-9655-237384764023","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":224,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"94218611-8fc6-40fc-8a81-fad6a2ba7c9e","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":224,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"054e951a-f6ea-4a65-89ab-971d19543bb3","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":224,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"1d44b836-5198-4736-8608-94779752fe55","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus on the","page_number":224,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"2a070e12-0df4-4c59-abea-2837238c6ef1","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":224,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"cc0615a5-2fd5-4195-8139-b7edfd87bb12","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":224,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"6e5fc382-b856-4542-82c3-c6d3670d7f52","block_type":"box","text":"may suppor t shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":224,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"e496ba0b-28bb-445e-80f7-f98a2395f661","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":224,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"13fdc52c-dff9-4d80-9559-88f97c86a488","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":224,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"9092bffc-30e3-45a5-acb8-ff2170a02050","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":224,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"9622d68a-485d-4c21-9e0b-6757511180b3","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":224,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"7548408a-b04b-4be6-a77e-af64b488abfb","block_type":"box","text":"benefits to the company of meeting the request made in the proposal. We take into consideration a company’s","page_number":224,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"628b79e7-3bc5-4e09-8859-439561310af1","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":224,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"2026c02c-4e7d-46ac-b09f-c7fe7d9869cf","block_type":"box","text":"BIS does not suppor t shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":224,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"2e9be566-0daa-4d6f-89fb-bc90d9bf0d21","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":224,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"96be7cd1-37d0-4554-b0e0-536791d40056","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":224,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"d6210b58-675c-47b9-9419-3a97be41ea51","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":224,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"bbb9604e-885f-4b48-a55a-ba7aa31dfa99","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":224,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"b25f8711-e15e-48c0-a735-734a62c3ed28","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":224,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"099b8e93-9688-49d2-b37d-33cff95304fe","block_type":"box","text":"requests. Fur ther, the proponent’s suppor ting statement may refer to topics that are not directly related to the","page_number":224,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"5afd6345-d713-4d1a-b35b-247801097cd7","block_type":"box","text":"request made in the proposal. In voting on behalf of clients, we must vote yes or no on the proposal as phrased by","page_number":224,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"d0dcc1c0-7bd1-4070-805d-76e2373c7db2","block_type":"box","text":"the proponent. Therefore, when we vote in suppor t of a proposal, we are not necessarily endorsing every element of","page_number":224,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"3598931f-89f7-4b43-bc31-9b00c355f14d","block_type":"box","text":"9","page_number":224,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"2b43c52d-05d1-4e6f-8e43-03c681c4020f","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":224,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"c4a520eb-7405-43a7-b0de-71b93945e133","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2b4b1924-fc40-45dc-844b-1effe3d5435c","block_type":"box","text":"Global Principles | 9","page_number":224,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"acaa427a-2478-4431-80fb-d0a7a5d1dd16","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"07cbb35b-3f98-447e-bc64-dac865d12310","block_type":"box","text":"the proposal or the reasoning, objectives, or suppor ting statement of the proponent. We may suppor t a proposal for","page_number":225,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"fc6c0611-5e9c-40eb-9213-3305bafabdbf","block_type":"box","text":"different reasons than those put for th by the proponent, when we believe that overall it may advance our clients’","page_number":225,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"47d7246a-c592-4189-b298-5e417de558e7","block_type":"box","text":"long-term financial interests.","page_number":225,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"a8150251-c594-42b0-8be9-cbdf9de5d0d9","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":225,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"33a31a06-63df-42d9-a4ad-dd556de167c1","block_type":"box","text":"restrictions and limitations on how BlackRock can interact with the companies in which we invest on behalf of our","page_number":225,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"c491d459-7d27-4876-870c-6f79993cc572","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":225,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"4ecde3e3-e7bb-4182-9c2a-99170f99aad5","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":225,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"5fe34acc-a828-42f7-ae68-4c71eb34898f","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":225,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"de08c529-6e11-4da0-a450-022677741167","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":225,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"c8f8c758-d15c-4f9d-a81c-e8d3baf4f93b","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":225,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"b66566f8-4619-45f2-8ea4-2093adfae31e","block_type":"box","text":"term financial value creation.","page_number":225,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"1e0997b5-9a75-4ba5-91df-f7edf58bcf8b","block_type":"box","text":"10","page_number":225,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"20f107b9-f3ed-497f-9d25-afc0f4ce0212","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":225,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"7b9c0ed3-c6fe-4b6d-b83c-1405a8ffb528","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":225,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"1367b24a-d46f-459a-8f77-bc811e5420f4","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":225,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"4ca1817f-25a7-4834-b54b-81043020d38f","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":225,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"d47cad42-4da8-4688-b4db-d59f9372b7b5","block_type":"box","text":"industry-specific metrics.","page_number":225,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"4cc30e1d-f94e-43e2-804b-f29830008f62","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":225,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"f6b9033b-21e0-48f5-8b9c-37e2725deb6f","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":225,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"68d78a16-b6c5-4e87-900d-21c12f57af58","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":225,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"5558c14c-af51-4354-b553-07cf80fc1cb3","block_type":"box","text":"11","page_number":225,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"a893c9e6-f862-43dd-856e-bc448ab5e9c7","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":225,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"8264566f-d444-4c53-9f1e-17a7599f449f","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":225,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"1297f7cc-c624-41da-98fe-85acf2dbce0f","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":225,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"b2869fbf-feeb-4b27-89c3-2b55813350fc","block_type":"box","text":"specific.","page_number":225,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"76bc4d3f-f146-4ee4-95f9-cc2134ccee7f","block_type":"box","text":"We also recognize that companies may be phasing in repor ting over several years. We do not prescribe timelines","page_number":225,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"457509b2-cd44-4b40-bc2b-259f6b8de030","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":225,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"714fa9ca-fc2e-4073-8502-0867ed1ae971","block_type":"box","text":"them sufficiently in advance of their shareholder meeting, to the best of their abilities, to provide investors with time","page_number":225,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"cb4ca6d4-9fcb-45d5-a2bd-53c215ec5241","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":225,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"2e781e55-b97a-47d0-85eb-114e80783862","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":225,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"c8e80d90-31b3-4eb7-9c72-662c0a27d53a","block_type":"box","text":"best practices and disclosures. While not a voting item, we find it helpful to our understanding of investment risk","page_number":225,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"6af0155d-24b9-40b5-83cc-63c6b76868a2","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":225,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"0ecfa503-92de-4593-ae51-989f79223f76","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":225,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"632154d2-defd-47fb-b39d-8c41dcaf7d6c","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":225,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"abe19e11-3389-4e05-add5-17e25e82f8c5","block_type":"box","text":"10","page_number":225,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"49ba1e25-46b0-438b-88ca-82a7025c2487","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":225,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"e53fa493-5932-4087-8207-c5d70f944540","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":225,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"d135d10a-28c6-49d5-9a68-e620d3063ac2","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social","page_number":225,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"bdab8d81-ca1d-48e7-a85a-d26229d4cb2b","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":225,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"3081aef7-3d04-44e5-bbda-cc275aaa5d07","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":225,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"9deca15c-9f60-4e2d-90a0-d5919b1dd3c9","block_type":"box","text":"11","page_number":225,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"15c4861d-68b1-452f-b2ab-af9d9e839bc8","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":225,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"b90f822c-06ea-45e6-a260-74a379e7e385","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":225,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"6e2aeaa2-b9a2-4489-9ece-d82743a0febf","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":225,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"8f4e351b-28df-4fa2-b4cb-6f6d2a947119","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":225,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"c0c75cf5-b1df-4425-97ce-e8048cbb6c34","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":225,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"5519b8a6-2799-4852-a8df-97791cd67e6f","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":225,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"2929d15c-e437-4c55-bac4-f5fac259b0b7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5e79c275-a214-4725-95f6-8dfec675063e","block_type":"box","text":"Global Principles | 10","page_number":225,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"b66bbdb0-8460-45f3-a515-fd2dd8af2d04","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"82306a70-4403-45e3-bdc4-aeca1658f834","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":226,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"5312112a-83f4-47e5-bd5b-0eb8a64ba0bd","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":226,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"5cd9122a-207b-4273-acf6-a4f760c6e1c7","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":226,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"80e19916-0e20-445d-8c63-4c218bf2900f","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":226,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"be70f360-27f9-4aad-afa6-be1cd86771f7","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":226,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"5aced7d7-66b8-491e-9d28-e87fa3c776e4","block_type":"box","text":"12, 13","page_number":226,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"52fbbf2f-ba46-41a7-8352-b8b2b9cd5aeb","block_type":"box","text":"From company disclosures and","page_number":226,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"8b650f64-c7be-4f24-894e-a8d764f78f08","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":226,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"3e4a5913-7f10-4465-85c3-2e20ad0c4553","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":226,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"d5698e05-faa4-407e-8371-5dd873c95a34","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":226,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"fe6658ab-bc70-4e9c-b3fa-445cda38d0c6","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":226,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"03ad4e6b-7c89-4b5d-8392-859a5c65fe0f","block_type":"box","text":"viewed as best practice in the market.","page_number":226,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"4b63ce6b-f3bc-4b92-bf0a-901cf4aecd66","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":226,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"0d89e318-7255-4477-8f3d-3124a7fa09cc","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":226,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"7dae6d82-4773-419b-b5f2-045d668ec299","block_type":"box","text":"with insights into how companies are managing the risks associated with a transition to a low-carbon economy by","page_number":226,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"25ac65b9-1488-4cf3-98b6-7d4aa7548a87","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":226,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"baa7a879-66d1-4033-a2dc-527bbc8162c8","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":226,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"f1972516-db53-4b85-8e6c-cae9fbf42e21","block_type":"box","text":"long-term targets, ideally science-based where these are available for their sector, for scope 1 and 2 greenhouse gas","page_number":226,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"03a32c2a-42ab-4312-b16f-9425d0c4e61b","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":226,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"bd32e8c0-8c99-439e-a725-e979c247db2d","block_type":"box","text":"interests of their investors.","page_number":226,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"b53d2566-c43f-422e-b85f-a652d69b6369","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":226,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"3f4e450b-7987-4cb3-9a62-fcb8626e2cb6","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":226,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"c2ed3218-a00c-46d1-94cb-70bb81bfd3a9","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":226,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"dd7cc394-2669-49cf-b73c-8e7acc397a77","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":226,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"161c905a-7821-4398-9af1-d0185be9d23f","block_type":"box","text":"good-faith basis as methodology develops.","page_number":226,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"74567f84-9b29-4c62-a5b4-f85abdf5da6e","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":226,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"3021f06d-ad5d-4156-b0a8-1670fcd15f81","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":226,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"e936a0a1-1bac-42a6-83d5-8a09d1133346","block_type":"box","text":"generate long-term financial returns.","page_number":226,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"c3b887d4-0c46-4459-af60-a92b47bcbd8d","block_type":"box","text":"14","page_number":226,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"34f39013-e74a-437b-a6df-d039f847c97c","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":226,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"1f904848-3c4d-4557-acce-bd07b0bad4df","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":226,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"cc8f8c96-5b32-4cf5-8fd4-67c3801c90fd","block_type":"box","text":"15","page_number":226,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"7b62626b-b11e-4d9f-be89-2361cf10bbaa","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":226,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"7218a94d-4889-407a-bce9-90bae83350fe","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":226,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"b88352d8-460f-4610-9e27-a7248d1b94ff","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":226,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"e8f10b51-ccef-443c-a89d-3c3b4ca49c74","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":226,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"354f6953-9156-4957-badb-ea41ce25b69a","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":226,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"22ed1a54-3db7-4e65-a85b-fa697ec85db1","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":226,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"51d58144-463b-43c4-9c16-5001aab85b15","block_type":"box","text":"12","page_number":226,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"b3303ef8-db5d-47ae-a697-bb40b90aa0b5","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":226,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"97e3cce5-ff72-46a1-b6ee-cce4a56ce1da","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":226,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"23b4f270-213e-4fdc-a02a-aa0f275776f9","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":226,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"648ac240-4c6f-4d77-8930-d2cc316a90b7","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":226,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"2e87cfd1-baf6-4d16-ba0b-a4dfc6d1a609","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":226,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"464f3bdb-a048-49e0-b9c9-9eb287b88ede","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":226,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"fdfcf727-0ddc-4a77-bfe2-80cc4dc363d2","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":226,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"aaaf2398-3f19-44a5-affb-375b11e9dd1a","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":226,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"a3acdec4-8560-40b0-9785-9054ab682386","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":226,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"0af334c4-93dd-47ef-a943-403c23635f42","block_type":"box","text":"13","page_number":226,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"bcd43efd-5c28-472c-bd71-addd2c206999","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":226,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"f8f85df0-567d-491d-9505-c87ce66a6e58","block_type":"box","text":"2025.","page_number":226,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"517b4778-2d38-4bf9-b64d-c2789eec1436","block_type":"box","text":"14","page_number":226,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"577e9f9d-1685-4d09-9f29-86dad62c2279","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":226,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"22044d0e-679a-432b-8535-45977580113b","block_type":"box","text":"2025.","page_number":226,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"8afd860b-ea2f-419b-8e14-433b41b08771","block_type":"box","text":"15","page_number":226,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"5075dd41-027a-48f2-9fe4-59d717e8f3ca","block_type":"box","text":"Given the growing awareness of the materiality of these issues for cer tain businesses, enhanced repor ting on a","page_number":226,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"a38555fb-b9bc-4b2f-81e9-2f80ff571d31","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":226,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"e7ba3061-bbd7-4e66-b18a-14d6f2c67463","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":226,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"e41f82e8-5d7d-4125-ac96-0df4accf1ed5","block_type":"box","text":"some companies may repor t using different standards, which may be required by regulation, or one of a number of","page_number":226,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"09b551e3-9cdb-4302-9257-7e8ade6f7d1e","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":226,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"a5e3b979-bf4d-4542-b2b1-2535203c8db9","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"9f2a617f-eebe-4623-9bb0-5b60b99aed55","block_type":"box","text":"Global Principles | 11","page_number":226,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"e52ad755-6658-4d20-81d0-69ed15070952","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eba3b23a-e99f-4f27-8333-6639472f744a","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":227,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"8419aee5-6349-4587-b9e2-e23fa7696469","block_type":"box","text":"This is par ticularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":227,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"5a4619ef-f3e7-46ab-b1dc-495111563835","block_type":"box","text":"16","page_number":227,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"6bc8016a-7733-4c1e-ab8a-2804702eeaf6","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how they have","page_number":227,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"813edc02-be71-4f9c-ade7-e78dbca6a08a","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":227,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"4e09bce7-0c15-41f5-ba83-04d22ae63230","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":227,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"5396e23a-f86e-43b9-8150-1c58cb1eafb2","block_type":"box","text":"needs of their workforce today, and the skills required for their future business strategy. We are also interested in","page_number":227,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"3d4f7ad8-4841-4881-9815-0aede500fd36","block_type":"box","text":"understanding how the board monitors and engages on these matters, given it is well positioned to ensure that the","page_number":227,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"8b28aacd-507b-4ce3-9d88-777ccc6e3b7c","block_type":"box","text":"approach taken by management is informed by and aligns with the company’s strategy. BIS does not direct a","page_number":227,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"7c84cd09-95fa-4257-8504-1cdc9c3f254b","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":227,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"c1f7f99c-2f40-488f-88e3-a4e1f8e5df19","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":227,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"7161362e-67e2-4ba9-8aa2-e64a3cf9ae8d","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":227,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"a74695ae-edb6-49b9-a493-43eccc17539a","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":227,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"b87d44cd-6be7-4d11-a047-9866b40a3eb0","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":227,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"1138a2ec-5de5-491a-94e7-0609acaad28c","block_type":"box","text":"impacts.","page_number":227,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"34e6e513-1fc6-4881-962a-3a78d149f269","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":227,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"a66eacb4-e7e8-403f-ac88-b5ef32b61e3f","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or suppor ting a business relevant","page_number":227,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"3e104250-4b7a-4022-8dab-9f2f5eb62057","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":227,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"93026f80-eb5b-4328-9376-6d7c9c8d59cd","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":227,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"a75a8267-b85f-44bf-9722-7bcc2e826964","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":227,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"7a5c4059-42e1-4a09-b712-59fd85ce0797","block_type":"box","text":"clients at the global and regional level.","page_number":227,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"cd465230-96d9-452a-886e-8e4f2754236c","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":227,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"66749c32-18aa-42cf-bbe1-408c45b38e3f","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":227,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"1d143cbf-fe78-4c93-b324-e3f6b862d217","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":227,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"bd0f33c6-ef06-4efc-bd39-846afda1852e","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":227,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"53a18fb9-d6ac-468f-a218-46070ef2eb33","block_type":"box","text":"BIS on behalf of clients, as well as updates on material process issues, procedural changes, and other risk oversight","page_number":227,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"6797a3c5-5e66-44b6-873a-d7e4c571494b","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":227,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"412fef5a-a89b-4ab9-808d-e78d9a094350","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":227,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"bb4e7188-79e4-4434-be07-a29b6988975b","block_type":"box","text":"are independent from the investment stewardship function.","page_number":227,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"f64260f4-a6a4-485f-90d6-04db128d51ba","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":227,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"db8d1f80-6a7c-4885-beb6-241033ff98d5","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":227,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"15089eb2-6ec6-4cec-9167-689e91d07798","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":227,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"292f495e-2f38-4732-95f3-943a1859eb01","block_type":"box","text":"VOTE EXECUTION","page_number":227,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"9f7ae267-fcc0-4869-9aa4-70f1264de8c0","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":227,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"1f6d53b3-20d8-45b5-94ec-debbe7d3a5d9","block_type":"box","text":"processes in place to consider all proxies for which we have voting authority, and submit voting decisions, or refrain","page_number":227,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"0cacaa1c-4068-4430-8207-9cc380b13d5a","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":227,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"17de413a-ec09-4628-b210-3a3fda4b2376","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":227,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"dbf4ac33-832a-461b-b43f-09713e26ef52","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":227,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"17fdf44d-7239-45a3-8c0b-ff77304d7285","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":227,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"fdc83aa2-1b9b-4f05-930d-82ec22c5aec6","block_type":"box","text":"management policies and procedures,” below).","page_number":227,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"1c2ed2d4-c206-4fa5-952b-49add8b46a07","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":227,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"45f43948-e84b-4708-81a6-e39d4351b456","block_type":"box","text":"of voting such proxies on behalf of our clients. These issues include, but are not limited to: 1) untimely notice of","page_number":227,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"aa500208-d2ac-4041-aaa3-f6b463abf515","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":227,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"4bc1eb39-4455-42ea-8268-917aa8803bae","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":227,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"bf355cf2-f83f-4a35-9d44-4a70ae5ddf79","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the after the shareholder meeting","page_number":227,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"468e9b15-d220-4d44-a921-bf043313b762","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":227,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"8f940722-3feb-4203-b79d-bdadaea71db6","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to","page_number":227,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"931adb94-77fb-446d-9c03-8c955a98a731","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":227,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"76b468af-8a2f-443d-9ee7-f0f5abfeaa5a","block_type":"box","text":"16","page_number":227,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"dfd0bf1e-5057-4931-9931-fe8727bb8439","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":227,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"59fa6401-3870-46e5-8fbc-77881fa6d383","block_type":"box","text":"December 2025.","page_number":227,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"eea95729-995d-401e-a68d-f5ba3589c915","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0a32ccdc-204f-4350-b5b8-2b98489bf153","block_type":"box","text":"Global Principles | 12","page_number":227,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"64c4eed5-0d79-44a1-ab21-fc0e81a643a1","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cffc2108-b342-4660-aedf-7d27d900ebc5","block_type":"box","text":"BIS votes proxies in these situations on a “best-effor ts” basis. In addition, BIS may determine that it is generally","page_number":228,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"9306ab2b-aec9-41b4-967d-ca24f43b629e","block_type":"box","text":"in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs (including but","page_number":228,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"05ac2397-49df-41f0-93c6-57224f7261e4","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":228,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"5b377eda-4cad-439d-8be1-b5025ab00391","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":228,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"64ab4ff4-0ec8-4679-b260-5c41502e20d9","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":228,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"251957cc-ad01-4b69-be9b-cb6885e0ad29","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":228,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"1d7f94df-42b5-40be-bf2b-922cf0c9f889","block_type":"box","text":"enterprise-level vendor management activities.","page_number":228,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"0ed575fd-8e00-4ec4-9850-ae906984d7cf","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":228,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"66bc505b-e255-42f9-96d3-1ce93cd8d3fe","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":228,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"56498a79-ceb1-4ce0-9d14-05fc6e6cbb1a","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":228,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"561f26df-5174-4818-9ad3-074b06c24fac","block_type":"box","text":"BlackRock employees.","page_number":228,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"57d833f2-5d71-4492-b56b-c68afdb7af48","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":228,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"acde8285-70d9-493d-ba4a-becc6ea8771c","block_type":"box","text":"SECURITIES LENDING","page_number":228,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"e013d91a-5a7a-40a2-b13e-826e168af8bd","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":228,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"85a4a71f-fd26-4966-b519-02a1604a336b","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":228,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"fb457ec5-8fa5-4e9d-9f89-982cfd985505","block_type":"box","text":"recall securities out on loan at any time. BlackRock (or any other lender) does not retain voting rights for securities","page_number":228,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"aa39a258-1067-41f5-8d42-f9c25856bfb6","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":228,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"fb52312c-e916-429b-80c2-3daa25d9640d","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":228,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"eca263b5-9f45-4203-ac33-4b36188d7209","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":228,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"02fc832b-289a-4122-8eab-9f26799ba12e","block_type":"box","text":"loan and may determine to recall them for voting, as guided by our fiduciary duty as an asset manager to our clients","page_number":228,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"0e4cf265-b9d4-4356-a1c0-174c98d1f946","block_type":"box","text":"in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to","page_number":228,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"a5aed543-4067-49e3-af69-1750eec8f591","block_type":"box","text":"recall securities on loan as par t of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":228,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"53686eda-5f60-47a0-a32b-e058aea80790","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":228,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"e8526105-388b-4689-aafe-c2122c1d2045","block_type":"box","text":"potential long-term financial value to clients of voting those securities (based on the information available at the time","page_number":228,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"1787f731-6cb6-470e-bddc-6c0e9689c0fb","block_type":"box","text":"of recall consideration).","page_number":228,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"4cfe27ce-4802-4fa9-9610-06d121a33f6a","block_type":"box","text":"17","page_number":228,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"5fcbbc6b-78e1-4128-b2bd-1d5e60be8083","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":228,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"b6777ae9-0c45-4c7d-8c0c-6ab6a4cc222a","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":228,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"7264c241-c906-4aa1-a8db-5f46ca31d3eb","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":228,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"58560dbd-d690-467a-bdce-d8620f505ae5","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":228,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"925d9e11-7499-4832-9ab1-6399b88b784f","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":228,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"86f1552d-dbc6-4595-ad8c-4946c7a7b35b","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. It is","page_number":228,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"fc1e510d-3814-4ef3-aeec-64d01b31f5c2","block_type":"box","text":"impor tant to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":228,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"c334ecfa-67b3-434f-9a50-f63423f03c84","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":228,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"84b68613-158a-4dbe-bba2-74d409e9fde8","block_type":"box","text":"and may modify it as necessary.","page_number":228,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"5ff8dfdb-a7b7-4b55-940f-f79ac70da7c8","block_type":"box","text":"VOTING CHOICE","page_number":228,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"3f773122-61d1-4663-85f3-2897aecba308","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":228,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"13b804b1-897c-49fd-9e07-d9cfbee0ab3d","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":228,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"ab486a00-94f2-4f5f-b7cf-50162e1018c9","block_type":"box","text":"18","page_number":228,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"36ddd6d3-0476-4a97-89dc-3ae9e0cfc00d","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":228,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"bfb3833c-2ac6-452a-a182-200e104fc23e","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":228,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"772e4cb9-20cc-40a8-9446-31f987112994","block_type":"box","text":"17","page_number":228,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"c7830ca9-686f-4033-9589-b62415066663","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":228,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"7067e38a-fdc4-4670-be3b-1b0a047206f0","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":228,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"2767dd55-e32a-4361-856a-b9c98d68fd24","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":228,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"4d6065c3-bbe7-47b2-a608-7aa659ded85f","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":228,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"967257ab-4a7d-4d96-a6f1-731f47d11172","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":228,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"f064c04a-3b38-4adb-bbbd-45ddea3f885f","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":228,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"d9340547-86e7-4575-84e0-4c73c0bee7f7","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":228,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"2c728922-8d32-4988-90d1-f8eb15e153a7","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":228,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"207d5d91-de77-4865-b0f5-6e8c1e670ce3","block_type":"box","text":"18","page_number":228,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"e3db6765-7f15-4d85-b094-bf63252f87cf","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":228,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"dc1b4d18-400b-426b-be52-14bf60b997b5","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":228,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"4919fecb-c682-4974-9932-bd8b105f1e59","block_type":"box","text":"including the decision to lend securities.","page_number":228,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"f97e4cc8-2f09-4e74-aa23-0d58e7bead19","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"bab08899-41f0-4483-9034-b53ae1cde9e4","block_type":"box","text":"Global Principles | 13","page_number":228,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"fe659171-5922-4ed0-b76f-3c0d37a27bb3","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":228,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2d356463-7b37-4045-91fd-231184d1a3bc","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":229,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"a51db461-5ed1-400a-83ee-6e96a35daf64","block_type":"box","text":"(SAE) strategies. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for","page_number":229,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"6050b92d-69a1-4784-a657-bdc1b56bffb0","block_type":"box","text":"BlackRock Voting Choice regardless of their investment strategies.","page_number":229,"box":{"x":70,"y":75,"width":471,"height":11}},{"id":"90c361ec-ea03-4137-85dc-eb65f1227869","block_type":"box","text":"19","page_number":229,"box":{"x":543,"y":75,"width":9,"height":5}},{"id":"d4d85d45-60a2-4752-800f-e101cb1f244f","block_type":"box","text":"Voting Choice is also available for eligible U.S.","page_number":229,"box":{"x":558,"y":75,"width":328,"height":11}},{"id":"0b210a4d-c8d6-4ec6-bc80-0f04d085ed9e","block_type":"box","text":"retail shareholder accounts invested in BlackRock’s largest U.S. exchange-traded fund.","page_number":229,"box":{"x":69,"y":90,"width":619,"height":11}},{"id":"39a65d39-eef1-4cdb-8cc3-ccbec09741b1","block_type":"box","text":"20","page_number":229,"box":{"x":690,"y":90,"width":9,"height":5}},{"id":"3d701e55-f9ba-4c89-887b-96fa42afd0b8","block_type":"box","text":"As a result, the shares attributed to BlackRock por tfolios in company share registers may be voted differently","page_number":229,"box":{"x":101,"y":113,"width":782,"height":11}},{"id":"881cdf11-becd-4eef-9531-3796ac64d2b6","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":229,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"b0e1c052-6089-48ad-b649-e267a85d6d0f","block_type":"box","text":"accordance with a third-par ty policy, or have elected to vote shares in accordance with their own policy. Our clients","page_number":229,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"a5ac2c27-baac-4f12-9a08-21b9a28ee09f","block_type":"box","text":"have greater control over proxy voting because of Voting Choice.","page_number":229,"box":{"x":69,"y":158,"width":454,"height":11}},{"id":"987580e0-c40b-457e-b181-ab378090341a","block_type":"box","text":"21","page_number":229,"box":{"x":525,"y":158,"width":9,"height":5}},{"id":"b29bdbe5-eff7-4b55-bda2-c5c6c9be4cf5","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":229,"box":{"x":343,"y":188,"width":293,"height":9}},{"id":"56c37537-c593-4edb-acde-febc6963e606","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":229,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"0a044359-a130-4f48-99bf-3cb8dd057215","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":229,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"6a480a86-4140-4ab5-90a6-5e879b283f63","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":229,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"306026a6-012a-48c5-a231-4b445202b9f8","block_type":"box","text":"invest on their behalf. We also publish commentaries to share our approach to engagement on our five engagement","page_number":229,"box":{"x":70,"y":256,"width":825,"height":12}},{"id":"a41a4cae-c799-46ca-a912-525281f0dfbf","block_type":"box","text":"priorities, as well as quar terly repor ts detailing our proxy voting and engagement activities.","page_number":229,"box":{"x":70,"y":272,"width":644,"height":11}},{"id":"9363d3c5-6b01-42c5-9fbd-a5e7900b83e7","block_type":"box","text":"19","page_number":229,"box":{"x":69,"y":324,"width":9,"height":4}},{"id":"53140b57-3006-4ef3-ab7c-b6ca2bf248c1","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":229,"box":{"x":83,"y":323,"width":739,"height":12}},{"id":"bc8aa7c8-05fa-4644-b6f3-6e536b747f38","block_type":"box","text":"preferences from a set of voting policies from third-par ty proxy advisers. 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Fur ther, the Guidelines consider the","page_number":235,"box":{"x":102,"y":45,"width":751,"height":11}},{"id":"dc11e07d-1f13-429e-8770-f2cf70da17c9","block_type":"box","text":"differences between the actions and outcomes over which company management has influence, and those it","page_number":235,"box":{"x":101,"y":60,"width":778,"height":11}},{"id":"d8dcd98a-34a5-4c3e-bdd9-128034dc5aa9","block_type":"box","text":"does not.","page_number":235,"box":{"x":101,"y":75,"width":66,"height":9}},{"id":"1a9751ca-2a2c-4649-ba44-67860a383658","block_type":"box","text":"•","page_number":235,"box":{"x":69,"y":98,"width":6,"height":4}},{"id":"5463ee14-01eb-434b-814b-630c2d4c50a6","block_type":"box","text":"Focus on useful, contextualized disclosures that help inform investors views, while recognizing data","page_number":235,"box":{"x":102,"y":95,"width":729,"height":11}},{"id":"3c1ed631-2ea5-43a3-87fa-03850d34bff3","block_type":"box","text":"limitations:","page_number":235,"box":{"x":102,"y":110,"width":80,"height":9}},{"id":"2837d1f9-d49f-4264-88c5-221ae0a04909","block_type":"box","text":"Under the Guidelines, the dedicated team looks for disclosures that outline key milestones and","page_number":235,"box":{"x":189,"y":110,"width":679,"height":11}},{"id":"e7576d0f-98dd-4c7f-92a6-286ec0032565","block_type":"box","text":"dependencies underpinning the company’s low-carbon transition strategy, explain the trade-offs required to adapt","page_number":235,"box":{"x":101,"y":125,"width":807,"height":12}},{"id":"8e66d717-8087-410f-878f-5ca11508da0a","block_type":"box","text":"the business model, and include relevant data and narrative.","page_number":235,"box":{"x":101,"y":141,"width":433,"height":10}},{"id":"e6812602-5de0-4009-8c19-add751bee146","block_type":"box","text":"•","page_number":235,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"177014ca-70bd-434c-b298-2f97a13e5d11","block_type":"box","text":"Consistency with the participating clients’ position as a minority investor:","page_number":235,"box":{"x":101,"y":161,"width":541,"height":11}},{"id":"8d22a1c4-e1de-43c8-9db5-f4c6999fc38d","block_type":"box","text":"The boards and executive leadership","page_number":235,"box":{"x":648,"y":161,"width":261,"height":11}},{"id":"ac218a48-65c7-4566-bd9d-a98ddf62ff5e","block_type":"box","text":"of companies determine a company’s strategy and its implementation. Under the Guidelines, the dedicated team","page_number":235,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"0bd23e7f-8269-4816-82cc-b813cb49b029","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":235,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"8ad5651c-6aa2-43e4-bac3-87fbf54ec27e","block_type":"box","text":"judgment of the priorities and outcomes most aligned with par ticipating clients’ investment objectives.","page_number":235,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"a3afe6ec-160e-4787-92a9-3ef46a7e80aa","block_type":"box","text":"Voting approach under the Guidelines","page_number":235,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"7a444121-37b2-4f63-80a3-c80fe64c2065","block_type":"box","text":"12","page_number":235,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"c4b3490f-5bef-4dd3-b30f-35d7757b600d","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":235,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"a80dfb7e-7098-4dc7-a07c-5fca77d884c8","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":235,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"42c45d56-7b3c-4193-bfbe-14466780e05b","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":235,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"af1d4fd4-a27e-43bd-ba6c-dc23fb92518f","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":235,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"e0cf2855-5559-4f46-8a10-557447bc696e","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":235,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"40fa2282-bcdb-4f52-bc37-2b2b0818e712","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":235,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"a967ccd3-e269-4b42-a736-5b3409df2cea","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":235,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"39eb196e-94f9-4549-b222-2d33a95b4afd","block_type":"box","text":"Corporate Disclosures","page_number":235,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"ff2eb57a-7bc7-4d13-911b-fe6806198c91","block_type":"box","text":"13","page_number":235,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"d74e0ec5-2575-45aa-a791-1f44f918d58c","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":235,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"31e7d214-e710-4e98-81fa-c384e348eba7","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":235,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"79c61ceb-4b21-40df-a8b2-eb39cf186de1","block_type":"box","text":"to companies that are impor tant to the transition to a low-carbon economy to explain the strategy and governance","page_number":235,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"e66ef3e6-c43b-412b-9a3d-c867125efb6b","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":235,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"c9a673e0-9367-4c46-a851-a10c2ee1eb16","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":235,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"8ffa110e-bb6c-4b68-be23-e2b83d2ed09f","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":235,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"34b3f680-69f2-41c8-b3ac-0f9dd0ba5951","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":235,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"71499e45-bc1b-4498-a495-c2395ada865c","block_type":"box","text":"(2) low-carbon transition-related repor ting. Standardized disclosure of sustainability-related data suppor ts investors","page_number":235,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"7c5c1814-816e-4735-be23-e8fd4f0db0fa","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":235,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"d2d6f7d2-6f69-49f4-a1f5-546917ade427","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":235,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"b106da9e-7f5d-4c41-987f-9766f268d756","block_type":"box","text":"14, 15","page_number":235,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"2c84a72c-27db-4a68-b2aa-37f778f371f1","block_type":"box","text":"IFRS","page_number":235,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"e80fccfb-b742-43d0-b6d3-f002c9cc09e5","block_type":"box","text":"S1 addresses the general requirements of sustainability repor ting and IFRS S2 sets out the disclosures that","page_number":235,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"a5922dd5-f34a-4e0f-8a76-ce1438ed2727","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":235,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"fa87332d-0137-4aee-bb04-e91ba1b2ce8f","block_type":"box","text":"transition-related risks and oppor tunities. This includes receiving independent, third-par ty assurances, as audit","page_number":235,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"231f804c-ff49-40cc-821d-aef423acba59","block_type":"box","text":"and assurance standards are developed.","page_number":235,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"1ee2f811-6130-4529-8789-cf402f57c45a","block_type":"box","text":"12","page_number":235,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"4cc9b8a8-6042-43d1-9a0e-33ce27a1bf4a","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":235,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"cb365262-57f8-4906-92a4-f58dab31fe9a","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":235,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"aab2a4df-6b19-4dba-92dc-baadf851a149","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":235,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"38094a20-7b17-4382-9314-f1b8dbd7bb80","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":235,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"76344e67-e709-4c09-9b8e-7eb2b1c8a446","block_type":"box","text":"13","page_number":235,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"391e5c21-3997-4737-8398-01ecc2c30988","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":235,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"cc036b7d-aed3-42e3-afef-1e60f19a57fa","block_type":"box","text":"repor ting methodologies are nascent. In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":235,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"98ec921d-849f-4d3b-a0da-7f181e5569f5","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":235,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"cb8be066-d7b4-4fc9-a855-e4c12b4eb532","block_type":"box","text":"14","page_number":235,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"843f596f-8685-4acf-8c38-3f693d0a345e","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":235,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"a8a73b26-a117-4942-b1ca-dde939d9a248","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":235,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"e9d068b7-f787-4491-885d-bf692a97881c","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":235,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"3cf13cc7-83a6-443f-8620-69b66561a0fb","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":235,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"cdc33268-283c-4090-9eab-6b5b4d579ed4","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":235,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"71959f26-bae2-4dc3-83e5-c60b31c23028","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":235,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"5a0ddd61-7dd4-4d3e-801b-9c618a22e1de","block_type":"box","text":"15","page_number":235,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"87c925b0-dc01-402b-b1e8-b9646ce6293b","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":235,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"2843d0ab-ffb2-4244-bbd2-40c49f339b10","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":235,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"20509d4b-2d00-4fa6-9753-1360948695fa","block_type":"box","text":"companies may repor t using different standards, some of which may be required by regulation. In such cases, we","page_number":235,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"6504f4b9-8736-4460-98d7-eb758466b506","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":235,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"63e5a2bb-79a4-4298-92ec-388270d9fff3","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":235,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"1211613f-246a-46ff-8181-5336c4f19ed8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":235,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a08468a1-f3cb-4465-8152-07565f4e9db9","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":235,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"e321977e-b23e-401e-b46d-58cc21ff4b98","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":235,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"64c5c471-7a1b-4ae7-bfe5-0180f89bb973","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":236,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"631fbad3-0c28-4e96-9b92-5213eb5560b8","block_type":"box","text":"16, 17","page_number":236,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"9bd091f8-ec59-4468-a50d-fb36185d14b5","block_type":"box","text":"In addition, the dedicated team looks to","page_number":236,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"dba8aea6-875f-4e81-b171-3539fc426021","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":236,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"35050fde-f7bb-4e25-a4c9-04e5123396e6","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":236,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"e5de370a-d435-4e5c-a71a-50239853253b","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":236,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"4900b6be-afbe-42e5-9f4f-b44afc94c925","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":236,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"8eba6d35-eca0-4abd-84e6-223f4be75a6b","block_type":"box","text":"science-based and net-zero targets in line with the global 1.5°C goal.” Websites accessed in December 2025.","page_number":236,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"73e613a1-6833-4e19-8a0e-9e8911c93cdf","block_type":"box","text":"18","page_number":236,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"556f57f6-1077-4b1e-94db-64100fd3f2e2","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":236,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"3ea37500-8a1e-450f-ae83-9634ef07fae7","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":236,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"407a58f2-bbac-4695-b35a-ce3ce4e689c4","block_type":"box","text":"complexity for scope 3 emissions and the lack of direct control by companies over the requisite data, we find it most","page_number":236,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"dc1d95bc-bb67-49a9-9337-0114d440f098","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":236,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"0eaf3439-e1da-4c44-9dd6-d3544a78bdfd","block_type":"box","text":"material to their business models.","page_number":236,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"bc3fbefb-b471-4b32-835e-ed66b482e950","block_type":"box","text":"19","page_number":236,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"313750d8-4ecc-42e9-9ee0-2685ad0a97a2","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":236,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"f6847775-01a9-44f4-aa73-1511793f826a","block_type":"box","text":"December 2025.","page_number":236,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"af88dad7-46d2-4366-8340-7dab6a282143","block_type":"box","text":"20","page_number":236,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"77ca36ca-2d20-49c3-9980-ed4c2e6af72c","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":236,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"1c2d7553-6963-4aa4-aa61-542d02f4538b","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":236,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"c416b57a-cfe0-4c4e-8275-0220086405d9","block_type":"box","text":"(please see the International Transition Plan Network for information). 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The directors most likely to be in focus are the chair of the board","page_number":237,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"cc885244-73ab-423b-b1de-9abc189a16a8","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":237,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"ad9283d7-a709-491e-8166-0d2695542c26","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. In cer tain markets, the","page_number":237,"box":{"x":69,"y":659,"width":808,"height":11}},{"id":"78a8eda5-0608-4394-a5e1-5a3d5535dc1b","block_type":"box","text":"team may withhold suppor t for the discharge of the supervisory board or equivalent and/or board repor ts.","page_number":237,"box":{"x":68,"y":675,"width":758,"height":11}},{"id":"ee27f6f0-2058-413d-a025-462c9d896a25","block_type":"box","text":"23","page_number":237,"box":{"x":828,"y":675,"width":9,"height":4}},{"id":"b5b204af-cf9a-4d3f-a2f9-a5292c2201f5","block_type":"box","text":"21","page_number":237,"box":{"x":69,"y":704,"width":9,"height":5}},{"id":"79246b8e-855f-493d-a556-9594b679348c","block_type":"box","text":"FTSE Russell address the materiality of different categories of scope 3 GHG emissions by sector in a January 2024","page_number":237,"box":{"x":84,"y":704,"width":825,"height":11}},{"id":"f7d1e14b-61b7-4543-9279-634c8af6ebbb","block_type":"box","text":"paper “Scope for improvement: Solving the Scope 3 conundrum.” Their research indicates that there are 2-3 material","page_number":237,"box":{"x":70,"y":719,"width":835,"height":11}},{"id":"1ea6fd08-bc48-49a5-83e0-aa889a083e50","block_type":"box","text":"scope 3 GHG emissions categories by sector. The research uses a definition of materiality from the GHG Protocol,","page_number":237,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"9504db2b-a7f6-48b7-8c5b-60bb4da76b53","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":237,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"e37addc1-c8fc-4aad-b755-b2d6aba1abf6","block_type":"box","text":"offer the most significant GHG reduction oppor tunities and are most relevant to the company’s business goals.”","page_number":237,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"110ece86-32c0-4b62-b9e2-0951031f490c","block_type":"box","text":"Website accessed in December 2025.","page_number":237,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"063fe3d6-df12-4628-9114-ded99ecc019e","block_type":"box","text":"22","page_number":237,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"5661fba9-71ad-4e25-b1c0-72d08a189ce1","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":237,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"61fb330c-5ed8-4563-8d0a-5efb97673c8e","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":237,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"7a3487c5-8e1a-43fb-a8e5-983b92352807","block_type":"box","text":"23","page_number":237,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"7add36f8-4fc3-403f-9f78-eaee038e7cac","block_type":"box","text":"Board repor t votes are generally advisory and relate to repor ts issued by the board of directors that may contain","page_number":237,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"1055463e-22c1-4f44-95bd-f853ee8f5636","block_type":"box","text":"information on a company’s sustainability effor ts, operational resilience, or financial condition, among others.","page_number":237,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"ca561117-b891-43ad-a64a-cdc0262bac9a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":237,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8b5e6b86-fead-4498-87e2-af5013ed22d6","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":237,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"d19692f5-3549-4f50-a777-fe89eb9c97de","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":237,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3549e381-d98e-4830-bc18-da9ec1508c88","block_type":"box","text":"Where the dedicated team has not suppor ted director elections over climate concerns in a prior year, and the","page_number":238,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"40c94f69-29ce-4a7f-99a3-649d70dcbd85","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":238,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"3e25539a-9808-4940-a79a-d78d95a18fb6","block_type":"box","text":"may escalate by not suppor ting the re-election of additional responsible directors.","page_number":238,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"b1dbae61-9ea4-4351-bd3a-b5945324bed1","block_type":"box","text":"24","page_number":238,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"a6712820-ffa6-4023-9f10-779449c7f4c8","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":238,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"0c69fc9e-93ba-4b83-9473-c44e458d8c79","block_type":"box","text":"In cer tain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":238,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"ebf768d7-f258-45ec-9faa-3a3cae4973a6","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress repor ts. The Guidelines consider these","page_number":238,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"cade4d53-f3d8-4754-b9b9-3e03d4101ff9","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":238,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"dbf5480c-94df-4f01-99dc-e1953c8f2c45","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally suppor ts management’s climate","page_number":238,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"08b26bbd-09af-44bc-a3df-c4b66c171ee2","block_type":"box","text":"strategy proposal if, in the team’s assessment based on these Guidelines, the strategy is aligned with the low-carbon","page_number":238,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"c72d0168-85f3-4729-aa5b-80437ebe1376","block_type":"box","text":"transition. Similarly, the dedicated team generally suppor ts management’s proposal on a progress repor t if the","page_number":238,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"413ddd19-f503-4972-92b2-84bf4a7753ac","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":238,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"c2fe2413-decd-4c5f-aafc-6dc26fe44716","block_type":"box","text":"transition plan and targets.","page_number":238,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"822a017a-65ed-4bcc-ac0a-b1d4273a3b4d","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":238,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"180da475-71a1-42d4-b57c-94db3953247b","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":238,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"eac08a41-3562-448e-ac69-280c567a49df","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics and have varying degrees","page_number":238,"box":{"x":70,"y":302,"width":824,"height":11}},{"id":"a82ab6eb-368c-4e1c-bbbe-09d5812fbf9b","block_type":"box","text":"of relevance for companies across sectors, locations, and business models.","page_number":238,"box":{"x":69,"y":317,"width":543,"height":11}},{"id":"cbed6d82-980a-4cb5-bc6f-a254352246f2","block_type":"box","text":"Each shareholder proposal is evaluated on a case-by-case basis, focusing on its merit while considering the","page_number":238,"box":{"x":102,"y":339,"width":767,"height":12}},{"id":"20d6da82-f31b-4e3c-ad1f-2573b48ebb8b","block_type":"box","text":"company’s individual circumstances. When the dedicated team votes in suppor t of a proposal, it is not necessarily","page_number":238,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"ee3e63e7-4759-4786-88fb-6f2e3ca1813b","block_type":"box","text":"endorsing every element of the proposal or the reasoning, objectives, or suppor ting statement of the proponent.","page_number":238,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"824228d2-a00f-4506-9a57-713d204c0c73","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s low-carbon","page_number":238,"box":{"x":102,"y":392,"width":802,"height":12}},{"id":"323d910d-7b11-41e1-ae38-2009e10473fd","block_type":"box","text":"transition strategy and targets. The dedicated team assesses the implications for, and the relevance to, the","page_number":238,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"5cd9d67e-e7c0-4dcf-9c66-8f8aed4034b8","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may suppor t","page_number":238,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"ad73d95e-9b3c-43d9-a2af-a0143df6f686","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":238,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"237a986b-3444-4374-88fc-d76c6156a5ef","block_type":"box","text":"•","page_number":238,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"48989ec5-6afb-42f6-929c-d44ecda27f9e","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":238,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"d1bffe2b-12c7-4be2-b7fd-62365cb30571","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":238,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"1d07cbe0-c5d7-4bf6-a7e4-86546da66011","block_type":"box","text":"•","page_number":238,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"a4f54077-2ece-4565-9ec0-768492d56cde","block_type":"box","text":"Align scope 1 and 2 GHG emissions reduction targets to, and/or discuss how their targets align with, a long-term","page_number":238,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"dec84738-669a-49cd-a063-43b5d93f9940","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":238,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"a0928689-d68d-405e-8aea-c5735776a5cc","block_type":"box","text":"•","page_number":238,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"d93327a6-4494-47cd-8755-716c625a4c64","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":238,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"53262491-8573-4354-86b0-a5b90107da1a","block_type":"box","text":"•","page_number":238,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"11015a99-127e-476c-abd8-47fde7d7bf19","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":238,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"e17a7740-948b-45cc-b9ec-e5decdf55639","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":238,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"a4f98a62-d71e-4073-949a-a84d4b1d6d98","block_type":"box","text":"25","page_number":238,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"14336780-39d1-47e4-8767-14deb9469995","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":238,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"88e1b73b-f891-4cfd-927b-e727566765dc","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":238,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"94f399a5-3127-480b-96a6-d2bd79e5e19d","block_type":"box","text":"RELATED MATTERS","page_number":238,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"efdcfafc-4132-451c-b8c9-d132bbb420e3","block_type":"box","text":"There are other business items not covered above that may be put to a shareholder vote that could address","page_number":238,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"3a3963ce-f501-4610-b95b-7fac26840199","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":238,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"2c6cf0eb-1870-4be4-ad12-3bb8aac0463c","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":238,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"386b3cac-49d6-4ada-9937-6f41340f5500","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":238,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"e739630a-cfb8-476d-8d34-585f1bb52dc7","block_type":"box","text":"Executive compensation","page_number":238,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"ee094ab2-fc5f-48a3-befe-266dd433087c","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":238,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"2ac333ba-d95f-4590-aa94-04b0e78e27f6","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":238,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"7ee7ee93-7f0b-48f1-864e-f15bb145fae6","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":238,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"45629dad-af6f-411a-9b9b-aec44adc301b","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":238,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"4c7f67f5-550c-4e17-bc79-c0582e0ef93b","block_type":"box","text":"24","page_number":238,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"88bad722-1502-401f-a462-50f48e33cff3","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":238,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"90940715-1792-4b21-8c57-48a395e89b00","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":238,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"6d3d7f91-a5b9-45d5-b656-6bca222ffda7","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":239,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"a263ad4c-b404-4915-a7eb-4f44caf2b504","block_type":"box","text":"strategy and risk management.","page_number":239,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"cd7369bc-0c2f-41bb-b379-895d6170b7e2","block_type":"box","text":"Auditors and audit-related issues","page_number":239,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"07813a37-9e00-4f2e-877d-5636d19c65d3","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":239,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"9fc7932a-5b1d-406d-872c-2107f64976b7","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":239,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"1eed74c0-0e4b-4fdd-b3de-359c38535e68","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":239,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"31ee5437-5805-43aa-9a65-332339a06d68","block_type":"box","text":"context of its audit repor t. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":239,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"577f4733-d612-49ea-8902-bf9171c2463a","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":239,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"810fbce2-776d-4870-9a58-d600ad5bb938","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":239,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"7e47bfb3-aeb2-49c8-a469-67301f4f344b","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":239,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"7f35d0e6-7c06-4559-b7fc-f252ea3344fe","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":239,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"4601184e-5a25-4b1d-b567-4c19195a6520","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":239,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"0f9482d7-402e-4aad-adc6-ea52b539ccfd","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":239,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"a5b59864-aadb-4e6d-95dd-e80a60101435","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":239,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"a7b48e5c-2461-465e-bf6b-4f3fe7008b21","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":239,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"96f8a579-e2a9-459c-b335-926953e14ad7","block_type":"box","text":"sustainability-related risks and oppor tunities that may be relevant to a company’s business model and long-term","page_number":239,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"022d5cea-a2f9-4f3c-97b9-ef32898b6b84","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":239,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"7be2dae1-f484-444e-9c62-7176e457a053","block_type":"box","text":"stakeholders.","page_number":239,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"088641a2-efa1-499d-afbe-9567dc15640f","block_type":"box","text":"26","page_number":239,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"c2a71825-7c2d-4a1d-97a9-5425047f44db","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":239,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"54a62682-1592-4314-bdbc-ab3534d3e4ac","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":239,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"30dd313c-a88e-4e17-bbb2-7a9e67870361","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. Similarly, the","page_number":239,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"dc0e8b9c-a9e4-4467-a5e6-3934a216117b","block_type":"box","text":"team may engage companies that face risks and oppor tunities related to land use and deforestation, access to fresh","page_number":239,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"fcd8beff-5fff-4e4e-bed5-291e875532e9","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":239,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"00343b26-a4d2-467e-8edc-a75d946c635c","block_type":"box","text":"26","page_number":239,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"1a251033-9b17-4c05-991c-bd198af814ab","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":239,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"4d948077-b790-4003-af7d-2802187cf19f","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":239,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"3e2b7f57-192b-44f7-bc57-31303b3f1ee4","block_type":"box","text":"BlackRock Investment Stewardship","page_number":239,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6e9553b0-41b4-46c3-b6dc-7b7d9fa1c808","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":239,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"87c49619-3555-4399-9770-6d4375f971b4","block_type":"box","text":"BNM1026U-6033397-19205825","page_number":239,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6b004f7f-222f-4406-86f7-6fb02f327d41","block_type":"box","text":"Appendix 1","page_number":240,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"28df642b-499e-4783-ac63-e9613676e8ba","block_type":"box","text":"Terminology","page_number":240,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"9cfbb096-6725-47fe-a2b7-00861d743b94","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":240,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"3a292f2f-832e-4f87-a119-678cc382683c","block_type":"box","text":"Climate risk:","page_number":240,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"7c7fef37-d34f-425f-8220-4a4bc7c1dfcc","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":240,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"8384ba90-0e6d-4ca2-8f1f-446b59db27be","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":240,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"a0e407ac-df3c-47b9-bbee-5363be96ab15","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":240,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"20ba9230-8a6f-4d37-99d6-0a376d66a263","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":240,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"dfc32bda-b895-4e23-a595-aa2d449b7695","block_type":"box","text":"The global economic shift toward lower","page_number":240,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"2dab4609-0d34-4d44-b611-44919fa0f9d5","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":240,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"d41e419a-dbf3-4f3e-847b-5083f7ecdd09","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":240,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"a92ad74a-9ba5-4ef4-b905-221acef8c999","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":240,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"e28302b8-d9e8-42e5-9189-7aae488d66e8","block_type":"box","text":"Decarbonization:","page_number":240,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"79e118db-466a-4192-b964-8775d120a7c6","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":240,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"483332af-0b3d-4be6-8c69-603494662c00","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":240,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"2e552b25-02e8-4f62-98c3-46215c70e5ef","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":240,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"99edcc31-5c1e-4767-87d5-df2bcd610346","block_type":"box","text":"e.g., methane.","page_number":240,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"625f6f24-2ec6-42fc-98c4-4681b834b145","block_type":"box","text":"Climate-related risks and opportunities:","page_number":240,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"1fda30c0-5128-4993-bbbc-4d1e17d56b85","block_type":"box","text":"The investment oppor tunities and risks associated with the transition","page_number":240,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"7bfc2a54-4b56-421e-82c6-c20d70572211","block_type":"box","text":"to a low-carbon economy, including transition risks and oppor tunities and physical risks and oppor tunities in adapting","page_number":240,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"b5fbde83-7599-48ec-be04-0fa0518af957","block_type":"box","text":"to physical climate change.","page_number":240,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"c271694a-088e-41d6-9f7a-d36eff2695d6","block_type":"box","text":"Climate-related transition plan:","page_number":240,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"1fd897a2-8ecd-4eae-8fd1-3127452f7a53","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":240,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"3f785f59-a0de-4b64-a4ef-ffe0a69f4e2f","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":240,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"4d3ebdff-15ac-4835-b35a-0772b800f379","block_type":"box","text":"greenhouse gas emissions.”","page_number":240,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"11237ef6-3a2e-4be4-830a-9297e8f1c2d3","block_type":"box","text":"27","page_number":240,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"647db787-0ed4-483b-99fe-87286151e1f7","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":240,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"b65b64b8-97ab-4c0c-b5a0-925970ab2b5e","block_type":"box","text":"Targets that “","page_number":240,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"da23da07-4595-4461-9130-349d7f5e2a13","block_type":"box","text":"are in line with what the latest climate science","page_number":240,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"479bc2b8-32ae-40d1-813c-710514eebb17","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":240,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"69078362-777a-40a3-83b2-d6b3de28d507","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":240,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"9a396141-2ceb-4071-a4f8-f932bf259c49","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":240,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"2c7ad4d2-aba5-4bde-a6c0-f5f61f3170c1","block_type":"box","text":"with the Paris Agreement goals.”","page_number":240,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"1e06da07-588d-4af0-b0d5-b2ac283908d1","block_type":"box","text":"28","page_number":240,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"877efe4f-3f7a-4daa-9c04-8d9384d20997","block_type":"box","text":"Scope 1:","page_number":240,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"168dfbe6-c9a9-48f6-8511-c18eba09b3c3","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":240,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"6a066bab-c8f7-4fb3-bc6e-a7d0b9653197","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":240,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"8ed04a6a-3db3-4c3b-8eb5-ab99925e63b8","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":240,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"4145590b-81ce-4739-b79a-6d8918674ee7","block_type":"box","text":"29","page_number":240,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"c4c82e24-828f-4382-86c6-6f71fc4711dc","block_type":"box","text":"Scope 2","page_number":240,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"b50c6830-cdf3-417b-8b34-c4add4a64e1b","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":240,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"b862ae7c-b14f-469c-9cec-d7256a6f6b59","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":240,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"063edb92-7152-4f34-b775-9f534fe37c14","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":240,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"4c6ad0bd-41e5-4985-b119-fdc41ec601f6","block_type":"box","text":"30","page_number":240,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"79c90158-bec8-462a-8e74-2663aabb3ef8","block_type":"box","text":"Scope 3:","page_number":240,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"34244f1d-85b5-4551-834a-ab06abfc91b7","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional repor ting category that allows for the treatment","page_number":240,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"b5bd7826-3a51-4949-89b3-86edabf46785","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":240,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"eee6f0d1-bd78-4593-9f43-a1c7875f996d","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":240,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"82b14272-19ed-4026-9cbf-1ea5369d8531","block_type":"box","text":"31","page_number":240,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"6de1606c-dc7f-4d4e-8843-9875ac8a9dd6","block_type":"box","text":"27","page_number":240,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"b1f3b799-ad67-438e-aced-a1c6f9610391","block_type":"box","text":"As defined by the International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":240,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"0f3a0b93-649c-4777-bfeb-475b39e6ee38","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We","page_number":240,"box":{"x":69,"y":694,"width":779,"height":11}},{"id":"62f68ded-1052-448d-be0f-8c02056cd419","block_type":"box","text":"anticipate transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":240,"box":{"x":69,"y":709,"width":836,"height":11}},{"id":"106961b0-1cf5-4558-b3ea-8d5edfadf1ec","block_type":"box","text":"28","page_number":240,"box":{"x":69,"y":727,"width":9,"height":4}},{"id":"1a64820c-7cc4-4ab2-a4fb-65c97ad5ff7c","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that","page_number":240,"box":{"x":83,"y":726,"width":785,"height":12}},{"id":"5e50f9c9-bba8-4111-aeb7-ef3c60e18bbe","block_type":"box","text":"enables companies and financial institutions worldwide to play their par t in combating the climate crisis. We develop","page_number":240,"box":{"x":69,"y":742,"width":831,"height":11}},{"id":"3ed2a096-5f7a-4c1a-b099-53b910de39e9","block_type":"box","text":"standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in","page_number":240,"box":{"x":69,"y":757,"width":826,"height":11}},{"id":"f6c182b8-b227-4b59-91f5-a2eae084e777","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":240,"box":{"x":70,"y":772,"width":795,"height":11}},{"id":"683cfafe-69b9-4814-818d-746870402d11","block_type":"box","text":"Source: Science Based Targets initiative, “About Us.” Websites accessed in December 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