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Purchase or sell commodity contracts, or invest in oil, gas or mineral exploration or development","page_number":15,"box":{"x":134,"y":770,"width":707,"height":12}},{"id":"dae060a8-8fab-46b5-bb84-f78b3b4e0dd9","block_type":"box","text":"programs, except that the Fund may, to the extent appropriate to its investment policies, purchase securities of","page_number":15,"box":{"x":102,"y":785,"width":795,"height":12}},{"id":"2ae4d072-1a27-459e-883f-59a0c6fc3a1e","block_type":"box","text":"companies engaging in whole or in par t in such activities and may enter into futures contracts and related","page_number":15,"box":{"x":101,"y":801,"width":755,"height":11}},{"id":"8816d25f-39b9-4140-9a8f-70b1eaa09314","block_type":"box","text":"options.","page_number":15,"box":{"x":102,"y":816,"width":55,"height":11}},{"id":"48576a4e-3ca4-4cce-bb8b-74abebf577c3","block_type":"box","text":"9. Make loans, except that the Fund may purchase and hold debt instruments and enter into repurchase","page_number":15,"box":{"x":134,"y":838,"width":745,"height":11}},{"id":"59246e08-7895-4d47-9322-b5f90225e7b7","block_type":"box","text":"agreements in accordance with its investment objective and policies and may lend por tfolio securities.","page_number":15,"box":{"x":102,"y":853,"width":729,"height":12}},{"id":"01ee4a8a-6fe2-44c0-9b68-91d102ae6243","block_type":"box","text":"10. Purchase or sell commodities except that the Fund may, to the extent appropriate to its investment","page_number":15,"box":{"x":135,"y":876,"width":735,"height":11}},{"id":"52055531-74a9-4865-9e9d-45c9d54781ad","block_type":"box","text":"policies, purchase securities of companies engaging in whole or in par t in such activities, may engage in","page_number":15,"box":{"x":102,"y":891,"width":744,"height":12}},{"id":"cc6a6554-39c9-4ab2-894f-0f224a9e2a67","block_type":"box","text":"currency transactions and may enter into futures contracts and related options.","page_number":15,"box":{"x":101,"y":906,"width":565,"height":12}},{"id":"c8cabc97-ad39-4b32-94f8-9d1c555c9c60","block_type":"box","text":"I-6","page_number":15,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"9e95bfa5-3292-4398-aa8b-03508d6573c1","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":15,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ef45daff-e377-4b6c-aac3-1b4ef9b2ba1f","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":16,"box":{"x":102,"y":45,"width":494,"height":11}},{"id":"5ee5c8a1-43b7-4959-a7e2-d5f32dc67923","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":16,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"1458b633-80f0-4268-a72e-a5fc0008f35f","block_type":"box","text":"subject to change without shareholder approval.","page_number":16,"box":{"x":69,"y":83,"width":341,"height":11}},{"id":"071debbc-547c-4d13-8914-877309644d1d","block_type":"box","text":"For purposes of investment restriction 1 above, with respect to the Fund’s industry classifications, the Fund","page_number":16,"box":{"x":102,"y":105,"width":768,"height":11}},{"id":"14c46164-5ae0-4254-9714-5161ed7749c0","block_type":"box","text":"currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized market","page_number":16,"box":{"x":69,"y":120,"width":817,"height":12}},{"id":"11bc530a-2a08-494f-bfeb-db80cbd39dfa","block_type":"box","text":"indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to give","page_number":16,"box":{"x":70,"y":135,"width":817,"height":12}},{"id":"853198d2-bbb2-4799-a712-3b03dcab1c61","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":16,"box":{"x":69,"y":150,"width":597,"height":12}},{"id":"2d405bd3-7471-42d9-abec-bcafde37a469","block_type":"box","text":"While cer tain swaps are now considered commodity interests for purposes of the CEA and the rules thereunder,","page_number":16,"box":{"x":101,"y":173,"width":798,"height":11}},{"id":"43dd0db4-cfba-437b-86dd-b9c4946962f4","block_type":"box","text":"at the time of the Fund’s adoption of fundamental investment restrictions no. 5, 8 and 10 above, many swaps were","page_number":16,"box":{"x":69,"y":188,"width":824,"height":11}},{"id":"bff5ae00-5a2e-4f96-88dc-d2b95694156e","block_type":"box","text":"treated as securities for purposes of the Fund’s compliance with applicable law. Accordingly, fundamental investment","page_number":16,"box":{"x":68,"y":203,"width":836,"height":12}},{"id":"f33d0e6e-d6aa-4709-934c-cf06db5713f0","block_type":"box","text":"restriction no. 5, which does not restrict transactions in options on securities and securities indices, and","page_number":16,"box":{"x":69,"y":219,"width":747,"height":10}},{"id":"082fe047-dd89-4197-aeb4-6b56852f70ad","block_type":"box","text":"fundamental restrictions no. 8 and 10 are being interpreted to permit the Fund to engage in transactions in swaps","page_number":16,"box":{"x":68,"y":234,"width":816,"height":11}},{"id":"8565ce1b-66d1-4863-a03b-79573b02b357","block_type":"box","text":"and options on swaps, as applicable, related to financial instruments, such as securities, securities indices and","page_number":16,"box":{"x":69,"y":249,"width":799,"height":11}},{"id":"9f914e63-9472-476b-a87e-607f0371ffae","block_type":"box","text":"currencies, but not to engage in transactions in swaps or options on swaps related to physical commodities, such as","page_number":16,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"af40467d-aa40-47bc-a2a8-2fd24469df57","block_type":"box","text":"oil or metals.","page_number":16,"box":{"x":69,"y":279,"width":92,"height":9}},{"id":"580756ff-925d-4bc3-b985-3e62d39d8252","block_type":"box","text":"With respect to the fundamental policy relating to issuing senior securities above, the Investment Company Act,","page_number":16,"box":{"x":101,"y":302,"width":795,"height":11}},{"id":"d727a6ed-44c0-47b0-8238-7aeaa03d9176","block_type":"box","text":"including the rules and regulations thereunder, generally prohibits the Fund from issuing senior securities (other than","page_number":16,"box":{"x":70,"y":317,"width":832,"height":11}},{"id":"dbe6d296-c6cb-4b66-b7f0-d5c7a9f93549","block_type":"box","text":"cer tain temporary borrowings) unless immediately after the issuance the Fund has satisfied an asset coverage","page_number":16,"box":{"x":69,"y":332,"width":790,"height":11}},{"id":"1c6daffc-6c06-47f0-bee1-f01668b88610","block_type":"box","text":"requirement with respect to senior securities representing indebtedness prescribed by the Investment Company Act.","page_number":16,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"17b0d3f6-142e-4e4b-be2e-752f81b62b16","block_type":"box","text":"Cer tain trading practices and investments, such as derivatives transactions, may be treated as senior securities.","page_number":16,"box":{"x":69,"y":362,"width":805,"height":11}},{"id":"33c5bc08-8327-40ac-92e1-7af318d33595","block_type":"box","text":"Prior to the adoption and implementation of Rule 18f-4 under the Investment Company Act, when the Fund/Por tfolio","page_number":16,"box":{"x":69,"y":377,"width":826,"height":11}},{"id":"d0e493a5-3f38-4dd4-b366-3f18754bc7f1","block_type":"box","text":"engaged in a derivatives transaction that creates future payment obligations, consistent with SEC staff guidance and","page_number":16,"box":{"x":69,"y":392,"width":832,"height":12}},{"id":"e65c4636-95a4-4f79-9a5a-bfa7005af3e1","block_type":"box","text":"interpretations, the Fund was permitted to segregate or earmark liquid assets, or enter into an offsetting position, in","page_number":16,"box":{"x":70,"y":407,"width":830,"height":12}},{"id":"1a4c8d29-79b0-465f-b278-d7cba313bf8e","block_type":"box","text":"an amount at least equal to the Fund’s exposure, on a mark-to-market basis, to the transaction, instead of meeting","page_number":16,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"445e95af-ca53-413d-b8a0-3b15d4f3cd2a","block_type":"box","text":"the asset coverage requirement with respect to senior securities prescribed by the Investment Company Act. The SEC","page_number":16,"box":{"x":68,"y":438,"width":840,"height":11}},{"id":"4f99c996-c6c7-4a50-9dfc-7e655087c37b","block_type":"box","text":"staff guidance and interpretations were rescinded in connection with the adoption of Rule 18f-4, and the Fund now","page_number":16,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"5b732176-c9ae-4ef0-aff0-8576e0d4973d","block_type":"box","text":"complies with Rule 18f-4 with respect to its derivatives transactions. Thus, the fundamental policy relating to issuing","page_number":16,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"49eddceb-8aed-4ee5-ba71-0dbdf59acf8b","block_type":"box","text":"senior securities above will not restrict the Fund from entering into derivatives transactions that are treated as senior","page_number":16,"box":{"x":69,"y":483,"width":836,"height":11}},{"id":"20e954de-826e-42a2-9e24-47cd71b34c39","block_type":"box","text":"securities so long as the Fund complies with Rule 18f-4 with respect to such derivatives transactions.","page_number":16,"box":{"x":69,"y":498,"width":724,"height":11}},{"id":"5050b070-5e91-43ab-a574-e1c151932454","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":16,"box":{"x":102,"y":521,"width":768,"height":11}},{"id":"26d1870e-f196-4edc-806a-4a209f4aba50","block_type":"box","text":"approval, the Fund may not purchase securities of other investment companies, except to the extent permitted by the","page_number":16,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"0ff58696-8c6a-47b2-b105-c838a933e0be","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":16,"box":{"x":70,"y":551,"width":817,"height":11}},{"id":"69b638c0-55d6-4845-b43e-e596271c7ace","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":16,"box":{"x":69,"y":566,"width":811,"height":11}},{"id":"1f2646c8-c454-4f34-b802-eb4c6fea2660","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":16,"box":{"x":68,"y":581,"width":840,"height":12}},{"id":"7590aa44-9fe2-47eb-9e59-a89b5d5141a0","block_type":"box","text":"by another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":16,"box":{"x":69,"y":596,"width":783,"height":12}},{"id":"ae557719-01fe-443f-a50f-8a9fc079e2f1","block_type":"box","text":"Unless otherwise indicated or with respect to policies adopted pursuant to Rule 35d-1 under the Investment","page_number":16,"box":{"x":102,"y":619,"width":771,"height":11}},{"id":"c8e087fe-a1ea-47fc-8409-695824cd6757","block_type":"box","text":"Company Act, all limitations apply only at the time that a transaction is under taken. Any change in the percentage of","page_number":16,"box":{"x":69,"y":634,"width":830,"height":12}},{"id":"3db32676-812f-4d76-bcc8-e9b179931723","block_type":"box","text":"the Fund’s assets invested in cer tain securities or other instruments resulting from market fluctuations or other","page_number":16,"box":{"x":68,"y":649,"width":799,"height":12}},{"id":"ee1013e2-5fee-40aa-8c92-e83ab2381371","block_type":"box","text":"changes in the Fund’s total assets will not require the Fund to dispose of an investment until BlackRock determines","page_number":16,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"4834cfb6-6e84-4813-ab77-63b0b4e39feb","block_type":"box","text":"that it is practicable to sell or close out the investment without undue market or tax consequences.","page_number":16,"box":{"x":68,"y":680,"width":708,"height":11}},{"id":"8de61dab-8ecf-4a2c-939a-3650f1d87067","block_type":"box","text":"III. Information on Trustees and Officers","page_number":16,"box":{"x":69,"y":710,"width":290,"height":9}},{"id":"5c2043b2-e1ba-4c1b-9960-dc321f96a3aa","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thir teen of whom are not “interested persons” of","page_number":16,"box":{"x":101,"y":732,"width":788,"height":12}},{"id":"bd3f31e4-4b65-4561-a1c2-cd540a5ef11d","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":16,"box":{"x":68,"y":748,"width":779,"height":11}},{"id":"3f8c7acb-1069-456a-938e-962765488e5d","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":16,"box":{"x":69,"y":763,"width":837,"height":11}},{"id":"f0e3d70d-0b63-4f19-bf79-a5d89cc9880f","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":16,"box":{"x":70,"y":778,"width":793,"height":11}},{"id":"42d0f1d8-59f8-4c73-acb7-d207ad3c0bc4","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":16,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"072ccdfb-2207-4a33-802b-ff3529df221f","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":16,"box":{"x":68,"y":808,"width":837,"height":11}},{"id":"d6a8614d-b380-4046-a59d-fab67452fde8","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":16,"box":{"x":70,"y":823,"width":335,"height":11}},{"id":"ddd41ac3-faf3-45d7-b070-13a5f9a7952b","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":16,"box":{"x":101,"y":846,"width":769,"height":11}},{"id":"38ea47c1-e6ae-4f4a-88b5-b3c700114e0f","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":16,"box":{"x":70,"y":861,"width":827,"height":11}},{"id":"f602948b-11c5-4376-b315-7d7ff26c2789","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":16,"box":{"x":70,"y":876,"width":821,"height":11}},{"id":"ecbd8b7f-53d4-4a17-a30c-3276c328d18a","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":16,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"cc0b4cad-cd72-4adf-b937-ad7230fcbed4","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":16,"box":{"x":70,"y":906,"width":830,"height":12}},{"id":"24166596-43be-4cc5-a3de-ba6350bd4a03","block_type":"box","text":"I-7","page_number":16,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"8f3a2a5d-a281-4d19-92b3-d9267a33afd2","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9563ced7-14ad-4455-9ff9-104b21c54cd3","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee per forms a similar role with respect to the","page_number":17,"box":{"x":68,"y":45,"width":789,"height":11}},{"id":"5d592839-41ae-46ae-95eb-8ff7e595a370","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":17,"box":{"x":69,"y":60,"width":810,"height":11}},{"id":"cca930e3-6ea8-42cf-95a1-e09cd231622a","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":17,"box":{"x":69,"y":75,"width":809,"height":11}},{"id":"0e6b729e-b0f1-4420-9182-ada6e1ff60be","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":17,"box":{"x":70,"y":90,"width":794,"height":11}},{"id":"d2d9f973-b547-4809-84ef-07d9e787fcf7","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":17,"box":{"x":69,"y":105,"width":816,"height":11}},{"id":"f15a9da6-64df-44f7-9fa5-ea81afda2e0d","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and repor ts","page_number":17,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"1c4cce37-a335-4dd5-83cc-59d3ecf9c9ae","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":17,"box":{"x":70,"y":135,"width":811,"height":12}},{"id":"51fd6021-5cf8-43ba-96f2-b4bf6081d034","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":17,"box":{"x":68,"y":150,"width":809,"height":11}},{"id":"d01536fb-c66a-40b5-9be8-e77ef4dd239d","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":17,"box":{"x":69,"y":166,"width":825,"height":11}},{"id":"0e872a05-5713-420f-8670-85156bf3b12a","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":17,"box":{"x":69,"y":181,"width":441,"height":11}},{"id":"a19b71b5-aef7-4453-8a68-3e416b41bd24","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":17,"box":{"x":101,"y":203,"width":777,"height":12}},{"id":"25c236a9-12f8-46f0-b8e3-1ec41c896433","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":17,"box":{"x":69,"y":218,"width":832,"height":12}},{"id":"e930dfbf-8ab6-45cc-8c9a-6aff8b583181","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":17,"box":{"x":68,"y":234,"width":820,"height":11}},{"id":"b492f039-2b38-4f5b-b25f-eb3107d8d4ea","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance, operations","page_number":17,"box":{"x":70,"y":249,"width":812,"height":11}},{"id":"13177b86-0909-4b00-9d75-4ed18be3c7df","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":17,"box":{"x":69,"y":264,"width":819,"height":11}},{"id":"ae1cbc6e-434c-419f-adb5-6fa9d38d0375","block_type":"box","text":"the operations of the Fund.","page_number":17,"box":{"x":68,"y":279,"width":192,"height":11}},{"id":"9f729d5b-bd84-4444-b9d2-c593c0e4dcf4","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":17,"box":{"x":102,"y":302,"width":785,"height":11}},{"id":"a89a70bc-83e0-4569-adc1-efdcda57ab1a","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":17,"box":{"x":69,"y":317,"width":828,"height":11}},{"id":"757afc2a-e3db-44f6-9a6f-eff61a719dd1","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":17,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"4cabd5fb-73e4-4bea-a5db-991971cb66eb","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":17,"box":{"x":68,"y":347,"width":820,"height":11}},{"id":"d03db9c0-10a6-4bc3-86e6-9b55ef504e36","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":17,"box":{"x":70,"y":362,"width":811,"height":11}},{"id":"937811c8-2d59-4c0a-8895-6c059c97e723","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":17,"box":{"x":70,"y":377,"width":767,"height":12}},{"id":"0f747e3f-fec2-4752-9b82-529ec8843df2","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":17,"box":{"x":69,"y":392,"width":815,"height":12}},{"id":"88295374-4220-4ab4-9116-5712e62ca5cd","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":17,"box":{"x":70,"y":407,"width":803,"height":12}},{"id":"34618e65-ffd4-4158-973b-5ae9547cc682","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":17,"box":{"x":69,"y":423,"width":840,"height":11}},{"id":"ac8e1524-fa6b-4340-926e-bbb988e288eb","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":17,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"dd39bb6c-90e7-470b-944f-9079fb4e254d","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":17,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"bdb16969-a5de-44eb-9f6a-80d6563f4d86","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":17,"box":{"x":69,"y":468,"width":812,"height":11}},{"id":"ed29cf6b-34f7-49df-b283-56c9cb30c4d0","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":17,"box":{"x":68,"y":483,"width":818,"height":11}},{"id":"96ae9f73-e8f6-4793-aaf6-aff8ae700f62","block_type":"box","text":"its service providers. The Independent Trustees have engaged independent legal counsel to assist them in","page_number":17,"box":{"x":70,"y":498,"width":759,"height":11}},{"id":"cb83c346-84c7-4a5f-b684-3cd09520d047","block_type":"box","text":"per forming their oversight responsibilities.","page_number":17,"box":{"x":70,"y":513,"width":299,"height":12}},{"id":"08c19fde-b025-4951-9e2d-c6f292a33594","block_type":"box","text":"Audit Committee.","page_number":17,"box":{"x":101,"y":536,"width":122,"height":9}},{"id":"b03d68bd-50fa-4023-804b-b2a6b049dcfa","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":17,"box":{"x":229,"y":536,"width":673,"height":11}},{"id":"e4e35aad-d08c-4490-91e5-a87a2b54bed9","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Trustees.","page_number":17,"box":{"x":68,"y":551,"width":831,"height":11}},{"id":"6f54aceb-6468-4b12-9b54-f08d72bc1de6","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":17,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"6d08bf52-4913-460b-a0d6-bf349ee7c354","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":17,"box":{"x":68,"y":581,"width":823,"height":12}},{"id":"2a6e1839-a25a-466d-81f4-fcbc134277f2","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":597,"width":830,"height":11}},{"id":"46bf244e-e91a-4acb-9766-3805bace8710","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":17,"box":{"x":70,"y":612,"width":825,"height":11}},{"id":"6deea3fb-6a09-4718-b68a-6d106c74d3b2","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":17,"box":{"x":70,"y":627,"width":807,"height":11}},{"id":"5ddbe7d1-18fd-4bba-98c3-9eb2a3eb12cc","block_type":"box","text":"fees for the Fund; (3) review the conduct and results of each independent audit of the Fund’s annual financial","page_number":17,"box":{"x":68,"y":642,"width":781,"height":11}},{"id":"06ad6394-c731-4f34-957d-404676324b4d","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":17,"box":{"x":69,"y":657,"width":834,"height":11}},{"id":"e9a374ed-a931-453e-90ad-0b41b372a0fa","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":17,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"d3c9706f-32f6-4902-851b-9eee4b4de4eb","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":687,"width":825,"height":11}},{"id":"af513635-13fa-417d-9d0f-d63c9f7e6e99","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":17,"box":{"x":70,"y":702,"width":809,"height":12}},{"id":"972b39fd-54e1-4e2c-9c0b-d1e56bb2c587","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":17,"box":{"x":70,"y":717,"width":815,"height":12}},{"id":"23b99758-7f16-4b90-bd76-297c2b23db25","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":17,"box":{"x":69,"y":732,"width":774,"height":12}},{"id":"9bd6fcf1-8d8b-4b87-9d73-1c9bdf1329c0","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":17,"box":{"x":69,"y":748,"width":815,"height":11}},{"id":"e6fd4376-354c-44db-938a-97f82c1e195f","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":17,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"20dcfef0-cb41-4fd0-b6b7-5acc95d6e2a5","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":17,"box":{"x":69,"y":778,"width":812,"height":11}},{"id":"4e23454a-e412-49b5-807a-e815c8e41d93","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":17,"box":{"x":70,"y":793,"width":574,"height":11}},{"id":"3df30824-8bfb-4298-bee8-9ccee6c7eeaf","block_type":"box","text":"Governance and Nominating Committee.","page_number":17,"box":{"x":102,"y":816,"width":286,"height":11}},{"id":"4ab6da18-52a3-470d-9d41-8e68f0138478","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":17,"box":{"x":394,"y":816,"width":464,"height":11}},{"id":"35da0e23-9b96-4728-8eda-59baf132bf6a","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton,","page_number":17,"box":{"x":70,"y":831,"width":838,"height":11}},{"id":"0a297c17-90cf-45b7-8e83-dcf672aab923","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":17,"box":{"x":70,"y":846,"width":784,"height":11}},{"id":"16d6e3d6-bccb-4e98-932f-a3a437ec06f5","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and","page_number":17,"box":{"x":69,"y":861,"width":803,"height":11}},{"id":"7259782c-ffb1-40b3-81a1-3c0585e87398","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":17,"box":{"x":69,"y":876,"width":829,"height":11}},{"id":"4c49d4e1-a963-4a2d-a1c6-40acb7a82d21","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":17,"box":{"x":70,"y":891,"width":828,"height":11}},{"id":"a59907d4-9e79-458b-89db-4c1b286d2ad0","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":17,"box":{"x":70,"y":906,"width":809,"height":11}},{"id":"daa8dcfa-938d-4f3b-9b6d-5590277ed8be","block_type":"box","text":"I-8","page_number":17,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"5bb8befc-ab80-41b2-8de7-5c77a470fb82","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":17,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"239264b2-a680-4bc7-8d1a-4c8fa42aa91d","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":18,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"44327945-205c-4920-a192-77c2e155ac48","block_type":"box","text":"and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to","page_number":18,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"6e75fb91-9fd8-4a0c-8a75-f46b8e2d40dc","block_type":"box","text":"Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of","page_number":18,"box":{"x":70,"y":75,"width":813,"height":11}},{"id":"86c4a3d6-0cbc-4109-8aa3-4a2785d81dcf","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) under take such other duties and responsibilities as may from","page_number":18,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"a8578812-0a83-4484-af24-c3683e2c4583","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":18,"box":{"x":68,"y":105,"width":804,"height":11}},{"id":"fe76dac3-6f9f-47d8-8f91-16aed2c2de8e","block_type":"box","text":"nominations for Trustees made by the Fund’s shareholders as it deems appropriate. Under the Trust’s Amended and","page_number":18,"box":{"x":69,"y":120,"width":832,"height":11}},{"id":"aeed7ce5-0356-46c7-b913-d8443de68ee4","block_type":"box","text":"Restated Code of Regulations (“Bylaws”), shareholders must follow cer tain procedures to nominate a person for","page_number":18,"box":{"x":70,"y":135,"width":801,"height":12}},{"id":"7f9e57d2-6a70-4ec0-b92f-628cdb387036","block_type":"box","text":"election as a Trustee at a shareholder meeting at which Trustees are to be elected. Under these advance notice","page_number":18,"box":{"x":69,"y":151,"width":799,"height":11}},{"id":"7ddf44bd-3c8b-46d8-a044-df439f3c103c","block_type":"box","text":"procedures, notice of the proposed nominee to the Secretary of the Trust must be delivered to or mailed and","page_number":18,"box":{"x":70,"y":166,"width":776,"height":11}},{"id":"b7b28be6-da91-40d5-80ab-c500ee7e832e","block_type":"box","text":"received at the principal executive offices of the Trust not later than the close of business on the fifth day following","page_number":18,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"cd8d5634-f01a-4190-abb0-cb7d6d8dcd37","block_type":"box","text":"the day on which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was","page_number":18,"box":{"x":68,"y":196,"width":812,"height":11}},{"id":"c094a695-4d15-45db-816c-92c0f7f8d91b","block_type":"box","text":"made, whichever first occurs. The Trust’s Bylaws provide that notice of a proposed nomination must include cer tain","page_number":18,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"43f0e5f5-6f26-4871-8ff3-5356d4a4af61","block_type":"box","text":"information about the shareholder and the nominee, as well as cer tain other information, including a written consent","page_number":18,"box":{"x":70,"y":226,"width":832,"height":11}},{"id":"dd58fd75-3813-49ff-b485-dfd0eb4de7b0","block_type":"box","text":"of the proposed nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details. The Board","page_number":18,"box":{"x":69,"y":241,"width":811,"height":11}},{"id":"fe610b58-3168-4f50-94e4-9986a4ab6147","block_type":"box","text":"has adopted a written char ter for the Governance Committee. During the fiscal year ended May 31, 2026, the","page_number":18,"box":{"x":69,"y":256,"width":783,"height":12}},{"id":"4daae533-184e-46f7-9188-65ad08337231","block_type":"box","text":"Governance Committee met ten times.","page_number":18,"box":{"x":69,"y":272,"width":274,"height":8}},{"id":"3edc3faa-4fe9-4557-8fad-4b2247955a95","block_type":"box","text":"Compliance Committee.","page_number":18,"box":{"x":102,"y":294,"width":168,"height":11}},{"id":"96b0b64e-ea55-4d3d-bf84-c90261a92726","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":18,"box":{"x":276,"y":294,"width":629,"height":11}},{"id":"b3d78d0a-8f37-49d6-aa97-687f3366060d","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":18,"box":{"x":68,"y":309,"width":828,"height":11}},{"id":"0281291b-6837-449e-a446-cf70b5ec3b24","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":18,"box":{"x":68,"y":324,"width":771,"height":12}},{"id":"fa00694c-1a94-42ae-a4dc-5707e9e0b79b","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Fund, the fund-related activities of","page_number":18,"box":{"x":69,"y":339,"width":834,"height":12}},{"id":"29f5382a-a2a4-4fb0-be24-8b5db87a8d1a","block_type":"box","text":"BlackRock and any sub-adviser and the Trust’s third-par ty service providers. The Compliance Committee’s","page_number":18,"box":{"x":70,"y":355,"width":754,"height":11}},{"id":"3669cd74-4ab2-4fc4-b999-a8dc1f06b28a","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Trust and its","page_number":18,"box":{"x":69,"y":370,"width":834,"height":11}},{"id":"dfd0eff1-9c5e-4125-87e6-6f8d6bd272e3","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":18,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"79e8eae1-41bf-40b5-a731-74d799890f16","block_type":"box","text":"and, where appropriate, recommend policies concerning the Trust’s compliance with applicable law; (3) review","page_number":18,"box":{"x":69,"y":400,"width":785,"height":11}},{"id":"fa4b676c-837a-4ee2-a829-dd81715d8586","block_type":"box","text":"repor ts from, oversee the annual per formance review of, and make cer tain recommendations and determinations","page_number":18,"box":{"x":69,"y":415,"width":811,"height":11}},{"id":"e0aed80d-d477-45fe-a6ca-24698cdfcf2b","block_type":"box","text":"regarding the Trust’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":18,"box":{"x":69,"y":430,"width":812,"height":11}},{"id":"17d0bd16-b591-4be8-b749-e84d08908ee1","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":18,"box":{"x":69,"y":445,"width":812,"height":12}},{"id":"38199f0e-653c-4804-b6dc-68b72b166d2b","block_type":"box","text":"and (4) under take such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":18,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"7739c61b-97d2-47de-8e88-34b37ebd0a0a","block_type":"box","text":"Compliance Committee. The Board has adopted a written char ter for the Compliance Committee. During the fiscal","page_number":18,"box":{"x":69,"y":475,"width":811,"height":12}},{"id":"dd7e16d5-04bf-4239-b11b-4d3074c99002","block_type":"box","text":"year ended May 31, 2026, the Compliance Committee met four times.","page_number":18,"box":{"x":68,"y":491,"width":502,"height":11}},{"id":"677a04c7-a406-46c3-a522-aa3550ef97b8","block_type":"box","text":"Per formance Oversight Committee.","page_number":18,"box":{"x":102,"y":513,"width":248,"height":12}},{"id":"987fd911-8644-4424-abc6-440678c47641","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":18,"box":{"x":356,"y":513,"width":531,"height":12}},{"id":"cae22345-5925-4e59-a8f5-09a7b5cf8a5a","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton, Neil A.","page_number":18,"box":{"x":69,"y":529,"width":829,"height":11}},{"id":"163a5851-ce41-4063-b83f-d6fd587f8e76","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is","page_number":18,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"6186072c-d040-4e24-9eb8-268dad81998d","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed","page_number":18,"box":{"x":68,"y":559,"width":832,"height":11}},{"id":"baedeb7f-42f1-42ad-a2db-43b4f5cb72fa","block_type":"box","text":"upon per formance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":18,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"71460165-0e3b-49e1-a261-4c4e1c1cb467","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":18,"box":{"x":69,"y":589,"width":782,"height":11}},{"id":"31d5d395-6fb4-49b2-bfa1-db3df138882d","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":18,"box":{"x":70,"y":604,"width":829,"height":11}},{"id":"3be681d4-66d5-4c36-9691-46c847eae821","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":18,"box":{"x":69,"y":619,"width":816,"height":11}},{"id":"0ecaf066-aba8-46c0-9a7f-c7b66185477b","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":18,"box":{"x":69,"y":634,"width":803,"height":11}},{"id":"f1bab425-34af-49cd-8053-09b172aa9797","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":18,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"ed4f2542-8d90-4ca5-b1e3-6e0b8cfff5c8","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":18,"box":{"x":68,"y":664,"width":811,"height":12}},{"id":"e2438c0e-5f4b-4f75-968f-7e0a3984995b","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":18,"box":{"x":69,"y":680,"width":757,"height":11}},{"id":"0ee2e1cf-15a7-42a3-a9f9-f705e86ebf96","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":18,"box":{"x":70,"y":695,"width":835,"height":11}},{"id":"52ae322d-ce9a-45a8-8c91-6b3522b9d215","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":18,"box":{"x":68,"y":710,"width":800,"height":11}},{"id":"252bbe4d-32ea-4e3f-a7c2-72a559670298","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":18,"box":{"x":69,"y":725,"width":780,"height":11}},{"id":"23d14e26-3c3b-418d-a766-08217399bce4","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":18,"box":{"x":69,"y":740,"width":838,"height":11}},{"id":"22934ffb-d43b-4bcf-b763-c8a9ef2856e3","block_type":"box","text":"ended May 31, 2026, the Per formance Oversight Committee met five times.","page_number":18,"box":{"x":69,"y":755,"width":544,"height":11}},{"id":"aec001e8-774e-47a8-ae63-43c70b2805a9","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":18,"box":{"x":101,"y":778,"width":186,"height":11}},{"id":"14ab560f-e987-479f-bf82-0cbe51556165","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":18,"box":{"x":293,"y":778,"width":598,"height":11}},{"id":"33838396-f47b-4b4f-a769-372b03cd98d7","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":18,"box":{"x":70,"y":793,"width":817,"height":11}},{"id":"5dbc42c7-c04c-4cc1-9e98-64cdcb03c20e","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":18,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"13d4b00d-f80a-4d6b-bdc0-e54aeee3c10b","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":18,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"7f252cc3-451f-428b-89ba-0d055b55903a","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":18,"box":{"x":69,"y":838,"width":813,"height":12}},{"id":"ecdd1008-5d64-4de4-8873-471f15ec6d1a","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":18,"box":{"x":68,"y":853,"width":816,"height":12}},{"id":"78d843b3-e0b7-4288-8311-fbfa36388d9d","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":18,"box":{"x":68,"y":869,"width":575,"height":11}},{"id":"dd87ba38-3606-45af-afc8-d08f64028e9f","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":18,"box":{"x":101,"y":891,"width":771,"height":11}},{"id":"405ad69c-0d97-4c1d-bd9e-084bc029b91c","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":18,"box":{"x":69,"y":906,"width":827,"height":12}},{"id":"778e5f87-c5f0-46e6-b224-95097f59dfdb","block_type":"box","text":"I-9","page_number":18,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"04ef92ab-c884-4fbd-a073-fad243976592","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":18,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"98568472-ec14-404a-875e-08ee7bf39c07","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":19,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"bc8bb3db-71c6-4da4-bc4e-945b76574761","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":19,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"aaaa8acf-6552-45c2-9b4f-5a3d54003a39","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":19,"box":{"x":70,"y":75,"width":807,"height":11}},{"id":"d796f0f9-7d20-46ea-907e-4b53032c0069","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":19,"box":{"x":70,"y":90,"width":787,"height":11}},{"id":"4ed55723-df4c-4b62-a3b6-8535af7219ab","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":19,"box":{"x":69,"y":105,"width":805,"height":11}},{"id":"dad4953a-c72c-4a64-81a1-35716b669718","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":19,"box":{"x":68,"y":120,"width":794,"height":12}},{"id":"95dd6c4b-962b-4aaf-b954-97e440a71178","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":19,"box":{"x":68,"y":136,"width":829,"height":11}},{"id":"423e9f2d-e7f9-4c9a-9d26-63fe37393c90","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":19,"box":{"x":69,"y":150,"width":823,"height":12}},{"id":"8de63c97-5d7b-4b08-b046-5071659371c4","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":19,"box":{"x":69,"y":166,"width":771,"height":11}},{"id":"ed90ca6c-b73e-47a3-a7a6-fb9c97f3bf94","block_type":"box","text":"business judgment in the per formance of their duties as Trustees.","page_number":19,"box":{"x":69,"y":181,"width":473,"height":11}},{"id":"7485aade-4424-4f0b-9658-ba2427e99bf0","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":19,"box":{"x":102,"y":203,"width":792,"height":12}},{"id":"a761892d-3c04-4d7f-89fe-64963eb39195","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":19,"box":{"x":69,"y":218,"width":807,"height":12}},{"id":"1424a9c4-de18-4fa6-84b2-a8f03ae9ee5e","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":19,"box":{"x":69,"y":234,"width":837,"height":11}},{"id":"fdcd8443-f3b9-4544-a91d-0f2f97aaee7b","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":19,"box":{"x":70,"y":249,"width":759,"height":11}},{"id":"f8f40af9-1bdc-485d-b188-da53111c6c79","block_type":"box","text":"par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":19,"box":{"x":70,"y":264,"width":685,"height":11}},{"id":"4f51ddb2-fcb8-4f9f-9483-9296724e8b26","block_type":"box","text":"ad hoc","page_number":19,"box":{"x":762,"y":264,"width":47,"height":9}},{"id":"8021604f-27cf-47a6-b4ec-235e831242de","block_type":"box","text":"committees","page_number":19,"box":{"x":814,"y":264,"width":82,"height":9}},{"id":"2b3c6948-621e-4371-b1d1-b7dbe5a0c660","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":19,"box":{"x":68,"y":279,"width":395,"height":11}},{"id":"cf0221b9-652a-4bb4-bc34-adb69af18d15","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":19,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"71c5c60d-8d83-43a3-8ac2-a85bab34d732","block_type":"box","text":"suppor t the conclusion that each Trustee should serve on the Board.","page_number":19,"box":{"x":69,"y":317,"width":492,"height":11}},{"id":"1763306a-49cc-410e-9648-0ab938e6883b","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":19,"box":{"x":68,"y":345,"width":409,"height":9}},{"id":"e773f032-cfea-4bbb-977d-429cae7f67d6","block_type":"box","text":"Independent Trustees","page_number":19,"box":{"x":70,"y":362,"width":154,"height":10}},{"id":"54944faa-2c98-48f2-a7d6-ebda1d0cf2da","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":19,"box":{"x":69,"y":377,"width":781,"height":11}},{"id":"9cca4b54-9ad5-45ea-ba4d-16041b4119bc","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":19,"box":{"x":265,"y":392,"width":604,"height":11}},{"id":"eafc7fd7-71dc-49f7-9cd8-bdedd7954e3a","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":19,"box":{"x":265,"y":407,"width":623,"height":11}},{"id":"3377450f-a6ed-42a4-9f1d-886742ccaaa9","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":19,"box":{"x":265,"y":422,"width":637,"height":11}},{"id":"064ab3a8-cad0-44a4-90bc-2181ecc73efa","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":19,"box":{"x":265,"y":437,"width":631,"height":11}},{"id":"4f6566df-6abb-48db-a2cf-2388bc0cadfd","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":19,"box":{"x":264,"y":452,"width":626,"height":11}},{"id":"da0a33f8-7c40-4d81-b289-262b662cfc89","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":19,"box":{"x":265,"y":467,"width":639,"height":11}},{"id":"cadfd349-8dd1-470e-ab3c-59c9c469ac8a","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":19,"box":{"x":264,"y":483,"width":637,"height":11}},{"id":"e3ae55b1-b208-4049-8419-06c01bfee973","block_type":"box","text":"exper tise across asset classes and strategies, and insight and perspective on the","page_number":19,"box":{"x":265,"y":498,"width":586,"height":11}},{"id":"fc1e47d3-5b7a-4d00-b907-ab41dab1c5e8","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":19,"box":{"x":265,"y":513,"width":640,"height":11}},{"id":"55056156-b889-4a95-8d79-12d4e66545fa","block_type":"box","text":"Committee and the Per formance Oversight Committee.","page_number":19,"box":{"x":265,"y":528,"width":389,"height":11}},{"id":"a76de4d6-bb4f-462e-a93d-db5511114677","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":19,"box":{"x":69,"y":550,"width":806,"height":12}},{"id":"a224d2b3-832c-4cfb-8d29-129d80e1ec67","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":19,"box":{"x":265,"y":566,"width":604,"height":11}},{"id":"e5a700bc-a76f-4e42-8811-d7db529e829f","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":19,"box":{"x":265,"y":581,"width":632,"height":11}},{"id":"4592e4ac-9fee-4003-bbd9-d9162ceb9fba","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":19,"box":{"x":265,"y":596,"width":562,"height":9}},{"id":"23b18354-39df-4370-9b37-52c8e6cf9523","block_type":"box","text":"Ms. Car ter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":19,"box":{"x":265,"y":611,"width":616,"height":10}},{"id":"96f8c8bf-cf49-4173-adc9-74ddff12a8ff","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":19,"box":{"x":264,"y":626,"width":591,"height":11}},{"id":"77c4d5d3-9924-4dfe-acf5-c7d464974161","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":19,"box":{"x":265,"y":641,"width":641,"height":11}},{"id":"441c67aa-7da0-494b-9e34-08936bc915d3","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":19,"box":{"x":264,"y":656,"width":638,"height":12}},{"id":"63245086-c3ec-417a-acfc-4eb219854d0f","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":19,"box":{"x":265,"y":671,"width":584,"height":12}},{"id":"1e76264a-871b-48b8-9f69-c3f090b2c0fe","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":19,"box":{"x":265,"y":686,"width":630,"height":12}},{"id":"d73d334b-9b2d-4a27-9fb5-a10af8eb1a06","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":19,"box":{"x":265,"y":702,"width":634,"height":11}},{"id":"1a623bda-1ae9-4ddb-bc87-68081a9d698a","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":19,"box":{"x":265,"y":717,"width":599,"height":11}},{"id":"23cd0215-cc30-4a3a-b3c8-821758ab25c8","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":732,"width":407,"height":11}},{"id":"318dd0b9-51da-49a1-9bde-30c9f4f6a924","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":19,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"5568602e-6bd2-44d6-a2ac-7304264062dc","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":19,"box":{"x":265,"y":770,"width":638,"height":11}},{"id":"c352a1f0-c6f4-4df2-a19a-8debefa522df","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":19,"box":{"x":265,"y":785,"width":642,"height":11}},{"id":"a40fba35-99c9-40fe-b2aa-7a2e2cc28023","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":19,"box":{"x":265,"y":799,"width":601,"height":12}},{"id":"f8788143-3042-4fba-80d8-58ab69624b56","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":19,"box":{"x":265,"y":815,"width":595,"height":11}},{"id":"1f63d1e8-30e8-446a-a7e3-816b3f328b3b","block_type":"box","text":"perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":830,"width":323,"height":11}},{"id":"cba872b3-0bb1-4c43-9bfd-80d61d89fab4","block_type":"box","text":"I-10","page_number":19,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"30ed06a8-f848-4212-8be6-053b6244d051","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":19,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4f92c4b3-f924-4184-ae76-c29764a01d82","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":20,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"5ba3d4b8-1ceb-4db3-999f-645967e4d54a","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":20,"box":{"x":70,"y":65,"width":798,"height":12}},{"id":"a0f9362a-51ed-40a7-a445-f215d9367c0e","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":20,"box":{"x":265,"y":81,"width":631,"height":11}},{"id":"8302f982-63e5-45af-92a4-d55208825a49","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":20,"box":{"x":265,"y":96,"width":633,"height":11}},{"id":"63810f54-9d8b-493b-9d24-17c7d006c207","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":20,"box":{"x":265,"y":111,"width":628,"height":11}},{"id":"7ec5a0c4-a716-43b4-9a63-a586c11e1188","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":20,"box":{"x":265,"y":126,"width":596,"height":11}},{"id":"39258ca3-41a9-47da-8d6b-f03ccb4a6936","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial exper t, as such","page_number":20,"box":{"x":265,"y":141,"width":616,"height":11}},{"id":"5049ff94-0eba-4180-8057-904a23be690f","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":20,"box":{"x":264,"y":156,"width":368,"height":11}},{"id":"d80f9e67-48d6-4952-9353-e3ebd9135548","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":20,"box":{"x":69,"y":179,"width":777,"height":11}},{"id":"0500bae7-d162-4a08-ba1a-08200bc01fd1","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":20,"box":{"x":265,"y":194,"width":613,"height":11}},{"id":"692cb816-7a41-4a30-a504-4a1080788481","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":20,"box":{"x":265,"y":209,"width":563,"height":11}},{"id":"91a44b1d-4cc4-47b2-8405-dbaeb8ab8bec","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":20,"box":{"x":265,"y":224,"width":607,"height":11}},{"id":"87149e44-f1a8-4cec-ab52-36e9b3788426","block_type":"box","text":"par tner at Deloitte and Ar thur Andersen for approximately 17 years. These positions have","page_number":20,"box":{"x":265,"y":239,"width":638,"height":11}},{"id":"d7ac76e8-92b4-4e4a-8484-3000bb120246","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":20,"box":{"x":265,"y":255,"width":626,"height":11}},{"id":"f15ddb4d-d93b-4917-908a-27864eb5872b","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":20,"box":{"x":265,"y":269,"width":563,"height":12}},{"id":"94da41bd-40c5-447b-977b-eb8ea4bbd9db","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Trustees prior to becoming an","page_number":20,"box":{"x":265,"y":285,"width":625,"height":11}},{"id":"a8820e44-083e-48d1-bedb-d4a5a16c6798","block_type":"box","text":"Independent Trustee. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":20,"box":{"x":265,"y":300,"width":625,"height":11}},{"id":"45b963cd-e8e0-4829-8afd-5304b97b07e0","block_type":"box","text":"audit committee financial exper t, as such term is defined in the applicable Commission","page_number":20,"box":{"x":265,"y":315,"width":623,"height":11}},{"id":"1d1c072e-bae9-4db3-8062-6a253999c627","block_type":"box","text":"rules.","page_number":20,"box":{"x":265,"y":330,"width":38,"height":9}},{"id":"03b54c05-d338-476f-b1eb-5594aaed9f35","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":20,"box":{"x":70,"y":353,"width":806,"height":11}},{"id":"5e95f36e-12d7-4d66-854f-6cb953e3622d","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":20,"box":{"x":264,"y":368,"width":584,"height":11}},{"id":"1a4ab601-a756-4339-b5d0-0c96c62368fa","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":20,"box":{"x":265,"y":383,"width":622,"height":11}},{"id":"c580a9fd-39dd-403a-84d3-442cf2d353cc","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":20,"box":{"x":265,"y":398,"width":638,"height":11}},{"id":"3441a9d8-c5b3-4d5a-a331-59fc3660935d","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":20,"box":{"x":265,"y":413,"width":570,"height":11}},{"id":"69fe427d-cc13-4d5a-8364-86ac8e24e3b4","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":20,"box":{"x":265,"y":428,"width":642,"height":12}},{"id":"781baedd-c0fa-409c-9316-ad0c77fe6b2e","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":20,"box":{"x":265,"y":444,"width":626,"height":11}},{"id":"132d563a-6b02-4840-a2a4-838ffe7675d6","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":20,"box":{"x":265,"y":458,"width":630,"height":12}},{"id":"9c1fdce2-685d-437d-ac60-0971ed3e52b0","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":20,"box":{"x":265,"y":474,"width":602,"height":11}},{"id":"cfc34637-02ac-4a1b-bef7-55b1cc8239d9","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":20,"box":{"x":264,"y":489,"width":643,"height":11}},{"id":"5fa96f9b-b3e2-4d4e-a26b-924be131bb2c","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":20,"box":{"x":264,"y":504,"width":639,"height":11}},{"id":"bdd3af0c-670c-4fd5-9411-d739efe47904","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":20,"box":{"x":264,"y":519,"width":641,"height":11}},{"id":"564bb5bf-22a9-4010-b57e-86747cb5ecfd","block_type":"box","text":"applicable Commission rules.","page_number":20,"box":{"x":265,"y":534,"width":208,"height":11}},{"id":"18f6e7f2-6854-4579-a2cc-1f8af9a242ce","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":20,"box":{"x":69,"y":557,"width":769,"height":11}},{"id":"77839521-10d8-46b2-a4bb-6810aab6c617","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":20,"box":{"x":265,"y":572,"width":621,"height":11}},{"id":"a2c149e6-05d2-4143-b9c0-bb82b84fa29c","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":20,"box":{"x":265,"y":587,"width":599,"height":11}},{"id":"ce7a21b6-79f7-4aab-a166-1f2730b0ee0b","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":20,"box":{"x":265,"y":602,"width":641,"height":11}},{"id":"065e00a6-f18d-43ff-9e4a-3a5c51620c2a","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":20,"box":{"x":264,"y":617,"width":602,"height":11}},{"id":"ff51a4c6-dd0e-43a5-b03f-b9f2c5f0e4ce","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":20,"box":{"x":264,"y":633,"width":617,"height":11}},{"id":"62744449-315d-4bfb-bf8a-32ce9be4e67e","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":20,"box":{"x":265,"y":648,"width":629,"height":11}},{"id":"8f3ef851-0fc1-437d-a31e-f6e9dd8b9c82","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":20,"box":{"x":264,"y":663,"width":628,"height":11}},{"id":"c2c1c47f-0445-4134-9476-3912537ff199","block_type":"box","text":"ar ticles and books on these topics.","page_number":20,"box":{"x":265,"y":678,"width":251,"height":11}},{"id":"4dc84813-b93b-48c8-a8f3-0e56baf29b55","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":20,"box":{"x":70,"y":700,"width":764,"height":12}},{"id":"45b7b5a8-f6db-47bd-8ec7-33d2aa198ddd","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":20,"box":{"x":265,"y":716,"width":642,"height":11}},{"id":"4c2862ea-e8c6-4ae3-81ae-32a14dee45e8","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":20,"box":{"x":264,"y":731,"width":593,"height":11}},{"id":"77235f9d-287e-456e-aa9d-ff683c00327b","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":20,"box":{"x":265,"y":746,"width":603,"height":11}},{"id":"51156d19-8105-4bf3-bc2a-339688386ab6","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":20,"box":{"x":265,"y":761,"width":629,"height":11}},{"id":"eba38d5b-bef9-46e8-bfe6-153608aac4b2","block_type":"box","text":"I-11","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c18cfdce-6c0e-492e-8162-d81e84268cf5","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":20,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3898ca19-07db-475b-acec-8fa8694e86c2","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":21,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"d7db8bdd-bd29-426f-b816-be1612930703","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":21,"box":{"x":70,"y":65,"width":804,"height":12}},{"id":"b60d4835-13e0-4ac4-a68e-6eb874a2b486","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":21,"box":{"x":265,"y":81,"width":552,"height":11}},{"id":"73a9f8c5-f3a7-43f5-a746-0f572544ad31","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":21,"box":{"x":265,"y":96,"width":636,"height":11}},{"id":"5304cc23-9a27-4297-b6c9-8662afe745ef","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":21,"box":{"x":265,"y":111,"width":639,"height":11}},{"id":"8fc03ba7-4c4f-4dc4-8e04-c75b19268a2e","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":21,"box":{"x":265,"y":126,"width":576,"height":11}},{"id":"3761a7c8-2870-4fef-98a9-ecbeaad73fcd","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":21,"box":{"x":265,"y":141,"width":626,"height":11}},{"id":"66a51105-13d2-4441-9bca-122cb8466fbb","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":21,"box":{"x":265,"y":156,"width":592,"height":11}},{"id":"633d826f-a2e2-4f5c-b274-12b51859a97d","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":21,"box":{"x":265,"y":171,"width":629,"height":12}},{"id":"9f00c77a-5969-4428-82d5-79207379a20d","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":21,"box":{"x":265,"y":186,"width":626,"height":12}},{"id":"edb11ee8-8d9d-41a4-9868-8c7f3f0addd6","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":21,"box":{"x":264,"y":201,"width":608,"height":12}},{"id":"127b08c9-d6cd-4329-b825-ac73121cf1aa","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":21,"box":{"x":265,"y":217,"width":575,"height":11}},{"id":"852742c4-3142-4ff2-bd97-436fb89a4125","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":21,"box":{"x":264,"y":232,"width":591,"height":11}},{"id":"9f3313e7-1d22-4782-845b-ae1537ed239a","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":21,"box":{"x":265,"y":247,"width":627,"height":11}},{"id":"1444aefd-4ace-4c15-a775-f1318f5d186f","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":21,"box":{"x":265,"y":262,"width":578,"height":11}},{"id":"5e04f266-3cc1-48cc-bfcf-b35529cd2be0","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":21,"box":{"x":265,"y":277,"width":607,"height":11}},{"id":"d7c5e92f-bb13-488f-b3a3-58570e41bc3c","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":21,"box":{"x":265,"y":292,"width":615,"height":11}},{"id":"c5c8a657-6730-48db-b7ca-9df0ed2bfa4f","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":21,"box":{"x":265,"y":307,"width":638,"height":12}},{"id":"e5b949b8-830e-4aae-800d-9a8fe002f1af","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":21,"box":{"x":265,"y":322,"width":635,"height":12}},{"id":"f94ee584-f6c8-4471-97c1-e03e78168a77","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":21,"box":{"x":265,"y":338,"width":642,"height":11}},{"id":"4c2052d7-1a0b-42b0-b4fc-7fbbd009c7c9","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":21,"box":{"x":265,"y":353,"width":627,"height":11}},{"id":"502a5a37-35d1-4e84-901e-17912cfcd224","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":21,"box":{"x":265,"y":368,"width":628,"height":11}},{"id":"22dd476a-77a8-49f7-9465-224ee8640225","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":21,"box":{"x":265,"y":383,"width":460,"height":11}},{"id":"cdfef39a-409c-4aeb-a5f2-0ae4c32c443b","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":21,"box":{"x":70,"y":406,"width":818,"height":11}},{"id":"aa908d77-e868-46c1-b517-595efb9cddc0","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":21,"box":{"x":264,"y":421,"width":603,"height":11}},{"id":"ca3f5d37-3f78-4a81-aade-1ee7cff418ae","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":21,"box":{"x":265,"y":436,"width":606,"height":11}},{"id":"82fa666c-4270-4717-8aac-7b599e63ec95","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":21,"box":{"x":265,"y":451,"width":608,"height":9}},{"id":"72636499-70a2-44b8-b025-4ed4e4d46030","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":21,"box":{"x":265,"y":466,"width":626,"height":11}},{"id":"addc4f47-28b2-4d44-b43b-45cd28f157e5","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":21,"box":{"x":265,"y":481,"width":591,"height":11}},{"id":"48810231-2157-4e70-a8db-9bb75f06836c","block_type":"box","text":"various private and non-profit boards.","page_number":21,"box":{"x":264,"y":496,"width":265,"height":11}},{"id":"8dfece55-4b89-4993-a584-17ff7b6978cc","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":21,"box":{"x":70,"y":519,"width":833,"height":11}},{"id":"bada5b9d-321b-4814-a89c-f132e8b0748c","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":21,"box":{"x":265,"y":534,"width":638,"height":11}},{"id":"34f4683b-351e-4fff-88f8-a965137a8acf","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":21,"box":{"x":265,"y":549,"width":608,"height":11}},{"id":"05481236-b2e9-4dba-b712-2ca457bb475f","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":21,"box":{"x":264,"y":564,"width":645,"height":11}},{"id":"31b62c96-d48a-449e-a1eb-f22aa00dbc45","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":21,"box":{"x":264,"y":579,"width":639,"height":9}},{"id":"d5c9ee82-7acb-4429-9ea8-d9ce5dadc830","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":21,"box":{"x":264,"y":595,"width":573,"height":11}},{"id":"4e47fff5-d9e9-41aa-9f16-3d9468f887a5","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":21,"box":{"x":265,"y":610,"width":625,"height":11}},{"id":"ea5e95b7-cad4-4a40-bb88-085f2275025d","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":21,"box":{"x":265,"y":625,"width":610,"height":11}},{"id":"c2871df0-5650-49df-9197-9a0020bee446","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":21,"box":{"x":265,"y":640,"width":642,"height":11}},{"id":"893e76b9-5849-46aa-87c4-7b86288a896b","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":21,"box":{"x":265,"y":655,"width":583,"height":11}},{"id":"78ca38b4-afbe-403b-9c24-7a6fd28aaa6a","block_type":"box","text":"Trustees prior to becoming an Independent Trustee.","page_number":21,"box":{"x":264,"y":670,"width":369,"height":11}},{"id":"eb04756f-6c9a-4337-8320-4345d16598bf","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":21,"box":{"x":70,"y":693,"width":807,"height":11}},{"id":"0fdf34a6-c254-4e8e-97a0-a4925f0c211b","block_type":"box","text":"companies, most recently as a member of the boards of cer tain BlackRock-advised Funds","page_number":21,"box":{"x":264,"y":708,"width":641,"height":11}},{"id":"e3cc0bb0-143b-4e3d-aa76-ebe9cb11248e","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":21,"box":{"x":265,"y":723,"width":618,"height":11}},{"id":"3cc3f313-bce2-4e15-9519-4a8ae31e5d4e","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":21,"box":{"x":265,"y":738,"width":594,"height":11}},{"id":"0caff7b3-5dba-4848-b6da-e664fa606fcd","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":21,"box":{"x":265,"y":753,"width":639,"height":12}},{"id":"ecf73a65-0545-47f8-a268-ea34bed14e83","block_type":"box","text":"be an audit committee financial exper t, as such term is defined in the applicable","page_number":21,"box":{"x":265,"y":768,"width":575,"height":11}},{"id":"24b5f942-bd07-4d2a-94b8-5e85ed24bd81","block_type":"box","text":"Commission rules.","page_number":21,"box":{"x":265,"y":784,"width":131,"height":9}},{"id":"f9dca8c9-12d0-454a-b7da-200c505467fd","block_type":"box","text":"I-12","page_number":21,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"1f956d92-8708-426f-a67e-7af26015ec50","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":21,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"872c8b68-1b87-4110-b8af-ceb9387bb77a","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":22,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"ec7096b3-48e5-44dc-89dd-6fc533848433","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":22,"box":{"x":69,"y":65,"width":808,"height":12}},{"id":"92dc08b8-8cdd-4078-b857-e592adf7d3aa","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liber ty Square Asset","page_number":22,"box":{"x":265,"y":81,"width":630,"height":11}},{"id":"14d7d839-adc0-4810-901c-13188c11e585","block_type":"box","text":"Management, LP / Steel Par tners Japan Asset Management, LP from 1998 to 2015, an","page_number":22,"box":{"x":265,"y":96,"width":627,"height":11}},{"id":"7f8b5807-4b5c-47c3-9ccd-2c4e8c783d48","block_type":"box","text":"investment manager that specialized in long/shor t non-U.S. equity investments, and was","page_number":22,"box":{"x":265,"y":111,"width":632,"height":11}},{"id":"46d09838-704e-4474-85b9-d71d635e5517","block_type":"box","text":"an owner and General Par tner of Neon Liber ty Capital Management, LLC from 2003 to","page_number":22,"box":{"x":265,"y":126,"width":615,"height":11}},{"id":"498761e6-eefe-4640-a3e1-88a51b47ae0b","block_type":"box","text":"2023, a firm focusing on long/shor t equities in global emerging and frontier markets.","page_number":22,"box":{"x":265,"y":141,"width":608,"height":11}},{"id":"4a4331a3-42d8-4c60-a3f4-fe1cd5be1e14","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":22,"box":{"x":264,"y":156,"width":620,"height":11}},{"id":"46b3a4e5-7966-433c-aca2-24127636b897","block_type":"box","text":"economy. Ms. Walton has been determined by the Audit Committee to be an audit","page_number":22,"box":{"x":265,"y":171,"width":584,"height":11}},{"id":"01be4b7f-eb07-4a41-8296-44eac9e41f9b","block_type":"box","text":"committee financial exper t, as such term is defined in the applicable Commission rules.","page_number":22,"box":{"x":264,"y":186,"width":629,"height":11}},{"id":"d3db2705-b06e-4ea0-a45a-67266fdb580f","block_type":"box","text":"Interested Trustees","page_number":22,"box":{"x":70,"y":209,"width":138,"height":9}},{"id":"0d6fce15-5d32-45ab-b83b-676754fd76bd","block_type":"box","text":"Rober t Fairbairn Rober t Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":22,"box":{"x":70,"y":224,"width":823,"height":11}},{"id":"81884db5-b914-493b-b30b-5b9005696d0d","block_type":"box","text":"years of experience in finance and asset management. In par ticular, Mr. Fairbairn’s","page_number":22,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"b04f35a4-f45f-4fad-9e9f-1c237cd00dc6","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":22,"box":{"x":265,"y":254,"width":629,"height":12}},{"id":"e53130d7-a0f3-4b38-aa8b-325cacc98a7f","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":22,"box":{"x":265,"y":269,"width":639,"height":11}},{"id":"66a40394-88b8-42d3-a2ab-f432c22fa104","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":22,"box":{"x":265,"y":285,"width":617,"height":11}},{"id":"d242477a-dd3e-4fdd-a596-b32a3f81ddfb","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":22,"box":{"x":264,"y":300,"width":634,"height":11}},{"id":"95fa1878-20fa-49e8-9b9c-a2d6026fe7b6","block_type":"box","text":"Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":22,"box":{"x":265,"y":315,"width":624,"height":10}},{"id":"a4b469f9-d92f-4018-ab80-f07f255d5b10","block_type":"box","text":"and iShares","page_number":22,"box":{"x":265,"y":330,"width":84,"height":9}},{"id":"9b8f0fe9-ebe7-4a47-b4d1-7500d7bef0af","block_type":"box","text":"®","page_number":22,"box":{"x":350,"y":330,"width":6,"height":5}},{"id":"99f51ea3-7a91-4d23-9808-222119268dff","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":22,"box":{"x":362,"y":330,"width":478,"height":11}},{"id":"00d85dd6-0792-4234-985b-e9ab5fd7571e","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":22,"box":{"x":265,"y":345,"width":585,"height":11}},{"id":"9609bb7d-2162-4a7c-9295-377d8e7a73ef","block_type":"box","text":"Strategic Par tner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":22,"box":{"x":265,"y":360,"width":620,"height":12}},{"id":"93e2d0fb-5b68-4a27-a767-9ef76145e91b","block_type":"box","text":"serves as a board member for the funds in the BlackRock Fixed-Income Complex.","page_number":22,"box":{"x":265,"y":375,"width":578,"height":11}},{"id":"524eb72c-5abe-4234-b406-a7db56eb965a","block_type":"box","text":"John M. Perlowski John M. Perlowski’s experience as Senior Managing Director of BlackRock, Inc. since","page_number":22,"box":{"x":69,"y":398,"width":800,"height":11}},{"id":"504617ea-472c-4343-b848-4d96d2bc9e8f","block_type":"box","text":"2026, as Managing Director of BlackRock, Inc. from 2009 to 2025, as the Head of","page_number":22,"box":{"x":265,"y":413,"width":593,"height":11}},{"id":"425b0bc3-d610-42ad-87dd-9bea0a7bcdff","block_type":"box","text":"BlackRock Global Business Operations Services since 2009, and as President and Chief","page_number":22,"box":{"x":265,"y":428,"width":633,"height":11}},{"id":"a77e1e5e-19f0-4796-bbbe-5c65ea720eb8","block_type":"box","text":"Executive Officer of the BlackRock-advised Funds provides him with a strong","page_number":22,"box":{"x":265,"y":443,"width":542,"height":12}},{"id":"7f049968-d80d-4fef-aab3-b2f8d6dd1ccc","block_type":"box","text":"understanding of the BlackRock-advised Funds, their operations, and the business and","page_number":22,"box":{"x":265,"y":458,"width":617,"height":12}},{"id":"39ca13c6-57be-4bce-ba38-5682ae0ffa3a","block_type":"box","text":"regulatory issues facing the BlackRock-advised Funds. Mr. Perlowski’s prior position as","page_number":22,"box":{"x":265,"y":474,"width":620,"height":11}},{"id":"d2d3add5-a8b4-4d32-8a14-2285c179d346","block_type":"box","text":"Managing Director and Chief Operating Officer of the Global Product Group at Goldman","page_number":22,"box":{"x":265,"y":489,"width":616,"height":11}},{"id":"f60f1681-6cda-4710-bba6-fe29412aa018","block_type":"box","text":"Sachs Asset Management, and his former service as Treasurer and Senior Vice President","page_number":22,"box":{"x":265,"y":504,"width":639,"height":11}},{"id":"39e22223-546c-4dab-ba02-010040c883c6","block_type":"box","text":"of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore","page_number":22,"box":{"x":265,"y":519,"width":603,"height":9}},{"id":"7017aac3-7c66-423a-8b33-e074d3a3a078","block_type":"box","text":"Funds provides the Board with the benefit of his experience with the management","page_number":22,"box":{"x":265,"y":534,"width":582,"height":11}},{"id":"7c9e8fb8-5bba-4ad7-b1b9-4b3a322e6f59","block_type":"box","text":"practices of other financial companies. Mr. Perlowski also serves as a board member for","page_number":22,"box":{"x":265,"y":549,"width":632,"height":11}},{"id":"416b601a-5282-49e2-a658-43df13d200b3","block_type":"box","text":"the funds in the BlackRock Fixed-Income Complex. Mr. Perlowski is a member of","page_number":22,"box":{"x":264,"y":564,"width":572,"height":11}},{"id":"67b1f067-508a-4004-8d57-c493c3e65e15","block_type":"box","text":"BlackRock’s Global Executive Committee.","page_number":22,"box":{"x":265,"y":580,"width":294,"height":8}},{"id":"a0352ed9-0207-44eb-be93-4eadf5a9507d","block_type":"box","text":"Biographical Information","page_number":22,"box":{"x":69,"y":611,"width":178,"height":11}},{"id":"bb58235a-37ed-4608-88fd-7bfd29223f73","block_type":"box","text":"Cer tain biographical and other information relating to the Trustees of the Trust is set for th below, including their","page_number":22,"box":{"x":102,"y":634,"width":798,"height":11}},{"id":"56d5f322-8d6e-4b75-b516-b8596d37b3cc","block_type":"box","text":"address and year of bir th, principal occupations for at least the last five years, length of time served, total number 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Montgomery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":107,"width":510,"height":11}},{"id":"50ce1abb-c530-4cba-9244-771a968e132a","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":678,"y":106,"width":231,"height":11}},{"id":"db49a976-c58f-4a16-bf0c-e8ca7d867119","block_type":"box","text":"Donald C. 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Stern* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":168,"width":510,"height":8}},{"id":"1cafb343-c46e-4309-a57d-630a03264aaf","block_type":"box","text":"None None","page_number":27,"box":{"x":678,"y":168,"width":194,"height":8}},{"id":"2fb3023e-a1cd-4a33-8e50-8b7c6dc263c7","block_type":"box","text":"Kenneth L. Urish","page_number":27,"box":{"x":79,"y":183,"width":117,"height":9}},{"id":"e622b113-788c-45dc-a56b-5ccf14d8e2ba","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over","page_number":27,"box":{"x":204,"y":183,"width":468,"height":9}},{"id":"ea50e3d8-6792-41d1-9c2e-26c0e8365c20","block_type":"box","text":"$100,000 Over $100,000","page_number":27,"box":{"x":678,"y":182,"width":231,"height":11}},{"id":"00e1db30-edc4-4f35-a4a6-0968a0a2c0e6","block_type":"box","text":"Claire A. Walton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":198,"width":510,"height":9}},{"id":"059e8cee-91f9-4474-ba58-af90cc1aa652","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":678,"y":197,"width":231,"height":11}},{"id":"da983461-3050-4caf-8ee0-7a5cbe2b3c82","block_type":"box","text":"Interested Trustees","page_number":27,"box":{"x":70,"y":213,"width":138,"height":9}},{"id":"69037c63-b5f3-4acc-9528-cc7fb1f70b4f","block_type":"box","text":"Rober t Fairbairn","page_number":27,"box":{"x":79,"y":228,"width":113,"height":9}},{"id":"a2becd3d-d753-4b2f-bd61-90e08fb405a3","block_type":"box","text":".................................................","page_number":27,"box":{"x":196,"y":235,"width":393,"height":2}},{"id":"9ace8bae-b31d-4c79-8f77-ab86e1e020ac","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":678,"y":227,"width":231,"height":11}},{"id":"07c662c1-ef27-496e-b8fe-2b4bc434d334","block_type":"box","text":"John M. Perlowski . . .","page_number":27,"box":{"x":78,"y":243,"width":152,"height":9}},{"id":"15ee23e5-c291-4e0a-9eb0-0ba1902a58dd","block_type":"box","text":"............................................","page_number":27,"box":{"x":237,"y":251,"width":352,"height":1}},{"id":"3b2d4f5d-bba1-4b71-9974-59098b415c1f","block_type":"box","text":"$50,001 - $100,000 Over $100,000","page_number":27,"box":{"x":621,"y":242,"width":288,"height":12}},{"id":"98a7261a-d0f4-4486-bb48-bceadad414b4","block_type":"box","text":"* Information is provided as of April 1, 2026, the date Mr. Jarczyk and Mr. Stern first served as consultants to the Independent Trustees.","page_number":27,"box":{"x":70,"y":267,"width":782,"height":9}},{"id":"c15d5844-cd71-4460-86ad-a290bc9f4fd4","block_type":"box","text":"As of September 3, 2026, the Trustees and officers of the Trust as a group directly or indirectly beneficially","page_number":27,"box":{"x":101,"y":288,"width":767,"height":12}},{"id":"8a7b0991-24f2-457f-937c-daef93277f23","block_type":"box","text":"owned an aggregate of less than 1% of any class of the outstanding shares of the Fund. As of December 31, 2025","page_number":27,"box":{"x":69,"y":303,"width":819,"height":12}},{"id":"1974efef-a856-48a2-bfa1-79d907be1f70","block_type":"box","text":"(and, with respect to Mr. Jarczyk and Mr. Stern, as of April 1, 2026), none of the Independent Trustees of the Trust or","page_number":27,"box":{"x":69,"y":319,"width":839,"height":11}},{"id":"20f74d5c-7084-46ac-91a2-5626b1bbcac5","block_type":"box","text":"their immediate family members owned beneficially or of record any securities of the Fund’s investment adviser,","page_number":27,"box":{"x":68,"y":334,"width":798,"height":11}},{"id":"359f3d26-3a54-47a7-b19c-08f4fba37a08","block_type":"box","text":"principal underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such","page_number":27,"box":{"x":70,"y":349,"width":831,"height":11}},{"id":"1f661c1f-5f09-48b0-b7d4-5cc0dd617c91","block_type":"box","text":"entities.","page_number":27,"box":{"x":69,"y":364,"width":56,"height":9}},{"id":"670509bd-6b79-454f-81bd-b2a57c3a2b15","block_type":"box","text":"Compensation of Trustees","page_number":27,"box":{"x":69,"y":394,"width":190,"height":11}},{"id":"bc44ad26-9393-49c5-bcf2-362a70895b43","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":27,"box":{"x":102,"y":416,"width":791,"height":12}},{"id":"abd48d87-22ba-403d-8555-731c80ca41c5","block_type":"box","text":"for his or her services as a board member of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex,","page_number":27,"box":{"x":68,"y":432,"width":810,"height":11}},{"id":"9a33eb45-f7ef-4c99-a8b8-2a105aee35ae","block_type":"box","text":"including the Trust, and a $20,000 board meeting fee to be paid for each in-person board meeting attended (and may","page_number":27,"box":{"x":70,"y":446,"width":838,"height":12}},{"id":"63af3f26-59c2-490c-92c0-98fc407ccf71","block_type":"box","text":"receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings held in a","page_number":27,"box":{"x":69,"y":462,"width":807,"height":12}},{"id":"f2c470e5-e58f-4cde-b4b0-bcba1b95ecae","block_type":"box","text":"calendar year (compensation for meetings in excess of this number to be determined on a case-by-case basis),","page_number":27,"box":{"x":69,"y":477,"width":791,"height":12}},{"id":"ccb3c190-82fc-4648-9e6e-5bfa424382b5","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":27,"box":{"x":68,"y":492,"width":786,"height":12}},{"id":"51ec581a-0ef0-458f-b184-c34a87afffbd","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":27,"box":{"x":69,"y":508,"width":769,"height":11}},{"id":"2db6678f-fd8d-474c-bc1c-7d8433f16cd1","block_type":"box","text":"Committee and Per formance Oversight Committee are paid as compensation an additional annual retainer of","page_number":27,"box":{"x":69,"y":523,"width":778,"height":11}},{"id":"73e8443f-c3f4-489c-a9f3-f0285c877fe9","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":27,"box":{"x":69,"y":537,"width":689,"height":12}},{"id":"a26b6103-bc2d-48c3-8d31-0bec4165138c","block_type":"box","text":"The following table sets for th the compensation the Trust paid to the Trustees, on behalf of the Fund, for the","page_number":27,"box":{"x":101,"y":561,"width":776,"height":11}},{"id":"c1ec47f4-79e4-49e2-a14a-c233b0b2fc22","block_type":"box","text":"fiscal year ended May 31, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for the","page_number":27,"box":{"x":68,"y":576,"width":841,"height":11}},{"id":"86b13e97-cdef-430e-a6f3-c4b9bb89f2f3","block_type":"box","text":"calendar year ended December 31, 2025.","page_number":27,"box":{"x":69,"y":591,"width":298,"height":11}},{"id":"efd59415-9113-4b00-abbf-369378841690","block_type":"box","text":"Name","page_number":27,"box":{"x":69,"y":652,"width":32,"height":7}},{"id":"58ab1f63-730c-4c7a-b65d-4c3afc56245a","block_type":"box","text":"Compensation","page_number":27,"box":{"x":589,"y":642,"width":82,"height":9}},{"id":"00e17ba4-d343-4ba9-b6e5-8d6dddc8332e","block_type":"box","text":"from the Fund","page_number":27,"box":{"x":590,"y":652,"width":80,"height":7}},{"id":"5fdaef37-312b-41a2-875f-25a3e97b96cb","block_type":"box","text":"Estimated","page_number":27,"box":{"x":705,"y":612,"width":58,"height":7}},{"id":"db2d40df-e1d7-4949-8ecf-f9fdfdc6d1cb","block_type":"box","text":"Annual","page_number":27,"box":{"x":714,"y":622,"width":39,"height":7}},{"id":"347670c5-8c3c-4526-ac79-dcf1d2541f65","block_type":"box","text":"Benefits","page_number":27,"box":{"x":710,"y":632,"width":48,"height":7}},{"id":"9bfbdb28-9c94-4c4c-b751-83c643e9f06c","block_type":"box","text":"upon","page_number":27,"box":{"x":720,"y":644,"width":27,"height":7}},{"id":"5b621aa7-d30b-4369-bcbe-7a117ef8d2df","block_type":"box","text":"Retirement","page_number":27,"box":{"x":702,"y":652,"width":64,"height":7}},{"id":"44a18a58-9046-4ec1-b9fb-09d16fd408bc","block_type":"box","text":"Aggregate","page_number":27,"box":{"x":822,"y":612,"width":61,"height":8}},{"id":"60861e93-8cc8-4a5d-b3f4-1e16862f51bc","block_type":"box","text":"Compensation from","page_number":27,"box":{"x":796,"y":622,"width":113,"height":8}},{"id":"1a2cc031-db91-4e7d-8f2e-ecf3b8cbd457","block_type":"box","text":"the Fund and","page_number":27,"box":{"x":815,"y":632,"width":75,"height":7}},{"id":"4ff36fe9-8cbc-4714-87a3-a8905c30a7e5","block_type":"box","text":"Other BlackRock","page_number":27,"box":{"x":802,"y":642,"width":102,"height":7}},{"id":"b694bc03-a76a-403e-a5cf-6d67fc5d107e","block_type":"box","text":"Advised Funds","page_number":27,"box":{"x":809,"y":652,"width":84,"height":7}},{"id":"56de552e-9ac7-4b08-9551-7a84767db873","block_type":"box","text":"1","page_number":27,"box":{"x":893,"y":652,"width":4,"height":3}},{"id":"b39f66d5-a0a0-4c1a-be4e-2b55d0016d32","block_type":"box","text":"Independent Trustees","page_number":27,"box":{"x":70,"y":670,"width":154,"height":10}},{"id":"6d4b4bd4-a163-435f-90ab-2b4aaa5d8715","block_type":"box","text":"Christopher J. Ailman","page_number":27,"box":{"x":79,"y":685,"width":149,"height":11}},{"id":"c8572eff-dbf1-4150-b20c-1a99255b12df","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,674","page_number":27,"box":{"x":238,"y":684,"width":418,"height":11}},{"id":"7c055cd9-4da7-4d6e-926b-5a47007a731f","block_type":"box","text":"None $445,000","page_number":27,"box":{"x":717,"y":684,"width":172,"height":11}},{"id":"0806c80e-0d1a-473f-84ae-1bfb495db6a6","block_type":"box","text":"Susan J. Car ter","page_number":27,"box":{"x":79,"y":700,"width":110,"height":9}},{"id":"2de80b9e-a6f2-4695-921e-c634c6cc060e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,674","page_number":27,"box":{"x":197,"y":699,"width":459,"height":11}},{"id":"e3568763-764e-4e96-8ba1-05d3210af6bf","block_type":"box","text":"None $445,000","page_number":27,"box":{"x":717,"y":699,"width":172,"height":11}},{"id":"931f1351-b7ca-45e2-9954-193b47c81ea0","block_type":"box","text":"Collette Chilton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,674","page_number":27,"box":{"x":79,"y":714,"width":577,"height":11}},{"id":"b52bb33a-5fe4-4d06-9db4-d43b2ee891dd","block_type":"box","text":"None $445,000","page_number":27,"box":{"x":717,"y":714,"width":172,"height":11}},{"id":"f56d10fd-499e-4100-a6a7-91b0e3c32b11","block_type":"box","text":"Neil A. Cotty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,742","page_number":27,"box":{"x":79,"y":729,"width":577,"height":12}},{"id":"680f3583-92d4-4dd2-95b5-5f4d52e4d679","block_type":"box","text":"None $467,500","page_number":27,"box":{"x":717,"y":729,"width":172,"height":11}},{"id":"4bf68159-2896-4d06-bcf3-39e77d17add5","block_type":"box","text":"Jeffrey Jarczyk","page_number":27,"box":{"x":78,"y":745,"width":103,"height":11}},{"id":"68ad1f92-64e6-4d21-8ca0-05ac356ef5e3","block_type":"box","text":"2","page_number":27,"box":{"x":181,"y":746,"width":4,"height":4}},{"id":"eac19e07-8cac-4995-95ad-c4b78193e94c","block_type":"box","text":"..............................................","page_number":27,"box":{"x":189,"y":753,"width":369,"height":1}},{"id":"ba232a4f-a261-44fb-8593-16b6ff23d4e8","block_type":"box","text":"$404 None None","page_number":27,"box":{"x":611,"y":744,"width":260,"height":11}},{"id":"2b5f3442-3170-4979-9708-e4c3b5dc8f10","block_type":"box","text":"Henry R. 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Perlowski . . .","page_number":28,"box":{"x":78,"y":107,"width":154,"height":9}},{"id":"d322be24-6bfe-4388-af66-260aeffa80f7","block_type":"box","text":"........................................","page_number":28,"box":{"x":238,"y":114,"width":320,"height":2}},{"id":"806ceb23-3f7b-4f68-a46a-2571c0b7ece3","block_type":"box","text":"None None None","page_number":28,"box":{"x":613,"y":107,"width":258,"height":9}},{"id":"ff492b2b-5446-4ef3-a8ca-47f80249c66e","block_type":"box","text":"1","page_number":28,"box":{"x":69,"y":132,"width":3,"height":3}},{"id":"5314efe1-dcce-40d5-b17d-59987214f64c","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Trustee receives compensation, see “Biographical Information” beginning on","page_number":28,"box":{"x":94,"y":131,"width":786,"height":9}},{"id":"bc3a8199-dce3-467c-ac77-625296994c89","block_type":"box","text":"page I-13.","page_number":28,"box":{"x":94,"y":142,"width":55,"height":9}},{"id":"59393616-6f40-4c68-958b-4a02da19e29b","block_type":"box","text":"2","page_number":28,"box":{"x":69,"y":154,"width":3,"height":4}},{"id":"b93a0275-f9a6-4ec5-addb-69d0f98b22e0","block_type":"box","text":"Compensation includes $404 earned as a consultant to the Independent Trustees for the period April 1, 2026 to July 1, 2026.","page_number":28,"box":{"x":93,"y":154,"width":724,"height":9}},{"id":"c93169d4-0bf5-4ae6-afa5-c8c7d2ade9c2","block_type":"box","text":"3","page_number":28,"box":{"x":69,"y":167,"width":3,"height":3}},{"id":"471d8fe1-e491-4ef1-a9de-8a592c6a7d4b","block_type":"box","text":"Chair of the Audit Committee.","page_number":28,"box":{"x":93,"y":167,"width":168,"height":7}},{"id":"7a70aa36-d160-44a2-97c9-a4cdee6f6710","block_type":"box","text":"4","page_number":28,"box":{"x":68,"y":180,"width":4,"height":3}},{"id":"1b148ccd-78c0-4515-9479-e8591cd269c2","block_type":"box","text":"Chair of the Governance Committee.","page_number":28,"box":{"x":93,"y":179,"width":206,"height":8}},{"id":"bf288848-f28e-4285-a695-a763fb29cc11","block_type":"box","text":"5","page_number":28,"box":{"x":69,"y":192,"width":3,"height":4}},{"id":"dc43b801-cf82-47cb-b071-ef24c49391d7","block_type":"box","text":"Chair of the Per formance Oversight Committee.","page_number":28,"box":{"x":93,"y":192,"width":269,"height":9}},{"id":"1ed3a122-eb46-4eb2-8bfd-c3df4f87d07c","block_type":"box","text":"6","page_number":28,"box":{"x":69,"y":205,"width":3,"height":3}},{"id":"2687f4fb-37af-4340-b361-a76d69e7e3ff","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":28,"box":{"x":93,"y":204,"width":352,"height":9}},{"id":"77e63dee-9fd3-4c5d-9706-b9fde5a8711b","block_type":"box","text":"7","page_number":28,"box":{"x":69,"y":217,"width":3,"height":4}},{"id":"d4031193-918b-4358-8f0f-965383554e2f","block_type":"box","text":"Chair of the Compliance Committee.","page_number":28,"box":{"x":93,"y":217,"width":205,"height":9}},{"id":"f803a777-53d8-4f8d-8546-b9220dce8057","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":28,"box":{"x":69,"y":246,"width":432,"height":11}},{"id":"63dd582c-677b-4ad4-bc47-cbd6e945bdaa","block_type":"box","text":"Management Agreement","page_number":28,"box":{"x":69,"y":276,"width":180,"height":11}},{"id":"ec2062e0-0e82-485a-8865-a60fce60e932","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into an investment advisory agreement with BlackRock pursuant to","page_number":28,"box":{"x":101,"y":298,"width":805,"height":12}},{"id":"0b3d4dde-dee4-4928-bbce-8f2af1977a12","block_type":"box","text":"which BlackRock is entitled to receive fees for the services it provides (the “Management Agreement”).","page_number":28,"box":{"x":68,"y":314,"width":736,"height":11}},{"id":"798f5eda-b8ef-4529-9fcb-7578058cdae5","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any por tion of the Fund’s","page_number":28,"box":{"x":102,"y":336,"width":762,"height":12}},{"id":"86af56c5-1fc1-4d2f-8e87-c0b1f49d46b8","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":28,"box":{"x":69,"y":351,"width":799,"height":12}},{"id":"b23ae777-2c9a-46aa-91ef-0f0f73cb4510","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":28,"box":{"x":68,"y":366,"width":726,"height":12}},{"id":"be968ceb-b975-4c1e-9fd4-207bc79db1af","block_type":"box","text":"June 30, 2028. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":28,"box":{"x":69,"y":382,"width":797,"height":11}},{"id":"92d19caa-92ef-4002-af61-085b4ac572de","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":28,"box":{"x":69,"y":397,"width":789,"height":11}},{"id":"acb4026a-5e8b-4666-9dce-be48ed0c7efa","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’","page_number":28,"box":{"x":70,"y":412,"width":810,"height":11}},{"id":"5e43e26a-700f-4df3-85bf-9890a0da353c","block_type":"box","text":"notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of the","page_number":28,"box":{"x":69,"y":427,"width":827,"height":11}},{"id":"5654381f-afd6-4323-9864-cb1ea4636d42","block_type":"box","text":"Fund.","page_number":28,"box":{"x":70,"y":442,"width":36,"height":9}},{"id":"c7df4568-3611-4329-9ab2-518f18c79bbb","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses of the Fund in order to limit","page_number":28,"box":{"x":102,"y":465,"width":773,"height":11}},{"id":"82674b13-4d1a-4822-a65b-3b9ccff8959f","block_type":"box","text":"Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend","page_number":28,"box":{"x":68,"y":480,"width":787,"height":11}},{"id":"2ee2442e-d445-4b04-bb2f-baf17f6c6f6d","block_type":"box","text":"Expense, Interest Expense, Acquired Fund Fees and Expenses and cer tain other Fund expenses (as defined in the","page_number":28,"box":{"x":70,"y":495,"width":811,"height":11}},{"id":"128cf763-5e3c-44c5-859e-94cd51c2a7e1","block_type":"box","text":"Fund’s Prospectuses)) as a percentage of average daily net assets to 1.10% for Investor A Shares, 1.85% for","page_number":28,"box":{"x":70,"y":510,"width":779,"height":11}},{"id":"9a8f949e-edab-4031-bb83-996306a3b34d","block_type":"box","text":"Investor C Shares, 0.85% for Institutional Shares and 0.80% for Class K Shares through June 30, 2028. The","page_number":28,"box":{"x":70,"y":525,"width":775,"height":12}},{"id":"da6b10a8-a5cb-432c-b020-864630c7235d","block_type":"box","text":"contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees or by a","page_number":28,"box":{"x":69,"y":540,"width":808,"height":12}},{"id":"f627ca31-36fc-4fe1-8f76-02d99d22e42b","block_type":"box","text":"vote of a majority of the outstanding voting securities of the Fund.","page_number":28,"box":{"x":68,"y":555,"width":468,"height":12}},{"id":"6a736c8a-de50-4fbd-977b-9f01ebb599fa","block_type":"box","text":"Pursuant to the Management Agreement, BlackRock may from time to time, in its sole discretion to the extent","page_number":28,"box":{"x":102,"y":578,"width":784,"height":11}},{"id":"1c15432c-428a-44d1-a8ca-9d2b13979e22","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of BlackRock, to","page_number":28,"box":{"x":70,"y":593,"width":838,"height":12}},{"id":"41747c72-d10d-4bdf-a367-923b188685f3","block_type":"box","text":"per form investment advisory services with respect to the Fund. In addition, BlackRock may delegate cer tain of its","page_number":28,"box":{"x":70,"y":608,"width":810,"height":12}},{"id":"84832cc8-8d7a-4db8-8406-38dd769d5862","block_type":"box","text":"investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":28,"box":{"x":70,"y":623,"width":779,"height":12}},{"id":"336adba9-1d3a-4333-8f97-4e305888f448","block_type":"box","text":"permitted by applicable law. BlackRock may terminate any or all sub-advisers or such delegation arrangements in its","page_number":28,"box":{"x":70,"y":639,"width":827,"height":11}},{"id":"17230cfc-ac8c-453b-b6a2-8acd11b3462d","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":28,"box":{"x":69,"y":654,"width":486,"height":11}},{"id":"ee0fe862-8997-4799-ac73-7d64e77ebf73","block_type":"box","text":"The table below sets for th information about the total management fees paid by the Trust to BlackRock, on","page_number":28,"box":{"x":101,"y":676,"width":765,"height":12}},{"id":"6a5084c4-a9d5-4373-ac8c-1a6d04df1c31","block_type":"box","text":"behalf of the Fund, and the amounts waived and reimbursed, for the periods shown.","page_number":28,"box":{"x":69,"y":692,"width":598,"height":11}},{"id":"fa2e1ac9-beaf-4c33-8d40-308f839fcb7d","block_type":"box","text":"Fees Paid","page_number":28,"box":{"x":586,"y":720,"width":55,"height":7}},{"id":"617558e7-2ba7-49f8-b66c-0b62be73e2f1","block_type":"box","text":"to BlackRock","page_number":28,"box":{"x":574,"y":730,"width":79,"height":7}},{"id":"1cd9963a-380f-4a64-a5fe-de4be71e87e3","block_type":"box","text":"Fees Waived","page_number":28,"box":{"x":700,"y":720,"width":72,"height":7}},{"id":"7fd4cbb4-5559-4cb4-ba42-d171a53ee40f","block_type":"box","text":"by BlackRock","page_number":28,"box":{"x":696,"y":730,"width":80,"height":9}},{"id":"67202981-89d9-4c82-b3e7-2aa70f1fb3ad","block_type":"box","text":"Fees Reimbursed","page_number":28,"box":{"x":810,"y":720,"width":99,"height":7}},{"id":"f8e96bbd-d1ca-4709-b14c-c8dabf1380bb","block_type":"box","text":"by BlackRock","page_number":28,"box":{"x":820,"y":730,"width":80,"height":9}},{"id":"6ecf5348-ad9b-4639-8c56-802037cd8ea6","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,421,436 $1,195,678 $1,020,786","page_number":28,"box":{"x":70,"y":747,"width":833,"height":12}},{"id":"0378a435-fb49-4a27-9058-97d889336561","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,131,086 $1,081,482 $ 803,283","page_number":28,"box":{"x":70,"y":762,"width":833,"height":12}},{"id":"fb4521fc-2a65-4c1b-a944-44f3267e1ab7","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,855,452 $1,151,239 $1,022,185","page_number":28,"box":{"x":70,"y":777,"width":833,"height":12}},{"id":"cbff9caf-0423-45fd-b745-1c6c2d49f0c4","block_type":"box","text":"Administration Agreement","page_number":28,"box":{"x":68,"y":809,"width":191,"height":11}},{"id":"573725c1-9e2f-42f2-b3db-14384e28eb6f","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":28,"box":{"x":102,"y":832,"width":711,"height":11}},{"id":"645e9126-d319-4e09-980d-2abcaecc7b6b","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":28,"box":{"x":69,"y":847,"width":838,"height":11}},{"id":"5821550b-6ca3-4abc-88c4-ca320bc3ac2f","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":28,"box":{"x":68,"y":862,"width":830,"height":12}},{"id":"47c56bc8-4de3-49e4-aaf4-39a41a2f41cd","block_type":"box","text":"publication of the Fund’s net asset value; oversee the preparation and filing of Federal, state and local income tax","page_number":28,"box":{"x":70,"y":877,"width":813,"height":12}},{"id":"b4ccbbd4-1ccf-4c05-80be-c6237a996e63","block_type":"box","text":"returns; prepare cer tain repor ts required by regulatory authorities; calculate various contractual expenses; determine","page_number":28,"box":{"x":69,"y":893,"width":837,"height":11}},{"id":"64eafd69-4497-4b5c-ba1c-e70030f737bb","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":28,"box":{"x":68,"y":908,"width":836,"height":11}},{"id":"052f4834-f81a-4830-99b3-b46691c4a147","block_type":"box","text":"I-19","page_number":28,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"de5ab0c7-3c0f-41b8-84f1-69aeec838834","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"044e69d7-99db-49a2-b64c-e8dd714c71a1","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":29,"box":{"x":68,"y":45,"width":785,"height":11}},{"id":"41bc0f45-2d4a-43f7-a1b2-3222db6efe82","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Trust’s officers,","page_number":29,"box":{"x":69,"y":60,"width":765,"height":11}},{"id":"e5be5bac-cf3e-4bac-a71c-257a7ac4fca0","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":29,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"d160c390-af11-41e7-99b7-f049af8fd7b4","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. The","page_number":29,"box":{"x":69,"y":90,"width":818,"height":11}},{"id":"41af46b8-e853-4f0a-b4b3-43c20fbe458f","block_type":"box","text":"Administrator may from time to time voluntarily waive administration fees with respect to the Fund and may voluntarily","page_number":29,"box":{"x":68,"y":105,"width":840,"height":11}},{"id":"d1d990e3-9d5f-4713-8cf7-c8868dec8df7","block_type":"box","text":"reimburse the Fund for expenses.","page_number":29,"box":{"x":69,"y":120,"width":238,"height":11}},{"id":"349fa2dc-7139-4574-8248-07c5002ee0ec","block_type":"box","text":"Under the Administration Agreement, the Trust, on behalf of the Fund, pays to the Administrator a fee, computed","page_number":29,"box":{"x":102,"y":143,"width":802,"height":11}},{"id":"925bff93-33a3-4705-874a-b276a9882cd3","block_type":"box","text":"daily and payable monthly, at an aggregate annual rate of (i) 0.0425% of the first $500 million of the Fund’s average","page_number":29,"box":{"x":69,"y":157,"width":830,"height":12}},{"id":"ff53770e-ea95-4b25-977f-c1a869d4a82a","block_type":"box","text":"daily net assets, 0.040% of the next $500 million of the Fund’s average daily net assets, 0.0375% of the next","page_number":29,"box":{"x":69,"y":172,"width":788,"height":12}},{"id":"55a35301-863e-477a-ae6d-c39110497b15","block_type":"box","text":"$1 billion of the Fund’s average daily net assets, 0.035% of the next $2 billion of the Fund’s average daily net","page_number":29,"box":{"x":69,"y":188,"width":785,"height":12}},{"id":"a66683d7-c910-4c27-b165-5ef6517abae6","block_type":"box","text":"assets, 0.0325% of the next $9 billion of the Fund’s average daily net assets and 0.030% of the average daily net","page_number":29,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"8be6de1d-6eee-4fdb-8be4-3455605ea6cd","block_type":"box","text":"assets of the Fund in excess of $13 billion and (ii) 0.020% of average daily net assets allocated to each class of","page_number":29,"box":{"x":69,"y":218,"width":805,"height":12}},{"id":"ee6fd4ab-0a14-43df-9344-1259f0b6d06a","block_type":"box","text":"shares of the Fund.","page_number":29,"box":{"x":69,"y":234,"width":137,"height":9}},{"id":"44c2dd07-b022-4787-9e92-89616d59b634","block_type":"box","text":"The table below sets for th information about the administration paid accrued by the Trust on behalf of the Fund,","page_number":29,"box":{"x":101,"y":256,"width":799,"height":11}},{"id":"7d440e9a-38a5-4ddc-adcb-de3c6e97e85b","block_type":"box","text":"to the Administrator, and the amounts waived for the periods shown.","page_number":29,"box":{"x":68,"y":271,"width":488,"height":11}},{"id":"7cdd9df6-e969-4c29-9ea5-11178e46031e","block_type":"box","text":"Fees Paid","page_number":29,"box":{"x":674,"y":300,"width":56,"height":7}},{"id":"1daf35d5-b145-491c-92a5-ff48126e7072","block_type":"box","text":"to the Administrator","page_number":29,"box":{"x":643,"y":310,"width":118,"height":7}},{"id":"3e83055f-ba43-46c6-890e-c88090c1f3b3","block_type":"box","text":"Fees Waived","page_number":29,"box":{"x":814,"y":300,"width":72,"height":7}},{"id":"5e9b2228-514d-4bbd-b8cd-fbe3ad0dd1bb","block_type":"box","text":"by the Administrator","page_number":29,"box":{"x":791,"y":310,"width":118,"height":9}},{"id":"d2feaeec-ad06-4d15-bcc0-2729bf2c1a18","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":29,"box":{"x":70,"y":328,"width":460,"height":11}},{"id":"e01391dd-2b3b-4a51-94df-4bb18ce78935","block_type":"box","text":". . . . . . . . . . $1,","page_number":29,"box":{"x":537,"y":327,"width":144,"height":11}},{"id":"962289c5-4304-44bd-afdd-8961cea9ccad","block_type":"box","text":"165,861 $392,652","page_number":29,"box":{"x":683,"y":327,"width":203,"height":11}},{"id":"80eb154d-e9fb-48f1-8cda-3cfb81f118b6","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":29,"box":{"x":70,"y":343,"width":460,"height":11}},{"id":"ce163fd6-0a76-4b78-87ea-d54108a1593a","block_type":"box","text":". . . . . . . . . . $1,","page_number":29,"box":{"x":537,"y":342,"width":144,"height":11}},{"id":"70ffdcc5-e683-46d9-8820-00737f7154fe","block_type":"box","text":"144,429 $383,628","page_number":29,"box":{"x":683,"y":342,"width":203,"height":11}},{"id":"c46c3f10-fb7b-433f-973a-dabd518c71a9","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":29,"box":{"x":70,"y":358,"width":460,"height":11}},{"id":"5d2caea9-472a-40f8-bbd7-f091431b8f45","block_type":"box","text":". . . . . . . . . . $1,","page_number":29,"box":{"x":537,"y":357,"width":144,"height":11}},{"id":"2137c679-8938-4c6c-a3c4-16d7231b84a9","block_type":"box","text":"198,772 $404,218","page_number":29,"box":{"x":683,"y":357,"width":203,"height":11}},{"id":"293539c6-e826-4a9e-8ae2-aba2f3bb3e8e","block_type":"box","text":"The Trust and its service providers may engage third par ty plan administrators who provide trustee,","page_number":29,"box":{"x":101,"y":382,"width":708,"height":11}},{"id":"d63ee3d6-1715-4b6a-9cd5-bf46bc916458","block_type":"box","text":"administrative and recordkeeping services for cer tain employee benefit, profit-sharing and retirement plans as agents","page_number":29,"box":{"x":69,"y":397,"width":838,"height":11}},{"id":"642734ba-79fb-4c16-bf30-67afb7610d04","block_type":"box","text":"for the Trust with respect to such plans, for the purpose of accepting orders for the purchase and redemption of","page_number":29,"box":{"x":68,"y":412,"width":800,"height":11}},{"id":"2432546e-9832-46d5-b387-92f9a2375986","block_type":"box","text":"shares of the Trust.","page_number":29,"box":{"x":69,"y":427,"width":138,"height":9}},{"id":"6e75e180-3586-4182-b9c3-105960a986c5","block_type":"box","text":"In addition, pursuant to a Shareholders’ Administrative Services Agreement, BlackRock provides cer tain","page_number":29,"box":{"x":102,"y":450,"width":740,"height":11}},{"id":"fc3d3a1c-9518-4fc5-b8a6-c47020510aa9","block_type":"box","text":"shareholder liaison services in connection with the Trust’s investor service center. The Trust, on behalf of the Fund,","page_number":29,"box":{"x":69,"y":465,"width":824,"height":10}},{"id":"dfea3a8c-b248-4594-a58f-892ee6c04c25","block_type":"box","text":"reimburses BlackRock for its costs in maintaining the service center, which costs include, among other things,","page_number":29,"box":{"x":69,"y":480,"width":787,"height":11}},{"id":"4819d4e8-cbbe-4c7e-8436-8d6e69cb0e37","block_type":"box","text":"employee salaries, leasehold expenses, and other out-of-pocket expenses.","page_number":29,"box":{"x":69,"y":495,"width":531,"height":11}},{"id":"aa8a9d30-a778-4f82-8d30-e2d6324ff9f2","block_type":"box","text":"For the periods shown, the Trust on behalf of the Fund reimbursed to BlackRock fees for shareholder liaison","page_number":29,"box":{"x":102,"y":518,"width":769,"height":11}},{"id":"dcc81123-b0b5-4186-8175-308c1523011c","block_type":"box","text":"services pursuant to such agreement in the amounts set for th 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day-to-day management of the Fund.","page_number":29,"box":{"x":70,"y":688,"width":459,"height":12}},{"id":"27626d6e-5a91-4bdc-9ee2-b4e430f70cf7","block_type":"box","text":"Other Funds and Accounts Managed","page_number":29,"box":{"x":70,"y":719,"width":257,"height":11}},{"id":"2b06625c-e4b2-4a28-b364-319329dfa98b","block_type":"box","text":"The following table sets for th information about the funds and accounts other than the Fund for which the","page_number":29,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"d785f4cf-46f9-4578-9c01-a134a1a76fe7","block_type":"box","text":"por tfolio managers are primarily responsible for the day-to-day por tfolio management as of May 31, 2026.","page_number":29,"box":{"x":70,"y":756,"width":755,"height":12}},{"id":"81a4f36e-b8b2-4005-a56b-b4653ad4cf99","block_type":"box","text":"I-20","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"4dd3b059-0e96-4752-9703-0b04cb41e3ab","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"557604b1-0976-45b8-a89a-2e1f7d153162","block_type":"box","text":"Number of Other Accounts Managed","page_number":30,"box":{"x":351,"y":49,"width":211,"height":9}},{"id":"80564de4-fdd6-4290-8a47-625c58052121","block_type":"box","text":"and Assets by Account Type","page_number":30,"box":{"x":374,"y":59,"width":165,"height":9}},{"id":"9a420d32-3711-4c71-bfb7-a42fa842c206","block_type":"box","text":"Number of Other Accounts and Assets","page_number":30,"box":{"x":656,"y":49,"width":222,"height":7}},{"id":"e22224c2-ebc1-47c4-97f2-8ad5fe325b84","block_type":"box","text":"for Which Advisory Fee is 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$0","page_number":30,"box":{"x":305,"y":128,"width":560,"height":8}},{"id":"1d914d54-01fd-4575-94d0-7515327be0c5","block_type":"box","text":"Kyle McClements, CFA 6 16 0 0 0 0","page_number":30,"box":{"x":74,"y":141,"width":787,"height":9}},{"id":"264abbb8-8142-48d9-afa3-0d9fea0c403b","block_type":"box","text":"$5.10 Billion $2.34 Billion $0 $0 $0 $0","page_number":30,"box":{"x":309,"y":153,"width":556,"height":8}},{"id":"96b3b319-326c-4748-b8ed-a32ee05012f8","block_type":"box","text":"Tom Pierce 2 2 0 0 0 0","page_number":30,"box":{"x":73,"y":166,"width":788,"height":7}},{"id":"110eee92-d710-42a9-9f1a-8b2dcb181414","block_type":"box","text":"$913.96 Million $559.34 Million $0 $0 $0 $0","page_number":30,"box":{"x":300,"y":178,"width":565,"height":9}},{"id":"cccc43b2-4a12-4d3e-a344-513113aa4ad5","block_type":"box","text":"David Zhao 14 10 7 0 0 1","page_number":30,"box":{"x":74,"y":191,"width":787,"height":7}},{"id":"adbb299c-b1ae-4475-8b50-c6bf2343bc50","block_type":"box","text":"$31.10 Billion $6.84 Billion $419.38 Million $0 $0 $54.95 Million","page_number":30,"box":{"x":305,"y":203,"width":594,"height":9}},{"id":"4c604cf7-92db-429c-9783-3f21d9eaf803","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":30,"box":{"x":69,"y":238,"width":304,"height":11}},{"id":"9190f53e-5765-40a3-a78a-1cc16afd145f","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of May 31, 2026.","page_number":30,"box":{"x":101,"y":261,"width":656,"height":11}},{"id":"e407c7cc-0173-4777-959e-8a3e7162844d","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":30,"box":{"x":102,"y":283,"width":774,"height":12}},{"id":"b62ebb62-df3f-4c7e-b10a-c7f5a2d81d28","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":30,"box":{"x":70,"y":298,"width":837,"height":12}},{"id":"43fed17f-257c-4a3b-9002-d88ce9e47037","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":30,"box":{"x":69,"y":314,"width":823,"height":11}},{"id":"140b45ae-04aa-4e5b-85d2-8135719defeb","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":30,"box":{"x":69,"y":329,"width":799,"height":11}},{"id":"4115c1e6-f1cf-4797-8b04-a49f915fa91f","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":30,"box":{"x":70,"y":344,"width":670,"height":11}},{"id":"e2dedb1e-e32f-4066-a17d-c91e429028d7","block_type":"box","text":"Base Compensation.","page_number":30,"box":{"x":102,"y":367,"width":148,"height":11}},{"id":"fd5f485b-9860-4f5b-8489-b7de6f9551f8","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":30,"box":{"x":257,"y":366,"width":640,"height":12}},{"id":"ceffd5d1-ba5e-4c4b-bfdd-51422bcd8fee","block_type":"box","text":"firm.","page_number":30,"box":{"x":68,"y":382,"width":32,"height":9}},{"id":"09770021-83d7-474d-a202-46587f9927f9","block_type":"box","text":"Discretionary Incentive Compensation","page_number":30,"box":{"x":69,"y":412,"width":277,"height":11}},{"id":"1e622c57-2a52-4e7a-8f3d-d72b2d8124d9","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities por tfolio managers is based on a","page_number":30,"box":{"x":102,"y":435,"width":763,"height":11}},{"id":"772a63a0-6c1a-4a95-b6d4-cb52cc91b76f","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic por tfolio manager compensation program is based on team","page_number":30,"box":{"x":68,"y":450,"width":832,"height":11}},{"id":"4ca5aa41-2046-40ec-b9e4-31fa8a1487d7","block_type":"box","text":"revenue and pre-tax investment per formance relative to appropriate competitors or benchmarks over 1- and 5-year","page_number":30,"box":{"x":69,"y":465,"width":815,"height":11}},{"id":"1bcbb9dd-8aa5-4da7-9a17-34af29c0d0b0","block_type":"box","text":"per formance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":30,"box":{"x":70,"y":480,"width":757,"height":11}},{"id":"041f4670-e5b5-4ea6-8d71-d3cd975f012c","block_type":"box","text":"benchmarks against which the per formance of the Fund or other accounts managed by the por tfolio managers are","page_number":30,"box":{"x":69,"y":495,"width":814,"height":11}},{"id":"b382bff9-3933-4f35-ab55-0b89767a6355","block_type":"box","text":"measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the","page_number":30,"box":{"x":69,"y":510,"width":780,"height":11}},{"id":"91f70254-11c4-4a21-941b-96d28d629849","block_type":"box","text":"per formance of the Fund and other accounts managed by the por tfolio management team is compared and the","page_number":30,"box":{"x":70,"y":525,"width":791,"height":12}},{"id":"46e1072f-f5a6-431f-bc25-28f31c0cbcbc","block_type":"box","text":"period of time over which per formance is evaluated. With respect to these por tfolio managers such benchmarks for","page_number":30,"box":{"x":70,"y":540,"width":823,"height":12}},{"id":"d964d7eb-e98b-482c-bfd5-31c2d6abe378","block_type":"box","text":"the Fund and other accounts are:","page_number":30,"box":{"x":68,"y":556,"width":236,"height":8}},{"id":"b74ad31d-6ee4-40c2-b2b9-cf311a3ba974","block_type":"box","text":"Portfolio Manager Benchmark","page_number":30,"box":{"x":69,"y":584,"width":261,"height":9}},{"id":"5b097ed0-88c2-47d3-ab2d-e0f72c4da6ee","block_type":"box","text":"Tom Pierce","page_number":30,"box":{"x":68,"y":600,"width":78,"height":9}},{"id":"245f72c9-5d44-482a-8f17-56c8772ac1ed","block_type":"box","text":"David Zhao","page_number":30,"box":{"x":70,"y":616,"width":77,"height":8}},{"id":"f5796bb3-1851-45be-b6f8-7c0faf90223e","block_type":"box","text":"Cem Inal","page_number":30,"box":{"x":69,"y":631,"width":61,"height":8}},{"id":"498fdff0-b086-4db3-8229-5dd4567cb982","block_type":"box","text":"FTSE United States in GBP; MSCI All Country (AC) Americas Index; Russell 1000 Index","page_number":30,"box":{"x":265,"y":600,"width":615,"height":11}},{"id":"783d9e72-2395-46ad-9de9-dde39a7003e3","block_type":"box","text":"(GBP); Russell 1000 Index (Gross Total Return); Russell 1000 Value Index (Total Return);","page_number":30,"box":{"x":265,"y":615,"width":631,"height":11}},{"id":"3e2db8c3-cc37-43c4-8536-e3eda2200be6","block_type":"box","text":"Russell 1000 Value Index TR in GBP; Russell 1000 Value TR Customized Index","page_number":30,"box":{"x":265,"y":631,"width":560,"height":10}},{"id":"20a6a4ef-db6e-4dfa-8a02-d6a22a569e0d","block_type":"box","text":"Per formance Benchmark JPY; Russell 1000, expressed in EUR; Russell MidCap Value","page_number":30,"box":{"x":265,"y":646,"width":611,"height":11}},{"id":"559b12ca-d095-4971-8e0a-95c29aa2bb7b","block_type":"box","text":"Index; S&P United States MidSmallCap Index; S&P US MidSmallCap Index (GBP)","page_number":30,"box":{"x":265,"y":661,"width":572,"height":11}},{"id":"2740f9cd-d69a-4bb5-98ad-85c51cc1e197","block_type":"box","text":"Kyle McClements, CFA No Benchmarks","page_number":30,"box":{"x":70,"y":683,"width":306,"height":12}},{"id":"506fdf67-05c8-4786-917b-62b3bd2a233e","block_type":"box","text":"A smaller element of por tfolio manager discretionary compensation may include consideration of: financial","page_number":30,"box":{"x":101,"y":707,"width":759,"height":12}},{"id":"150d7cb9-de4f-4506-980e-6fdd91711772","block_type":"box","text":"results, expense control, profit margins, strategic planning and implementation, quality of client service, market","page_number":30,"box":{"x":69,"y":722,"width":798,"height":12}},{"id":"dd8d11fb-4aa2-4054-b88f-2103bead1b12","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":30,"box":{"x":69,"y":738,"width":814,"height":11}},{"id":"7de23d05-48cf-4776-b558-37a2d279dc58","block_type":"box","text":"These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":30,"box":{"x":68,"y":753,"width":798,"height":11}},{"id":"657d4980-d4dc-44eb-93fc-28d182aaa5da","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":30,"box":{"x":102,"y":775,"width":389,"height":11}},{"id":"6d16e4b9-c65c-464c-a71d-4e62b30657d3","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":30,"box":{"x":499,"y":776,"width":383,"height":10}},{"id":"a34f6575-8258-4b66-9171-4aecb82eb46b","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":30,"box":{"x":70,"y":790,"width":815,"height":12}},{"id":"f43d4af7-2d21-4176-ab01-67847c7cf00b","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":30,"box":{"x":68,"y":806,"width":522,"height":11}},{"id":"f6bb65e4-7eaf-4f9b-9ccf-1426f609612f","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":30,"box":{"x":102,"y":828,"width":760,"height":12}},{"id":"999e377a-c947-4794-baba-0601305f45ed","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":30,"box":{"x":69,"y":843,"width":795,"height":12}},{"id":"a0499293-0b53-48be-8649-991f65f636b8","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":30,"box":{"x":69,"y":858,"width":805,"height":12}},{"id":"9d3a923c-e7ff-4336-8c4d-58dc3337c336","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":30,"box":{"x":69,"y":874,"width":822,"height":11}},{"id":"f4a9d86b-b192-4389-86f3-e3577e78468c","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":30,"box":{"x":68,"y":889,"width":839,"height":11}},{"id":"b2d6e4f1-ee9c-488d-9b82-899945c83d1d","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":30,"box":{"x":69,"y":904,"width":802,"height":11}},{"id":"9129e16e-4f58-471a-90a3-9d83cc611328","block_type":"box","text":"I-21","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"15578c7e-064c-469c-8616-40f18d6ea0fd","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6d69b5a5-fedb-49ce-a64a-0eb104d1d36d","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":31,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"8549487e-53ad-4069-a074-315eed8ffb7a","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":31,"box":{"x":70,"y":60,"width":801,"height":11}},{"id":"48ea5583-8573-47b2-b659-8a16326b6abb","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":31,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"1d5a79f9-b3b2-49b0-b278-b3de61313e45","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":31,"box":{"x":69,"y":90,"width":479,"height":11}},{"id":"1efca14e-477b-4dbc-9fe8-b77575b13f80","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":31,"box":{"x":102,"y":113,"width":785,"height":11}},{"id":"b201edec-ee15-4395-8660-2a1b95e1557f","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":31,"box":{"x":68,"y":128,"width":836,"height":11}},{"id":"952b35ec-c293-4d7c-b438-b8cba9c303d4","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":31,"box":{"x":68,"y":143,"width":821,"height":11}},{"id":"bb079835-87dc-4b72-92df-b642a9c99d8d","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":31,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"b3f2238a-4ca1-4f86-9de2-b552675eeb80","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":31,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"6d63d74f-dfde-43bd-9d28-b69ad8abef04","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":31,"box":{"x":69,"y":188,"width":414,"height":12}},{"id":"73f16648-7eac-4252-bff6-b32c642ff8fa","block_type":"box","text":"Other Compensation Benefits.","page_number":31,"box":{"x":101,"y":211,"width":218,"height":11}},{"id":"d28c16c4-81d7-408b-a680-31892b6f4310","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":31,"box":{"x":327,"y":211,"width":552,"height":11}},{"id":"a167c6a1-43d6-41f0-82a4-d6be6971bd06","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":31,"box":{"x":69,"y":226,"width":582,"height":11}},{"id":"b89ca060-83f7-4c1a-8718-e1fc6b909a4f","block_type":"box","text":"Incentive Savings Plans","page_number":31,"box":{"x":102,"y":249,"width":167,"height":11}},{"id":"27c484f4-7777-4c24-a72b-844a2a8aae7d","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":31,"box":{"x":274,"y":249,"width":614,"height":11}},{"id":"36ef232f-73a0-4e36-b5bb-42e694cbf642","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":31,"box":{"x":69,"y":264,"width":831,"height":11}},{"id":"a1138d99-dba2-47a9-a400-2c833a69efc0","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":31,"box":{"x":70,"y":279,"width":785,"height":11}},{"id":"c6aaeccb-9a05-423e-a4e5-57277b2e33a6","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":31,"box":{"x":69,"y":293,"width":830,"height":12}},{"id":"b300cbb4-c05f-4a51-8ebc-8302172d2098","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":31,"box":{"x":69,"y":309,"width":799,"height":11}},{"id":"2b9c2981-1095-4536-a36e-2a6438a7bb4e","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":31,"box":{"x":69,"y":324,"width":831,"height":12}},{"id":"2b4879fb-2ab4-4a0c-93eb-94e776826816","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":31,"box":{"x":69,"y":339,"width":798,"height":12}},{"id":"7209084a-108a-4c1d-b839-922add1f2160","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":31,"box":{"x":70,"y":355,"width":809,"height":11}},{"id":"e0a1779a-04d8-4912-9293-1fd42e391c7e","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":31,"box":{"x":68,"y":370,"width":793,"height":11}},{"id":"05b401d2-9c61-45cb-81f5-4f034881204c","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":31,"box":{"x":70,"y":385,"width":832,"height":11}},{"id":"dc229a86-9911-4ac9-8aba-73f986f8ea30","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":31,"box":{"x":68,"y":400,"width":805,"height":11}},{"id":"bc1a2df5-ae8d-4611-b48d-b46ebf8a56ec","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":31,"box":{"x":69,"y":414,"width":808,"height":12}},{"id":"8c5a0926-7c68-4631-9095-799f42d9bce9","block_type":"box","text":"par ticipate in these plans.","page_number":31,"box":{"x":70,"y":430,"width":185,"height":11}},{"id":"2ee9a56f-8c48-4140-97ca-d744d8cbd193","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":31,"box":{"x":69,"y":460,"width":268,"height":12}},{"id":"2aa088e6-9aa2-4f54-a62c-eb12d9e483f4","block_type":"box","text":"As of May 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":31,"box":{"x":101,"y":483,"width":731,"height":11}},{"id":"7acc7073-b78c-4028-ac8e-9acd73cd0a4d","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":31,"box":{"x":69,"y":498,"width":519,"height":11}},{"id":"a052a58e-277c-44ec-8042-71b1c5e54b68","block_type":"box","text":"Portfolio Manager","page_number":31,"box":{"x":69,"y":537,"width":105,"height":8}},{"id":"9fd839a6-900c-438f-922c-cee668c37221","block_type":"box","text":"Dollar Range of Equity","page_number":31,"box":{"x":759,"y":526,"width":129,"height":9}},{"id":"72ce2e84-5163-4048-b4d4-0d4301af3df3","block_type":"box","text":"Securities Beneficially Owned","page_number":31,"box":{"x":736,"y":537,"width":173,"height":8}},{"id":"c7818d3e-268b-4e3b-bda7-a8506b8948f6","block_type":"box","text":"Cem Inal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":31,"box":{"x":69,"y":554,"width":772,"height":9}},{"id":"52f30cd8-cac1-40de-b4fd-3709d669141a","block_type":"box","text":"Kyle McClements, CFA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":569,"width":635,"height":12}},{"id":"29d37720-e89e-4e5a-8d8d-f9f82e2265b7","block_type":"box","text":"$50,001 - $100,000","page_number":31,"box":{"x":749,"y":569,"width":148,"height":11}},{"id":"d6a37bf1-703e-413c-b7b8-9c5fdd59f6e4","block_type":"box","text":"Tom Pierce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":68,"y":585,"width":637,"height":8}},{"id":"59ca345c-cbff-4bde-9f88-815f3a94f35c","block_type":"box","text":"$10,001 - $50,000","page_number":31,"box":{"x":754,"y":584,"width":138,"height":11}},{"id":"ba4e1809-41dc-41de-b211-f99011fdffbd","block_type":"box","text":"David Zhao","page_number":31,"box":{"x":70,"y":600,"width":77,"height":9}},{"id":"62be22d2-ae03-497d-b157-a3871c38c3e2","block_type":"box","text":"....................................................................","page_number":31,"box":{"x":157,"y":607,"width":548,"height":1}},{"id":"04dea332-f3ba-4739-82b3-8ec1d2c1e743","block_type":"box","text":"$50,001 - $100,000","page_number":31,"box":{"x":749,"y":599,"width":148,"height":11}},{"id":"8ef367af-7134-4041-b4d8-e593c89be1f0","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":31,"box":{"x":69,"y":631,"width":403,"height":11}},{"id":"6dee9b01-3370-452c-9af2-e7d05dbcd92e","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":31,"box":{"x":102,"y":654,"width":727,"height":11}},{"id":"6775f27f-d9ac-4302-b3c7-192fb6611f58","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":31,"box":{"x":70,"y":669,"width":814,"height":11}},{"id":"1c650d0a-002f-4fb9-a9b4-3e11ead6f29f","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":31,"box":{"x":70,"y":684,"width":837,"height":11}},{"id":"efcdc842-ba9c-4692-b770-ceb048cebd70","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":31,"box":{"x":70,"y":699,"width":810,"height":11}},{"id":"b18d79d7-a582-4f34-bf17-94f21f65dfa9","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":31,"box":{"x":69,"y":714,"width":782,"height":11}},{"id":"72eddbe8-32d2-4775-8fcf-bad1e8a98bdf","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":31,"box":{"x":69,"y":730,"width":830,"height":11}},{"id":"9e01b4a9-a62b-40cf-9901-669360763c78","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":31,"box":{"x":69,"y":745,"width":828,"height":11}},{"id":"876ab9d3-c6df-486e-a627-1f784df9519d","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":31,"box":{"x":68,"y":760,"width":834,"height":11}},{"id":"67ebf8d5-2746-4daa-9f5d-280ff6590d02","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":31,"box":{"x":70,"y":775,"width":777,"height":11}},{"id":"85524fc0-302e-41f7-9fcb-68074991957b","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":31,"box":{"x":70,"y":790,"width":821,"height":11}},{"id":"a40b7bbe-6291-4cb9-9232-f487ddb77237","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":31,"box":{"x":69,"y":805,"width":819,"height":11}},{"id":"8a722ed7-06a6-4c6d-820b-84fc958c0c21","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":31,"box":{"x":69,"y":820,"width":832,"height":11}},{"id":"b75c5cbe-2c30-463c-ab48-9ff8a42d2da5","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":31,"box":{"x":68,"y":835,"width":804,"height":11}},{"id":"98dfeec9-e719-44ad-bce5-47128f990f93","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":31,"box":{"x":69,"y":850,"width":760,"height":12}},{"id":"fac12ca7-8484-496f-9a29-f77ff8e78f2c","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":31,"box":{"x":69,"y":865,"width":834,"height":12}},{"id":"5c90abb3-c7b2-4f93-805a-55ef2ec6dbbe","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":31,"box":{"x":69,"y":881,"width":836,"height":11}},{"id":"2c616463-5ee9-44d7-89ea-d0cd22b510f2","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":31,"box":{"x":69,"y":896,"width":822,"height":11}},{"id":"59488365-59c5-4005-89fe-6223defdf7a2","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":31,"box":{"x":70,"y":911,"width":835,"height":11}},{"id":"ff2b6cf3-0b6b-491e-baff-b946261fa703","block_type":"box","text":"I-22","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"ed7625bb-00b8-4ce9-8f24-869991066be2","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":31,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a0b125a3-530b-41e2-a0a1-a05b91eb6f43","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that a por tfolio manager may be managing","page_number":32,"box":{"x":69,"y":45,"width":820,"height":11}},{"id":"d0c9e9e6-060a-4a7c-84e6-b517ab0d70a5","block_type":"box","text":"hedge fund and/or long only accounts, or may be par t of a team managing hedge fund and/or long only accounts,","page_number":32,"box":{"x":69,"y":60,"width":811,"height":11}},{"id":"dddab2e1-231a-4e86-b36f-461a35f9d9bc","block_type":"box","text":"subject to incentive fees. Such por tfolio managers may therefore be entitled to receive a por tion of any incentive fees","page_number":32,"box":{"x":69,"y":75,"width":839,"height":11}},{"id":"75923a13-a7e8-47d6-aefd-4f6752bf4a39","block_type":"box","text":"earned on such accounts. Currently, the por tfolio managers of this Fund are not entitled to receive a por tion of","page_number":32,"box":{"x":69,"y":90,"width":791,"height":11}},{"id":"93a7a582-71c2-4536-8e8f-4a0eb5dfedc0","block_type":"box","text":"incentive fees of other accounts.","page_number":32,"box":{"x":70,"y":105,"width":231,"height":9}},{"id":"95cbc7c2-9e24-4206-9de3-9999aa53347f","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":32,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"04a782da-b7df-41c7-b93e-ee536681aa77","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":32,"box":{"x":70,"y":143,"width":839,"height":11}},{"id":"fae6a8f0-f8ef-4f67-abd5-938fb5be2ad5","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":32,"box":{"x":68,"y":158,"width":823,"height":11}},{"id":"b7e46b1e-104a-43ed-a10c-bc4a7d554f03","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":32,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"58e9f5f8-37b5-430b-8f0f-893d0d9d9264","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":32,"box":{"x":69,"y":188,"width":777,"height":11}},{"id":"5ba9b178-10f9-4516-ad28-a81c59bf4404","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":32,"box":{"x":70,"y":204,"width":826,"height":10}},{"id":"cefbd0f6-971b-4b39-acfa-d31ee07162a7","block_type":"box","text":"Accounting Services","page_number":32,"box":{"x":68,"y":234,"width":150,"height":11}},{"id":"0116fb29-efea-42e3-8ae2-8f6208fc07c7","block_type":"box","text":"The Bank of New York Mellon (“BNY Mellon”) serves as the accounting services provider for the Fund. BNY","page_number":32,"box":{"x":101,"y":256,"width":762,"height":12}},{"id":"9597e030-0b22-4d35-8407-e103e60a2db2","block_type":"box","text":"Mellon records investment, capital share and income and expense activities; verifies and transmits trade tickets;","page_number":32,"box":{"x":70,"y":271,"width":804,"height":11}},{"id":"205cc0d2-ec08-4708-ac21-6320baf72509","block_type":"box","text":"maintains accounting ledgers for investment securities; maintains tax lots; reconciles cash with the Fund’s","page_number":32,"box":{"x":69,"y":286,"width":761,"height":12}},{"id":"dd8b806a-84e5-49f7-a084-dc31237c733e","block_type":"box","text":"custodian; repor ts cash balances to BlackRock; prepares cer tain financial statements; calculates expenses, gains,","page_number":32,"box":{"x":69,"y":302,"width":821,"height":11}},{"id":"3aa43e13-b158-4952-9807-a6607cb9d8a0","block_type":"box","text":"losses and income; controls disbursements; works with independent pricing sources; and computes and repor ts net","page_number":32,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"bd818ed1-260b-40e2-9326-34eb17b2f50f","block_type":"box","text":"asset value. In connection with its accounting services, BNY Mellon also provides cer tain administration services.","page_number":32,"box":{"x":69,"y":332,"width":812,"height":11}},{"id":"0991fee1-0752-4671-8d3b-37a006b25db7","block_type":"box","text":"The table below shows the amounts paid by the Fund to BNY Mellon for accounting services for the periods","page_number":32,"box":{"x":101,"y":355,"width":765,"height":11}},{"id":"699c414c-eea8-46a5-b3c6-4d365a3d1c2f","block_type":"box","text":"shown:","page_number":32,"box":{"x":69,"y":370,"width":48,"height":9}},{"id":"cc15f960-100a-448b-bdd0-30dd59176411","block_type":"box","text":"Fees Paid","page_number":32,"box":{"x":840,"y":398,"width":55,"height":7}},{"id":"20e2ffdc-21ea-45cd-bd0d-cf65ce2edc22","block_type":"box","text":"to BNY Mellon","page_number":32,"box":{"x":825,"y":408,"width":84,"height":7}},{"id":"9c5bda27-bc41-4596-b67d-39e8193366a0","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":426,"width":317,"height":11}},{"id":"d607fecf-b943-4345-aee4-47529b8788c4","block_type":"box","text":"..................................................","page_number":32,"box":{"x":393,"y":433,"width":402,"height":2}},{"id":"d3ef389d-9f00-48cc-8c0c-51bcd4afc7cc","block_type":"box","text":"$142,361","page_number":32,"box":{"x":832,"y":425,"width":71,"height":11}},{"id":"4306730a-ca3a-4a3f-8366-57b6cdd0c769","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":441,"width":317,"height":11}},{"id":"6c6db796-1ddc-4832-bd3f-a77603ee059d","block_type":"box","text":"..................................................","page_number":32,"box":{"x":393,"y":448,"width":402,"height":2}},{"id":"dc96c2c7-0d1c-4a16-a7fc-6a841b0c8a0d","block_type":"box","text":"$141,829","page_number":32,"box":{"x":832,"y":440,"width":71,"height":11}},{"id":"57d67180-7e56-4831-9643-c78c5a090f6c","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":456,"width":317,"height":11}},{"id":"5ef40b76-2cf3-471b-bb86-fbdf1f139f3a","block_type":"box","text":"..................................................","page_number":32,"box":{"x":393,"y":463,"width":402,"height":2}},{"id":"b29056b1-602b-4bf6-859e-becd0b6c64ed","block_type":"box","text":"$146,718","page_number":32,"box":{"x":832,"y":455,"width":72,"height":11}},{"id":"b85b5cab-7b51-4702-ba9e-700a16cfa042","block_type":"box","text":"Custodian","page_number":32,"box":{"x":69,"y":488,"width":72,"height":8}},{"id":"368ad7e0-61ab-49a5-b501-2b2a36542e62","block_type":"box","text":"BNY Mellon, which has its principal place of business at 240 Greenwich Street, New York, NY 10286, also","page_number":32,"box":{"x":102,"y":510,"width":758,"height":11}},{"id":"4f5e29b0-904d-4550-92e4-9b2659ccd9a1","block_type":"box","text":"serves as the custodian for the Fund (the “Custodian”). The Custodian, among other responsibilities, maintains a","page_number":32,"box":{"x":69,"y":525,"width":810,"height":12}},{"id":"e54ebef0-e3b8-42f8-9b09-372491be322c","block_type":"box","text":"custody account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase","page_number":32,"box":{"x":69,"y":540,"width":815,"height":12}},{"id":"72a6119a-af0f-4d93-a4a7-ee88bf831a84","block_type":"box","text":"and upon sale or maturity, and collects and receives all income and other payments and distributions on account of","page_number":32,"box":{"x":69,"y":555,"width":824,"height":12}},{"id":"ebd17082-58d6-4283-a46a-90939061464a","block_type":"box","text":"the assets of the Fund.","page_number":32,"box":{"x":68,"y":571,"width":165,"height":9}},{"id":"d9e9b363-e19a-4a95-a2a3-2ec0d2ec116c","block_type":"box","text":"Transfer Agent","page_number":32,"box":{"x":68,"y":601,"width":107,"height":11}},{"id":"3e543600-4251-4f8f-b701-3f9ddb5b16da","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road,","page_number":32,"box":{"x":102,"y":623,"width":764,"height":12}},{"id":"c32c1410-b8bc-4bf3-9faf-f15a5153c4f6","block_type":"box","text":"Westborough, Massachusetts 01581, serves as the transfer agent and dividend disbursing agent for the Fund.","page_number":32,"box":{"x":68,"y":639,"width":792,"height":11}},{"id":"300fec99-9e16-408e-b3aa-b7c094ff48db","block_type":"box","text":"Credit Agreement","page_number":32,"box":{"x":69,"y":669,"width":129,"height":11}},{"id":"5468290d-a7de-4221-9487-a36384335071","block_type":"box","text":"The Trust, on behalf of the Fund, along with cer tain other funds managed by the Manager and its affiliates","page_number":32,"box":{"x":101,"y":692,"width":758,"height":11}},{"id":"4f6b8824-3bcb-4936-9c45-f35a4b919526","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":32,"box":{"x":69,"y":706,"width":817,"height":12}},{"id":"8c13bedc-2327-4141-9b62-5d6cecdab708","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":32,"box":{"x":68,"y":722,"width":743,"height":11}},{"id":"6c1c45ae-7c38-4b9b-86a5-3c6b1a49fbef","block_type":"box","text":"commitments designated for cer tain Par ticipating Funds, the Par ticipating Funds, including the Fund, can borrow up","page_number":32,"box":{"x":69,"y":737,"width":825,"height":11}},{"id":"42d32aac-3e82-41e1-a5e9-d96b9cff98ad","block_type":"box","text":"to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other","page_number":32,"box":{"x":68,"y":751,"width":818,"height":12}},{"id":"01d402c9-0da5-4c84-9943-657059d27bd2","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":32,"box":{"x":70,"y":767,"width":761,"height":11}},{"id":"105585b9-cc8f-4d3b-ae4e-cf9d628fd771","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":32,"box":{"x":69,"y":782,"width":768,"height":11}},{"id":"2d9a8bcf-0aed-49fb-8d98-74e350a30bfe","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses","page_number":32,"box":{"x":68,"y":797,"width":825,"height":12}},{"id":"e9cfe678-0c2c-4e66-9657-2118ec8f7f1c","block_type":"box","text":"and SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and","page_number":32,"box":{"x":69,"y":813,"width":805,"height":11}},{"id":"d5f86487-b03a-407c-9da3-520ad0e2fbfb","block_type":"box","text":"other fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce","page_number":32,"box":{"x":69,"y":828,"width":838,"height":11}},{"id":"71712eae-5026-439d-8720-8468c7d3d033","block_type":"box","text":"the Fund’s return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":32,"box":{"x":68,"y":843,"width":801,"height":11}},{"id":"8922c145-b0b4-4da9-a190-249b26539ed4","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be","page_number":32,"box":{"x":69,"y":858,"width":833,"height":11}},{"id":"0dde503d-8525-4269-8f14-780e77c14777","block_type":"box","text":"charged interest at a variable rate.","page_number":32,"box":{"x":69,"y":873,"width":245,"height":11}},{"id":"a2bf2bbc-6959-4b30-9ea8-963adc8c1817","block_type":"box","text":"I-23","page_number":32,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"1261dc88-e1cb-4a72-9029-a37419a7be24","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":32,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0fd00649-737e-4313-9df4-3b4b229fc963","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":33,"box":{"x":68,"y":45,"width":491,"height":11}},{"id":"ec5ee7f4-ee04-4a89-ac30-eea70646dfdf","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":33,"box":{"x":102,"y":67,"width":773,"height":12}},{"id":"33383692-afd2-4e6f-9fb2-94824aa3c83d","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“affiliates”) for the periods shown.","page_number":33,"box":{"x":69,"y":82,"width":804,"height":12}},{"id":"9f084512-b8bf-4654-93bd-74fb18e5ba00","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”) acts as the Fund’s sole distributor.","page_number":33,"box":{"x":70,"y":98,"width":656,"height":11}},{"id":"9b378f20-c5f3-43a2-a004-20d61718d852","block_type":"box","text":"Investor A 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on","page_number":33,"box":{"x":832,"y":152,"width":70,"height":7}},{"id":"63df0a7d-030c-42bc-980d-2f1e4f5de418","block_type":"box","text":"Redemption of","page_number":33,"box":{"x":826,"y":162,"width":84,"height":9}},{"id":"bd638e4b-0457-4efb-9db3-1c7246dd8a52","block_type":"box","text":"Load-Waived","page_number":33,"box":{"x":832,"y":172,"width":71,"height":7}},{"id":"d84746b7-5bb7-4f44-b9e1-7674b1e22c1d","block_type":"box","text":"Shares","page_number":33,"box":{"x":847,"y":182,"width":40,"height":7}},{"id":"bb313c08-9a6d-4658-af49-13f1701f7911","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . .","page_number":33,"box":{"x":70,"y":200,"width":305,"height":11}},{"id":"8cc7c60f-0bd4-4a7e-a81d-1fc9513912ae","block_type":"box","text":"...........","page_number":33,"box":{"x":381,"y":207,"width":84,"height":1}},{"id":"a9cbec13-a495-4891-adcc-aae39618e1f0","block_type":"box","text":"$531,879 $40,563 $40,563 $4,131","page_number":33,"box":{"x":496,"y":199,"width":397,"height":11}},{"id":"604e21ec-d1e6-4037-9727-20eb7c292734","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . .","page_number":33,"box":{"x":70,"y":215,"width":305,"height":11}},{"id":"f09c25dc-6acb-42b4-992f-0b8783f5a9fe","block_type":"box","text":"...........","page_number":33,"box":{"x":381,"y":222,"width":84,"height":2}},{"id":"d011f0c7-9630-4b72-adf9-a550539cde3c","block_type":"box","text":"$378,856 $29,263 $29,263 $ 309","page_number":33,"box":{"x":496,"y":214,"width":397,"height":11}},{"id":"8268ee23-f845-473e-8d3a-3b0918ce619c","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . .","page_number":33,"box":{"x":70,"y":230,"width":305,"height":11}},{"id":"aeaa53c5-995d-4b84-a9e6-6a212c2180ed","block_type":"box","text":"...........","page_number":33,"box":{"x":381,"y":237,"width":84,"height":2}},{"id":"a64002e9-6265-45f9-bcd5-954390bed8b5","block_type":"box","text":"$601,851 $43,206 $43,206 $2,118","page_number":33,"box":{"x":496,"y":229,"width":398,"height":11}},{"id":"5ae47f32-4c0d-4bff-bdef-ed2432b57653","block_type":"box","text":"Investor C Shares","page_number":33,"box":{"x":760,"y":275,"width":103,"height":7}},{"id":"febda1e9-fed0-4d7b-a524-3cd23ba2d9d7","block_type":"box","text":"CDSCs Received","page_number":33,"box":{"x":713,"y":290,"width":97,"height":7}},{"id":"d762f878-5e73-4310-a6bf-69cb89235219","block_type":"box","text":"by BRIL","page_number":33,"box":{"x":740,"y":300,"width":44,"height":9}},{"id":"c10f6d77-5c38-4e33-aadb-1b1b1861be6f","block_type":"box","text":"CDSCs Paid","page_number":33,"box":{"x":840,"y":290,"width":69,"height":7}},{"id":"84c01258-5e0f-425e-ba6b-ffc3e938189e","block_type":"box","text":"to Affiliates","page_number":33,"box":{"x":841,"y":300,"width":68,"height":7}},{"id":"ec095c8c-fd0b-4e89-9824-10a57340c2f3","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":318,"width":474,"height":11}},{"id":"6211430d-a016-4b68-8552-c38348a3e991","block_type":"box","text":". . . . . . . . . . . . . . . . . $2,720 $2,720","page_number":33,"box":{"x":550,"y":317,"width":351,"height":12}},{"id":"39bf8963-fa13-41e7-a258-2c64892b20c0","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":333,"width":474,"height":11}},{"id":"4defb8a3-9423-4572-b3b2-dafab5f5fd76","block_type":"box","text":". . . . . . . . . . . . . . . . . $3,058 $3,058","page_number":33,"box":{"x":550,"y":332,"width":351,"height":12}},{"id":"ed5df330-3ad7-4dad-b098-5f11220f1212","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":348,"width":474,"height":11}},{"id":"8a0384b8-6984-4f02-bc21-b399237cfe4e","block_type":"box","text":". . . . . . . . . . . . . . . . . $4,105 $4,105","page_number":33,"box":{"x":550,"y":348,"width":351,"height":11}},{"id":"28c2a46f-7260-45af-a0d2-db21825bb8bc","block_type":"box","text":"The table below provides information for the fiscal year ended May 31, 2026 about the 12b-1 fees the Fund paid","page_number":33,"box":{"x":101,"y":372,"width":805,"height":11}},{"id":"07616499-3043-4a85-afaf-08f82690d6c8","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plan. A por tion of the fees collected by BRIL were paid to affiliates for providing","page_number":33,"box":{"x":68,"y":387,"width":796,"height":12}},{"id":"1c60a0ce-7413-4a10-bf55-b86b1de6899b","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution-related","page_number":33,"box":{"x":69,"y":402,"width":826,"height":12}},{"id":"51707890-f639-4c6b-8a10-2409a5899cbf","block_type":"box","text":"activities and services for Investor C Shares.","page_number":33,"box":{"x":69,"y":418,"width":318,"height":9}},{"id":"255626e6-e338-4f55-a8dc-a26da1962e08","block_type":"box","text":"Class Name","page_number":33,"box":{"x":69,"y":456,"width":68,"height":7}},{"id":"a89a6035-a84b-4777-977e-e834d0e350ac","block_type":"box","text":"Fees Paid","page_number":33,"box":{"x":845,"y":446,"width":56,"height":7}},{"id":"4cc283fa-1508-4d7d-88ec-72975c85f7d2","block_type":"box","text":"to BRIL","page_number":33,"box":{"x":851,"y":456,"width":44,"height":7}},{"id":"4544f9f7-5608-4984-930a-fc7ef9cdf410","block_type":"box","text":"Investor A Shares . .","page_number":33,"box":{"x":70,"y":474,"width":140,"height":9}},{"id":"6ce0745a-68bb-43f9-89a1-90f3b3069046","block_type":"box","text":".........................................................................","page_number":33,"box":{"x":217,"y":481,"width":588,"height":1}},{"id":"643964a9-2ea9-4f87-944c-0e807c4d5c85","block_type":"box","text":"$767,804","page_number":33,"box":{"x":837,"y":473,"width":72,"height":11}},{"id":"f12c152d-8700-476d-95aa-479d8b46bc8d","block_type":"box","text":"Investor C Shares","page_number":33,"box":{"x":70,"y":489,"width":125,"height":9}},{"id":"65a59897-d739-4f49-8c88-0077d779f695","block_type":"box","text":"...........................................................................","page_number":33,"box":{"x":200,"y":496,"width":605,"height":2}},{"id":"d8443dbf-75e3-4e13-9698-57960f036c9f","block_type":"box","text":"$644,141","page_number":33,"box":{"x":837,"y":488,"width":72,"height":11}},{"id":"29db8cbf-5c5e-45e9-a076-69d1a7bc7805","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":33,"box":{"x":68,"y":520,"width":318,"height":11}},{"id":"ccb08596-89ad-43a5-b968-0416c0cb5622","block_type":"box","text":"An illustration of the computation of the offering price of the Investor A Shares of the Fund based on the value of","page_number":33,"box":{"x":101,"y":543,"width":805,"height":11}},{"id":"2419fea0-2920-4f98-96fe-f695fb3e2adb","block_type":"box","text":"the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on May 31, 2026, is set","page_number":33,"box":{"x":68,"y":558,"width":827,"height":11}},{"id":"6e4cda40-e7d5-4b26-9ba6-2069d67808f9","block_type":"box","text":"for th below.","page_number":33,"box":{"x":68,"y":573,"width":83,"height":9}},{"id":"57f024e4-0f46-4a38-b7ff-e0c942a902a6","block_type":"box","text":"Investor A Shares","page_number":33,"box":{"x":805,"y":601,"width":102,"height":8}},{"id":"1bb6f8d9-c0dd-4a87-a2c7-36b4764a7959","block_type":"box","text":"Net Assets","page_number":33,"box":{"x":70,"y":619,"width":76,"height":9}},{"id":"1145e9e9-56a4-42ab-87f2-c05bc298cdae","block_type":"box","text":".............................................................................","page_number":33,"box":{"x":150,"y":627,"width":621,"height":1}},{"id":"6ebe89ca-f6ee-4a28-a7e5-93429b2b8a31","block_type":"box","text":"$325,227,244","page_number":33,"box":{"x":803,"y":618,"width":106,"height":12}},{"id":"5c66e73a-2b14-43b5-8542-7911ada27edf","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":33,"box":{"x":70,"y":634,"width":245,"height":12}},{"id":"0cb178e5-6a1c-4f75-aa34-9ca3e6f31191","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,","page_number":33,"box":{"x":321,"y":634,"width":524,"height":11}},{"id":"ac109a96-72c3-4485-8ebd-1912ff96355d","block_type":"box","text":"452,891","page_number":33,"box":{"x":847,"y":634,"width":62,"height":11}},{"id":"732743b8-80c6-4059-b38a-c27d7d754411","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":33,"box":{"x":70,"y":649,"width":571,"height":12}},{"id":"f46c5173-1d6c-47d7-bb54-321f4c05a5e9","block_type":"box","text":"................","page_number":33,"box":{"x":647,"y":657,"width":124,"height":1}},{"id":"152a42e6-09ab-4334-a597-82a948f14c56","block_type":"box","text":"$26.12","page_number":33,"box":{"x":857,"y":649,"width":52,"height":10}},{"id":"69b2ff38-6c03-478c-b006-2353a4f9e289","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":33,"box":{"x":69,"y":664,"width":534,"height":12}},{"id":"844b1c5e-95a2-423e-8965-4fc5767a0620","block_type":"box","text":"1","page_number":33,"box":{"x":604,"y":665,"width":4,"height":4}},{"id":"db9df8c6-4651-4a15-a856-97171ddb1e76","block_type":"box","text":". . . . . . . . . . . . . . . . . . . $1.45","page_number":33,"box":{"x":623,"y":664,"width":286,"height":10}},{"id":"e6337c3a-0c36-4f94-b23a-11cd4361ed4a","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":69,"y":684,"width":702,"height":11}},{"id":"a935a90a-f091-4fb8-8931-7614dfee9be6","block_type":"box","text":"$27.57","page_number":33,"box":{"x":857,"y":683,"width":51,"height":11}},{"id":"4fa53483-9381-4097-acf7-77ba69a1632f","block_type":"box","text":"1","page_number":33,"box":{"x":69,"y":716,"width":3,"height":4}},{"id":"5ad0253b-48b1-437e-96da-7fbbebda5d89","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":33,"box":{"x":94,"y":716,"width":541,"height":9}},{"id":"5b83625c-20a1-4fea-bd3b-42ea34f9a873","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’s net asset value computed as","page_number":33,"box":{"x":101,"y":737,"width":796,"height":11}},{"id":"cb5433b4-98b4-496c-9587-91880072db0b","block_type":"box","text":"set for th above for Investor A Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":33,"box":{"x":69,"y":752,"width":833,"height":11}},{"id":"a7caec09-3ccf-453d-bad8-54b20e743186","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":33,"box":{"x":69,"y":767,"width":813,"height":11}},{"id":"cf58f009-a175-4ff9-9448-7d2e2db037db","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":33,"box":{"x":69,"y":782,"width":377,"height":12}},{"id":"a55ba87e-4b52-47a4-925b-05fba8da7d09","block_type":"box","text":"VII. 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To the extent that the Fund engages in securities","page_number":34,"box":{"x":69,"y":693,"width":813,"height":11}},{"id":"1813f88c-8a78-49a4-aa70-d972080a3fcf","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":34,"box":{"x":70,"y":708,"width":838,"height":11}},{"id":"2809406f-6d60-4437-ab85-a05e615718dd","block_type":"box","text":"overall supervision of BlackRock, pursuant to a written agreement (the “Securities Lending Agency Agreement”). BIM","page_number":34,"box":{"x":69,"y":723,"width":831,"height":11}},{"id":"98f20002-fe4e-4bca-9ebb-e37146054449","block_type":"box","text":"administers the lending program in accordance with guidelines approved by the Board.","page_number":34,"box":{"x":69,"y":738,"width":614,"height":11}},{"id":"574ce283-e478-47d6-baa6-c2145a86b652","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BIM as","page_number":34,"box":{"x":101,"y":761,"width":735,"height":11}},{"id":"c9144cba-316f-4f25-81ed-ceba0210c794","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":34,"box":{"x":69,"y":776,"width":834,"height":11}},{"id":"19dbb26d-ddde-46dd-bd0f-dbbcda030628","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":34,"box":{"x":70,"y":791,"width":822,"height":11}},{"id":"775017ef-6f44-4b3e-9910-e2087dbcc882","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all","page_number":34,"box":{"x":69,"y":806,"width":787,"height":11}},{"id":"54217825-441a-4c30-8245-35154d43d7ba","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":34,"box":{"x":69,"y":821,"width":783,"height":12}},{"id":"6cc8ae96-809a-42a8-ade2-8f0a2a90d56e","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by the Manager (the","page_number":34,"box":{"x":70,"y":836,"width":816,"height":12}},{"id":"18df6959-3d15-4122-9f08-fd83f2ac771b","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":34,"box":{"x":70,"y":852,"width":813,"height":11}},{"id":"3fb89f7a-f6e8-45b5-aa9c-7587e6bff863","block_type":"box","text":"lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate","page_number":34,"box":{"x":70,"y":867,"width":830,"height":11}},{"id":"2b7d00c2-6101-4459-89ad-d4220b36629e","block_type":"box","text":"of 0.04%. Such money market fund shares will not be subject to a sales load, distribution fee or service fee.","page_number":34,"box":{"x":69,"y":882,"width":773,"height":11}},{"id":"16b071e5-c768-4346-b8d4-8aff62c83599","block_type":"box","text":"I-25","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"14b6c85b-2e62-4fed-ae91-03c8341e4666","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ea46a062-e0f7-447e-abae-4d58f9d7d527","block_type":"box","text":"To the extent that the Fund invests cash collateral in a non-government money market fund, the Fund may be","page_number":35,"box":{"x":101,"y":45,"width":776,"height":11}},{"id":"c474acb2-4947-45b7-9fe7-4857f22be4e9","block_type":"box","text":"subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or","page_number":35,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"90737b94-9347-4868-b7a4-c2ea81931654","block_type":"box","text":"terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is","page_number":35,"box":{"x":68,"y":75,"width":812,"height":11}},{"id":"3c867fc4-c49a-40be-9c54-362bf5a344fc","block_type":"box","text":"determined that such fee would be, or would not be, respectively, in the best interest of the money market fund.","page_number":35,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"051f19ba-0cad-48b0-a408-60b4e62cbf3e","block_type":"box","text":"Additionally, the Fund will be subject to a mandatory liquidity fee if the money market fund’s total net redemptions on","page_number":35,"box":{"x":68,"y":105,"width":835,"height":11}},{"id":"cbf2fc02-bfd9-4532-9d7a-05f9f0096840","block_type":"box","text":"a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less","page_number":35,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"4c762e25-7744-40f4-930a-b88d7977b278","block_type":"box","text":"than one basis point (0.01%)). The money market fund will determine the size of the mandatory liquidity fee by","page_number":35,"box":{"x":68,"y":135,"width":789,"height":11}},{"id":"f8226557-df7f-46df-8c17-670194ed811f","block_type":"box","text":"making a good faith estimate of cer tain costs the money market fund would incur if it were to sell a pro rata amount","page_number":35,"box":{"x":69,"y":150,"width":829,"height":12}},{"id":"0ac0c724-72a2-4330-b994-d4b27f7f8593","block_type":"box","text":"of each security in the por tfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":35,"box":{"x":69,"y":166,"width":839,"height":11}},{"id":"fa9f1416-9599-489a-ac39-655d533ab456","block_type":"box","text":"mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each","page_number":35,"box":{"x":69,"y":181,"width":802,"height":11}},{"id":"bce67dff-3618-4991-8630-f41edbf47e9b","block_type":"box","text":"por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity fee of 1% on the value","page_number":35,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"8da382a7-a5b2-4631-9a71-cf494624b17c","block_type":"box","text":"of shares redeemed on that day. The imposition of any such discretionary or mandatory liquidity fee would reduce the","page_number":35,"box":{"x":69,"y":211,"width":838,"height":11}},{"id":"0a338b32-3962-46b3-beb9-39ecd840eaf3","block_type":"box","text":"Fund’s returns on securities lending.","page_number":35,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"da7846b8-25fd-4830-8d1b-1dc3a62cdefb","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":35,"box":{"x":102,"y":249,"width":774,"height":11}},{"id":"67705230-f1ff-4505-93d0-727e43a2e7ae","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity, or fund of","page_number":35,"box":{"x":69,"y":264,"width":794,"height":11}},{"id":"7051c080-b732-46e3-a5ba-f843568017bf","block_type":"box","text":"funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to by the","page_number":35,"box":{"x":68,"y":279,"width":809,"height":11}},{"id":"9a49c033-9f91-429e-ab8c-74233eb76b44","block_type":"box","text":"Fund and BIM.","page_number":35,"box":{"x":70,"y":294,"width":100,"height":9}},{"id":"dc2b6ea5-35f0-4fb3-88e7-334ec27e1a4c","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":35,"box":{"x":102,"y":317,"width":783,"height":11}},{"id":"026850d5-2b77-4f89-a288-ff50a8d9cc4a","block_type":"box","text":"lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the","page_number":35,"box":{"x":70,"y":332,"width":815,"height":11}},{"id":"502f9a31-ecb7-4939-86aa-cdffdd92dc47","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":35,"box":{"x":69,"y":347,"width":463,"height":11}},{"id":"f8f1d5bd-be31-4330-8e1e-42d15007b69b","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":35,"box":{"x":102,"y":370,"width":753,"height":11}},{"id":"709bc7bb-ce01-432c-ad1f-25dd6da85761","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":35,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"64296c58-1201-4fc4-b8bb-39ba5fd85987","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":35,"box":{"x":70,"y":400,"width":817,"height":11}},{"id":"109b5af1-f8e5-44c6-a983-4101ce72594c","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":35,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"be7d2f5e-ba1f-48a6-bb50-20c4e6878e0e","block_type":"box","text":"(ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":35,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"d6aedf3c-09ca-4771-8187-07eb05b8bda3","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":35,"box":{"x":102,"y":453,"width":683,"height":11}},{"id":"0d37a239-89a1-4393-9651-325a5c240e9a","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended May 31, 2026, primarily included","page_number":35,"box":{"x":101,"y":475,"width":803,"height":12}},{"id":"04de5607-0a11-43b2-9043-328c1d77a023","block_type":"box","text":"the following:","page_number":35,"box":{"x":68,"y":491,"width":93,"height":11}},{"id":"73c31702-4044-449b-86af-d7d559c67fcc","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":35,"box":{"x":69,"y":511,"width":818,"height":11}},{"id":"1c492671-62b5-44ec-aecd-f80d93406a3d","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":35,"box":{"x":102,"y":526,"width":333,"height":10}},{"id":"9cdfa94c-0eb9-430d-8c57-5650370edda4","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":35,"box":{"x":69,"y":546,"width":538,"height":11}},{"id":"06d758c4-fcab-418e-b21f-26ed9e8761cd","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":35,"box":{"x":69,"y":566,"width":330,"height":11}},{"id":"f67fbc80-6213-4a0d-87a0-a3913eedb131","block_type":"box","text":"(4) monitoring the daily value of the loaned securities and directing the payment of additional collateral or the return","page_number":35,"box":{"x":69,"y":586,"width":834,"height":12}},{"id":"d9caa236-8910-49b4-b6b9-db8f62d1b7d3","block_type":"box","text":"of excess collateral, as necessary;","page_number":35,"box":{"x":102,"y":601,"width":246,"height":12}},{"id":"f5cb1f35-7c9e-4055-ad49-148c26cabd89","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":35,"box":{"x":69,"y":622,"width":562,"height":11}},{"id":"d8f3962d-604f-4bc6-b600-c58d8f4cfeda","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":35,"box":{"x":69,"y":642,"width":665,"height":11}},{"id":"8d5c78f6-7d4f-4765-85e4-6390b4abb5da","block_type":"box","text":"(7) in the event of default by a borrower with respect to any securities loan, using the collateral or the proceeds of","page_number":35,"box":{"x":69,"y":662,"width":822,"height":11}},{"id":"9382d24f-b758-41cc-b6fc-cac1e3a2dd1d","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":35,"box":{"x":101,"y":677,"width":803,"height":11}},{"id":"94c8bfa1-3267-4ffe-b887-bd312ffb95fb","block_type":"box","text":"of the loaned securities; and","page_number":35,"box":{"x":102,"y":692,"width":203,"height":11}},{"id":"6682dfef-474f-44e7-a84e-0fe7e43b9cdd","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":35,"box":{"x":69,"y":712,"width":808,"height":12}},{"id":"90dba483-702f-4100-bc8b-9ba85653328b","block_type":"box","text":"I-26","page_number":35,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"3af82929-da7d-4c1b-b9f8-b38c99e20d50","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a019591c-4f51-456d-8d11-992395e8b8cf","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":36,"box":{"x":101,"y":45,"width":805,"height":11}},{"id":"68054c1d-98e7-473f-a048-d9def954cbf7","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":36,"box":{"x":69,"y":60,"width":546,"height":11}},{"id":"f9bab403-f9b0-48af-8bb1-9ccdd933a573","block_type":"box","text":"Gross income from securities lending activities","page_number":36,"box":{"x":69,"y":88,"width":343,"height":11}},{"id":"361b1ca1-992d-4302-af32-8c68626299ca","block_type":"box","text":"..................................................","page_number":36,"box":{"x":414,"y":95,"width":401,"height":1}},{"id":"67098c6a-a49a-423e-bad4-4bbfc0bb0190","block_type":"box","text":"$243,235","page_number":36,"box":{"x":837,"y":87,"width":72,"height":11}},{"id":"c1891e73-b481-4499-9876-b86d7c71875c","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":36,"box":{"x":70,"y":107,"width":565,"height":11}},{"id":"f943f9f6-e621-4264-85ab-a8288d28f472","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent .","page_number":36,"box":{"x":79,"y":122,"width":565,"height":11}},{"id":"216aa58e-3b1a-41b2-b1ad-f392cb2df267","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . $ 2,763","page_number":36,"box":{"x":650,"y":121,"width":259,"height":12}},{"id":"5bc74752-12b9-40d6-83d6-5631a9bfeb29","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . .","page_number":36,"box":{"x":79,"y":137,"width":679,"height":12}},{"id":"5d6e60d5-0b7f-4848-9b7b-1d5b42cd2f51","block_type":"box","text":". . . . . . . $ 2,324","page_number":36,"box":{"x":765,"y":137,"width":144,"height":11}},{"id":"0704d0f1-5a5a-4e46-8aaf-5053bd7ff02d","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM","page_number":36,"box":{"x":78,"y":152,"width":519,"height":12}},{"id":"3c6d0aff-cfbd-4b7e-bddc-879ee78096cb","block_type":"box","text":"........................... $ 0","page_number":36,"box":{"x":602,"y":152,"width":307,"height":10}},{"id":"adc270fb-a91b-4548-9aa8-305f0cc79ec0","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM","page_number":36,"box":{"x":79,"y":167,"width":526,"height":12}},{"id":"bd2431af-5ded-43fe-8884-f669232a6d91","block_type":"box","text":".......................... $ 0","page_number":36,"box":{"x":610,"y":167,"width":299,"height":10}},{"id":"b3285e49-f594-4199-b81c-267deac69450","block_type":"box","text":"Rebates (paid to borrowers)","page_number":36,"box":{"x":79,"y":183,"width":197,"height":11}},{"id":"27ab8741-760f-4757-a44b-e63e01400ebf","block_type":"box","text":"..................................................................","page_number":36,"box":{"x":284,"y":190,"width":531,"height":1}},{"id":"301ee07d-b1cc-4ae0-b7dc-f11b71823e4d","block_type":"box","text":"$225,760","page_number":36,"box":{"x":837,"y":182,"width":72,"height":11}},{"id":"fe897b27-c407-4c09-b3eb-149db49137eb","block_type":"box","text":"Other fees not included in securities lending income paid to BIM . . . . . . . . .","page_number":36,"box":{"x":79,"y":198,"width":532,"height":11}},{"id":"4be0123c-e6e3-4c43-8638-c52d502b775e","block_type":"box","text":"......................... $ 0","page_number":36,"box":{"x":618,"y":197,"width":291,"height":11}},{"id":"5d97dffb-959b-496a-9a95-3cde1d4a2664","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":36,"box":{"x":68,"y":213,"width":455,"height":11}},{"id":"f827e6df-a79a-4e8c-b794-33a34d70e687","block_type":"box","text":"....................................","page_number":36,"box":{"x":528,"y":220,"width":287,"height":2}},{"id":"3ace1e81-eda7-4d06-9927-02c47dc752c8","block_type":"box","text":"$230,847","page_number":36,"box":{"x":837,"y":212,"width":72,"height":12}},{"id":"61e9a1ea-57a6-4813-bbb5-00f29111c731","block_type":"box","text":"Net income from securities lending activities","page_number":36,"box":{"x":69,"y":232,"width":327,"height":11}},{"id":"85a6f4d0-bf28-4ac7-8434-0b3a34fdb890","block_type":"box","text":"...................................................","page_number":36,"box":{"x":406,"y":240,"width":409,"height":1}},{"id":"0acc17e2-ff07-4c14-8548-72cbc80b85c4","block_type":"box","text":"$ 12,388","page_number":36,"box":{"x":837,"y":232,"width":72,"height":11}},{"id":"e75146ee-ff5f-4f7c-86d9-f31b72b4be2f","block_type":"box","text":"VIII. Additional Information","page_number":36,"box":{"x":68,"y":268,"width":195,"height":9}},{"id":"f29a9e33-6988-4d5c-a455-4fe21f93d91b","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":36,"box":{"x":102,"y":291,"width":352,"height":11}},{"id":"93648550-f0bf-4e2d-a01e-87c70fb5b88d","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":36,"box":{"x":461,"y":291,"width":412,"height":10}},{"id":"5faab6da-2f80-43e9-a4f2-01c12b3ea0af","block_type":"box","text":"Street, Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":36,"box":{"x":69,"y":306,"width":772,"height":11}},{"id":"a081087e-4e77-4227-b0f1-9b4f9fcd49dd","block_type":"box","text":"Counsel.","page_number":36,"box":{"x":101,"y":329,"width":62,"height":9}},{"id":"14c5be19-9e80-4d44-b8d7-41afa3551400","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":36,"box":{"x":170,"y":329,"width":736,"height":11}},{"id":"98cc47b8-4274-426a-8a35-edc22a76e46a","block_type":"box","text":"the Fund’s counsel.","page_number":36,"box":{"x":68,"y":344,"width":139,"height":9}},{"id":"807e691c-3348-4d8c-b88d-5b8479ef1a20","block_type":"box","text":"The Trust","page_number":36,"box":{"x":68,"y":374,"width":69,"height":9}},{"id":"b467fbfb-ea4d-4a5a-84fc-565a349dd93d","block_type":"box","text":"The Trust was organized as a Massachusetts business trust on December 22, 1988, and is registered under the","page_number":36,"box":{"x":101,"y":397,"width":807,"height":11}},{"id":"37c0465a-bf1b-416f-ac27-39eeb8d5dddb","block_type":"box","text":"Investment Company Act as an open-end management investment company. The Fund is diversified. The Trust is","page_number":36,"box":{"x":70,"y":412,"width":800,"height":11}},{"id":"be6e09ae-bb10-400e-ab15-cfa57a052ae0","block_type":"box","text":"authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share, which","page_number":36,"box":{"x":69,"y":426,"width":827,"height":12}},{"id":"604d427f-540e-4770-a360-d6ea28e2895d","block_type":"box","text":"may be divided into different series and classes. Effective on December 27, 2017, all of the issued and outstanding","page_number":36,"box":{"x":69,"y":442,"width":832,"height":11}},{"id":"6215a4ae-103f-4cbf-b29d-3b12f0c8ffdc","block_type":"box","text":"Investor B Shares of the Fund were conver ted into Investor A Shares of the Fund.","page_number":36,"box":{"x":70,"y":457,"width":577,"height":9}},{"id":"ef26752d-4784-4bae-9d89-9d5fb46bb250","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under cer tain circumstances, be held","page_number":36,"box":{"x":102,"y":480,"width":734,"height":11}},{"id":"2f0d8a99-523a-48b1-90ea-254cf9ab2c17","block_type":"box","text":"personally liable as par tners for the obligations of the Trust. However, the Trust’s Declaration of Trust provides that","page_number":36,"box":{"x":70,"y":495,"width":822,"height":11}},{"id":"a20ed5d9-bdfe-46bc-8960-f6281ebfe916","block_type":"box","text":"shareholders shall not be subject to any personal liability in connection with the assets of the Trust for the acts or","page_number":36,"box":{"x":69,"y":510,"width":814,"height":11}},{"id":"dcb763e3-4e50-4db6-a1e0-fc1079a4b519","block_type":"box","text":"obligations of the Trust, and that every note, bond, contract, order or other under taking made by the Trust shall","page_number":36,"box":{"x":69,"y":525,"width":794,"height":12}},{"id":"871009d4-98f7-444b-9bce-6dca80323e80","block_type":"box","text":"contain a provision to the effect that the shareholders are not personally liable thereunder. The Declaration of Trust","page_number":36,"box":{"x":69,"y":540,"width":824,"height":12}},{"id":"68ab9d05-3e04-430a-a723-2adf19f86552","block_type":"box","text":"provides for indemnification out of Trust proper ty of any shareholder held personally liable solely by reason of his","page_number":36,"box":{"x":70,"y":555,"width":804,"height":12}},{"id":"11fb7cdb-9026-4fce-a9a5-70de098f6dba","block_type":"box","text":"being or having been a shareholder and not because of such shareholder’s acts or omissions or some other reason.","page_number":36,"box":{"x":69,"y":571,"width":830,"height":11}},{"id":"0ce9aa10-2a11-4bb2-8f20-372802b89d07","block_type":"box","text":"The Declaration of Trust also provides that the Trust shall, upon request, assume the defense of any claim made","page_number":36,"box":{"x":68,"y":586,"width":807,"height":11}},{"id":"c62eecf7-c67b-4e21-8709-4ca8d454c80c","block_type":"box","text":"against any shareholder for any act or obligation of the Trust, and shall satisfy any judgment thereon.","page_number":36,"box":{"x":69,"y":601,"width":719,"height":11}},{"id":"79bbfc89-a2b9-4355-82c8-1722a636eb4d","block_type":"box","text":"The Declaration of Trust fur ther provides that all persons having any claim against the Trustees or Trust shall","page_number":36,"box":{"x":101,"y":623,"width":777,"height":12}},{"id":"036ad1a7-4e34-4686-b8dd-3ffe8b6fe51f","block_type":"box","text":"look solely to the Trust proper ty for payment; that no Trustee of the Trust shall be personally liable for or on account","page_number":36,"box":{"x":70,"y":639,"width":828,"height":11}},{"id":"dcef034c-e0c9-4e86-be18-04b97fdbb575","block_type":"box","text":"of any contract, debt, tor t, claim, damage, judgment or decree arising out of or connected with the administration or","page_number":36,"box":{"x":69,"y":654,"width":827,"height":11}},{"id":"621a7f98-37c1-49d5-af55-079df5192fe1","block_type":"box","text":"preservation of the Trust proper ty or the conduct of any business of the Trust; and that no Trustee shall be","page_number":36,"box":{"x":70,"y":669,"width":762,"height":11}},{"id":"6818f8d2-0bc7-4c5d-9a33-cbf83deca2cb","block_type":"box","text":"personally liable to any person for any action or failure to act except by reason of such Trustee’s own bad faith, willful","page_number":36,"box":{"x":70,"y":684,"width":836,"height":11}},{"id":"a1872678-2dbd-4a3d-bfe5-91c11af8f607","block_type":"box","text":"misfeasance, gross negligence or reckless disregard of his duties as a Trustee.","page_number":36,"box":{"x":69,"y":699,"width":567,"height":11}},{"id":"87401f34-04ce-4768-a758-01699d12ecf1","block_type":"box","text":"With the exception stated, the Declaration of Trust provides that a Trustee is entitled to be indemnified against","page_number":36,"box":{"x":101,"y":722,"width":792,"height":11}},{"id":"4b9cc546-2def-496a-9a4e-e8505a8d9c7a","block_type":"box","text":"all liabilities and expenses reasonably incurred by such Trustee in connection with the defense or disposition of any","page_number":36,"box":{"x":69,"y":737,"width":825,"height":11}},{"id":"2634851a-2e5d-48ab-83fa-6f1f3fb5bd89","block_type":"box","text":"proceeding in which he may be involved or with which he may be threatened by reason of his being or having been a","page_number":36,"box":{"x":70,"y":752,"width":824,"height":11}},{"id":"71b36973-3c1a-4d46-8c7a-79c18c887cee","block_type":"box","text":"Trustee, and that the Trust will indemnify officers, representatives and employees of the Trust to the same extent","page_number":36,"box":{"x":68,"y":767,"width":811,"height":11}},{"id":"2d42e17a-f4a6-44f6-a7bb-b308e75425d1","block_type":"box","text":"that trustees are entitled to 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Additional copies of the Fund’s annual and semi-annual repor ts to","page_number":38,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"b5e098f7-405a-4a33-8583-b72e97c0ef63","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":38,"box":{"x":69,"y":559,"width":785,"height":11}},{"id":"71de36f6-0b3e-4ecd-a0ec-ca5b314bb206","block_type":"box","text":"obtained at no charge by telephoning the Distributor at the telephone number appearing on the front page of this SAI.","page_number":38,"box":{"x":69,"y":574,"width":836,"height":12}},{"id":"f75bf62d-a7fe-45a8-8484-fbb462007314","block_type":"box","text":"I-29","page_number":38,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"67667457-b61f-4b11-921e-216697e6966c","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b57c251d-7255-47f5-82cd-911319066abb","block_type":"box","text":"PART II","page_number":39,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"e39b2be5-c414-49cf-a681-40de42ea02ea","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":39,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"e5f65446-f175-49c8-a3fc-af9aac73c0c0","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":39,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"ccf2a162-687c-4a47-8850-cb637a970fde","block_type":"box","text":"they invest cer tain of their assets in municipal investments described below.","page_number":39,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"bb001365-5d66-4aac-aa78-acd0643149fa","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":39,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"03d6d22e-ad2c-4b1a-a4df-55bf9806de0f","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":39,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"c0a68c65-b8d2-40e8-a5a7-4258feb1f689","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":39,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"9e3e1b66-025e-4c52-afd3-0757cabee361","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":39,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"22d1df5a-a957-4066-a299-cea6ea7bc232","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":39,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"2b7d9d23-d73e-413a-be85-a4de002449b3","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":39,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"cf2fbbfc-0b90-4e4a-9589-be2b24521aa4","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":39,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"e03fd9af-0fba-4866-b404-406ae7da4ffc","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":39,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"e04cdc97-2d69-4fe8-8286-f3afc49fde2f","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":39,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"5fc47f8d-3d1b-4878-8954-dae26fe52b0c","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":39,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"8d3dabed-f49b-48f8-b353-ddb933d5abaf","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":39,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"3cd7f666-39b4-4cbc-98fd-8c296ba85692","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":39,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"9bb84d54-16b7-4228-95e2-a8c0ef5c2898","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":39,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"b7aca02f-8e77-4413-bf74-069d3d51bcf7","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":39,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"7e9b4061-d171-4eac-a826-224f93fb7df3","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":39,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"1d06c39b-edab-4cf8-8861-62db9cae2515","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":39,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"8f9f0fea-1db8-41b6-8d59-dac9c5256f38","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":39,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"0ee749ac-46df-4dc7-850d-ee19bafb50d9","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":39,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"131b3dd0-1b17-457d-be13-4891d7e3308d","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":39,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"ceccbe7e-4091-4f48-84e0-cb8211deb5b0","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":39,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"4113babf-4078-42a5-80e9-4f93a8dceacd","block_type":"box","text":"par ticular Fund.","page_number":39,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"b3ea20b7-443e-4590-a062-31bc4085f8a2","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":39,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"6e4fc767-45db-450d-b72d-3daf3610030a","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":39,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"07add591-381d-458d-b911-3764c5d6b35c","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":39,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"902088a6-e39a-4ca6-9233-57782e9c118e","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":39,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"6a6c71c9-d163-434a-a065-dbf040bfdd15","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":39,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"60c68a16-e573-4fe4-ab8a-f89b2a53b51d","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":39,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"47e20d07-37ef-4984-b21a-1f6d46e37915","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":39,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"be39374f-85a6-4aa1-8614-05488970d557","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":39,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"e23da859-dd36-424f-ba68-c01a13d0a789","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":39,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"3f5c30c3-b984-4986-8e0f-379eaffa7b97","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":39,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"cc1bae0a-e44c-4afa-8211-edde138b2b07","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":39,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"4ecee521-9ee4-4657-9a40-c3ac087d7c43","block_type":"box","text":"Asset-Backed Securities.","page_number":39,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"a621234d-05d7-4e90-ac51-807da12b5dbc","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":39,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"473ef523-9fd4-462c-b686-caccdd6a456a","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":39,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"455a138d-de6a-4db1-a9f9-7b0425c38345","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":39,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"92609af5-7363-489d-a723-9342e42f6cfb","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":39,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"0cb56238-1d8e-4f6c-b0fd-4b508a0184d2","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":39,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"65cf1041-ba4e-4bc9-abd5-80588e575105","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":39,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"0ce07c45-eb7f-4476-9760-88376504dd93","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":39,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"67a6e596-5a38-43dc-9796-45f98ab446c4","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":39,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"bcddd606-9282-455b-bb27-2a103c0a2bcf","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":39,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"62b35806-d493-4373-a0dd-6058d1ce5f0a","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":39,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"d4391b4d-45b6-433c-a59f-fd0187f9d469","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":39,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"b348d737-2dbd-4dcd-834f-ec858891417e","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":39,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"46e6396c-8347-4b20-9b13-b876b2237746","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":39,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"19f76778-5115-4ec7-9015-70af01e6a938","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":39,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"9f2388b4-e1a9-4431-bd53-bb881a35e59e","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":39,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"e3f95af0-2394-4304-b7a6-3a152616a58b","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":39,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"ca1db309-8515-41cd-9497-a34c10534737","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":39,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"4d2e08b2-7bed-446d-aee4-58377f126649","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":39,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"b2983da8-de10-45dc-a6be-047fb480dcef","block_type":"box","text":"II-1","page_number":39,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"3a093a62-3fb6-4645-aef6-2b2033c7fe1e","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d6b7e175-3d01-40a6-a7f9-54b53ac1a15e","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":40,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"66aa5fb3-e472-4e12-b1bf-8fc6c6eb36bd","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":40,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"f05cadf2-bb48-47c9-9c6c-91d4fd16deae","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":40,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"0b81c547-acf8-42b5-845b-759dfc55714b","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":40,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"4f2c5a1f-6238-4ada-ac49-6815954d31f7","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":40,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"c522c134-25a4-4d3b-bdab-6f534d811a71","block_type":"box","text":"Asset-Based Securities.","page_number":40,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"91894e88-2f5d-4aab-a23e-a5ccf657c93b","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":40,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"0e9cfca2-76fe-4486-b163-8f420256dc37","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":40,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"0da36556-501a-4928-86b0-60c4cdc5660c","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":40,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"a9b48bc3-1a53-4121-991a-091002a4b7e2","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":40,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"cc188352-3838-4484-be19-6eee89aed1e8","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":40,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"8103349d-b5be-45c9-919e-490b6841014e","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":40,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"0eb70492-1d4b-47bb-b7e5-49e0a0b8be84","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":40,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"153b4eaa-fc4a-4f0b-a337-fffba8ee7f96","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":40,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"128a86fe-227e-49ec-865d-53ba60fb66f9","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":40,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"f4589d15-771b-4c51-bf15-94bc3f983dca","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":40,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"dedb8129-c8b7-4810-8d06-ac8e3d77fd6b","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":40,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"a3c216a8-b327-4e08-a487-f250098f03de","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":40,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"3e2718db-5ddb-4862-82a5-2f192fddebbb","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":40,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"d823d05c-58e9-4461-ba4d-c6c5c8be267e","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":40,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"255cc745-58d1-4290-b6a2-f890e0c84c3d","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":40,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"6923a008-9f3c-4372-a56e-957e9d50807d","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":40,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"302ab380-5653-4e7b-817f-798195a33132","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":40,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"4860b7fb-be0b-4089-bf09-b079776abce6","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":40,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"d6618ba5-c750-42e3-99f5-5b763b229045","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":40,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"1459dfc6-6ba3-4659-ad4c-d1888ca1299d","block_type":"box","text":"appreciation in the underlying asset.","page_number":40,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"88536ca5-d75c-4eef-8d89-6ea7ffc70bdc","block_type":"box","text":"Precious Metal-Related Securities.","page_number":40,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"2afc8c34-9fc1-43cb-8881-b123b55f8ee9","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":40,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"da1b4833-5fea-4da7-b068-19a30918266c","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":40,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"9fb5fe4e-4575-4f64-a811-832ccfb19b33","block_type":"box","text":"e.g.","page_number":40,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"194949e1-1210-44e0-b86d-62477aa7822a","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":40,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"1c893b8f-3c5f-4fa3-9df6-a4d3f914173a","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":40,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"e51655e7-cb93-4fb9-84d8-b408579c594f","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":40,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"9003bb78-d620-4d61-a68f-a9dc65bb0b63","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":40,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"4eb16a5f-392e-4523-b4eb-da4ad3432d2b","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":40,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"d5f5f33f-453b-45bd-95da-a5974e9e0891","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":40,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"8dc3a7b4-ddf8-4365-b1b7-cee4d4ced7bc","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":40,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"028b5555-3704-4129-b03c-fe00142e64e6","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":40,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"3fe6e113-a3a0-4dcd-b7d5-f45d02f5a0ac","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":40,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"547af74e-a090-4e57-b258-cc3c1f603520","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":40,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"302b2f0c-bc07-4605-b9c9-ee321d07c98e","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":40,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"480dd23b-810b-4edb-b874-b812d13d8f4e","block_type":"box","text":"South African gold production.","page_number":40,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"d72a5306-2515-4842-a1ae-dc7909eba85c","block_type":"box","text":"Borrowing and Leverage.","page_number":40,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"947c0cc6-5de3-4321-9697-0c4f89f696fd","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":40,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"f4c86f3d-74cd-4288-ad81-c3f8fe6bb1b4","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":40,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"bda5c8e4-2a36-4f4c-ae04-ecc3428f80db","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":40,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"d36606b9-2017-4b33-99a2-84c4b78eec16","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":40,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"94e40548-f538-462d-b7ec-052cdf856221","block_type":"box","text":"other securities transactions.","page_number":40,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"0dc18712-c18f-40db-94e4-cdf4de3f2b03","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":40,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"5e9c3aec-c9f2-4fcf-8678-e6c6b09b9818","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":40,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"952b7ea0-a9a5-4a13-acbe-9a6a80ba4018","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":40,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"0d4d1c20-d232-49bc-81d8-f10b581c6e22","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":40,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"e6ed01a7-a0eb-45af-9c0a-b9ca15af6207","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":40,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"cb04de70-bdce-44e7-998b-c299d0b41cd5","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":40,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"fc552ace-5822-47dd-925f-456a977cb492","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":40,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"f50b5a1b-4bba-415f-a0df-462dc73fdece","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":40,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"fb47d376-c030-48cf-b6c8-c35bcdfc4795","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":40,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"f7965bd7-8bba-48bc-8d31-3a0a2f07d153","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":40,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"dfefbdf1-ecab-49d2-aa9e-bc95a1168cea","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":40,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"66c3e8be-f940-4acf-ba6d-67974372d627","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":40,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"3d548054-7f1e-4d79-a2b7-a4a47aaba044","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":40,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"becd2efb-23a4-4665-bd9f-0b8dedc19385","block_type":"box","text":"II-2","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"c30a679a-c123-4fce-896d-e71275ce9dda","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d26ff589-32a8-43da-93f4-39f9a260f594","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":41,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"54987058-5300-4713-bbeb-4cecde0397a3","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":41,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"1b0731b4-5d6f-43e7-93c7-391438cb4ddd","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":41,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"3db0350d-3bea-44f2-852d-df0416e21b62","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":41,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"98721554-348e-44e0-9775-c3c52535396a","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":41,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"c5719f6d-c318-45fc-a7f2-897ebce25c2d","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":41,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"b38d1885-cd09-487e-9ea1-b37485b5a955","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":41,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"2aadd988-2222-4503-b625-12119ddb79dc","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":41,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"b81d1a05-3170-407c-a83a-d2160b2c395f","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":41,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"4aebfae9-f18c-4235-9381-c5ddaed87ca3","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":41,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"d2ac0b99-3cb3-488e-b0f3-18a363ef3e32","block_type":"box","text":"Cash Management.","page_number":41,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"102cfa64-ccf9-4311-92c3-75d5a02313d2","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":41,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"29109858-f570-4252-aec6-00c27b0ce550","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":41,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"3cb25e51-ef82-4967-9131-1085e6628264","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":41,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"2149a02f-c8e3-49f4-b759-6b621126e5d5","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":41,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"123e7f8c-0746-4edd-9da6-ac04471b0b9e","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":41,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"e6624046-8b96-4bf5-84e3-14fc4f6727d4","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":41,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"fc05cdd8-1096-48a6-83d1-600f12dab0e4","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":41,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"23a68f8a-f77a-4242-8830-749f445cf366","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":41,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"8f88ff7b-5041-4734-a17e-9ac67e484736","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":41,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"e919d0c4-eef5-480b-8571-f4972f3225ee","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":41,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"87d63189-a372-4687-808a-bb579f7ec555","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":41,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"bc605c88-780d-41bb-aa79-773b28880159","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":41,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"f58f625e-f776-43d0-8559-beff7dbcc05a","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":41,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"33173086-852c-4a99-9a47-ec7999b7496a","block_type":"box","text":"Collateralized Debt Obligations.","page_number":41,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"995236a9-a85c-4e39-8a20-e7536c4c7134","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":41,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"baad582e-73e8-449c-ac37-5b4866a735e5","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":41,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"6e81fac1-58e9-44e6-bf9f-b09877fb59c0","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":41,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"2f9a620d-c303-4b1c-a535-3f69ff882336","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":41,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"8c4cf8c6-0127-4306-96ef-62b0768337b3","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":41,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"45c9fc97-261c-480e-96cd-229753c352e5","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":41,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"fe69ca68-8a73-4316-b10c-4aa89736634d","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":41,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"72d43885-aaf7-4286-b4af-1198a2268b3d","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":41,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"80fd01ea-909d-4c64-b379-17fee5c24a82","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":41,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"c72ad23f-58b5-4714-875c-f37cf24f3882","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":41,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"7e0c8df6-338b-4905-84c5-9543cb0f14ac","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":41,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"2d2ad58b-7995-42ee-8ee0-48d61b162fe4","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":41,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"33a65693-00f7-4df0-a009-739ea25ea64d","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":41,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"f2aa2991-f59a-4736-ab7e-136e4c81f5c4","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":41,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"eb22682c-1d9d-46a9-8897-5d4c3cb98ebe","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":41,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"a2291c8b-0a97-460e-8aa8-a00ae96e847f","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":41,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"11c0ec84-9403-4d25-986a-36efb1148418","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":41,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"c1c9afc3-5acb-469b-a3e4-ebc81f1c6d6a","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":41,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"afa5f9aa-8786-4061-aae6-dc49a0206bde","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":41,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"ffeebe4c-d572-4ca6-83e5-d9e1463c78a6","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":41,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"27420a55-fc62-401d-90d2-0e71548aab12","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":41,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"cbf2202f-fbd2-43a0-9149-1dd0db7f9bdd","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":41,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"b9fd4809-0359-48b4-800f-e045454f8ce9","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":41,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"82373424-8dee-4374-b9ac-5e23508636d3","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":41,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"c9d6bdcf-2aa6-4ae2-89d9-6c53510a8702","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":41,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"4f6455a4-58ef-4792-bc44-38ef33ab0b6b","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":41,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"d48e11e0-c8a6-473c-aacb-7911efef108b","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":41,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"c0eaddf1-0c5a-42b7-952f-c84592ffbd1d","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":41,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"2f1142bc-4536-4dee-bd75-e7e5f03b7b77","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":41,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"32e737ac-6d71-450e-b372-c0fa158f0d29","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":41,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"c83eb197-4884-436c-8b65-91412c52d2c8","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":41,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"cf2a0f54-e25b-45e8-97a5-885a62bd750a","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":41,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"41b6da89-d844-4194-b7f0-39c05c4ce5f0","block_type":"box","text":"II-3","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"f68a9f5d-ec73-401b-bce5-efcee94ffd1d","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c93b1915-195f-418f-8f4f-80730cadc1ca","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":42,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"1ffe4885-d923-4857-9cb7-d9112342668e","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":42,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"fb1476df-54a7-4405-bf3c-45f9193a709c","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":42,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"e9183d83-36e0-4043-93ed-26b11b76ff18","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":42,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"752df4bf-d6d8-4eef-88ba-ed67b97b2122","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":42,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"d55eaba0-58ba-4fa2-89ab-fb06d35f6f2f","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":42,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"05f247af-335b-4585-a562-14f7d34a0ce2","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":42,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"e6fe3cbc-f487-4002-8e0b-3ce26f71ea5c","block_type":"box","text":"Commercial Paper.","page_number":42,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"b9e10591-96c8-4d6d-9f5c-c0933bf9c4f6","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":42,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"b90631df-caf3-42f7-a648-502f53359b32","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":42,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"005d0822-4b1b-46dd-9d27-8c967813cc23","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":42,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"c8cb8245-3c62-4212-9ddc-1318d82e4a0c","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":42,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"c857105b-67c8-4fb6-8ff2-1006cef3d0a8","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":42,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"e687c046-318c-463b-b6b4-389468d611a3","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":42,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"f497431f-d54f-4fd0-83ca-af7ab22b930e","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":42,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"520099db-ef8c-4187-b276-f6f36c378521","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":42,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"a60d7ba6-e669-4e3e-a4ed-c77dda504edf","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":42,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"562149a3-6b04-4774-8576-7420b0041085","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":42,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"b4191550-bcb4-478d-86d9-352a74e43fdb","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":42,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"ac04b91a-ce4d-451d-8d1e-b4c2dd82f929","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":42,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"fc76d12b-15b0-44fc-854d-abda60625ea5","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":42,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"cd76bb02-187c-4012-8baa-456ec050f989","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":42,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"5c4c9e3b-4b1d-4539-a769-65a28a5c2624","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":42,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"52130d73-4322-4f5d-a06e-7581e64f7f5b","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":42,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"69a5608f-4c3d-4a70-91ac-dcdf4e7e7003","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":42,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"3116df0d-b458-4891-aba2-56fb5ac919cd","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":42,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"c54bebe4-4ac1-42fd-bb48-08999c603a43","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":42,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"a4be1ca3-f9b7-49b1-99f1-2a09071e2a06","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":42,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"31f78f36-dc20-4ca2-bde0-bac9023ab05f","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":42,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"9cb74785-4612-4827-9e6f-781996a545c6","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":42,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"72b6f98c-33f5-41f1-99ca-c3f5818381cf","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":42,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"17c14d54-9d33-441e-b41d-eb9407966216","block_type":"box","text":"variable.","page_number":42,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"1a96a7b4-a15b-46e5-b9f4-3d0c9bef2a7b","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":42,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"90e0257c-65db-433b-832b-d5edbbb6e346","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":42,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"263fb75d-6852-4b2e-a513-ae3ec0fc5523","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":42,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"0fff40f4-4515-485a-8eb0-dd88f81b5faa","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":42,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"54faa952-09ef-48eb-9d81-6978a3a2b617","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":42,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"14dd78f6-6fd2-4643-a290-68824b9eb8bf","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":42,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"37bfddd8-2bd1-4602-8711-66f2cf947aeb","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":42,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"63188daf-5626-46ee-9dd8-794e9e17bd30","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":42,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"65fdff90-95af-48bd-94a7-cad30721e897","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":42,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"3c631f22-ddff-4e0a-96f2-7f30295d6579","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":42,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"b95b38b4-00c2-431d-824c-9e8a450f5794","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":42,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"7a8d00a7-3777-4762-a3c7-f2a2d9e55431","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":42,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"53dfb457-955c-4609-bc19-772e8b6cca88","block_type":"box","text":"correlation with stocks and bonds.","page_number":42,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"57936629-cc86-4602-81a7-9bdcad507126","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":42,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"031d77e8-ddac-4c6c-b3b0-74a07fdcc47b","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":42,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"228b293a-a861-4d3b-9551-62724a1c7e88","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":42,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"974fabc3-1c0b-4480-a889-6bf89f90543d","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":42,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"68319531-cc90-47eb-8adf-b66c7e73a01e","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":42,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"bc9003e7-08c6-43f3-b314-14d29beaffe4","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":42,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"8fe66005-8562-4e8c-b849-e50353e3c430","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":42,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"2a6b0b88-4539-4f15-b486-bb659ed9a645","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":42,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"3e9385c6-5927-4f2f-b48d-3dccf44692f4","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":42,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"6d2cc347-5429-40b2-9ced-c9db30ffcc6b","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":42,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"ac560195-0c5c-4b1a-904b-816251c8f1e7","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":42,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"8778dbdd-459a-46b3-9d1f-3d602ef403ba","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":42,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"5c25a11c-2ebc-4b6e-9b0d-5fddc2b68490","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":42,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"62d8a8a7-35f4-4915-a8b7-b0009f960f49","block_type":"box","text":"II-4","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"92dd22ec-01bc-4a65-be97-dab0a0b2cf2a","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"984e1442-0c7d-4e8b-b67d-f7cc11e90c65","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":43,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"fe92b109-e0cd-4579-8ffc-8b368b5fcabf","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":43,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"b502b941-449d-4fe2-b8df-55c553a98f98","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":43,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"1f25cc02-bb28-4be9-a659-5212e5fd06f7","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":43,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"6f30a5cb-fc52-41ab-b549-630989796bea","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":43,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"e2a27d71-2712-4e82-9994-aa2342983115","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":43,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"86c619ec-bac3-4c3f-a49d-f03c9401871c","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":43,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"f282e318-0a46-48a7-b4b6-6eb8f2e5ce73","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":43,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"f91931a8-6447-40b2-8a86-bd0196b77187","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":43,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"ccfed633-e407-4f44-9a93-ffeefbdeea40","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":43,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"8919c3b5-01e0-4e9c-ab85-7250abf83b29","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":43,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"8f7e5b02-9fcd-4da0-8704-804448cae10a","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":43,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"04440762-2d13-419c-8e22-b3db1601c017","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":43,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"40804241-d672-43a7-8314-1cd13b134034","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":43,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"f1072479-d409-4c9d-9a6d-d6acc9b3a8d1","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":43,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"8f6bae33-7b44-4a01-9d43-8f863485db1b","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":43,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"f2620c96-d0c5-4d6e-8a7a-c758bf79c01e","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":43,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"ee950b90-c829-45cc-aa7c-a688fd97f3bb","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":43,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"80654cb1-f1ff-4f14-968f-bbb054a4ac22","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":43,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"683a0a38-38d8-498d-91d7-0d5401b26c0b","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":43,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"8a16245b-352b-48df-be33-f4f5e4b07ae5","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":43,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"f67743cb-92a8-4fc1-a438-55e3c48c5102","block_type":"box","text":"the Manager believes are relevant.","page_number":43,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"81cc7b2e-3539-482e-9d45-28d329ebea9b","block_type":"box","text":"Limitations on Leverage.","page_number":43,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"358fdb08-e196-42e3-a2c3-e6378960b095","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":43,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"b720df4b-56b6-4267-b021-cbbd142e25c9","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":43,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"e05d8819-c36a-4a20-8128-ab3b9cf5cbc7","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":43,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"35203b7d-30e3-47c3-b0a0-caf8bdb83299","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":43,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"b821b18f-939f-4dca-8358-4643b227e40e","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":43,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"72a1c15d-6835-4038-a862-304cb2120578","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":43,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"a0042bb6-3560-40a7-b70d-b164390408bf","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":43,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"2ce1abca-c6ac-4be7-9dca-6884c3371855","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":43,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"0b56d0de-a0c2-47d2-b6f3-0e2d660f030d","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":43,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"8d76d106-afc7-4fdc-aa48-d4759add3997","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":43,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"7f006e1a-d0e1-4ee4-b3da-65ce56779c89","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":43,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"02a594e3-06e4-48e9-a315-8ff93af7835b","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":43,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"0f6f0074-1744-4aed-b41d-822985ed21b2","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":43,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"540e27c2-ebfb-46d9-b46c-0b19c321ac89","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":43,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"78fb9cd7-57fb-41b3-a794-555b33b4e4fb","block_type":"box","text":"Counterpar ty Risk.","page_number":43,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"11488126-3f52-4d1a-ad46-275653f889a0","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":43,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"87f2f3d1-4f36-42e9-810d-19cb88dd13db","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":43,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"48a8e11c-6e71-4753-b78b-bb4796927be3","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":43,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"eb6b129a-3736-4f76-9a0a-099437ffe867","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":43,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"7e4adfbe-3bc0-491f-a752-7c1b338300c1","block_type":"box","text":"e.g.","page_number":43,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"b172c707-8bec-45ca-99b8-d3f11989f404","block_type":"box","text":",","page_number":43,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"087a9c26-cef4-4696-9de8-fc7bb33ec024","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":43,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"c870fa8f-5bfb-4eac-a83b-4248f37d5f02","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":43,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"38ea3121-9684-42f3-98fb-ad9f8380b219","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":43,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"7c5c18b7-c027-4ca5-9051-69a26449dadf","block_type":"box","text":"obligations under the structured note.","page_number":43,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"00115b1d-2c35-4f6c-88f9-3fa1199f4774","block_type":"box","text":"Convertible Securities.","page_number":43,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"04a4e8d3-4aca-4b15-9451-2d3f4ae926a7","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":43,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"90cbbab5-0803-4996-88f8-7f1453afc8f6","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":43,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"6c0828f0-3972-465c-b545-63ebc13585d4","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":43,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"0eea99e7-bae1-4806-82a3-3417f2b26939","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":43,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"f9207976-940c-4db5-91e9-42c13978ad99","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":43,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"b63b671c-b14c-40cd-a6d7-4896d529e3f9","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":43,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"36e67779-3de1-42ea-8fce-c0b924c49ef0","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":43,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"d5cd843e-411d-4117-9cc7-0f84f612d539","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":43,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"88879ee9-a543-463f-beb6-845b29149255","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":43,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"943288e7-3eb9-4e4b-b0db-d34ffeb9544a","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":43,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"6ed3ec27-6c30-4178-b744-39ca7176d864","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":43,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"46da63ed-ceb4-4304-8a34-980621e00399","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":43,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"719d5671-9543-4e6e-b475-65fc21659cb0","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":43,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"add02e5f-f5bb-4eb6-b2c5-4ebb1ca82fcb","block_type":"box","text":"II-5","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"1c507d14-823f-4c1b-b933-8df022619ee1","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"024bf69d-2ed5-4039-85bf-899a91efe4f5","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":44,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"627667ca-2353-4b36-9f18-ac4dadc1108e","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":44,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"021f86c6-7d4c-4403-a0af-05b4f6f927c5","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":44,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"ab91706d-e687-46c0-97d1-925fc653896d","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":44,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"add1a1b3-64cf-4c86-9870-d6d00c9e20a1","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":44,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"ca5ff709-0c98-45f7-ac71-074045630742","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":44,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"30dfb9c4-c2c6-4750-86bf-08ae74ead393","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":44,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"c287da45-e2a7-4a92-9ea5-fb3830f1aec6","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":44,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"f0640c9d-f74b-4a5a-846a-a7a46773835e","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":44,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"5763aac5-abc1-4797-8544-f84485e6efdc","block_type":"box","text":"things.","page_number":44,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"ff18c6e7-7b91-4430-9b13-2797288a8456","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":44,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"e45b567b-0fe0-4e87-b103-604428e42dcb","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":44,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"617e3896-db8b-4385-b00f-29d1fbc479e6","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":44,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"363d244c-88d5-45c6-989a-15738c3ebd4d","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":44,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"c3c9d11b-2b63-48ec-b3f9-cadca7a281c8","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":44,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"b6bded85-2b11-42ac-8b55-7f4564417988","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":44,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"182fe08d-0b8a-4b79-ab22-e932f0e450b7","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":44,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"ba03563c-537a-4d81-9e5b-acc6f7626fbe","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":44,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"677878a0-5d93-4299-b4ec-baba2a76eebc","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":44,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"01605ed2-3d23-4f25-8f12-4b6191ad08ec","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":44,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"0a3ee1c4-d299-42cd-81c7-8b5cdceff2b8","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":44,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"b74c52a4-dee2-43e7-ac59-2e4e08e43e2c","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":44,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"eea7a7bc-9d58-4562-9748-ab9fd15dc8a3","block_type":"box","text":"i.e.","page_number":44,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"49908a2e-f3cb-4a11-8f26-9e1a51036fac","block_type":"box","text":", strictly on the basis of its yield) is","page_number":44,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"61c69e68-57c4-41ad-8251-80939f11b75f","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":44,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"dbeaa141-7e98-4e6a-a930-4e11eaa34c7a","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":44,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"1500592a-4699-4eae-b0fe-189183f34347","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":44,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"855218ef-17dc-4fda-972d-20d771c0c510","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":44,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"546b032e-b248-4dbe-bd25-75b59faf6e52","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":44,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"c5677262-2d43-4110-bf6a-569ef0ca6178","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":44,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"012ac115-3570-4d6a-a29d-e874d8c076a7","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":44,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"1469c3fd-9324-437c-aa1d-ab3fe5cbe444","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":44,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"20caf3ef-98c5-4450-a6e0-efe7a3146cfe","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":44,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"bf562c55-46f1-427a-a586-908cef261c9e","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":44,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"ab13159a-d30b-4bfc-b097-750711b87d00","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":44,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"449c5199-b531-4e44-be9d-364f9aae0537","block_type":"box","text":"than the securities’ investment value.","page_number":44,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"76e9e7b2-0dbd-4737-9b00-ce83cc14f501","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":44,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"55e95099-6a5a-49f2-b71f-bcfc4e7d852f","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":44,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"4694943d-cfae-4ba1-bde5-0a512e3cd469","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":44,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"1af0b28f-5852-4d17-b5a8-3b7bb21305b8","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":44,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"f30532fc-d016-447d-b57c-3898b7fd57ca","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":44,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"bd5df031-4af5-4960-8ba2-ab122bbd91ff","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":44,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"68348fbb-026c-4242-835f-73a957627856","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":44,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"abdc641e-7e6f-4455-a332-f5b32dc85d2b","block_type":"box","text":"security under cer tain circumstances.","page_number":44,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"881676b0-4a01-4c8e-ae7d-d7565b7af3c3","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":44,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"beec6b97-122a-4b63-a6ff-40f44d065692","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":44,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"95f814e2-5129-465a-87b5-94f65fe5ee20","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":44,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"25220269-0cff-4dcf-8cc9-edc559924e7a","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":44,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"f3836637-ba45-47ff-add3-bc78c50db8d7","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":44,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"c1310e59-241e-4820-b3a4-58b8cd261372","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":44,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"30f148c0-fcc7-4b99-99f0-0d5e8efb4a05","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":44,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"5b2971eb-5e9e-4e40-96bb-06382615811c","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":44,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"62b48d91-ecf2-43f8-9955-2a55725fe349","block_type":"box","text":"i.e.","page_number":44,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"3d053034-e22f-403b-96d1-e1d604e32644","block_type":"box","text":", fixed-income (“fixed","page_number":44,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"8efbf9f4-cd91-4225-b313-793eddec81bf","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":44,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"a603eb86-22f4-44df-b21e-c17364a797a6","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":44,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"ad2c3433-e143-4047-b73e-68ce4d57f150","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":44,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"006d0f61-97c2-4530-8f90-9698fb16e1bd","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":44,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"d5d166cb-7070-4550-bad4-559a25c06564","block_type":"box","text":"II-6","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"17655256-4fae-4a7c-8080-6ef724d5a60a","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"12d98861-dd2f-4247-8ee0-c0202951c4a5","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":45,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"45210ada-0ec2-4c50-831b-5ec0b3246593","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":45,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"43aed5f5-0fd2-463e-aa72-c23c9d08ba41","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":45,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"26d92a0c-8730-4499-a0ce-97a0d91e7d27","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":45,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"250b2c2d-dbf2-461b-bc91-d0a865bde55a","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":45,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"7d26e3df-c159-429f-ad18-45e8076c07ac","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":45,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"8d24a45e-6df7-4eba-9a6e-3f62ce943f34","block_type":"box","text":"component.","page_number":45,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"13b7194d-ffdd-43f9-8fc8-a518d0e6a746","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":45,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"786a9ccd-e3f0-460b-abee-57fe23ca6e20","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":45,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"5bd21893-d02b-49f9-8cfc-ada2ed3fb423","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":45,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"d6973de1-7c95-47e6-a05a-97e2ef902d25","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":45,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"7af799ce-e95f-4f48-b706-3816f0a6fa7d","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":45,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"7227de1b-26a3-4d63-887c-08a7aa1f969f","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":45,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"10f9fa52-40d0-4152-ba4c-576444e5e8d1","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":45,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"d2146ee4-4bf1-4cba-adc6-68fd1834d02f","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":45,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"0f1c4fae-6455-41b8-a665-3da78aa5859a","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":45,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"c0f4a0d4-83ed-4270-8e24-3342f56d871e","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":45,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"470427d6-29e7-41ee-b3d6-b49e1496c01b","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":45,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"b0f8c700-cde7-4a54-ba19-d6befffe7d20","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":45,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"f9b1a508-eef7-4779-9ab6-ebc43d767c15","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":45,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"2ac05edc-c391-4c3c-bbf8-0ab096dd6cf1","block_type":"box","text":"favorable market conditions.","page_number":45,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"e78b1709-e482-4648-ac23-2bd249afeccc","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":45,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"06a61c7f-5657-4762-82c1-26e473e24b7b","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":45,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"0e411f99-4629-4b30-9931-5436c5932339","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":45,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"22330247-40cb-4cb1-a6c5-f8759602a678","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":45,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"1b151f4d-5b12-4593-a712-f52e971edef8","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":45,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"b84287fe-3640-43b7-ad99-7d31356387a2","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":45,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"857eaed2-5f6a-4296-a7ee-be7e8452204d","block_type":"box","text":"Corporate Loans.","page_number":45,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"ae271376-fb87-4c3f-93c2-61f264255b29","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":45,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"44c41225-f7c0-4d04-90d7-89391b17cce3","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":45,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"e0910c52-5ce1-4f6f-b2c8-56971b773ae6","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":45,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"0b96a09e-1b65-4d32-bea4-53e95766715d","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":45,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"d6e31e11-b318-4bb6-8c03-fb6df56c8b97","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":45,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"702ec426-0f08-411f-833d-ed8d4247b2c6","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":45,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"a8c12387-4f4e-4bbc-8ae4-24142f6f292e","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":45,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"a2973565-33ba-44fe-bcc7-27758bb7f41c","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":45,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"d384f75c-4351-4732-9679-b3857265e33b","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":45,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"48088f09-421d-4723-a643-088e6091e20b","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":45,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"576982e4-981b-4bfd-877b-dfd5afbad1fd","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":45,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"2b5fb72d-aade-4cf2-a414-954593d6aa95","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":45,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"bdcf0eff-7d71-4cb0-9ca3-2e1e1718ef21","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":45,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"cd35e2a0-23a3-490f-a85d-e602ae144682","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":45,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"bee1522c-dfa3-4c87-99a1-83e15dc2a751","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":45,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"cfb0268e-a3be-4d20-9007-6350115df0b5","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":45,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"388134d2-7464-425b-963d-7d081a234610","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":45,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"4c87977a-6142-4635-ace5-7fdfece70be0","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":45,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"861ae29d-53b0-4a8f-b727-11e539c994e2","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":45,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"f1c17677-983d-4f92-9dab-684d7e156d66","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":45,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"f40d40e2-0a2e-4b63-a4c9-1112959ac822","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":45,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"b27989d8-fad7-4ef5-8dc1-a6a146ce84db","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":45,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"ce07ad6d-1d26-4c19-8950-e34419d7e099","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":45,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"7352d60c-f90a-4170-9e4d-296ac477bf84","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":45,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"16622ed4-9e01-4e0a-b1f7-7ec39771ac2f","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":45,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"5b27989c-9f6d-4e8b-ab29-1095f054a552","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":45,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"9ffbd7fc-c15a-4a2e-a0b9-b5a400479077","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":45,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"52a09421-1002-40ee-86cc-0caecdda4c1c","block_type":"box","text":"of the borrower.","page_number":45,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"e1dd4b5f-6cf4-413d-be35-7850c1b4a073","block_type":"box","text":"II-7","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"af52fa16-654a-45e2-81c2-793bd20f09de","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bd6d4fe7-c44a-4fd9-8079-a1800b05ec85","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":46,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"e9f82a3b-7661-437c-98f0-0325d895eb9d","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":46,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"3277f514-a166-431f-a388-04d4483360f0","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":46,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"ddf7b0c2-48ed-4148-bb0e-255297be5f41","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":46,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"11d85e85-2b25-4a25-aafd-443a1052fc43","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":46,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"d24ce4a8-5ca3-481c-bcee-110fad50e673","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":46,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"f94996e7-96ee-42c2-8518-c27f8b41934d","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":46,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"71710523-0b8d-462b-89a6-6151e69bb231","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":46,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"d92d0f91-4941-4945-b334-3160bd63de1a","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":46,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"01ff4dc7-aee0-45e8-b7f2-2e9906d0fc25","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":46,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"3a381647-c8c1-4fca-b602-7ba3bb4b8d2b","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":46,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"7fc3d075-4f60-42c4-aed4-3664defc43df","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":46,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"634eb5bd-54c0-42bf-ab19-b13cf0da31ca","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":46,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"c2ed4241-ac82-40a1-8408-3f61703213d4","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":46,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"7dd8a712-aaff-4a68-82d0-93b8a3f297a8","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":46,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"bd22dc5e-36e3-41e1-9817-08a4f05cd877","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":46,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"3b0817ae-b04b-4537-9e52-1a381c7a45f0","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":46,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"76a52892-5b0c-4f4c-a46f-c6f4851d7c5f","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":46,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"3a35c3bc-a36b-406d-bd53-bcc44c6739cd","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":46,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"c4e0c185-a990-4a44-bfe5-963db1b958af","block_type":"box","text":"state law.","page_number":46,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"234a0d7b-8ee8-4b99-975f-b51cd7f245fe","block_type":"box","text":"Direct Lending.","page_number":46,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"81dee794-8228-4ace-a609-c27bb6663c14","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":46,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"4352c7d5-62a3-44f1-8251-8210122dcc77","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":46,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"e17a1ad6-df76-4756-a718-cbf4e4b7c2d8","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":46,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"962bfcee-4950-4a21-b22e-519c7e1fec83","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":46,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"bdc06559-0598-4847-a75f-231ef2a87b8e","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":46,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"245e743b-5287-46ab-af6c-a5bdbe25d265","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":46,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"fe746afd-d594-467a-9d9d-429c91c31ca8","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":46,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"506ae580-1c9d-4d29-b2a6-6a8ac9cf3462","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":46,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"86e8820f-216e-4d02-b780-df500dd4a78c","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":46,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"e85ee174-742b-4baa-88fd-e6662d41dcc8","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":46,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"c616581b-a806-4ffd-a157-c54282380800","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":46,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"faf2491c-9b95-4abb-802e-3499f76c6ab4","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":46,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"742896ef-277a-40bd-a383-2a1469bf3b74","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":46,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"4ce7a9da-ac76-46f6-ab49-96c6d6f8f8f1","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":46,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"5c42212a-087d-4c0e-b0c6-8ae44f2e8936","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":46,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"6099e66e-8c4b-4574-98ff-849f514f4d16","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":46,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"606554b2-96fc-49cc-971b-21b6291df273","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":46,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"a679c8ba-5d3e-4a1e-8444-f11ecfa66252","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":46,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"5146a1cc-92aa-45ac-b684-ad7605bec1dc","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":46,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"1ad3ad3b-7fcc-4e23-a736-24c6d0e214fa","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":46,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"2bcffdd3-20b1-4030-a640-19d75e2bb54c","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":46,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"821e8be1-45e2-4965-9e1f-60c08c402172","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":46,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"f7873a49-1cdd-47b0-9672-683795cca628","block_type":"box","text":"Credit Linked Securities.","page_number":46,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"9e24de59-e440-4fbd-9e94-793196248aad","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":46,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"ad1a45fb-2946-48d2-b84a-5085b03a7115","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":46,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"fd6e5fd7-ecd4-497a-bcce-e9783d88c966","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":46,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"a63d873c-9bca-4cd1-b49d-4f0438ab8c2f","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":46,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"981de259-fcc0-4c2a-bfb6-c9a9a8d48a67","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":46,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"39328136-3566-41e7-9157-943e56e3d92a","block_type":"box","text":"traditional income producing securities are not available.","page_number":46,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"ca10217b-3b85-41d9-b9f1-dcc5fedd1b08","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":46,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"c3142e31-223b-4c96-8dca-f138b635862c","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":46,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"47c9bbec-e970-4e4d-8c9b-4055e3b50555","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":46,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"02626dbb-5210-468c-b494-c38ef9cd017f","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":46,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"df4fe77a-1c78-448f-9124-9e9ba6156449","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":46,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"ed116996-e3e0-46b4-adee-564b25fc17f4","block_type":"box","text":"II-8","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"f2f4a9e7-c2fd-4568-93aa-158054f2035c","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"31227cfc-cbd8-4273-baed-ec8edcaa16b8","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":47,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"4f5d9881-e373-4043-b6ec-feb452ef8746","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":47,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"ffdcb756-d373-4f19-8030-f51d8585f152","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":47,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"9025958e-2036-4dab-bfb7-5dcfda214b5d","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":47,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"19563a4c-71a7-49cd-9d5d-6080b9e51e11","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":47,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"1a28a853-e37a-4f98-a824-c667a4b1beac","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":47,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"d6fb84fc-affd-46df-811f-bcfb971df3ec","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":47,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"a8a1a864-2386-4177-8a83-885a0f114d3f","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":47,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"ea1deeea-1aea-4bda-8c02-358e4b9ac00c","block_type":"box","text":"investments.","page_number":47,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"1cb080b4-0fde-4bf5-bdc4-017c05069c71","block_type":"box","text":"Debt Securities.","page_number":47,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"9dc1d13c-7cf0-4a69-b558-36fc7c565d66","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":47,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"30235ae2-d6bd-4db7-84b2-39e24b7663f3","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":47,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"b5689d67-1f89-4869-b116-b4f5f7c85e4a","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":47,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"226a45e8-1101-434f-801d-feb3a7ab4d33","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":47,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"df994f89-74fc-4010-bcbe-da330de939d9","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":47,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"428f5311-8e2a-48ba-a689-5a7121d787dc","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":47,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"4379cd81-bad9-4c44-9cb8-e93ab1f8de9d","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":47,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"b5fcdad6-255e-4a86-a16c-f259351be4ce","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":47,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"fcae9380-ef51-48ca-b4d6-9244d197c838","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":47,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"94dc7dfd-66a6-4b08-bddf-807573d2654a","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":47,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"9fe605e2-168d-4480-828c-087dbd84c099","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":47,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"c7ae4524-cbda-4912-9487-e8b6b7063659","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":47,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"425f4271-6205-4962-a7a9-286404871ec8","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":47,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"5b0d24ad-cb7d-47c0-8fb5-86c4c576a47d","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":47,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"28753244-be3c-4fd1-90a4-33072cd497c8","block_type":"box","text":"lose value. This is known as extension risk.","page_number":47,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"078fca3a-44dc-4051-a07d-e7d226a8db8f","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":47,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"7d5adc1e-6e7e-456e-8de4-8ee541a0f2a9","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":47,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"f3561539-f1b2-4d1a-ac4b-9e924860e67f","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":47,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"2ec4b349-8251-4d8f-a7e6-c26b24fae1f6","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":47,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"cc0d1712-5973-4ec2-bd4e-823826c3380b","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":47,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"1b56cb67-7db3-469f-8767-b21c18c8dacb","block_type":"box","text":"Floating and Variable Rate Securities","page_number":47,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"6aafdee1-514f-4b35-b0ff-4d7cb146f27a","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":47,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"cf78ba77-5f00-4480-af70-37f41ae83023","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":47,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"a14eec27-8516-4f8e-85ba-4b17833779be","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":47,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"e54e89e1-eace-4ffe-9036-976795cc0fd9","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":47,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"e8c0eb1e-0ef7-4a6d-be53-86fb3823d94a","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":47,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"306164db-8799-4849-a296-c430a42dc97a","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":47,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"153b7248-800c-45b7-a38b-bca69b1b35d0","block_type":"box","text":"market interest rates.","page_number":47,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"74f2efe8-0c00-415d-bbbd-09ed109a4158","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":47,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"f45ba683-99e9-48dd-83c4-238ea20f2950","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":47,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"49dd8159-d796-4c0d-b670-9d2a85a132e9","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":47,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"97ad269b-fe60-455e-a9ae-3c1fe85be63b","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":47,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"822d3a8b-a4f0-4417-832b-7409acc3f07a","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":47,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"ffc8e49c-0f9c-4557-b17d-09ea2eab68b4","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":47,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"c22a086b-7107-4900-89c4-b09c1d50bc0f","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":47,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"33b6c1c4-64d3-4428-8560-63dbb5d6b48c","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":47,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"e4bea236-d2ad-4fd3-afc0-a129219deb89","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":47,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"91b7633d-5e97-47b6-a847-10d48f0f97fd","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":47,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"91b8b7be-10e9-4555-b7ee-a190a393c0fe","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":47,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"3f999983-5807-484b-b2cd-4080777fe2bb","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":47,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"573bd189-33ee-4126-bb56-73de3058a50f","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":47,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"ce92691b-2fa2-4839-b689-37d6f45cc088","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":47,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"4cab86a8-6536-4fd5-9c3e-05989582913a","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":47,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"afe13945-a5fa-470f-835a-1ce4dd2b95c6","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":47,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"92956105-e0c4-481c-ac10-8209876c9e65","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":47,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"099c50d0-48ab-4d53-ace6-eb9b0483f69a","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":47,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"7d7654bf-e988-4bec-9cfc-53a3789d3ad6","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":47,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"c7eb7194-249a-49a8-8da5-2cd4331ab527","block_type":"box","text":"II-9","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"22822a1d-5009-44c2-a2d7-6454d7e920a2","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e3e3e730-e220-4cba-a0d7-039ee8aa451e","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":48,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"79b47601-0437-43af-be6e-c7717bde6655","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":48,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"b1d5124d-bed4-4a97-8c0d-a52afae519cf","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":48,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"3c0e28a6-1cc3-468e-9a1b-0ef753d3646c","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":48,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"6146df6f-fec3-4eb9-b8a9-af24ec0d5c9a","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":48,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"845bdeda-43c4-49ce-bef7-02d09550dc96","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":48,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"187ad09b-05d4-4fd9-9983-261bfcd17e4f","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":48,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"3879c716-a000-451a-be4f-7a860ce64c28","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":48,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"29e79ae8-69e1-44e9-b2aa-15c1f94087f1","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":48,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"87524321-30d1-491d-8fb3-fcc7bc2e2d6e","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":48,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"cb2f5a89-fb86-48f8-8ccb-39f5e72c4072","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":48,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"6cbbb796-da12-40ff-b543-e3cca9af8677","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":48,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"d410f1df-650b-4cff-8a1a-148d444f918c","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":48,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"3bc240cc-0653-4564-b902-2e67e15bfe02","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":48,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"e3ce072a-f730-42d2-a534-fa66c2f83142","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":48,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"809be0d2-5271-4210-b0a8-b4c6f62463d2","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":48,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"9eeb155f-90f7-445d-b56e-e9358c6d7c51","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":48,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"61396a17-ae33-4648-909b-307e6a566eb9","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":48,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"765c6cb7-9d04-40ca-8ec4-b00ff9db2aa3","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":48,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"32fbece1-d0fd-4440-9a3d-bce6e03b1cfc","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":48,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"d8578918-3e95-4fb0-9247-e0252fb4e263","block_type":"box","text":"United States.","page_number":48,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"719e0e97-40e1-4a1c-829a-e757ad4959f0","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":48,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"2e26f0d8-5021-470c-9fc6-872a3456eac5","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":48,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"5bd1eea2-28a9-4d2f-932c-3bd44f71c3c7","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":48,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"e6a546c8-b597-448c-bd8a-a7c73d6f6ea7","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":48,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"22793ee7-10de-4200-93fd-f15512d0259f","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":48,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"9efdd363-a741-4f37-a037-45753396b338","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":48,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"96182efa-55ed-46d4-bb0a-ccf599d8a77c","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":48,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"fdcb77a9-cd15-44ca-b74f-8639a9a92408","block_type":"box","text":"i.e.","page_number":48,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"9b955dfc-f494-45bd-95d1-3d8a22022040","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":48,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"52152618-372c-40fe-b6b8-6bef9185da30","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":48,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"372676cb-b78e-40da-9be2-9f020d28ba38","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":48,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"0d7b3c21-b188-4a9d-a53b-3a2a81dfa755","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":48,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"482e563f-3c04-44c7-85ee-e0c239ffb98e","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":48,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"de03c63a-bca5-422b-a129-1ea66d0cec8f","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":48,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"5233af71-240e-4f53-b4ed-6a518355adde","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":48,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"d2c3f89b-5dfe-4e87-b229-0ef928d488ce","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":48,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"fa428430-51b6-478a-8850-882149b5b206","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":48,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"83deb93f-987d-405f-bd96-778d161e05c1","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":48,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"623163a0-e2a3-4273-8455-a0860b904223","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":48,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"45381852-a5ce-4126-9b24-14f2d9352c37","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":48,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"fd250ef2-6a84-4f02-9dcd-e575e9c67ec6","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":48,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"949fd389-1045-4d53-9e51-844ba7ea5840","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":48,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"51419839-d0a7-489a-9974-59a9fbe6ff0e","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":48,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"afc1bfc9-bce4-42da-9d21-622becc34259","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":48,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"c6b65e88-fbfd-49f2-9319-0a8587926c0b","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":48,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"8f1ca820-851a-4958-8b7c-098a5fa40037","block_type":"box","text":"risk than higher rated securities.","page_number":48,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"d02786b5-3fa1-480d-bcdd-f42157c5f788","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":48,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"034ce1e5-baa5-445a-8627-ce942f46945e","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"f4403584-29d1-4e06-8c53-922729833401","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":48,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"a503a6db-6d29-4be7-a499-12a48e9a6fa4","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":48,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"bd8a01b0-767e-4c48-90af-250f6253c75a","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":48,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"42d80051-f035-4377-9561-6b9d5fcbbf1a","block_type":"box","text":"unavailability of additional financing.","page_number":48,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"2ccf2ad5-b79c-4ff5-80a1-95d699829f9e","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"70e43141-3059-4395-92f7-c5facffb38a8","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":48,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"5ce809d0-be89-4c51-ac0c-3ebe87205ade","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":48,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"016fb35d-43b9-40f9-a26f-08fb338f7d4c","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":48,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"d3f0596e-8331-415a-9c18-a8b1c6a34772","block_type":"box","text":"II-10","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"348278a7-09c2-4c8f-94cd-4b054e3a0614","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e4c026f1-722d-4beb-858c-e82e89fd5c76","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":49,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"fe9c2556-8b53-413d-8413-f375f541f398","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":49,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"26d803a9-eb0a-4e69-ae8d-70900291facd","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"71330488-b14f-4abd-9de4-b8b0fc8f7d19","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":49,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"bca49fd4-bebc-4bbe-a927-b8b89fb442b9","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":49,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"38372ec6-9bec-4e2f-b297-7a96916d676a","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":49,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"1d0ab980-7bfc-420c-b0c9-52d8daae8a14","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":49,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"a6afe518-f9e9-4de4-b6ff-fcdf56ed3d6c","block_type":"box","text":"investors in higher rated securities.","page_number":49,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"3af63ddb-7ced-475d-91b1-18867df74521","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"66f57d3d-05e8-408f-903d-d0053053c468","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":49,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"b985f363-7e0d-4044-af62-9e71c2dd5076","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":49,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"cb3a0aa4-8d97-468b-81a8-5096fbff1130","block_type":"box","text":"lower yields and may lose income.","page_number":49,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"e34917fd-5937-4466-a83e-ad1e503bfdfd","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"bf1b47d0-b79c-41ef-b051-3f2ed06a95b7","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":49,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"83528154-c393-4a7a-90ca-dd093d82335e","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":49,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"6842d706-2370-4325-a52b-1a36d02d0b3f","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"5958ffec-3509-4257-b3b2-4a9ce72306c9","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":49,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"70101e93-ebfe-4919-a512-a1cc8dec072a","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":49,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"3a896cd0-e439-437f-b494-eeb69ecb40f9","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":49,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"3931925c-6212-4b44-b992-86b285cff90a","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":49,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"eb8c8c4d-723a-43d4-aad4-98f902da15f3","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":49,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"1e8ab198-5332-446e-9347-64491c892682","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":49,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"2b9957ad-11a4-4dd2-8ff5-8191406cd65c","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":49,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"b68fd217-6df4-460b-b5dd-cbd9f2f83f01","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"b1ca1ffd-8a45-437a-aa1d-b4b6456f5cbc","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":49,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"152ad6e3-4716-4aaf-881c-fa2f8d83af82","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":49,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"f7cffa21-277f-4c7b-93cd-b015804b30dc","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":49,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"3be76f1c-52e7-487f-a193-82983b8e2563","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":49,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"cb43e452-08f1-439f-aa00-d5d7709212f1","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":49,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"f5bfd548-883c-4778-9f7f-4ac6ab1b02e3","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":49,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"89028ccf-7a1a-4a6d-bddb-be3036a461e8","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":49,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"455c95db-fc00-4c34-a0a4-4b92a2b2c8cc","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":49,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"af53e388-9aa3-4fc9-84a3-706e74ff92d6","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":49,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"fb8e60c2-d8ff-4b41-b517-05a75cd4e6f9","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":49,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"120b5f65-0887-4ddf-ac17-a148fec3988e","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":49,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"91f98273-0c90-4287-92a5-fb93a67f0b48","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":49,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"1cbf7a11-6d19-4abf-86d7-6c9a260e4676","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":49,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"36054a63-a974-4a26-8b2a-141439dcc9b2","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":49,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"6fed6cba-83b6-4232-9b85-36195556440b","block_type":"box","text":"role in determining such valuations.","page_number":49,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"e4a06525-01f5-48cc-a226-b9ce812d5b75","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"e009d2bb-2021-4257-b51a-2078e38b9333","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":49,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"20056038-0894-4bb2-aa7e-ec4408cd7ba9","block_type":"box","text":"a defaulting issuer.","page_number":49,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"94add80f-4436-4a0b-898c-2248e4925992","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"71765fe6-1161-485e-bc7b-ebf8bf733e52","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":49,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"d1eb613d-ca49-4f02-83f5-2b794f2e1394","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":49,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"fdf27584-8c60-4eb6-bcc3-d4e78a2c5b64","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":49,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"7ee481c7-1aa7-4b3c-84c9-e0cb18418bea","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":49,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"6d6662d1-8015-40eb-ab39-7cf60be991f4","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":49,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"2176075a-7965-434b-8993-869101f355af","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":49,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"a95cdf5c-a106-415d-a06c-81dfc36ed337","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":49,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"edd02158-a52a-4a88-8a1c-92d0722ff827","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":49,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"f49afd51-13d6-40c3-b5c8-4c2ecfaa34a5","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"0505a6e0-39fc-4bc2-8542-6faafc0fb0b8","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":49,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"a7fc4c07-45e6-4934-8fe0-bfa7c181acfb","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":49,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"76c5617e-7096-4321-b95a-c6a01d08c5ff","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":49,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"7ad976ab-aff5-4e30-9928-a6cef760c638","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":49,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"c20d7447-a3d0-44ae-b5a6-f5112831eb0d","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":49,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"e486afbe-cc95-4700-94d8-0e5757a13aec","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":49,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"96612119-fa21-464c-9581-0a99e2647316","block_type":"box","text":"higher-rated securities.","page_number":49,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"a0133ed0-502f-4e28-941d-9cb7f8e3540e","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":49,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"1832d668-813b-402f-b9b0-abd2a0fba387","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":49,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"829e3d0d-ceef-4402-9340-1eb6746a607e","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":49,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"df7e572c-6676-46dd-9d55-ea6e624b68d8","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":49,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"a13726bc-2a8d-452a-beb4-3240fdb5ad60","block_type":"box","text":"II-11","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9a980c25-cc84-460c-a19a-e2ecba2d8209","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f71dd06d-b1fa-4ec7-bc77-49b88ed6cfeb","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":50,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"b489da50-d52e-40e2-abf1-680532302b9f","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":50,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"646b9c0c-d3aa-47d0-a839-fb58fe6caf88","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":50,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"9f338e5c-ceab-4521-a135-e87f1106a955","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":50,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"653cd1c1-d7b9-428a-9b57-fc65db24cc94","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":50,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"d1e4315c-02c8-4947-81cf-3a438d9f34a8","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":50,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"4e6742eb-4aed-4261-9d93-5205534c0273","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":50,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"ac540fe9-3a3b-496e-b870-3316a5ac562f","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":50,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"e3b6b9d4-5241-436b-935c-028365a4b60e","block_type":"box","text":"Mezzanine Investments.","page_number":50,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"618b06d0-00e2-46ce-b94b-85d226679f57","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":50,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"a8a9a4b3-02c9-4464-912a-426e18007833","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":50,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"5afc40df-f223-4b6a-8e78-b154a8913cb6","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":50,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"f41489c0-223a-4a05-99b4-88c14334995a","block_type":"box","text":"e.g.","page_number":50,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"a1b382de-9f30-41bf-a2cd-e7cf9e6d00b2","block_type":"box","text":", with","page_number":50,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"82920f78-f4d2-45ce-a7bf-3fb4d6c3fb27","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":50,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"8859b706-2d4d-4ab3-ba3b-13a1afaddc03","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":50,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"d6eb2acd-5f5e-45d9-b0b8-e1dbcfc761a5","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":50,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"e2a197d9-1405-440c-ba7b-7005c31b9402","block_type":"box","text":"other obligations of the issuer.","page_number":50,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"f8361c78-b707-4788-9fc1-c85983f55088","block_type":"box","text":"Pay-in-kind Bonds.","page_number":50,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"5a961ca1-de9c-41bc-a918-4f263e58e059","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":50,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"6d4d2bd9-ff2d-4e6f-9a0a-cae687ede009","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":50,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"21bfcb5a-fa85-4822-b0a7-3cc4f21d5d47","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":50,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"907f9c09-4fe8-4dcb-bfe2-0ff611ab2c6b","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":50,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"811b4165-4d71-43d1-963e-189fb98feb17","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":50,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"d31cee17-ae2d-48ee-bd05-3a135a14e574","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":50,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"5bd73b63-7000-4683-b4e3-88fbd760fc21","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":50,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"67482073-665e-4b69-96c1-e28694dc2c1c","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":50,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"1b4f64ab-3b4b-4d41-ac1b-6f4113383ab2","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":50,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"4820910d-7c29-4880-a383-ac9e84bbcf6b","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":50,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"2b3d7469-b130-450d-8fba-c442b8207255","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":50,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"fb0cde70-38f5-4689-a449-8fb429f90b95","block_type":"box","text":"Supranational Entities.","page_number":50,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"f2ee24c0-0b83-4de7-bc5a-30f167b98402","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":50,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"a6b3e8f6-282d-4884-b1bf-d7283df8188f","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":50,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"e6226bfa-0cb9-4029-8fdb-a84bedd558e2","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":50,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"35f58ffd-51a7-49f8-bce7-1cec8a473f0f","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":50,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"0d54aec1-3c88-477b-8df4-8d431bf07eb8","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":50,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"034076d5-2f49-4d6e-bc94-ed26a8fb22f1","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":50,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"f300a56c-80bc-4c82-8c9f-af8ac1c31cc5","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":50,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"2e553bc3-dc88-4551-8915-3ea7767d657f","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":50,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"cc8fcfbe-b111-41b2-8035-22aa606d9a60","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":50,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"84274f70-1280-4124-b347-a47b2f140aa5","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":50,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"f0e627a5-7498-41ed-9ddc-dafc358f58f3","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":50,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"f3b0200f-6b41-4b32-9521-e94560bed5ae","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":50,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"360c5af0-5245-4bd0-835e-a63b015cc259","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":50,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"b71533e8-66c6-48c3-8034-5b754bb60a3a","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":50,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"c9946f8d-ad11-4559-b9e1-f413c35c1ae5","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":50,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"6abc4b94-6cbd-404d-99c1-3faebce5b276","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":50,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"caa80c33-ac1f-4c1d-9b77-f2fd9df9dc1c","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":50,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"546ab90c-978f-4cfd-a68a-f978172de6b7","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":50,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"ae5a70f7-e2bc-451b-9052-d73f88316173","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":50,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"23e074a3-76d7-4bbb-a283-fe10fbbebd21","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":50,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"bb471167-2c9f-4d3f-a234-b985219fc346","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":50,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"fc82d373-465f-426a-9d8d-554a5aab957d","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":50,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"30cf0017-5ed0-46d4-b36a-fc059c6a035b","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":50,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"233110f0-22ff-4d84-bacb-fc6c1b3363a8","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":50,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"042d6cd1-3bb5-4c1d-b44f-73a1b24b24ed","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":50,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"70b2d610-ebaa-4539-ad1e-35521ec89025","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":50,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"a3d3127a-d663-4fe2-a932-87e814de5c1d","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":50,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"d4f43e5a-912a-46ce-af27-a480f82360dd","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":50,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"0a2d5d78-c23c-4e6e-864b-d3ea42057407","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":50,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"0533dd06-281e-47ab-b8b0-f82778c3f51d","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":50,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"4a801aaf-55a8-4a19-8c04-e69671a72295","block_type":"box","text":"II-12","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"db16c007-dd03-416b-acf4-1a58a0285a2c","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"903508bf-162d-4d6e-97a3-2e7a0443bb05","block_type":"box","text":"Derivatives.","page_number":51,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"4aed07a3-7cad-4cfc-94fb-28847540eaae","block_type":"box","text":"General.","page_number":51,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"66e07b89-c7bd-4441-91c2-a3bb619b6570","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":51,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"42eb90b5-6b82-424b-b93c-f880d6a4a347","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":51,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"3a81598c-74dd-4286-9261-4889edca1e09","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":51,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"bb94ea3b-32d3-490c-b570-f756a8d9b02b","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":51,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"83b76a65-cc8c-4745-9fbc-c3f862daa103","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":51,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"6ce0f5ad-50fc-4cf4-a51d-78605b892d51","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":51,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"d281fdac-730b-4e17-9413-0a2b83f79dd7","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":51,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"5e11efa5-fb56-4e17-b39c-a033cf81849a","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":51,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"9ed8d5ce-fc00-4b25-ad09-b245e31b8516","block_type":"box","text":"i.e.","page_number":51,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"3b88b993-b7e5-457c-86f5-53918c912f56","block_type":"box","text":", the payment","page_number":51,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"590b3161-553c-49b9-94ca-db109d954138","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":51,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"e746e37e-ff54-492b-be14-ddda20a81e03","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":51,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"19ae1f16-75f4-42db-8341-53fa13c1f123","block_type":"box","text":"Hedging.","page_number":51,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"04d5dc14-1f8f-4d17-9a98-a19b13aef040","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":51,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"0ef154c3-286f-4559-8bcd-5e10c3662e45","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":51,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"d56beb23-30c6-45a7-8777-aaee5922f5bb","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":51,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"eae5d70b-f8bb-4bc2-8770-c0de241c0cfb","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":51,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"49356c2c-5244-41e9-8d2f-ef692d48927f","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":51,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"e84e807f-5d28-4e71-8251-1048d0ef8a4b","block_type":"box","text":"correlation risk,","page_number":51,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"6fa3e009-a675-4ea3-8642-dd34953bc9cd","block_type":"box","text":"i.e.","page_number":51,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"2b136943-332a-48e6-b9e1-942c4158be07","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":51,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"905735b0-d13c-4123-bcd6-5a44921d9542","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":51,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"a6612932-e3a1-4efd-8e24-22eaef2bb0cc","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":51,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"bb8eb4d0-3bcb-4544-9290-e619687bab17","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":51,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"053685ad-db42-49c3-ba62-34344f2dbca4","block_type":"box","text":"Speculation.","page_number":51,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"2aa3a3f1-93f1-4227-826d-e9c9b88595a4","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":51,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"81c6a544-3f37-4ff4-a578-8c3e422763d3","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":51,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"a25af2f7-1bca-4c22-93d3-2d18508502de","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":51,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"19388175-96cb-4f1f-b48d-d11443105545","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":51,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"31025a5c-5b4c-4f6a-ab90-176bc9962845","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":51,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"452eb9d2-962d-4797-b488-ca5200b03fb9","block_type":"box","text":"Regulation of Derivatives.","page_number":51,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"b3f29b38-8c10-41cd-87c1-ed16831a6209","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":51,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"4e6c9e63-e6b1-4149-8498-6a76db424c6c","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":51,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"e3b68cb1-db3e-4c63-9f30-69dca219f2ff","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":51,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"c305888c-01b1-4199-b43f-a9a6441770f3","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":51,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"47136b98-3ef6-48fd-81ec-3f6ce936346f","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":51,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"a190b349-a38c-4aca-8388-77d093b18e65","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":51,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"c8f4a233-49a0-4c95-b993-8262270d1af4","block_type":"box","text":"coverage”).","page_number":51,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"a7102fe2-9427-4bc4-9106-fbc292ffd599","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":51,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"4f43ca3d-c23b-4d50-ab91-e36a775cb6be","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":51,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"99fe4e34-c50c-463d-837e-0b950fa1c422","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":51,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"4d509384-82d2-4ba5-b2cb-81978337f39a","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":51,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"d68b8491-9101-4c9e-9580-da5e3bc35b1d","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":51,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"c311a888-663b-4205-9113-da3e95923924","block_type":"box","text":"financing transactions (","page_number":51,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"ce01f3e8-63ec-49b0-81bc-30fa145f309f","block_type":"box","text":"e.g.","page_number":51,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"1c6547cf-317d-490b-a03a-bfb1a0c327f8","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":51,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"267592f3-8ea5-4890-ae38-19ce784564de","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":51,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"adb99750-74fc-4602-a247-c656dec51e3c","block_type":"box","text":"securities (","page_number":51,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"3cc6751d-fdfa-4964-b5ac-33278f4cfe93","block_type":"box","text":"e.g.","page_number":51,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"ec39fd68-c0ee-4723-9904-0b98d26e1f0c","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":51,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"839b8c2f-94f2-4b9b-8660-3505c83f287d","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":51,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"bc160c63-9550-4134-b733-91bca8e7b1db","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":51,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"8c248adb-0b35-4b1a-9d21-bf40dbfc4f44","block_type":"box","text":"Commitments”).","page_number":51,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"5de92878-baae-4355-9bb9-2e24e44c53e1","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":51,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"2180fdd1-3ffe-46a9-a5b1-6f861df80f4a","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":51,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"7913a29f-833f-45ae-bb06-237b3efb776a","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":51,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"c297aea1-6b8d-4022-9fbb-1407ca41974a","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":51,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"c627a24e-cd47-4c99-8ed1-389948978f00","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":51,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"da5c68d2-96ad-40c7-b38e-60347ae752a1","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":51,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"6b92e6e9-a2bb-40c7-870e-3b4fd426acbb","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":51,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"fc2c4048-f2b0-4e4f-ae21-1958faa4e661","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":51,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"9976a7ef-c31c-4c85-89ca-af44335fdc48","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":51,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"ff4c946c-68c2-4729-b691-8dda6402c182","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":51,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"c0971263-755f-45d0-93cd-6eb1bc57006d","block_type":"box","text":"II-13","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"919fb03d-beb3-49ca-8736-078511d65758","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"31097bc7-2ff3-40f5-93f3-53c1dc01175a","block_type":"box","text":"Dodd-Frank Regulations.","page_number":52,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"d4a4196a-1a93-473c-a1bd-1e813d300bba","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":52,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"c273399c-3cb6-4049-9b41-7a4993202fdd","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":52,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"b8e249a2-ff7e-40a2-b804-96d76280265a","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":52,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"aeadec26-74c6-4963-b630-2fbd05b227cd","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":52,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"c275452e-b02c-4640-9f96-e304afa4885a","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":52,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"30325309-a4ca-4342-b1d9-7b294861d906","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":52,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"e265ec96-fed9-4f85-8f20-7b4e6aea465d","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":52,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"bb3dfd2b-b678-4604-b616-3ad6b04f3435","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":52,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"3750df2b-80ca-4301-bb70-d61d8f6c766a","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":52,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"9772a0ae-c345-429b-8d66-72e2da601761","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":52,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"0dd1928a-a6ed-404d-8e8f-7cfde62576ed","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":52,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"5b5a301c-2491-461c-9e12-1a5312459c0f","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":52,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"d31832a0-ea8b-4b26-9a3c-80e8bec90e19","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":52,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"ff4c0215-c578-4fb4-9818-799db136a5f9","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":52,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"bf721f9d-0f71-4029-af88-709f7a466930","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":52,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"64d9033c-a8e2-4cb6-9240-22ce86a87f42","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":52,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"425083ed-3762-4247-b81e-3bc24cbbc342","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":52,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"b4d1a2b9-a472-43f4-ad6e-f7218fa02e0f","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":52,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"6453cf17-3ba3-4917-974a-f33cf2013860","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":52,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"07ae805c-24ba-4dc5-ab06-7b5151b0927f","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":52,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"217639a2-e418-4560-81ad-7f380186f8c9","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":52,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"f5a625f1-2972-40f7-b092-bfca3382a5ac","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":52,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"4346418f-1d8e-43b7-99ad-6b2197256c76","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":52,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"f4aff01a-9c36-45cc-b8b2-4aa73a779331","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":52,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"d9a650bf-d612-4f7e-a637-399f23d75168","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":52,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"c9b90b86-ac58-4e38-8d3f-563163980f03","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":52,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"439513c8-2b17-4921-8d0d-3ce4f112ee6d","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":52,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"c8a5fbf8-e548-42af-904e-d8bd410bb7bf","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":52,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"54227d41-e022-4fb2-ba99-8f1707400176","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":52,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"953f86f7-2e41-44d0-a7f4-d72ec2289c48","block_type":"box","text":"member.","page_number":52,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"65d440e9-c1f7-4d70-89fb-41e6e2385a3a","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":52,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"314eecbc-f141-4d2f-a6a6-fdeab63521c6","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":52,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"58e7f4c9-7a10-47bb-8282-d248f1dd9ea5","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":52,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"8c488468-f2ee-477e-bb19-8e102d3f742d","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":52,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"0f216042-4820-41ff-97d8-29bc3be40f0b","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":52,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"ec827dfa-f7c4-4347-b9f8-17f07f72765c","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":52,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"3a3b000c-d4fa-4886-a20d-706c49de84c9","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":52,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"332c848a-6ece-4aa9-95b4-996137c856df","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":52,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"0be7b448-64a5-4d78-9fbb-c1a6f50929d6","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":52,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"fad39711-5c4e-4a99-b777-912ba5f786e7","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":52,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"816bb5e6-1896-46c5-9ad5-84d608812d1d","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":52,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"078f74a9-8243-4288-a254-a3e1f5d29f98","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":52,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"e754ad4e-de4d-488a-96ae-7b46f3a07d93","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":52,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"744e9f5f-5a66-4a15-87e7-caba320e7276","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":52,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"03c5f907-9c36-43ec-a78c-807f9dfa156b","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":52,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"370b174b-9011-40c4-8aeb-bc055327e0b7","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":52,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"2ba990db-ae99-44a9-b865-bc6d9dae2aac","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":52,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"bebb8df9-8d2e-4a54-a218-3eda20e39b9e","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":52,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"7f3cde1e-9cfe-43ff-8b6c-24b08d456a0d","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":52,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"b22dd3c7-057f-4ecf-983f-a14936f04b4b","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":52,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"283d011a-7d29-419b-b7a0-66aac8847248","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":52,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"9daeb3b8-6e75-4a3d-b151-378f3b567785","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":52,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"415a00a1-922c-4014-b75f-472bbd5bcfc1","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":52,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"1aa55938-d355-45bc-97b1-dee325e2b595","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":52,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"f098500b-ad4f-4abe-a2a9-3e39c7ae5516","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":52,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"20d54686-5551-4a63-b74a-8494d9eafc33","block_type":"box","text":"II-14","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c9e4b7b8-1c4f-4fc4-9521-36cfbf0e2075","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6fe48106-b019-47c5-9d42-487e30933071","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":53,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"1434f2fa-9b52-42a1-8116-af8a0665885a","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":53,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"679039e4-4b08-4af0-8f87-3210f5054e74","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":53,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"74ff9f15-6a23-4b0b-8586-4d66f1cd0a92","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":53,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"fd15f821-3f3b-4076-ba89-1b77ede1d865","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":53,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"a6d52077-b481-4e74-939a-6d88ec5e8627","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":53,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"7ca052d3-cf13-47fd-8238-4e090966680c","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":53,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"6a5df9dd-1dbc-4161-9f45-f37e8ee8f200","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":53,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"91691766-8942-457c-a30f-cb62e2b762cc","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":53,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"526f127c-29ac-4bfb-b29a-f78ceafcf8e0","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":53,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"6edd4675-5f0a-42dc-b328-37fd8229ff91","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":53,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"c22f6b73-234b-42d6-883c-572bf5781103","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":53,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"9a87c399-5237-410f-8ca6-adb3b9e9417e","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":53,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"3aed756c-1dba-407b-933e-123295a138ee","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":53,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"58c5d99f-4f76-4a48-93b9-51fbf8cf5af5","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":53,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"cd89e7d1-d2a2-4c91-9273-d9697b537a37","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":53,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"edca0363-ff69-4d1a-baf3-ad5bf0d64f95","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":53,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"f9b975ec-bd44-4f45-81cc-b8672a68e01f","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":53,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"ec67bd9b-717a-4f59-aed2-4deb727d094e","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":53,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"248e485d-15e0-4f93-b8d2-5fbe04e5913d","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":53,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"88d50d32-dc94-4f70-8795-cdb27fb7d946","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":53,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"83f4f7f6-a547-41a2-99fe-1ff733499b67","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":53,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"4adac14c-ff45-4620-8124-8d5c6f140049","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":53,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"e3983b77-e614-4082-b1e7-999304949945","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":53,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"d3ddd512-f438-455b-b5a4-9e2ef2aa470c","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":53,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"2865e37d-08c9-4311-b310-9e048930b00c","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":53,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"ff38e863-1f1a-4a27-870e-b2b14de686ba","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":53,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"39b3dc4f-e630-4560-a893-79816abc6075","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":53,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"c48ae6f7-c318-4dff-9589-6b67febe6e5c","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":53,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"a606dfe5-6495-409e-b4df-045965e069a0","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":53,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"51ff3072-6d36-48e4-8036-88a1975607a4","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":53,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"fa5bbfb7-9ecc-4d78-a4cc-cd27afcad6a3","block_type":"box","text":"collateral received under such contracts.","page_number":53,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"f2a08fa9-0198-450c-bd89-04def9ffa830","block_type":"box","text":"Risk Factors in Derivatives.","page_number":53,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"115b9c6f-883d-4e0c-9e9e-c829e866d3be","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":53,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"7e433933-d75c-4a80-a1b2-7d5b7146e57a","block_type":"box","text":"Correlation Risk","page_number":53,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"448a5ef8-893f-42e8-a6d6-24c6fc810b91","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":53,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"8a6bc11e-4911-4f10-b853-f424739b2068","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":53,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"d14ba85c-d920-428a-8b27-d546faf85b32","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":53,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"c47cde63-2974-4b36-b99d-94421ec2ea04","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":53,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"4c5fa0c8-c77a-4e89-9880-faca87c76cf3","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":53,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"bb4c2c01-88c2-408b-8ae3-1fc0d13b2ab9","block_type":"box","text":"Counterpar ty Risk","page_number":53,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"76fb017f-0540-45ef-8e79-dcef1543e49a","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":53,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"924b26d2-1805-4a1f-b64f-5c37a7b70420","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":53,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"21a44030-fec3-46c7-8226-1b704beb32d3","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":53,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"5bac1ef4-30e4-4931-9ac5-4b98de8eda81","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":53,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"1a03d1ab-d2ac-49ee-a109-ddb905c53ee6","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":53,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"254d9198-69c6-456d-b487-8a8a45e97aa0","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":53,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"543e6147-a80b-4dbe-b1cf-c89a7a3050dc","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":53,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"d70e5f61-43b3-4b77-8a64-86ee150ec439","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":53,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"c6e2f6fb-d55d-4045-b085-af9bcd950cda","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":53,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"86b8b389-bba5-410d-a4ac-870eb4c4430d","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":53,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"a55c83a9-2bca-435d-b005-72e2e028318d","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":53,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"f1399e40-a431-48e3-b454-7e5cf0545b4b","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":53,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"59530754-843d-4965-9381-8434f2f2df4b","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":53,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"82f10490-6c02-4aee-90a7-83bebeeba225","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":53,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"da52c361-73a9-43cd-8e60-8994737835a9","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":53,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"113f0ea5-5cc4-4ae9-b304-6cbed1746098","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":53,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"d7c15648-c8f4-49c1-99a2-db50f318a3a6","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":53,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"b6e67fd0-a027-4547-b2d3-d897ede08d69","block_type":"box","text":"II-15","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"42b7d41f-1281-4fc4-9249-c416953a196d","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ea9f9a24-5405-4067-a393-233e54fb9fc6","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":54,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"39c40eea-af8e-499c-a188-40083d260bec","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":54,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"8bf06c8d-927d-4af1-b167-fe5b9f33f047","block_type":"box","text":"by the clearing member.","page_number":54,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"2d4aca6e-1a87-486c-8400-4996c8d45343","block_type":"box","text":"Credit Risk","page_number":54,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"c992a2aa-b110-4d95-9c1f-b0871cd9418b","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":54,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"56f2190e-b7e2-42d9-a0a1-aa269fcf0355","block_type":"box","text":"honor its financial obligations.","page_number":54,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"84e0fe60-7168-4492-bb34-516f7b631160","block_type":"box","text":"Currency Risk","page_number":54,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"c9851c4a-5916-48cc-8ac5-ba418f1409bf","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":54,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"29cd34de-bfb8-4a67-8dbd-05b6d1a52ab9","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":54,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"2bfa1780-0201-40ee-99b0-04feead19b70","block_type":"box","text":"Illiquidity Risk","page_number":54,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"803d3249-ca6c-47c0-9d97-85342f946d2d","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":54,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"befa5bb3-98ca-4828-92c5-d5927a000d11","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":54,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"e68b0fdc-f352-456b-84f1-def29219606b","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":54,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"42fb1d78-f52d-411a-97cb-86cecaad7269","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":54,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"6a16f583-9a27-4f40-92fe-64fb5ff45674","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":54,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"c6227645-bb6d-4f4e-a186-4ddb258d0f4b","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":54,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"57e28887-32e4-4225-b095-93b02479f35e","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":54,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"4ed82e39-f6f2-43ef-9390-6db94d58d092","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":54,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"278013ca-7321-43a2-8a48-7b60d673e34c","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":54,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"c40d0ad7-4e90-49ec-b573-0c301497c555","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":54,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"a7d1275e-644b-474f-bfab-472122caa271","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":54,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"09e06831-52f5-44bf-bee6-79ae434c1dc8","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":54,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"2196f202-8777-4e57-80e2-0d8fc3f19506","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":54,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"7f23985f-eaff-464d-91c6-3cf43be1b15c","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":54,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"2295a1f2-28c6-4b63-b2b6-16b2ef977f6f","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":54,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"c72c2cfc-2ff2-4a07-898a-3e2dadb498e1","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":54,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"48720585-9234-4586-bb8a-020809216444","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":54,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"6a720e84-db05-4df8-a27b-1099c125c085","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":54,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"1e88f372-4ebd-4fa4-87aa-f4e06f166b6d","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":54,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"acf26fb2-2f29-4e3b-9497-aa388943133f","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":54,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"fe827e0c-9a3a-41f2-8b1c-bb92ac1de865","block_type":"box","text":"may be disadvantageous to do so.","page_number":54,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"0a019a6f-b09e-40ae-a06a-e817983df394","block_type":"box","text":"Index Risk","page_number":54,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"820d0d7a-2f4a-4e44-89ad-33d85797309f","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":54,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"177f897c-d782-46a5-abdc-74a7b2585c43","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":54,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"d52e04f0-d0c6-46b5-b938-d81fea103bb7","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":54,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"d40373a9-de70-4de1-aa50-53d7165daac4","block_type":"box","text":"Legal Risk","page_number":54,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"9baffbf4-4f1d-485b-898d-6d54dff92eb0","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":54,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"86d81255-dc26-4b18-9844-63d42f57ada0","block_type":"box","text":"or enforceability of a contract.","page_number":54,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"0fb65038-de63-4f46-a2b3-780c6d728594","block_type":"box","text":"Leverage Risk","page_number":54,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"4d8fe298-6eb5-41bc-a238-4227e94ebd32","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":54,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"f43d9d6f-edc7-4255-94d8-bdad39b9cfce","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":54,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"055fde9d-6554-409d-9d9a-83c4362520e2","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":54,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"15ec0a42-2ff3-413c-b653-4e3e31133043","block_type":"box","text":"Market Risk","page_number":54,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"0b0a96c1-80c5-4319-92b4-5ab2be12660a","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":54,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"9f583812-fcc7-4382-946a-333e70e71e67","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":54,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"19116177-2ae1-41ba-8d7d-a1d8b6de1e2f","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":54,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"f25045f3-3bb0-4e31-8d6a-ee987432101e","block_type":"box","text":"affected.","page_number":54,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"e3a7ccbc-c550-4762-a265-a2adbd7c02b1","block_type":"box","text":"Operational Risk","page_number":54,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"3308cb14-555a-4063-b321-5388386984dc","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":54,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"7af81f1f-4f7e-44f0-bc27-915102e18ec7","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":54,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"e898330d-d5a5-4db8-998c-6f0dc62b7dbc","block_type":"box","text":"Valuation Risk","page_number":54,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"d8733bba-4e9a-48e6-8ad4-407fbce07b38","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":54,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"9aac1275-5b3b-4711-b775-c2b22b881a39","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":54,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"95f3016b-78d4-46a2-b5a7-d8df0a7188dc","block_type":"box","text":"complex instruments or quote prices for them.","page_number":54,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"f34cff61-c276-441a-9052-1eeecb16ba06","block_type":"box","text":"Volatility Risk","page_number":54,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"80c8e045-a766-45e9-9f4e-6e557983c637","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":54,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"f9959680-689d-4332-b305-a8a468e89f4b","block_type":"box","text":"Types of Derivatives Transactions.","page_number":54,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"c606bd7f-9bc5-409b-bcee-8a1a230764d7","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":54,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"04b39fba-faed-4cbe-a2eb-948d14930202","block_type":"box","text":"including the following:","page_number":54,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"5955df53-499e-4242-9598-f614b8f77cc4","block_type":"box","text":"Futures.","page_number":54,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"a1f59c93-1bd0-4553-9da0-725cd6a9afe6","block_type":"box","text":"II-16","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"36bff15c-0634-45ab-9694-16ba19f5d517","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"26025774-fe8d-4e13-b9a4-44de4d745f75","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":55,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"812df647-1e05-4f93-ad57-2d8a2879f5e3","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":55,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"11b624e5-9c05-4365-aa0d-104e09d84429","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":55,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"b3800909-d8ee-4b48-9caa-a8c5641db3ba","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":55,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"c18b0626-c76c-4888-8b01-ea6f7f50a06d","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":55,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"1777666c-fb2a-4a54-be54-448c471308b9","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":55,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"6432d4d2-37e1-459e-adbf-e66fb36aaa60","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":55,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"0df0815c-a8d4-4dde-84a0-b50b166b573c","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":55,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"f1d7bd57-0f4b-433e-af93-89aaa9531f0c","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":55,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"7330f4b6-954e-4412-88ba-87669e10c1be","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":55,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"71adb9b3-bda3-41fe-ab5e-3bce57dcc4df","block_type":"box","text":"of the futures contract.","page_number":55,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"e9c41f1d-3f7d-455d-ac5f-e460e0a7703a","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":55,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"22909358-47ff-4669-9e8f-f29efdbdaf1b","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":55,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"0d3ebbb3-4bc5-40af-8a52-d9c3fbe51a22","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":55,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"794b8147-d43f-45ec-9b8d-f4c5358d63d4","block_type":"box","text":"relating to the futures position.","page_number":55,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"40ae9b26-6936-4777-b699-bdb00054ba86","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":55,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"a5b69b8e-0e65-4d5c-8d94-78f361611d7a","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":55,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"7ca474c9-b261-41ad-babc-8e73516ab1a1","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":55,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"7e0cd1e1-997d-45a0-8234-4784bf4540da","block_type":"box","text":"Regulations” above.","page_number":55,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"9a6dff7e-eb43-4b91-8e24-277fc2b4f1e9","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":55,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"219055ea-e41b-44ca-8f97-5f8119fd54d5","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":55,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"53527a5a-1094-4dfa-9212-3efb4a4172dc","block_type":"box","text":"(","page_number":55,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"c4fc05fb-b6f2-4980-a03c-cd25f38970c5","block_type":"box","text":"i.e.","page_number":55,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"00184068-d19d-45f7-922e-a39922cb015a","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":55,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"92c64437-93f9-486c-af7b-bccf4842c35e","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":55,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"08b368c9-372c-47e5-bce3-1620bbb57758","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":55,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"fa70ac59-720a-41ca-89ac-ee636b55f80b","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":55,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"a52b41e7-93fe-4f4a-b460-64d934ec6041","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":55,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"4be43507-49b6-4575-81d2-882114446856","block_type":"box","text":"Fund intends to purchase.","page_number":55,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"111a422c-1277-4fd2-84d3-98d925498b71","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":55,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"00aa407a-2ad3-4c98-a096-50c03b71f3ea","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":55,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"367fe5c0-2258-4b66-929d-1e6e874d45b1","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":55,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"a0948afc-0bef-4dda-82fc-361bd131d816","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":55,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"10c030c7-0da7-4130-a1e8-02cacd303aa1","block_type":"box","text":"illiquidity.","page_number":55,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"40533703-b317-4853-b1fc-c62664b6ff66","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":55,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"996c3c9d-deea-45cb-9d9e-9bc2e90ccff9","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":55,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"e50de3ea-505c-4ab9-84c0-99c7c74c161e","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":55,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"3b01885e-d52c-4903-acf6-017dceae6d49","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":55,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"a848b677-94c2-4363-9eef-45af409590a2","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":55,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"6ec7409f-595b-47dc-b372-fa7910507b69","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":55,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"fabfc8b6-f8f3-4862-92fb-5a00eb11835e","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":55,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"923ae790-45c9-4376-b7ad-7db2308b920f","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":55,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"81bbc4c1-190b-4029-b6d9-65b816b61d54","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":55,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"7f4e6566-8ed5-486e-94dc-f164897fdc10","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":55,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"b019f517-792c-4c6e-8f36-014ad21857d5","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":55,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"5a64e0a5-af00-4ada-b913-830b911b0f6f","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":55,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"4b8d2658-5303-42f3-9d9d-9cf75fdfad64","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":55,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"602cc8f5-9169-49c0-a2ca-f9453c5c9d03","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":55,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"0eb240d5-7f72-4c87-9037-aa4c1a85f88e","block_type":"box","text":"Swap Agreements.","page_number":55,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"44786b5e-28a8-49ed-b910-c06ca10ab6c5","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":55,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"b9225691-eced-44ab-b6d7-3c8275f749e4","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":55,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"a0f1ac06-7ee0-475b-936c-3183400ab90a","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":55,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"8dbaa54f-915f-44e2-ba18-ce7700f64e31","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":55,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"f9f6e2a0-5ae6-4134-a9d8-a7933ab1e6ee","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":55,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"54867d98-3ae4-46f2-9d0c-dd73a8a3022c","block_type":"box","text":"a “notional amount,”","page_number":55,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"21e19844-fe7f-4346-8aa7-8b1029d05260","block_type":"box","text":"e.g.","page_number":55,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"5ff7c712-94d9-4f93-9ce2-31eef7f231a2","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":55,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"dc61b435-fd40-49fa-9734-b2190a879c0d","block_type":"box","text":"II-17","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c3dfa9df-2828-468b-ac0c-83182c6a1d02","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d9153544-12f2-48a5-9658-b4e8f1e20cc9","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":56,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"de27004d-f7e9-4202-8929-59d2a49e50e1","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":56,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"45346bac-1851-4a57-b795-079de7bcc295","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":56,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"58189883-2922-4c38-ab9e-7913d1892c0c","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":56,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"b5d9134b-bd70-4170-8d21-a4e5c869a448","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":56,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"7952f32d-b52e-4e0d-bffc-3417db80e937","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":56,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"b85f5722-78d1-429f-822c-eb6cca6e209e","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":56,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"a11b05f9-aa7a-4933-9c6e-63d59fe6aa76","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":56,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"9966db54-db9c-4d3a-8c35-4b1207d60504","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":56,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"e659982a-edbf-408a-b7e5-8b2cd9c5ab78","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":56,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"6df99b65-1a71-4bb9-9c05-56f76d4e2738","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":56,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"e37fa651-eedc-4a2a-9f52-53ba34d505c3","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":56,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"09bc2206-752c-44c5-844e-e067bb5425c7","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":56,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"2f7c5f9e-3df0-4239-a917-c2c3ccfe7bdc","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":56,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"bedf83e8-7301-468d-b787-86aba2f2c2a8","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":56,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"92e05cef-5bbc-477f-8e09-0198884cf8de","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":56,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"de7172e4-81ea-4c7f-86ac-a20f36021d77","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":56,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"3f13251d-4f14-43dd-a665-d8e86f8e8257","block_type":"box","text":"index CDS.","page_number":56,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"71998bcd-36a4-4f84-b747-39cfaf4efe86","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":56,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"791fe8a6-e8fc-4b9a-9860-646e3c010f98","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":56,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"83dd6656-22ef-4a54-baf0-e862ea7aed79","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":56,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"b923325e-d430-49ce-af6f-d523354f0817","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":56,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"6cdc8ab5-1dbf-456f-a462-3efb85d1edd2","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":56,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"e62f3f3d-533a-45f6-a4c7-7c525da2ac8f","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":56,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"dca9f8c1-1407-4237-99ce-be68ff23f7ca","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":56,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"4bb933c6-0c00-4964-949a-eed7afb6bee8","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":56,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"b6bcdb1d-f088-4ff7-a2ea-b206c5dee2de","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":56,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"dbbbf7cf-0a09-41ab-8fec-e8d7e6bd4a00","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":56,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"c24cda8c-d1dc-4d72-9a10-ec4000a46e68","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":56,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"803b8c3a-acb5-4d24-b800-9a7718bf1e37","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":56,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"4b4e91b8-c297-4471-ac41-c84b3615cfa5","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":56,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"082d20a9-ea62-4bba-a5d7-7e582f7c9bf0","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":56,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"877c9c7c-69d0-4f8c-8f39-e98bccee4cec","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":56,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"2ad02398-0638-49dd-986c-08532442ae67","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":56,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"539621ac-ea98-42b5-896c-38f62db72c4a","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":56,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"730bae57-ddd8-4c45-943c-7feabe3c75b9","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":56,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"9553fb14-a002-4c00-9041-35ffd7c0868b","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":56,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"91b64d39-cae7-4c08-9756-2f79a4ed2830","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":56,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"0e67b698-1565-4552-81c8-a5e6d9dd7c4b","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":56,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"10593b38-2f74-4308-8149-35aff522100c","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":56,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"216aea14-a770-48f7-9082-557182811528","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":56,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"a1da6df2-3e48-48cf-be67-68529e5bc2bc","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":56,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"a5a41428-836c-479c-859b-34bd6965dd35","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":56,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"98a37d5c-1939-4ec9-90d1-839090635e24","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":56,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"6a7eb7d0-a707-45fc-aae2-1942630f7ce9","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":56,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"8d6f72c3-c007-490c-828c-34d54bccfe0d","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":56,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"62c7cc40-a570-4a19-ba03-2bd5e9bfde7a","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":56,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"ccd19566-ef05-42c7-9b26-4079044e17ee","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":56,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"304be236-00e8-4139-8cae-cff545a8d280","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":56,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"f81b185f-5bfa-48d2-8882-b670794ad0a6","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":56,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"c014e1d2-96c3-4234-880f-b1c20d3de790","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":56,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"00b1a85b-64af-4b25-a9a2-7d698ff9d8bb","block_type":"box","text":"conditions.","page_number":56,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"977e6963-ba8e-458a-94c3-b68fa9d0f38a","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":56,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"781729ae-6776-4f8b-a356-080506bed111","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":56,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"3f4b0b31-2c81-4608-8536-f12f0ec345d6","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":56,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"4b1f6085-9eb6-49f2-9ce0-a5173637bd38","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":56,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"e69a111a-b864-40f4-b670-889d6e2f6473","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":56,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"263871d8-14bf-4cfa-a847-03328134dc03","block_type":"box","text":"II-18","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1199cabc-05d7-4be2-9eef-32e715824727","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f5ec8a0e-9e40-46cd-b2ff-b51e2a723671","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":57,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"358b9c51-2c91-49f5-b106-a87559ff8917","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":57,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"dd614842-280c-44e8-a6dd-dfd56889a15b","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":57,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"0c693268-6cbf-4346-b6b9-6bed85a3190f","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":57,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"fdb11446-0ca0-45cf-b645-ef83eb5465f8","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":57,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"d59881c6-3d82-4ae3-9151-c081cecd9831","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":57,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"6c3dbc32-6a38-4fae-8691-8fc71b4a60ce","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":57,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"3d2ca29e-ba7f-4438-b982-48dbbe1ddfb3","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":57,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"13271d4e-8f68-4dea-aaab-f2c5f203c89c","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":57,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"68ede444-8d9b-4eca-b738-4f77c443d38c","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":57,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"15e4478d-2b37-40eb-a9c9-91168cd45b09","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":57,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"f57ec75f-84a9-46b0-b4be-165c5c64ee87","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":57,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"267bb539-2ba5-4664-bb98-23f5ec4739c8","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":57,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"081969ed-e982-485d-8ee7-e130fcc8206f","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":57,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"111640c8-12f3-4a9f-96e4-c941fceead5a","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"1f3879f6-630b-44be-bc5c-0b8f098d867b","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":57,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"afe219c3-b8c8-4625-9600-b602457b2d26","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":57,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"0d160b29-aec2-4c99-bc14-b4b814197703","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":57,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"86310dcb-c9aa-44cd-82df-e192d8c376a5","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":57,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"2f2dd064-7bde-4bd8-8933-4f115a7f36a5","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":57,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"1a10f951-3d86-45da-b8b6-0d1f0660fd10","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":57,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"b0305358-4f4c-4b00-aea1-dd0481b90fd5","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":57,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"098c7d14-37b0-492c-97cf-dc102baff210","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":57,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"2e02aa6d-ea85-48a6-bca3-76e231d47529","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":57,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"270c6d1d-7aa7-4be2-b54a-e63037902130","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":57,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"bf31837a-2a05-4041-8e14-d6da14f1355a","block_type":"box","text":"cleared interest rate swaps.","page_number":57,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"4f9e3586-36c6-493b-9a0c-292591dfc569","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":57,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"6208fcbb-bbf1-46b8-b587-89088a97a11d","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":57,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"827faa01-fd83-4476-8ec1-88d46657ef90","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":57,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"de112432-e73d-42f0-860f-cf4d65a46726","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":57,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"6f4f1fcd-56d7-4528-8702-5bb0dd7f8bfa","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":57,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"92f1179f-5e19-4f8c-963f-4c5bcbc4111b","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":57,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"53f906a7-eb12-4d6c-86c5-d10eaea139f2","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":57,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"1bda560c-72fe-48f9-985b-5b0c68fe2f7c","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":57,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"00f25152-73ce-4ffa-aaa1-2c5dbe73b2c4","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":57,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"89cc13ac-ed37-4f2f-83eb-5b57a4e95a4d","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":57,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"dd3e5973-223e-4a97-95d4-8aa4a6329ff8","block_type":"box","text":"or variable interest rate, index or asset.","page_number":57,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"6a07679c-0e40-416b-b297-cd94d59142c3","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":57,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"3ccb2c19-9d5d-4d92-8084-cbc4f1c7eb53","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":57,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"78c17ad3-0db3-49c5-a709-5d6bf5b2d0db","block_type":"box","text":"such interest rate floor.","page_number":57,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"c019835f-574e-4cf7-88ae-c4d579643eb4","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":57,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"2c48ed33-ce1d-47ef-925c-79dbb017f77f","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":57,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"a5a46f68-4dcb-46ae-8162-855398799420","block_type":"box","text":"such interest rate cap.","page_number":57,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"5fbb573e-e791-4d5a-ba66-6540fdc37145","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":57,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"667e00fd-d840-4108-9296-b4bd32ee414e","block_type":"box","text":"commitments to pay or receive interest,","page_number":57,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"d104ffab-04e5-4273-90e6-e2d3ba55b9a3","block_type":"box","text":"e.g.","page_number":57,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"53a7222f-6f0e-436e-8a75-e0195aa7956b","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":57,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"d19eea56-3d26-4369-bcbd-d0d172fdae62","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":57,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"1f2f3093-bdcc-473d-a98c-c2fa9bea1dd6","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":57,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"97682b20-0f24-4001-a03e-7e50b2d8324a","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":57,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"efc44394-1248-4533-837b-bdacf504dd50","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":57,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"391ecac6-63fc-4aee-ba04-e5c482568419","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":57,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"fd153fc2-71ca-4a1c-98dc-bb441e4b6348","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":57,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"6a48e665-72f1-4499-a968-cf57d609cb30","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":57,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"17c25ad1-de51-401e-9c91-f3d086e577bf","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":57,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"63a4e337-bdb1-4477-93cf-057ab3e0f3ac","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":57,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"c2d834ef-d401-4705-8100-6a953039a351","block_type":"box","text":"II-19","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0f64f0e7-5978-49ec-abee-4bccc803ebae","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3ba8d109-c025-419c-80b4-9fa0c31ef613","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":58,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"7eb287dd-fecb-483e-952a-a5abf2022c90","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":58,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"bd8c57b5-0aa7-4dd1-bf87-8af87dbdcdd3","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":58,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"287664fd-a6b0-4cef-9d41-f444dfc1b337","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":58,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"efaf2fb2-cf0b-47f8-8809-ec269f4e41b2","block_type":"box","text":"Total Return Swaps.","page_number":58,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"39a7b94d-8b23-4277-92bc-0c2614090aff","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":58,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"68ceefc5-3772-42c0-a737-c50c0725dfa5","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":58,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"c0c20bff-0e2c-4ab4-886e-b696315d5f5a","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":58,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"ce74671f-e885-448f-9c9c-2522edb04895","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":58,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"01cf6fbd-6b54-450d-9468-2da8c3666316","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":58,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"5b3b3804-6da6-4f66-9fda-b4667a0e2b16","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":58,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"1b7218ce-0a3a-4cc5-870a-01b470fc0495","block_type":"box","text":"“contracts for difference.”","page_number":58,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"71769212-d8e8-4b52-8822-5f884ad19722","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":58,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"b5d4a021-2e4e-4de3-8fd6-e06e5b77f1a3","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":58,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"6ff6c0c2-d586-495b-9909-69c8ffad76f0","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":58,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"efc78913-482f-4ed3-ab37-166c3264e552","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":58,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"571ba4a0-cc6f-4db1-8c36-006f5dddc53c","block_type":"box","text":"the notional amount of the swap.","page_number":58,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"7dcf607f-7953-455f-8dd9-d2a2dbdb2143","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":58,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"4414417b-b642-460a-8c75-fe0449d8e9f4","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":58,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"cc18ef6a-5139-422d-b759-6bb5e56ff164","block_type":"box","text":"Options.","page_number":58,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"cf865e3a-4cc5-4bf1-9e91-9913560c10a7","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":58,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"3fdec688-4fd4-45cb-ba7e-20f08b8c5bd9","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":58,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"812ba62b-87b7-4431-95ea-7cfa1a505b66","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":58,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"003df3b4-caef-4af1-9045-e0c2d058ade8","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":58,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"4693f806-2036-49fa-82dc-aa723dff56b6","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":58,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"c7ad51b6-671a-45eb-912d-db5d6103e2dc","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":58,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"5f928c24-b43d-4f93-8563-11208e046bd5","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":58,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"5832435e-8594-478a-b8cf-b17cbdae719b","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":58,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"4e8525be-51a0-4db9-917f-7a06eb22b1de","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":58,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"be3056ce-d633-4847-965e-0e474faa818c","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":58,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"3d1810d0-8f44-44b1-a598-68f0e5a0db35","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":58,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"40315e5f-86d2-4167-85ad-b3dd6d716eaa","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":58,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"9f44c637-f978-475a-b201-81b5c3b09799","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":58,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"3d54e9a2-6318-4b92-922d-0d7a67c678e1","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":58,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"177441c5-c9e7-468e-a8a3-e012b3555895","block_type":"box","text":"OTC markets.","page_number":58,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"39a64bd6-74e1-4772-9cca-dcdcb32641f9","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":58,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"ea6e7562-5e10-44f8-9dd7-b13a4333778e","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":58,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"7b77f1fc-f790-4023-b7d9-23833c207777","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":58,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"1d1a6cf8-270e-4634-a2ec-7e6fee2d5c24","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":58,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"a27265d6-fe19-4b76-a828-f9df40f737e1","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":58,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"59e0f171-6a1e-4d36-a5f3-7f59b41b5cfd","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":58,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"d975c7dd-04ca-40f2-b205-1f6f2be5438d","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":58,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"f4364f79-ef23-4a3d-9682-5e896dc85cd8","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":58,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"c5949c22-b96f-4e80-9654-f57005f716e6","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":58,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"cca0410e-0794-4a85-97a2-6f2ad5ab1203","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":58,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"a96444c9-5091-4716-b659-377cac708a96","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":58,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"154eb45f-ab8a-44b3-81e4-f13aa55c0d33","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":58,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"f19de4b7-8e14-4877-809e-c165c0b6dcf1","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":58,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"14c28a46-1357-410f-9b90-55c557edb592","block_type":"box","text":"terms.","page_number":58,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"5c7ff21d-4973-4463-a90d-856fca1ee303","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":58,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"9905b3fe-0004-4320-8936-a497bd6d6bb7","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":58,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"0d598401-9f53-4f80-bde0-0c73f2aa4e3b","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":58,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"4579b92e-a72a-4307-856c-1f5445409205","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":58,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"0487db94-0820-476f-ba3e-2cbb0086e31b","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":58,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"a6069f62-747b-41e5-9ff0-3c85e2f7a333","block_type":"box","text":"II-20","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9253f1ce-e4e2-45d1-810b-480d211d3664","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"263f34d7-b698-434c-a59e-1c3ee8e5b157","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":59,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"3a8b8f6e-8a22-4bbd-8b67-c6a9adbe3232","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":59,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"0b2a8e70-9220-4081-8622-f93385c8fe60","block_type":"box","text":"Call Options.","page_number":59,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"5b0b972e-1ac3-4bc6-beb4-b8bd08a20db8","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":59,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"7eb923e2-815c-4d51-9961-8a99c2819ade","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":59,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"035ee944-1086-4642-acae-4ac7339b0bf3","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":59,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"86bc7f7e-e170-4b28-965d-ca6226ceb2ae","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":59,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"978d36ad-1536-46e2-b721-c29d70a3bad8","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":59,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"f3fae177-9c03-4680-94b6-50157ef4643d","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":59,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"c115245e-4586-4e1f-b4f0-2549f8ac4734","block_type":"box","text":"of the option.","page_number":59,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"0072d473-5db1-4886-a1fe-9fa792efed3a","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":59,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"b9bd37fb-efae-4dbf-9239-c2e63cce4388","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":59,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"21807db5-4bf5-465f-bfc2-723cac2be31a","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":59,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"5bf0adf1-66f1-43ce-b60d-8ec5a4b27b16","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":59,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"7b61224c-76c6-4c2c-aa64-a80de09b7ad6","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":59,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"62152b07-fce5-4c40-b7ce-fb0a608964d5","block_type":"box","text":"A Fund may write (","page_number":59,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"70633b22-bac7-44af-bf21-f8582de48a36","block_type":"box","text":"i.e.","page_number":59,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"8ada9fd5-6b85-4e9f-b33f-a925aff6e5ec","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":59,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"8287efc8-d24d-46e6-926e-3490b43bd051","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":59,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"1b729400-713c-4d96-ba90-d9a3ce6c9a48","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":59,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"3535eabc-6c93-4651-969d-5787326a8ad4","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":59,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"bfd3a1f8-8d7f-4c6b-85bf-9656dcac4d89","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":59,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"32181275-724f-4eb7-97ca-9eef1a5f9da3","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":59,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"02270408-813c-4100-b462-356a14b93696","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":59,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"8da4b6e8-ae33-4f4d-8e60-e7aab6e75dd3","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":59,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"3c7d0bef-4729-42bb-8bf9-281069dca94c","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":59,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"becfb32d-4f90-4db2-8245-df025384aa25","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":59,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"ede98bfd-4a59-4012-97f6-c8b2fddde7ad","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":59,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"04dbde3a-c57b-4469-bc1e-a9ab64ca8958","block_type":"box","text":"A Fund may write","page_number":59,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"507d93c5-dfeb-48a9-a6c2-d18efac8a114","block_type":"box","text":"(i.e.","page_number":59,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"b277e400-2808-453d-bec8-0ff5234455ac","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":59,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"9cdcebf1-8e60-41c3-b3f0-7c2ea1b95449","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":59,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"509e5e50-de92-4b36-8f2d-54827e481d87","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":59,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"77d8b50d-22df-4017-bb10-4fd1d1a82372","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":59,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"7de707aa-667f-4d01-a664-d9b2ef1cee91","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":59,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"b6ba509d-1c20-49b3-b2e3-3423c46a0060","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":59,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"1035134f-9428-4fdf-bd9d-da0a7829cae1","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":59,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"64249c79-45b9-4792-bc47-b8f1a3dc052f","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":59,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"2accba50-e097-4c93-8ccb-4152788ef7e1","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":59,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"86969bd3-7878-41aa-965a-ec9f9f5e4b59","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":59,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"1db23f7f-5f13-48b1-a4d8-986d6918a618","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":59,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"790ba08e-45d4-4b9c-b188-b0b34c0f8755","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":59,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"ae0747c9-e191-4eab-906c-9924598f71ad","block_type":"box","text":"Put Options.","page_number":59,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"a9a7d2c0-00e8-4dd4-b5b6-b0752d1b3a54","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":59,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"f67ce635-11a7-4fff-8001-38835c648097","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":59,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"e7d6e2e4-ad95-48ae-96ed-d64df614618b","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":59,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"b053c5d0-9b2e-4f46-ae8c-acb68d1dc838","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":59,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"89214f9d-791f-4195-a266-65bb023876b7","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":59,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"669c9b12-f8c5-4a81-adb1-5ef44037a431","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":59,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"f6ef75ca-2dcd-41f6-bb2a-efb73449d666","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":59,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"045cdf7f-52d1-400a-88c3-4edf6b9091b5","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":59,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"a04be02c-03db-4058-9aba-5cdf55b3e1be","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":59,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"019f8a69-d9a3-40c3-a541-e20b954243e0","block_type":"box","text":"purchase uncovered put options.","page_number":59,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"b6bde539-e1de-4a3b-8844-78a8bec75d93","block_type":"box","text":"A Fund also may write (","page_number":59,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"9c09ce42-ae15-4f3b-b34c-9022ef13a968","block_type":"box","text":"i.e.","page_number":59,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"a3bcc7ef-c1be-4902-ad71-6e2ee32f5473","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":59,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"91675d0f-6f9f-41f8-9a61-ae6751a150ea","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":59,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"e2d21fc3-3dfd-40a4-a3d3-ccbd67a61948","block_type":"box","text":"A Fund also may write (","page_number":59,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"83178dff-6495-4ad9-a440-1799a2a9afa1","block_type":"box","text":"i.e.","page_number":59,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"e315912a-3b5f-4d85-b4ba-b9775f692dcd","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":59,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"d8727320-f26f-49f9-ba37-bb8c4fc67631","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":59,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"5cab0e6d-ae85-4541-8443-0b7e09cc9016","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":59,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"bf1b2142-90b0-4bb5-adfb-c3b86697495f","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":59,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"b9f4c036-308b-4c8c-9806-e42cd5ad43db","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":59,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"e8d1d056-16d7-401e-9e3e-76a7747f0bb7","block_type":"box","text":"II-21","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f2bfb80d-b1ec-4417-bc5d-9d636464eb48","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"55f2e5b2-0ab6-4781-8151-14b107cee783","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":60,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"b6870ed3-5ce1-4669-88a1-e8e7f78aeef3","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":60,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"98794c8d-ff98-4195-83a8-4b46ae2983d4","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":60,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"67260368-2f59-42a8-8beb-ebb929db42e6","block_type":"box","text":"the exercise price.","page_number":60,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"db5fe066-0321-424c-a700-1eb1191ef39f","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":60,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"1874902d-6afd-4845-a05b-8b0126b492a3","block_type":"box","text":"The following information relates","page_number":60,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"43fca5db-4159-4f8e-ac0f-ba371bf2be8b","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":60,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"08ba714d-3c49-4783-9e8a-dc97f628cce1","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":60,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"0fe0228b-9af3-4da8-be13-c47d2e2550e8","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":60,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"2b252d01-b33d-4c14-a6e1-8e0246405a4c","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":60,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"7d6f26c9-8bdf-419b-a7c0-befad6b8f491","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":60,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"16acbde4-a071-4381-9635-134c58c0a7dd","block_type":"box","text":"market in order to maintain its “cover.”","page_number":60,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"ec59edf2-7ca9-4bab-b3b5-44832ac639dc","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":60,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"06ab71ef-4665-4178-8b03-02d73462f39c","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":60,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"9a923e17-6c81-401d-9970-377d1c81fd5e","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":60,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"15140941-05e8-41b8-8a4a-ade99a8dac5d","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":60,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"c9b2f33b-5811-4ece-8087-838d6581fee9","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":60,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"c8799ad1-8946-41aa-9f6f-8c28fe0e9807","block_type":"box","text":"and incur transaction costs.","page_number":60,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"11dc07c1-4a64-46ba-bf2b-6e77235d5fd6","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":60,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"12b80b2c-1f20-498f-a937-bcc7cf2bcb1b","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":60,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"c55e9507-bf6d-4405-a476-143ff60db7da","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":60,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"b6bbef79-b769-4b71-b58b-3a36d29aaf96","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":60,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"8b73f499-029c-4407-8727-e4c78f9a61b2","block_type":"box","text":"i.e.","page_number":60,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"080810f7-a03a-4eab-be56-c331501b3f1d","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":60,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"fa1fa750-e3bf-4214-9f91-d4f1b8ad40ed","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":60,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"14172aa7-723d-48a4-a9d6-8607761e47e1","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":60,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"a4a06f28-c435-4267-a2fe-f0ee48caf700","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":60,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"f1a34752-433b-47c3-9184-27dd39a732e9","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":60,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"1019bc96-f251-4eba-8d31-7e0025b66f6a","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":60,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"320a8fd4-0b68-418b-afbf-624f3b3a32ee","block_type":"box","text":"required, to be cleared.","page_number":60,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"c362c793-95ca-445f-ae61-464b41ed577a","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":60,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"fa8e1417-223d-4c6d-8922-cb869e5047cf","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":60,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"103fc4d6-1f61-4974-9da9-f4a497cfc832","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":60,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"6d40fdfd-998f-4198-8306-80917185e193","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":60,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"d23232d1-0e19-4b51-ad6b-e7517ee6d676","block_type":"box","text":"Derivatives” above.","page_number":60,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"392c6ad8-e643-4417-8072-4521dfc385ad","block_type":"box","text":"FLEX Options.","page_number":60,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"7c3e4e2f-1541-41d8-9bf1-04045bc61731","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":60,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"8b134515-262e-4586-8da2-cc32cef17193","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":60,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"f44e3934-67b3-4cdc-8b33-2102d237138a","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":60,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"ca139f09-a6db-4b1a-8a7e-b6a94cb40e3e","block_type":"box","text":"exercise prices, exercise styles (","page_number":60,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"68d5a339-3275-425f-a4e6-446c8e6ecae9","block_type":"box","text":"i.e.","page_number":60,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"ace2f473-e0b1-4c8c-9702-ed23dcaf56bf","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":60,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"53a6c112-c270-440a-8b9d-4a1dc47b4a37","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":60,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"c33f25cf-8837-48b3-bf0e-052906eda594","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":60,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"99df5e0d-0745-4077-9119-7a2e012a20a3","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":60,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"ca481579-d1c7-40b9-80f2-e649897080b4","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":60,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"d0536932-8015-4597-9ef1-e2e1926a90ea","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":60,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"30f88d6b-4701-4e24-9695-66764da5f525","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":60,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"e4e47375-d135-417c-b7fe-01347dd1a482","block_type":"box","text":"FLEX Option’s expiration date.","page_number":60,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"3477a793-2c7f-48f1-b302-7050f4c971c5","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":60,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"27ae778c-9eab-44a5-98b0-e5529b4a49b6","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":60,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"d0f574fb-336f-4a73-9988-d99f73664b0c","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":60,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"2eec4e66-41a9-4b49-9bcc-cef2484fe60a","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":60,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"d74a7865-79ad-4579-9a01-28e077e1df6e","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":60,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"90d4d47f-2cf0-469b-b306-cbefb621931a","block_type":"box","text":"FLEX Options contracts.","page_number":60,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"9e9f04a6-275a-44f0-9703-cf88a2261487","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":60,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"f84eb1ee-b021-4f66-a5b0-8ddcbfcb1878","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":60,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"b203d02f-3573-472b-ac76-a17c12b07252","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":60,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"8106493b-d47b-4b33-8414-3269b718d5e2","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":60,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"77e59acc-4210-43c5-bce3-cec4580b326f","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":60,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"bab564d7-2366-4230-a728-083e3fdeab8c","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":60,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"9571f016-6d9f-4233-a423-40f74ac47b0c","block_type":"box","text":"II-22","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d92546bd-1979-4a77-9b7d-1c2d43a5ac59","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4b719cb5-7442-4194-ab48-0677fae8a0d6","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":61,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"1b5856ba-70ad-4511-9e5e-c334df9f82f2","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":61,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"3e2c72ae-00c3-4723-b288-de49b7e3239b","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":61,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"31731f58-c3a7-4712-afc7-f9cb51e41ba6","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":61,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"237fcc72-f5f9-4dc0-8983-cb22d460c185","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":61,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"08b7a41e-0516-483e-803c-2dfc6dc0c4ae","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":61,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"de4f6dad-6c5a-4e41-9bc8-27091103f72d","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":61,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"c5f21b67-1e65-4af7-8d3b-12011328175c","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":61,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"dbc6d365-212f-4be4-a9e8-13c56e6515d9","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":61,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"464f7577-ee38-48c5-81ab-e575683fd0b3","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":61,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"35bfe696-41a3-405f-933c-e81797b6170b","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":61,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"81855488-5ed9-40dd-9efd-d67d70b426ce","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":61,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"55215af1-1b34-4d0c-94c2-e41d96580462","block_type":"box","text":"expire unexercised have no value.","page_number":61,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"88a725a1-b34f-4fd9-9daf-f6240cfd5746","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":61,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"6f02548b-75d9-493a-b248-bd47770eb243","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":61,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"92c170eb-4f3a-4226-ae52-9ee073fe2d26","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":61,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"93315c5a-491d-4af2-90b6-c87e58d28070","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":61,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"d97c32f9-ab0f-4039-87fa-418b4505e575","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":61,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"b6de9ee2-3a44-402e-a577-0e043c9f72d7","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":61,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"37d75544-1520-4458-b893-8a296c1019d8","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":61,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"3956e911-a33c-4b43-9367-f508024fc4ce","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":61,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"e29e3cdd-d61e-4d2a-b406-ddd185b7946c","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":61,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"3c642029-3522-40fe-acad-efc20163e16c","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":61,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"26bd7401-9681-49db-baa6-7bd6cdc574bd","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":61,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"6b88c509-ed11-465b-9c8b-72419778e63e","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":61,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"814b416b-7545-4b49-b68e-4c5e0d40b5ce","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":61,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"f53fda5b-439e-4547-be93-891fa1b3570e","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":61,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"b3a6b0a0-71f2-4c51-859d-fa1166d3ff83","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":61,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"1adb029f-f038-4e5d-9a6c-d6d49f69693a","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":61,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"c1624a9d-3d1e-4206-991a-c46897c36fe1","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":61,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"57b4ee14-4dc9-4046-b1a0-ddede15d120a","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":61,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"231cce4f-9ed1-4fdb-89ba-b1faa2150897","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":61,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"47303a4f-45f6-4396-b540-16461b96112f","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":61,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"57aeb0e1-6091-4c5f-b48e-ff58f592ceaf","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":61,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"e1161638-4f51-499b-b009-f4038fd7ce23","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":61,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"1b5a45bc-32b9-47b2-9d62-8823bff45af2","block_type":"box","text":"Foreign Exchange Transactions.","page_number":61,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"f89b897a-8585-401d-a8a7-4f11a8f676e3","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":61,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"8f18820a-2c84-4541-ba5a-ea7001977f5c","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":61,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"be1d9787-4413-4af3-817a-ddc437bb906d","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":61,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"e9efed9c-d903-4606-8044-1db17715d90c","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":61,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"56bde76f-1810-48a7-90c6-6336908bf388","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":61,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"98d71ccd-846f-40c7-b0d6-90ad7bab94df","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":61,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"9249b8d7-d7ee-4752-bc3b-f16ebd7d1aa3","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":61,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"45f10bff-66f0-475a-9a27-6635fed5a50a","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":61,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"34711901-00a0-4293-a78a-36bb8fbc3780","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":61,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"a5db6c93-82c1-46f0-93e6-652165722a0c","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":61,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"18950555-7fcd-4273-b7ef-bde1c130658a","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":61,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"3d6a5d6b-3e10-4e89-93d6-21f5567f6007","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":61,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"a416c118-ad3d-4a94-a048-a08a8cb61931","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":61,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"59bbd4d6-7450-4861-8751-62a5f694b9bd","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":61,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"82a64dfc-6309-479a-98fe-3a91cb2033ee","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":61,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"7d37daa8-729d-4b6b-bea3-59191a9a3682","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":61,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"88fc01dd-7a01-4cff-93e9-cb7ea544d050","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":61,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"3a26bd86-763d-4582-a22d-96384450471b","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":61,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"b2c87281-ad5f-41ef-9696-90fe15006d59","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":61,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"20640402-20da-4512-92f7-4b3af9cb2ffa","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":61,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"65b85b0d-a856-406b-90e0-0839fb06308c","block_type":"box","text":"II-23","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"709ba25d-791b-4917-837f-4d69de2418d1","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0d153f78-1175-46a3-bba4-cec302c51385","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":62,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"08f9ce32-02a4-4e72-8eab-24bd05ff569c","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":62,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"0df0d51b-5c72-4e2f-bc03-65974620db98","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":62,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"de10783c-4d71-46c4-af7b-91dd662823e9","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":62,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"a4f284d3-9abb-41bb-8923-f9b555da4ed0","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":62,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"c9f16014-9f48-4bd7-8d0e-4ba67b809f8a","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":62,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"1649c6b7-f08d-4923-8a51-5ae3b2b2fe38","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":62,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"dad5270a-e8bc-4714-8ca8-6a6acbe8b701","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":62,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"863898f5-e195-488a-9ba6-91dd571a5568","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":62,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"da8775e5-38a7-4957-93d5-7e1d2803072c","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":62,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"8ac574ab-6a07-4d0e-80bb-b167f50b0f7f","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":62,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"e40f766f-bc29-4ead-b264-b6afa458f1d6","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":62,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"3e3e53e4-c118-4093-99dc-113769dbf1b5","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":62,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"6da0f934-9db8-48b5-9c39-9296a40d9560","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":62,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"722f013a-4a29-4e3f-b6dd-d00f367244a5","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":62,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"d3cacdbf-5d00-4474-8133-c84a61c007d1","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":62,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"f421028a-c3a0-433d-9931-ba959a0f6943","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":62,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"b6825e02-c7ef-4dde-a838-15d811aeb09c","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":62,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"154fcabc-394c-429a-92a9-8cb735362a58","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":62,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"cae2182f-bfe0-47fb-9449-c76214f9a4dd","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":62,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"3e7fc1ee-536e-47fa-aa10-5e844c9af3cf","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":62,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"ce183704-40f6-4b89-b0cb-1c8ca2a08406","block_type":"box","text":"involved.","page_number":62,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"d7099fde-c0de-4720-8279-1351b55b1c52","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":62,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"00b6f0b2-e2ce-48ca-86d2-d9b53eebb5e6","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":62,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"5d39eb01-1d1d-405c-97a5-fbac4b57f2c0","block_type":"box","text":"denominated in such currency.","page_number":62,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"aad01cb5-c51c-4c3d-a039-5b6267eb60b0","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":62,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"7425b271-ed4b-4e70-891c-c0e1577139b1","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":62,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"75f5a668-3069-4b80-9b03-aa759bb664a0","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":62,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"ec30d50d-e814-4c3f-b293-bdf33bd79e8e","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":62,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"e143b976-af14-484d-bdce-fc9495295482","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":62,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"3d22374e-6dff-4996-848d-8503f4ea294b","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":62,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"dbbf79e0-94ad-4440-bb08-b20c11be4e59","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":62,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"73c5511d-34c2-4030-b00f-cbc6e5de0b7d","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":62,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"5ac16b0a-80c1-40e8-98bf-e77db0ef53cd","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":62,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"ae2083e8-5b2e-4ad7-ba98-864ce66f607e","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":62,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"4d364c77-4399-419f-8e8b-04b9e6429415","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":62,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"e33593d2-c9da-4494-a022-6099196c5c44","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":62,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"0ac6b1b1-fbe9-4ea8-bda4-4cda6315c23e","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":62,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"148b6755-8a58-4324-870e-95553d23f617","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":62,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"6408436e-a6f8-4d0e-b8c2-2218fc0890a5","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":62,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"ef9341e5-c5f2-470f-b9af-b2a8340b3d09","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":62,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"17827c76-6c7b-45f9-93a0-83b2d8393d09","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":62,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"aa8baee3-5145-4fb5-ab26-8c667ce75808","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":62,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"e0d90ac9-7cb5-4e7d-9a44-3ae03dff79b1","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":62,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"4f2a4a6c-e5a1-487d-a8c9-0148d34b8738","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":62,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"db0e29be-397d-4e33-9dd1-0e98fc5340a2","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":62,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"53d3acd6-f1c4-421d-9aeb-12267ff256fc","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":62,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"314d3245-b99a-46ca-99d6-850e6969b193","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":62,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"89db98eb-f7ca-4800-bd4e-c174ca9e11a6","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":62,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"91b0292b-e391-4c68-b3fa-a98a9fb239d6","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":62,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"d767a75f-5dee-48a6-8dca-c35a21754b8a","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":62,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"c7467d23-e90d-44f7-a9f3-1021a56cee99","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":62,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"6d213041-e515-4204-8a92-e04f6acf7792","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":62,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"10acab13-f6bd-448b-8c0a-c23abfd6e9e1","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":62,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"0533b92e-37cb-4f91-a8b0-8b31e9811a36","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":62,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"298faaeb-f8b9-4e15-8341-e8a6cebedb09","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":62,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"0a576faa-b1b6-42bc-b41c-f66fe3dded1a","block_type":"box","text":"II-24","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2d617942-8a25-4ddb-a75e-bdea964fd269","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9c2a5be4-e1b3-43e7-be62-ac522d005843","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":63,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"4da909eb-8450-40f7-9ca2-0e27e7cd56b7","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":63,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"37c27864-6a61-4b40-bd4f-61988468cc07","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":63,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"4c2b408d-77f9-4874-8024-32550b665a01","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":63,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"71011877-74e2-43e4-89fd-aadf8ae1e56d","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":63,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"16afa586-c7f3-47a0-a532-928970c0f20b","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":63,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"c584f2e7-57b9-4899-a6b5-ac05e25a9fe4","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":63,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"ca73b36d-8d34-44f4-a7c9-b9fcd2e52212","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":63,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"603e22bd-0b0e-4fa7-aca8-3834de4d14d7","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":63,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"711d9c8e-4167-4715-b8c9-379b6b5d1a5c","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":63,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"0b945385-c7e9-49c4-98d8-4d656162930c","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":63,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"82685d8d-8c70-44e3-854c-9fde8966f43e","block_type":"box","text":"traded.","page_number":63,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"ae56b7b5-032b-4bcc-8b54-c1ec74e2a932","block_type":"box","text":"Currency Futures.","page_number":63,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"d02200e6-e6c0-4468-98c3-c566363424d9","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":63,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"4edcbdc0-95cf-4869-ba01-b310342c07bf","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":63,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"315b5e68-b8b6-4802-b64c-a8ca7a7cd7b6","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":63,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"0ad0069c-a631-4cd5-b9f1-52d9339ce677","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":63,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"928be469-0bd1-4566-ad9f-653f02e3ea0a","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":63,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"e7ed3183-b2cf-4bf5-9a10-d8a895a401fc","block_type":"box","text":"Currency Options.","page_number":63,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"1e0110e4-71c7-46cc-8d05-4dee25ceb56a","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":63,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"f04d2aef-7a0b-4182-9cc8-859678ebeef8","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":63,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"d51e3506-790a-48e9-8be0-480f9a27ce7f","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":63,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"b9d97645-a36b-4312-8eda-8d46e551a0c0","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":63,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"aba94889-00b4-4b46-bf9f-db5856a6f3d8","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":63,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"56eece4f-84a8-4bce-8b54-797dca299b68","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":63,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"1f24fe24-7362-4d78-b040-c4a856a9e61e","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":63,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"be392424-4ede-49f4-b8e1-efe041c6c65c","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":63,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"dcee0b67-b3df-46c0-931c-7903e281deed","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":63,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"71fcfc96-9d94-4941-8978-f8cad9407660","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":63,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"771fd9c1-c043-4086-b945-24fe27da67d0","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":63,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"10863f9d-186a-4267-82c4-36f517862e4b","block_type":"box","text":"Currency Swaps.","page_number":63,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"53eb4acd-ca8b-40c5-afe6-e31131d2e22c","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":63,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"9ac6c26e-0a05-4e64-acd4-0aa2fff800e5","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":63,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"5c86e2e3-1084-4372-ba8c-11915569a454","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":63,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"3cde5b57-89e1-4b4a-9f80-ee6100f7201d","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":63,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"f6aaa680-f331-4273-b8ec-d9f926f120f9","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":63,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"9c6732b9-05ca-4746-bda8-1dd8da5253f2","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":63,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"6bddeffa-afb2-4e5d-86dd-1658a2e19b62","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":63,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"99d8ee90-0e89-4438-aae8-bc41393eed95","block_type":"box","text":"Distressed Securities.","page_number":63,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"8019ed5f-43af-4ba2-96d8-7e20f2bdc777","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":63,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"4b589b05-6049-4a71-b604-b1fe8a793b12","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":63,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"85591552-521b-4274-b33b-7d4c3ffa1c06","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":63,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"b96d039d-696e-4447-b21f-bdef94dca10e","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":63,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"8a726761-4846-41ee-beda-a92877bcb31b","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":63,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"07de2604-b3e6-49f6-919c-50a94c8348b7","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":63,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"1ad7dbfe-ed0d-48d7-a760-6a77aed47f96","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":63,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"70e4e6f1-3665-4c11-af63-7b14511627c3","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":63,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"904e097c-72c2-4944-8159-477384e4bea5","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":63,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"3bbd6705-a26e-4a0e-9ba3-46c12a3c47fd","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":63,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"35e816fc-3d0d-471e-80ae-1fb6c4deadf4","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":63,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"9ee88e8d-5839-4f27-9cd9-a2b5f1cb6cc8","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":63,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"c8bb9bd9-c4e8-4739-bb45-c916927f60d3","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":63,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"1fa685bb-0d02-4c65-817c-815c6c976e05","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":63,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"789e41ad-1713-4904-b753-190eaf768a82","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":63,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"be7c651f-b2a6-465c-b1ae-fc054c43d268","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":63,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"09587fe6-53b2-400d-b980-ef82aa8206a6","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":63,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"b30a04f9-0cbf-44c5-a0c1-97c9642607c5","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":63,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"2ad1f85a-4934-41f7-93bd-9a0b1cecb4b0","block_type":"box","text":"satisfied (","page_number":63,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"2d8ffd52-4a2b-4507-ae21-17f76f8a0eae","block_type":"box","text":"e.g.","page_number":63,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"c07dabdb-7255-4b6e-acb8-32337ed5ba85","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":63,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"1b014350-3a80-4a0a-8998-6e22c9435b19","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":63,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"97e819f4-67a6-4efb-8786-899c9f4944e2","block_type":"box","text":"II-25","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7b3f18f5-b4c3-4296-bc8a-381ec6cbe5ca","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f8e25d0a-6f0b-4d15-b0c3-f3294dd416ec","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":64,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"23275347-bf0b-4763-857d-c5421839f64e","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":64,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"f21f4bd8-c577-4544-b3a5-c67873d423bb","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":64,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"5e20f7cd-6488-4580-8985-ddd93adff874","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":64,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"c0d23204-7b9d-461a-9c68-e738cc720435","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":64,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"b3de3cb4-24ea-4993-9f29-ec7345cfd962","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":64,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"3921ff78-bee4-4067-b1f0-6073c3271f81","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":64,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"aa977e45-76cf-47e9-8b6b-e61a572c57b6","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":64,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"bc42d3c0-adfd-49e1-af3b-fb2ea0f75350","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":64,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"976fd811-43c7-4f32-a1e7-0e13ce3b39eb","block_type":"box","text":"affairs.","page_number":64,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"38b3cc02-13d0-4857-9e15-5d5d4e8d1606","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":64,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"8c8e820d-afe3-4b54-9231-21bfa1e81bfe","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":64,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"6588e1da-dc08-4678-9e37-9201b7e36110","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":64,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"cb934e64-dda5-46cf-97a0-5bf83b775d3c","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":64,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"581265aa-ff11-4c53-ac06-5940044e96a5","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":64,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"a8acc3a2-a60f-438e-8b58-053662213964","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":64,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"7c875d97-9464-4518-b885-1a60c01b6796","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":64,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"c0004edd-bcaf-4431-ab4d-888a119e6924","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":64,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"8911331c-aeeb-4185-9dee-f1a29ad3a1bf","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":64,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"a1a67f02-31de-4e5d-9f4f-4df09740899a","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":64,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"d9b586fb-a61f-400f-b0ac-ac862d266ca4","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":64,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"9c0630d3-81ed-4b1e-bfde-32aa7c0fdfa5","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":64,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"f9267e46-bc08-43b9-807e-2b1909b89f8b","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":64,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"d8b25c27-1980-476b-9ba7-43667e63f107","block_type":"box","text":"Equity Securities.","page_number":64,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"8bb64abb-2f9f-47bb-8741-74ab91b5fa79","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":64,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"6135c3f7-2d85-4e8d-9e3d-da12ffd3febf","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":64,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"87f31b4d-4d8e-4349-bdf4-e44bca8d55df","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":64,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"9c1ff1ea-1182-4cc4-a43d-4f2bb19266a6","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":64,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"54abe2c0-1dd4-43ea-aed0-28d6d7cc1568","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":64,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"8b98cc50-f158-4bbd-a570-037dd6514b56","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":64,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"9235f349-c98b-44fb-bb66-6526920a9d95","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":64,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"4b66dd23-62b3-4640-b901-3c60e6a82d30","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":64,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"3dc911dc-e79d-4f23-ab27-2b4abf53f8c2","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":64,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"db05065b-4aac-4e0b-be46-212ae4c5ea66","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":64,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"7477c930-47da-46c9-acdc-c76f6f3fa484","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":64,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"85a277bd-a528-43e1-94b3-d95e6809ea0c","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":64,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"f19a7b64-4528-40f5-badc-e02dba879875","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":64,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"942bdd01-e52a-4143-9d50-04460cc35e99","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":64,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"abb99c1b-fa4b-418b-ba79-62b103ae6760","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":64,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"a2e1e482-cf4a-4508-afb8-2941e9883361","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":64,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"bdb6ab28-d5fa-46af-8e7a-bff8145cd642","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":64,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"58e6a239-4bc2-47a7-b645-ea054efa9855","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":64,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"1d8aeb06-225e-407b-b1c9-1d26ea704bfa","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":64,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"0eb7dab3-b912-4b3d-bb02-ac29d13bcb47","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":64,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"8d78a8be-267c-4b66-b8cd-fbb3ddefb4d5","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":64,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"82ed5f93-0253-4f40-a901-44437760f03a","block_type":"box","text":"initial public offering.","page_number":64,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"bff7b92c-8358-4d11-b400-3aaa19cf33e1","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":64,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"2397da13-c695-418b-967c-7b102bb2171d","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":64,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"99895881-444f-42dd-ba0f-8d9000733ac5","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":64,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"8fc98b14-440c-4c01-9f3c-f5694934d803","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":64,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"6f2adc3e-807a-4062-aea2-571d319e2584","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":64,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"9b4d225e-f1d5-42e3-9929-a264714419e9","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":64,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"6d1f9ab3-b7a1-4da6-a1d5-3b8ebdad0731","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":64,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"61a0ce0e-30ee-469b-b90b-ebd2a8ef0bc5","block_type":"box","text":"more established companies.","page_number":64,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"b8334812-80d9-4142-acab-6353dd412430","block_type":"box","text":"II-26","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"77475686-9ffe-4b36-962f-f7fefe0a3ee2","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"91194c26-f2c2-40f8-b139-2a5350681d47","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":65,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"755b4735-6a42-4f2d-914d-34809d2d58b6","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":65,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"d339a400-283d-4631-9bac-72d17cd12c8e","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":65,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"82d5695d-84e4-48a9-ae15-b7e93d14518e","block_type":"box","text":"below.","page_number":65,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"8144ddd0-3ca6-4b80-8f8c-02c322e5bfd6","block_type":"box","text":"Real Estate-Related Securities.","page_number":65,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"94895670-0898-4dcb-a048-3e76aeeb9b8a","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":65,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"054a0835-eed5-4e2e-ae60-dbfd46736c10","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":65,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"dcde8351-9b00-4a9a-9be0-447d95013b39","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":65,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"1b3719b1-4fb9-4948-bbc5-555dad85c2ed","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":65,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"8e0b034c-4979-4184-a478-bb12b90c8894","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":65,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"7bea6606-a93d-4f21-bb34-c4dd8f680344","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":65,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"ce09c2ab-7ba2-41e9-a499-096d2aab9dd5","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":65,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"ab6a34d1-8194-4200-baf5-084404a370fe","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":65,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"64aebc5b-1039-487f-bb52-6f6bce3aecd1","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":65,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"d517730a-31e5-4989-a8cc-a0a5f771709d","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":65,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"3caa06c2-e6a6-450f-ad38-9af5925453fd","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":65,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"a6e46ebf-3577-4ca5-b76c-067d7f1cf92e","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":65,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"a901dbd5-e594-4979-8c4e-c754dc3395dc","block_type":"box","text":"type or in cer tain other respects, the Fund may be subject to cer tain of the foregoing risks to a greater extent.","page_number":65,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"edf4bb63-5387-4ca3-9739-d746fb90cafb","block_type":"box","text":"Investments by a Fund in securities of companies providing mor tgage servicing will be subject to the risks associated","page_number":65,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"0c35caf7-8200-410b-8c49-b3562d03223b","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":65,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"d2b1b456-6eff-4199-be32-4abeada415b7","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real proper ty acquired as a result","page_number":65,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"3c174148-89d3-4654-8d63-18aeca7552a7","block_type":"box","text":"of a default on securities the Fund owns, the receipt of such income may adversely affect the Fund’s ability to retain","page_number":65,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"92894841-40da-4077-b760-7e48d1a6fe2d","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":65,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"663a32be-60d2-46c4-b6d8-6c1d1d805cb9","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":65,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"c174a738-7139-423a-baf9-a8bfb95adcd4","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":65,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"33ea0f4d-aecd-476d-9dd6-10b010a2265e","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":65,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"ac6c7adf-2f2a-428b-8f37-04966a0d19ed","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":65,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"6fcc1be6-a427-44be-a732-57c612a9a112","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":65,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"b6fccfea-e331-466c-98b9-4a1264eb105d","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":65,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"fe1c4249-037a-4605-94a0-68dfe24d33b5","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":65,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"1fd546f1-1091-4dc8-ab2b-38d0e10569de","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":65,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"600a40b6-02c4-456d-873b-82355cf4c6cb","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":65,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"fc5a02c4-f3df-4d26-9a11-426046f99158","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":65,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"260dcc5b-f313-4941-9597-f2837cc2d530","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":65,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"d60f2932-0f09-484f-beff-c67b6c9ebe20","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":65,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"7e25749e-e4ed-47c1-8199-89e9a23c7e43","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":65,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"25b0c3f3-a77b-4d85-b1b8-4fafe4d79b3f","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":65,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"8fa72f8f-7b2e-4d2b-9d31-e1857ba963d5","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":65,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"4c1ec68e-f6ff-4d9a-b792-904c80de0ca0","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":65,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"157c0a4b-6007-4ebe-bd19-020549080fd6","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":65,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"ab6cbca8-a368-4d2f-8dc3-45a38370d652","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":65,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"a2aa1650-fb8e-46d2-91e2-14edb98e795e","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":65,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"c341eeb0-ec01-4386-ab5a-7ea6e88b088e","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":65,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"8847b45b-5242-4b3b-a226-de35bdcb1fc9","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":65,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"7d1151fe-308a-4cd5-8e4d-bf2ea040a5d7","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":65,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"352d6835-51f3-4d38-9fbb-0d839eff752e","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":65,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"fed6e1a7-c8d6-4c8f-bba8-00d6420dab53","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":65,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"adf6f264-ab52-46ed-9cdd-ea843b76c406","block_type":"box","text":"cycles.","page_number":65,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"1453a766-84c2-4f6a-8f2c-328f306ee0fb","block_type":"box","text":"Tracking Stocks","page_number":65,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"b7f84155-a834-4696-ae4c-6e15d10448fa","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":65,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"63b7d1e0-cf2a-4ec6-a823-f94c0b985ae4","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":65,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"9dc15abd-1889-4d5b-bbcb-affce8d6a138","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":65,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"e782b132-d96c-4cf6-8b09-b5b36f96aef2","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":65,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"b3432d14-14b7-4ad0-ab2e-053527eec056","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":65,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"9d797a5b-50ff-4ec3-8f0d-602b7103ca4a","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":65,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"15728191-d296-4840-a52e-fc0852fe50f2","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":65,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"1b2a4010-be46-4149-b444-74f5d5249691","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":65,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"9dd7ac3a-9a81-495a-9614-0631726d0859","block_type":"box","text":"II-27","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"77b3c6fa-dc2a-4e33-9b59-bddea9ccfd34","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"980f8cdb-d87d-4c6a-8a84-a9010a129eaa","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":66,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"af7376c7-b262-406a-91ec-646ada6cbbe1","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":66,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"43845f3d-679d-4bc9-9432-b428ab54cad2","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":66,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"2042e1cd-c57e-4247-97dc-faff0518a55b","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":66,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"d3493402-dc76-4fff-9981-83b4470f438c","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":66,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"1b92213a-a483-4a63-b8af-059b2de4dab6","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":66,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"c54d7e71-06d1-409e-9809-ba72b6f7bfb3","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":66,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"09f464ea-d2ee-416a-93cb-433e70d13df0","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":66,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"cffffd48-960a-43b9-a025-8b8f2ed23eda","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":66,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"98c6c254-359d-4d1c-9ef0-486cf75ec6bc","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":66,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"cb50d8af-50c6-4dca-8976-7ad1224d918c","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":66,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"c6469608-0961-472a-9bc3-7128c41c975b","block_type":"box","text":"ETN.","page_number":66,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"7bb4fa4b-8bfe-4872-9057-744a1634dd0b","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":66,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"4b7c766b-e0fc-4725-95d9-f523817ed113","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":66,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"53ff2a1d-ab5b-4b2b-95b0-19c818ad33a2","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":66,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"ee1e117e-438a-401c-a788-5c91840d2adb","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":66,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"1cbe9bc9-0e94-42a6-a07a-4e52e133d762","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":66,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"de6866a3-2511-4b3f-9290-5d336f149ea3","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":66,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"d42681ba-58c4-4b46-bb46-ab427d0aef6e","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":66,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"c79637ad-e437-4d04-8760-ceef87cc85b4","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":66,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"0de055a1-3114-405c-8d86-15931f9fccf4","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":66,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"761955ef-5106-45bf-ae13-8b6cdf181986","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":66,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"33c91dc8-c3c8-4d22-9b0d-a9d7a537e599","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":66,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"e1c95d57-278b-409b-a02e-85ca060c4223","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":66,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"96be9421-296b-4a6e-b551-f137d992f3d1","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":66,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"7eb4b04b-194a-4b73-ac92-b9e1a270c23b","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":66,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"e6d720ef-4ddf-43a2-8db8-cb487f748f19","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":66,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"1f27fc23-9a74-4f80-bbfd-d26fb118fd28","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":66,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"e7914079-b0c7-414d-b117-084eb6e89dc9","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":66,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"2b6a8168-21f0-44c3-ac0f-bfece255821a","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":66,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"67e86d48-6c58-4c1e-a45d-36c8f434ee86","block_type":"box","text":"Foreign Investments.","page_number":66,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"7ecca5e1-61c8-42d7-aac1-cdc806f2fe7f","block_type":"box","text":"Foreign Investment Risks.","page_number":66,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"6fa5f04a-3f5e-4c76-bb77-bf0ba2606e99","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":66,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"2f26da32-9d6c-41c2-8680-477171bb898f","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":66,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"e4bbb59b-aedf-4da1-8a9e-32dba0e95bfe","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":66,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"dc467ed9-0e7b-452a-80c1-1d4bd2db16ed","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":66,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"455cf6ed-22a9-466a-b824-4ecee26b9289","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":66,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"bcb9e16a-f51f-4da6-96ff-0e761113ed86","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":66,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"78bd43d1-5885-4099-97f1-973f55b0616d","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":66,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"7753724b-28f6-4f06-9ef9-e66a263c3987","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":66,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"e14042a7-8eed-42ef-9652-010802328daf","block_type":"box","text":"benchmark index.","page_number":66,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"d63998ab-0e9b-475e-a380-a9c665928cd6","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":66,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"13bf35ee-dce7-4712-8cdb-39ea05b8bcaf","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":66,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"b7d76bc8-8323-41d9-a33c-f1da8b91e5f2","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":66,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"79254828-8580-4215-909a-7ae2d25dddc9","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":66,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"b94c7e6a-796d-48d4-a894-5da01569ec3b","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":66,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"6f58736e-2c2e-49a2-aef8-982ded39c6d0","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":66,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"f4212615-eb30-4036-915b-8a57ab06f192","block_type":"box","text":"securities and zero-coupon securities.","page_number":66,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"cd3e6076-f498-4201-a971-cc8c9ccbfaa2","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":66,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"fed3be26-621d-4cde-8bfa-9c8cf196ff85","block_type":"box","text":"taxes.","page_number":66,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"ee2095b4-f959-45e3-8ad3-aa7f91b2270d","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":66,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"2e79c7b2-bf43-4572-9031-a360c9c9ec57","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":66,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"a723ea82-93df-4fcb-88ca-9dfff072abdd","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":66,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"ba11929f-df0b-4dd8-b625-970cd641f1a8","block_type":"box","text":"II-28","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3475318e-56d6-41c3-8b39-30cd2686c908","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8a0e656c-8d40-4c5d-8b4e-f194523443a3","block_type":"box","text":"underlying security (","page_number":67,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"332a717f-93b2-4aed-af6a-4c0785416425","block_type":"box","text":"i.e.","page_number":67,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"2d510f20-c6f4-4167-8f74-8976e9e6d068","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":67,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"f6a78941-2095-48a2-ad57-28bd24fd580a","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":67,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"25f28f2f-aee5-455c-84fb-1e8c5d814e64","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":67,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"50287b59-2cbf-4df9-a376-dec57edf90c6","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":67,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"ce65bcf9-9629-44f2-a956-9c4230e2eb6c","block_type":"box","text":"Foreign Market Risk.","page_number":67,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"8c59c41c-8612-4beb-b96b-97cf887c3f1d","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":67,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"f191cb1b-dd93-4e73-ab29-0f479c26d1e1","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":67,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"bdde3ece-00fa-45f2-8714-c3041420ece2","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":67,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"c0932d9f-98e2-4665-bcf4-0e61d05673bf","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":67,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"9c415b3d-2c57-4767-951b-d1dadd301235","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":67,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"39af602c-3376-4b8c-a87e-db574ccf5c26","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":67,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"53765236-9ebd-465e-85e8-ba24f17990e4","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":67,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"4565b65e-cf67-4d72-a841-f491bab4443b","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":67,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"24fa98ee-b26e-4ca2-895f-d98335cd1817","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":67,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"38ffc87e-2c27-4f3c-8586-9d394901feb6","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":67,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"a048f512-d84d-4c11-9721-abbc0ccc02ed","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":67,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"a869d7a7-dd9c-478a-aaa3-27dcbec6f658","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":67,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"71d506b8-1f9e-48f6-b206-05a141527468","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":67,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"b512a0c9-89f0-49a4-946e-1f8c47691789","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":67,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"56b044e5-bfe9-4dea-8ce1-2864ae264e0e","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":67,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"fb80c45b-4a33-4f15-b89d-45502b1f012e","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":67,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"629ba54b-6310-4b1f-9fca-c8a961f60e21","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":67,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"f49dc305-9ed4-4fd8-a754-4dcce0247910","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":67,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"382471f0-6ab2-4814-87e6-1247c4143d3b","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":67,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"0badfb42-98fa-4ab5-9355-28fe518e1f16","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":67,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"0ff8ed64-d0b8-48c6-9e09-e43bc43a8953","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":67,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"5adcc1d8-51ed-4b19-adae-3dc25c200580","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":67,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"0652bd99-2905-4a6d-8b3e-d600d7f6744f","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":67,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"274aad08-42bd-40db-9cba-21fec20a1e0c","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":67,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"bcc47d71-0686-4dd5-bc45-484d597a4a6d","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":67,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"e15954d2-bbc0-4ae2-a5da-ca6dc39dcb70","block_type":"box","text":"Fund’s operations.","page_number":67,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"da601b23-3197-4632-869a-fe1b5b03445c","block_type":"box","text":"Foreign Economy Risk.","page_number":67,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"b789c267-ff7b-40f6-869b-a2655552a404","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":67,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"f6e8b8fa-8618-488d-9914-bf83e7bd1ab7","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":67,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"eb051055-314e-4589-b5fe-88406ee0df43","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":67,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"fb41ea8a-83c0-440c-8452-dd75f7304300","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":67,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"7698ca69-01fc-42c6-becf-94c00cff3628","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":67,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"9aacbd7e-4ca3-4393-9a05-cb425ef9aece","block_type":"box","text":"measures.","page_number":67,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"1e3d4f84-a008-4c20-8787-5e40eeef43dc","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":67,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"37e5f230-16ac-4ad8-b450-3c7a2ab1bbff","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":67,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"f75286f2-b45c-4f0c-8478-027ffb688bfa","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":67,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"ea9b874d-781b-4540-a5a4-3ba3270e8bb2","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":67,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"51089db7-1710-42f5-acd8-d244bd659c7e","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":67,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"b7e915b4-e937-4cfe-b116-3d673630a353","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":67,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"da6bb83e-7f80-44bd-9944-f31b213e73c6","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":67,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"2e45aed5-efde-42b8-b08f-f19e07416e58","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":67,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"66d71e3a-b220-464b-8707-bf3441ff7d0d","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":67,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"cb1a966e-e627-447a-8d74-c34ca8d731c4","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":67,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"1229a7c6-e9e7-4009-81fe-4aceefe0d482","block_type":"box","text":"United States or abroad.","page_number":67,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"21a08015-1c4c-4962-8cb9-bdc5996984a9","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":67,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"20b18ce5-cf6c-41fd-b646-78b6ef6b0b6a","block_type":"box","text":"Many foreign governments supervise and","page_number":67,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"b53391da-563a-48d0-a6ba-d6c91be9c0b1","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":67,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"6de59b71-5903-41c6-acf5-85c2b1a935b2","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":67,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"6153a121-9fc9-408a-971a-46b0af28220e","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":67,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"961f7d6c-12e0-41fc-ba43-0ec9c9ccb186","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":67,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"508cbb24-28e2-46cd-9845-840cf786d926","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":67,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"12d4dff0-b80d-442c-a478-8b61b1ab431b","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":67,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"95c2008e-454a-4db7-9fda-18675f2ed2c6","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":67,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"3c581581-37ca-4a3e-9841-d83fd611ebf1","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":67,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"08058449-0298-41c9-9223-4a1152aa20a2","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":67,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"08d68231-52a3-42cf-acb4-27ba2673840d","block_type":"box","text":"II-29","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"72b19a82-8d7f-435a-ad94-e1a0afbae90b","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c9e2ecf3-8bfe-4067-81a6-a550c8d81afb","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":68,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"421d9463-0af5-496a-bc01-f428d749f439","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":68,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"e7c33634-1847-4e28-a481-ef65505c6d4b","block_type":"box","text":"investments.","page_number":68,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"ca6aa079-f2e8-4554-95a0-e7122818a535","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":68,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"d0d30de9-5943-4c0f-84e8-fdcb1cc60ba5","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":68,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"7cbd4779-9a66-4190-93b4-25549dab3c62","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":68,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"fc9b484c-f36f-4229-a852-e7df3d21b477","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":68,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"a3e4a402-5c55-4850-9383-af86a7dd05c4","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":68,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"b41a0279-835d-4853-9c55-a84034bab5c6","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":68,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"1adfd0e4-b268-43f5-ab38-953619a52b2c","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":68,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"01331125-2340-4cff-9aef-ce4fe8457083","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":68,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"4c61980b-9054-45f2-9409-7584c32c1ea4","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":68,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"a51c05be-371d-4ce0-bf80-cfa8fcbb70d6","block_type":"box","text":"States.","page_number":68,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"270975ff-2b7c-4e59-9f59-4cc149c730f9","block_type":"box","text":"Publicly Available Information.","page_number":68,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"1db69813-51c6-4934-89b2-4d95e1ca8108","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":68,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"7e174d70-1149-41a3-a58f-6c4658b84c7b","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":68,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"97cb3037-dab6-4359-9d5b-60f730ee7589","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":68,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"608a757a-7f6e-4f93-b32d-0f5e9f600dcc","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":68,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"6bd605ed-2516-4042-bea0-8d3d79965937","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":68,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"b06c1425-7ae0-41f1-9dab-1bfc26eab439","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":68,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"5a1cf63a-f330-4032-ab6c-3c6fd1399e81","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":68,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"d0c1b355-f9cd-4d0e-bb06-7bfb70cd344d","block_type":"box","text":"United States.","page_number":68,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"1d05dabd-5a05-4ffc-b04e-fa587afad2c2","block_type":"box","text":"Settlement Risk.","page_number":68,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"1f380b56-2dda-4d87-b6e1-05fd76df76cc","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":68,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"c38496c8-5305-4720-a4c2-4cc3b4b22222","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":68,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"413836cf-0ae6-40c8-a77c-df02335e6693","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":68,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"f96da7a5-4860-4eb8-87af-dfbdb9bcb462","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":68,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"b458480c-c5bd-4620-9632-c26c156be01b","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":68,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"130ba098-f745-4aa2-98a5-128c7899f110","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":68,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"08a7bd9b-b31e-4678-91ce-091e33a7a9ff","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":68,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"76c2df71-6aa2-41d7-a371-103861908a8d","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":68,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"3cc8ae47-9efd-401c-b199-b62387faff3c","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":68,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"68ee5cb6-9c96-455e-9113-c8f916044f27","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":68,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"6687cd87-1d60-46e0-99ac-543cad145f4d","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":68,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"848fd99f-9755-44cc-8350-107cff934d39","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":68,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"8ccac0ef-58a0-46fe-a0f9-2b1bb0bcafbc","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":68,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"cf734ddd-50f8-47ef-ae78-576108bcacb6","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":68,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"626950dd-37c3-415b-a376-a3217474ba4a","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":68,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"2985ad6c-1926-47f8-a242-75992f8d8184","block_type":"box","text":"Sovereign Debt.","page_number":68,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"3811fc2a-0b6e-4326-ba8c-cd736f841d9c","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":68,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"260cbb0c-5264-43cb-8da2-e820b899b502","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":68,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"729b13a8-b33b-4692-946c-dc41664f8d90","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":68,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"12ac9572-76b2-48e1-9094-a440bdf1ade7","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":68,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"d09d3edf-e498-4e21-9160-461c33b56994","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":68,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"1f701fd0-c938-4701-a587-39ba0e7cfb94","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":68,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"a9d82cb6-9aeb-4e65-b481-11fafb723b94","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":68,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"a0e652b9-0cab-49a9-a00d-bd238f9bb08a","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":68,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"dbeb7176-d073-4931-8968-d583bc966daa","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":68,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"e6bc082f-f958-4275-b002-b5f608fe1f41","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":68,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"8a712873-db86-4251-a395-2f32e92e40a6","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":68,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"a04ecdd6-14d8-4e59-9af9-672e011d2114","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":68,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"088f6a61-814b-4c65-a1e3-483d765cb991","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":68,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"616c5e84-c0d9-4e6e-b204-db861c5247a1","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":68,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"d1d0b7d1-a70e-4f40-b7d3-1f3338e09d53","block_type":"box","text":"debt.","page_number":68,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"84810f5a-94bb-4c03-b958-fe19d6a37611","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":68,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"fd4e950e-6e36-4343-afcf-79e4e6665110","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":68,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"c29d3679-8244-4645-9132-3e59fef7e0a3","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":68,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"1f42deb6-8353-415f-a81e-93c3af2134c4","block_type":"box","text":"II-30","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"104fabca-48aa-417f-918f-9c26284176d3","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"18c1a91b-4188-424e-bd10-537dbd54ccb2","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":69,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"c788a95d-23c8-46a3-980e-5fd2da055d16","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":69,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"27891725-13ec-4e37-8999-265c6652e45a","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":69,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"80a77df8-b0a1-4c20-9224-9b4b56b96df7","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":69,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"6837e8b0-07bc-4632-87e6-b12a96ab035e","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":69,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"ae19196c-bd0c-4294-8735-4bbdae985415","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":69,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"87871f9b-8da8-4aad-9adc-9b6c60dfedc0","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":69,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"74a9043f-b641-4d23-bdb5-7bc5138dcb97","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":69,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"def1fe53-ada1-45f5-b31e-2a2b1fc0acba","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":69,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"d29c5117-a329-4668-adfd-5c53ffa6e0aa","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":69,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"244cee66-ec1b-4275-a743-4d50936c9a76","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":69,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"7a683045-e6c4-4810-9c7e-203ae6a2cbed","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":69,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"f177a292-9e05-4127-8149-99ddde41f38a","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":69,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"dde1d97c-221c-4475-987b-b1efe33692b1","block_type":"box","text":"in the Fund’s net asset value.","page_number":69,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"1ce5644e-3810-48ca-8468-c8d2f9ebbdc7","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":69,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"ec888f38-c5d1-4711-877c-f4d8628c548e","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":69,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"071d9a3c-8475-450b-8759-5559db9f32b5","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":69,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"ca594d6e-caf1-4d27-bfcc-f8cbf6c85338","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":69,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"a32fa211-3e66-40be-8c09-e4914b361dea","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":69,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"d1e5f3ca-78e5-46e8-bace-0aebb5feb308","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":69,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"fb6a9912-2f8b-40fb-b209-bab3f37c6c8c","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":69,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"45c1895a-76d0-4132-a0e0-c81905667276","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":69,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"051a7824-0213-47ad-8809-2308313c0df7","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":69,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"9f97bf17-5044-4ecc-8595-e96c2e6bf302","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":69,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"fe83089b-2e45-4511-b8a4-75c0b6a1944c","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":69,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"586b32cb-f8f5-4ec6-b83e-59dd649efba4","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":69,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"7e750a2e-9dea-46ec-9ceb-1ce5aecd4917","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":69,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"1c5cacd7-a58e-4958-ac55-fc95817a8944","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":69,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"05fcabfe-9c30-45a6-9818-d5969df881d6","block_type":"box","text":"Fund may invest.","page_number":69,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"b74dcc98-62c1-4ee0-acb0-a09eca19c62c","block_type":"box","text":"Funding Agreements.","page_number":69,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"1150067b-18df-4623-953e-c6b09a2c3e65","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":69,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"2eaccff0-9b65-4cca-a068-0ccf37aef62f","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":69,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"4bba66cd-4f33-47ee-9276-6b63e9a8262a","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":69,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"725982f1-4b37-4d75-a573-2d47ccdec05c","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":69,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"a746f610-492b-47d6-aa0b-e39302233b22","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":69,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"b6b3f213-15fd-44bb-8ece-38c3626ad017","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":69,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"88daedec-bb6d-4a9a-8019-74ab940f5d30","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":69,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"98038445-a0e7-428d-8eb9-a14697922698","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":69,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"b104473f-d027-4ef6-81c9-66e4ccfa18c9","block_type":"box","text":"Guarantees.","page_number":69,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"d380a146-6017-4c04-b335-5080d0c51d34","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":69,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"1e832b82-076c-44c0-aaeb-f264301612d8","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":69,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"12c516e2-9149-41c7-92f0-7f2f71b6beee","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":69,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"cb29fdf0-ea7a-4d55-ad72-671bd1d1fd3c","block_type":"box","text":"Illiquid Investments.","page_number":69,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"6addfb9d-e3dd-4903-944b-19ab80b29b42","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":69,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"0fe30d63-d484-4e79-bbac-0894e7c5b0b0","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":69,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"a621f839-0db1-4a5f-94bd-e2356da85bb5","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":69,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"49e36afe-0cda-4b81-bbc2-64bc1a8600ba","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":69,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"1ca7794a-3be5-4f7b-a246-dea5c476d6cf","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":69,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"c67ae224-b9bd-4d4e-bc67-efca98c25542","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":69,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"31cf2e5e-f68c-474e-8c71-ee0ea4d09aba","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":69,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"61e26d6d-3ce8-421f-a731-6fadd921cac8","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":69,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"ab44e8b2-2c9e-4775-9c60-222120cdb2da","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":69,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"c4f9c20f-5c1b-467d-90d0-f3236660cec9","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":69,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"f03ddf17-d596-4fd2-8dec-408392ccf57c","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":69,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"8f5c6d02-caaf-4a2b-86eb-e0f00e6f771e","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":69,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"edc7204e-9be9-49a0-8dba-c2267681c377","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":69,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"c925b227-c7c9-4922-82df-cde364d7a475","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":69,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"d3ad3d2d-4f28-4fcc-83b2-5a76cb92ff2f","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":69,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"22460efb-db60-4ea3-a530-a8d347eb4af0","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":69,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"065c0b12-52b3-4a05-a899-243697274736","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":69,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"e973fedf-87b1-48f8-b99c-535aab298f9c","block_type":"box","text":"II-31","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2a7f5bac-a1b2-4c29-a732-60b2f6ba4232","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"894c166a-ad0c-4636-a21d-649a49d5d3de","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":70,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"8ce8e4f1-5a73-4a45-99fb-7da7668a8eb8","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":70,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"fa1b6dbe-6599-49c9-984f-2afe344a6654","block_type":"box","text":"Index Funds.","page_number":70,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"b58f8b9c-42bf-4026-9e78-6b431418003d","block_type":"box","text":"Cash Flows; Expenses.","page_number":70,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"b7824768-1251-4ffb-8ce6-979839488c91","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":70,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"ee803ba6-10ee-454c-87f7-77e929b4cb76","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":70,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"5b4303b6-88d5-4a04-a615-0f20ed03f2ff","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":70,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"8977de3e-035e-4bd5-96f0-d14e5bdd92f0","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":70,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"0c73780b-85c4-4f2f-b55c-235a9acd6a70","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":70,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"03b5fc56-6b45-4a26-81ad-ce63e673483f","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":70,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"fefeb368-86ec-4c2e-ac58-3cb6ccd84871","block_type":"box","text":"(","page_number":70,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"a99cb1d5-e9b9-4305-bd0b-19772526e305","block_type":"box","text":"e.g.","page_number":70,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"d33a1625-9300-4b47-ad12-d68c8da432fa","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":70,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"924675d0-4611-411b-8faa-96095a37f341","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":70,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"9258b7e0-3b71-48ab-a66f-10c07b87694e","block_type":"box","text":"par ticular security as an investment.","page_number":70,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"b2cb54cc-c0ed-4658-866e-774a8fde24b0","block_type":"box","text":"Tracking Error Risk","page_number":70,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"d7e87d41-f646-42fb-9f2a-6f28ff79a393","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":70,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"22b2515c-3f38-4efb-92da-641d8139b967","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":70,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"2e9520b7-76db-4642-827e-a0377f0f79b4","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":70,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"42f27439-10c0-4db6-a80b-0ecb934b9802","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":70,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"28def5db-04db-4fbc-867a-51a24ccdc1f8","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":70,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"d50492aa-4ac7-4e00-80b0-48d29b27d1e7","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":70,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"85c5773a-a240-43d0-b8bd-b17bbcc477e8","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":70,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"4744d66e-afa8-4311-b126-3f5a626e482d","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":70,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"9beff91a-ee71-4838-9e3d-4474eca3e611","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":70,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"b1416adf-4d6c-4637-9b67-d5e1bebb7f6c","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":70,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"c3b1f759-d33f-45c4-8543-16779c59ee56","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":70,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"93959361-c781-4a1f-b003-965ba58cb260","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":70,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"b045d713-5970-4392-948e-1fdf47b73fc0","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":70,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"16d9d715-6a5d-4e28-9094-41b61d5e7c77","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":70,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"46a264c2-b473-4350-a1dc-c86336b26666","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":70,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"e33bb9a8-2947-491a-aa87-0e0aa26c1365","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":70,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"0f772947-2603-4226-89fa-1f5dd79f1718","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":70,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"1f542644-cddc-47b2-9eab-bdc33aa8f135","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":70,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"836e93ce-379d-403c-af9b-a0539012f2be","block_type":"box","text":"the rebalancing of its index. 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Bloomberg has no obligation to take the needs of any par ticular Fund or its par ticipants or any","page_number":72,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"4cb72797-a15c-45cc-ad28-8b4690066be7","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":72,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"c3257731-ed83-400e-a80b-f256a41f56e8","block_type":"box","text":"ICE BofA Indexes.","page_number":72,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"cc765168-dfcc-4d6f-a534-d3fc445e38f0","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":72,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"3882e8ab-5b4d-4441-9ab6-2fa5f902dcdd","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":72,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"bf57816d-ad3b-464e-bca9-1ad5a8239ca1","block_type":"box","text":"not the issuer or producer of the ICE BofA Indices, and its name is a trademark and service mark of its owner used","page_number":72,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"3c45c174-c3a8-47f5-88f6-49d24e004400","block_type":"box","text":"under license. Neither ICE nor BofA is responsible for or has reviewed any Fund nor any associated literature or","page_number":72,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"25dc7090-7bae-42cb-bd77-55d705ed9406","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":72,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"66554d44-522b-4b8c-abb4-53d13abf789f","block_type":"box","text":"completeness, or otherwise.","page_number":72,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"c4435c78-ff69-4f7a-9404-264b3a136993","block_type":"box","text":"ICE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change an ICE","page_number":72,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"afd8dc32-37d7-41ca-9d54-9a9959efd457","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any par ticular Fund or its par ticipants or any other product or","page_number":72,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"2e691ca7-1a62-4b43-90a7-2111f9d1d677","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":72,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"3f2ed8d8-87f4-4db7-b9cd-7c5b94067e25","block_type":"box","text":"Indexed and Inverse Securities.","page_number":72,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"e0536133-f1f3-4a65-b570-dec4e72d79c7","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":72,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"95a2d27d-5623-46f2-b82b-c753ae142024","block_type":"box","text":"par ticular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":72,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"05bd77f0-6ca2-498d-8c60-4294dcbf85fd","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of cer tain securities also may be based on the","page_number":72,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"2e87bd3d-8beb-4593-a3e0-409404200fb3","block_type":"box","text":"value of the index. To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":72,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"2a492200-0e6a-436d-869f-e0dc7ffd4ec5","block_type":"box","text":"be subject to risk with respect to the value of the par ticular index: that is, if the value of the index falls, the value of","page_number":72,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"4bc80443-18bc-4146-8749-77be25d92ca9","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on cer tain securities may also be","page_number":72,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"c701e1a8-b7fa-4d99-917b-5b909bbec775","block_type":"box","text":"based on relative changes among par ticular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":72,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"97c486ff-ea56-4adc-89ca-24d4f99ebe15","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":72,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"97f1e807-6013-4353-8c1a-255b9149caae","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":72,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"68eb7441-1983-4608-a403-578c14fb12f6","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":72,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"c1944889-703b-4d34-800d-2f6e6845a293","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":72,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"13fdc526-1087-4bdc-9af9-62dd63e18e95","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":72,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"7250a418-fa43-4a05-b10f-0a0bfdf20849","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":72,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"7a3efc28-83a9-4efc-a4fd-7f9d435e1644","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":72,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"6cd3a992-be25-431d-83f0-65b49c34e2dc","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":72,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"53649ba1-8def-4cd4-b01e-068642740951","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":72,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"6151103d-5963-4c93-98be-c4f79ecead69","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":72,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"45baf4f5-9e29-43ef-917f-f8b96ce8381b","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":72,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"ae191b9c-7cd4-4dac-8446-78432605e717","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":72,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"66e7f4ea-be8f-4b99-b588-0c33f19a04b5","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":72,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"ea959020-4345-49f6-a2dd-b514e51da52f","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":72,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"4a719553-60a1-4e81-94aa-64c6d7263df7","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":72,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"acdb309f-4848-448c-98f1-737d72d3df7b","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":72,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"5fa9e4cb-ea03-4857-96e9-e75d93b61abb","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":72,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"630017b2-d6ca-4224-957e-13351417d8ef","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":72,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"43c627bc-cfad-4a55-96f9-00f4bb1a1863","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":72,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"9598e2dd-a622-4595-9e3c-425c4a4d67f8","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":72,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"06516811-16c6-4b2f-90df-c68ed62fb84d","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":72,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"33bbb614-23f8-4fdf-861a-7d5eb2c4d754","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":72,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"5729a581-8250-4cb4-9c84-5956c86eaa83","block_type":"box","text":"Inflation Risk.","page_number":72,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"7961f41b-a5c3-4976-834f-457debb0bcf2","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":72,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"724388c0-cba8-48d4-a5e1-7ab6f0ec57e1","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":72,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"90afee66-c5d0-481e-aaa6-8f299ec757c0","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":72,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"99cbbb7b-9348-47d6-a215-60751c3deca9","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":72,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"39d5ad89-42d4-4c17-8d0a-f05056056851","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":72,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"51d5b85c-b161-4ebe-a61e-761a68923c35","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":72,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"f486c573-9a64-4a58-8ae8-e2f750e93fdc","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":72,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"26cda508-fa01-4cea-a82d-0cdb8355377b","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":72,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"53b1a282-7dcf-489b-a2fb-3619497856de","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":72,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"4e5246e8-642f-489c-a95f-061bcb0e4b72","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":72,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"27e0b2ba-479b-41f0-b6d8-96297ea32652","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":72,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"de971d57-bf18-45d9-8976-9b89688c51c2","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":72,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"c19e13ef-c1c1-41cd-a227-7d54f67c3afb","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":72,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"1394bfe6-f820-4799-ad44-e1a7738d1502","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":72,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"e786ebe7-f0e8-4a8d-9fd1-b850d91d1840","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":72,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"cab018b7-32dd-44e5-bb3b-696a0910e7fa","block_type":"box","text":"II-34","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2d697b58-bfbb-4ec8-a979-d559b11178c1","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2b5cb282-0f22-4069-b8e0-9c73f267de62","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":73,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"981f96d4-c743-473e-b687-9a7a67e9b006","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":73,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"0c1c55e8-b770-40ef-a889-ddafc8281e06","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":73,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"feed09d7-5bc4-42e4-92ef-7842bc278a05","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":73,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"3df9ba3b-ddae-4ba6-9aae-feff148e5ad5","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":73,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"09e2a489-c065-4693-b5f8-fa6e4ab4443a","block_type":"box","text":"be available for very limited periods.","page_number":73,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"f763ca4f-69ad-4966-b5f1-531580acccb0","block_type":"box","text":"Investment in Emerging Markets.","page_number":73,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"afb8f57d-5229-446a-a510-2cf4121c1b50","block_type":"box","text":"General.","page_number":73,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"59ce87c8-e982-4fe8-a39e-b0d6e5dd1cee","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":73,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"caae9235-7793-49bb-af20-992613cea3db","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":73,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"37d4879a-ca90-4b6e-a55c-a45c52d3c605","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":73,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"1e2c0c9f-2a0f-423c-a390-764921445619","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":73,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"69b1dc87-c7c6-4cea-9c6f-7b304fc942e7","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":73,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"e1b91b6f-f947-4220-81f6-73e7083a3dec","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":73,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"9dcd811e-f42a-4c56-860b-425b8974fa64","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":73,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"ca45a3b0-6b55-4ab9-b34d-45dacf57333d","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":73,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"722b76bf-f32e-4f06-86df-c0f6e9fe6559","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":73,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"c6f38e2e-1532-4841-a06b-31aba7b0ff32","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":73,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"76c7c74d-22dc-4cb3-bc91-2b7077362d88","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":73,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"67f59dcb-ce2f-488a-8225-5af03351a25f","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":73,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"e20adc48-4924-4a99-9659-f3c0c3fffbfb","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":73,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"0907b025-5160-4520-81e7-3cc0c2c43870","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":73,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"c61b5fa4-e3f1-4bf7-9f41-9f09c5ab7461","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":73,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"3da36e8c-3341-4413-9672-b94d5dd937e3","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":73,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"a59889a0-b573-411e-8897-75667b8e89cb","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":73,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"cf3d1bf8-1760-41d1-8999-cbbe8d16b430","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":73,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"338cfd54-cbf5-4534-9410-5c722f41cf94","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":73,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"4c5021e9-b041-46c9-8e68-17e3653ae705","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":73,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"b5e7f0af-e610-45ef-be76-25ebfc386c43","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":73,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"783b120d-3542-48db-b758-cd851d05050d","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":73,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"5a10d5d8-cc22-46d8-840b-8b6ebc067e97","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":73,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"73b4e758-ab52-418e-ab4b-9d81665baf97","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":73,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"a8fea735-44cb-4dc9-bf68-c3d46702c21a","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":73,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"387ad45c-7e51-4ac3-8a7f-40ffef718993","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":73,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"44b300a8-b726-4b29-a092-d419b1e20f1f","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":73,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"5a8c0beb-ccb0-42c5-9146-5f84f0be54a0","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":73,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"888147b2-9b4c-4b94-81e9-17befee4f5f3","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":73,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"0d05b54a-ab6b-4f45-9af3-28d199205c2f","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":73,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"2b5cfcf0-f10a-4ca9-8285-93557e1c5eaf","block_type":"box","text":"volatile than investments in more established markets.","page_number":73,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"c39b0bb1-2dc6-4dfe-baf1-78203cf7290c","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":73,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"81842861-f0ed-4fe0-b600-cabbd54a2256","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":73,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"6637bc68-1f2e-4fc9-8d85-6e6433a01de4","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":73,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"f7eded35-0eea-4685-9a1c-f436cca85001","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":73,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"0544536d-ce6c-43cd-b81e-087cebd07c6f","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":73,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"43056314-32e9-4439-b41f-c34540cf86f3","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":73,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"307aaf96-3bbc-484d-a89b-749800fef678","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":73,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"d4ce030d-bffa-4135-9172-0e5158247041","block_type":"box","text":"acquisition or disposal of securities.","page_number":73,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"6e36d2b2-0a5c-4c5a-b909-b17af1f2bca7","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":73,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"4c6625ea-7b35-4ae6-ba19-a107ba04a0ce","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":73,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"e1c3d029-b899-4116-89bf-77953ae3f4ed","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":73,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"7965d8af-8dc5-4c35-8d1e-b06afa21f044","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":73,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"8c360143-7448-4ec1-8f2e-2dd7d8c60105","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":73,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"0e6a44df-e16c-45bf-b6c7-229d7033e659","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":73,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"72cfa0cd-2e7d-43f1-9d75-1af46bd63501","block_type":"box","text":"II-35","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"568923e4-5d49-4ffd-8f87-d3019f971d96","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d7a78ad4-0251-4b3d-9c4d-ffad1b61659e","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":74,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"b771d8e9-2bf5-4f80-a889-94e66977183c","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":74,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"cf272461-1a82-4887-b585-49a6ebddec93","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":74,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"ffc6829d-9e2f-4825-b1ad-dc95e8b0b11b","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":74,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"f57a2174-83b4-4c5f-a11e-e29dfe1b82bd","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":74,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"ab036bcc-4241-4511-8205-ee79ed5ad70f","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":74,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"52b386b0-8e65-4416-8254-ee4ea455d610","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":74,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"92fb9f3c-89b6-4edf-8822-40d13c1e4516","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":74,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"c8f0a14e-c964-444e-850a-b63cf0a5435b","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":74,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"7f524140-858c-4191-9789-d0c2f63cb1dd","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":74,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"82de64a9-042a-420c-bc3b-3e19f63a17db","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":74,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"1c445c81-b7e1-4b2d-92cc-8756ff5b2e8f","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":74,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"40bd2563-58a3-49ae-8405-12710a0ae2ce","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":74,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"e55f37ab-7175-4ecd-b391-d52e88e05fa8","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":74,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"2d2ec66b-44b0-4c17-a315-b094a11bcedc","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":74,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"2569dc4c-f3ba-4f20-a548-0af36369489d","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":74,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"45df9c2d-8b07-409d-ab75-55f4b261ac17","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":74,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"b2378b78-9482-421d-84c5-23fd2286e310","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":74,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"0657e0c2-c945-453a-a9eb-c58be07c74e1","block_type":"box","text":"per formance of the Fund.","page_number":74,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"c8634dc5-d8dc-4d8a-8008-51f81d489280","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":74,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"c47934ed-3b6f-44f0-a3c5-49ef5766b49a","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":74,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"912eede6-fbff-47f6-be8c-9e5250a1babe","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":74,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"1af3f27b-747d-4c53-a722-b6a6495bb312","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":74,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"d2dce379-b76c-487f-8d41-f6f3db6838c9","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":74,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"1bce0044-5cee-48e5-bae8-5d84b28245d6","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":74,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"39c176f9-5a53-410d-b094-ca2690336fd2","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":74,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"488235c5-b0cb-4ff5-815e-0a69c0e85d42","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":74,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"0f72a613-ec8b-49f3-a5ba-fe3713b431cc","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":74,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"0902a328-28fb-4721-b705-b4746c639789","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":74,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"963f1dc5-b0de-4f10-b959-0e82f8a7d154","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":74,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"9c05de16-f695-4815-8512-e4801302475c","block_type":"box","text":"affected by a variety of factors.","page_number":74,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"80f258c5-cd47-403a-9916-198831ea6634","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":74,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"d791d1cd-893c-47e3-9d17-046cb7d5b97f","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":74,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"32d0112d-5ef5-4a17-93bd-c13cdba2bdf6","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":74,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"7663df72-998d-43d2-a76a-509dc01ee00a","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":74,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"a981e821-2ea8-49a2-9eb4-682a1de12be9","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":74,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"2b397091-dcb3-48f3-b855-948fdbdb0e47","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":74,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"a1682929-d043-426d-94b4-fe720f2960a2","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":74,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"3f178545-111f-478d-ad53-6609e1b675ed","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":74,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"e168223b-f79d-4ba3-8adf-4bafbd394b04","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":74,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"cd469df3-e3da-46ce-91d7-1b9c35fc3cd0","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":74,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"1e52e9e5-9748-4616-ada3-a20d9abb8566","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":74,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"e3c423a6-e82a-4fa3-8cc0-55890d3d6ddd","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":74,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"a12b710e-16ac-409a-bcd2-2d0b0c733659","block_type":"box","text":"nations.","page_number":74,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"78e98357-7b2f-4bd6-901b-4ff99353f733","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":74,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"e6821514-805c-4b96-bddc-0a112d33dbcc","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":74,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"fe1732da-84e2-48b9-8ea7-6de18a09cfcd","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":74,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"4efb251c-2637-4c83-b588-da83202e536a","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":74,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"b0c7feb2-e79f-45cb-aaf6-bba21ad80836","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":74,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"c06628e8-3898-41b8-b4e8-68f8d83b6e4f","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":74,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"ecb82ed8-f6ad-4c63-bb66-abbe87585d6b","block_type":"box","text":"market Asia-Pacific companies.","page_number":74,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"04615a47-606f-4473-87f1-fdb90a95e4c5","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":74,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"9223083c-e5d1-4845-8b56-ec44f7fe24a8","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":74,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"57d6a29d-b90c-45d9-80ea-52459bc9e8bb","block_type":"box","text":"services for such securities outside such countries.","page_number":74,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"1918f850-e323-410d-bf12-fc5216ec3eb0","block_type":"box","text":"II-36","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aa842796-7f55-4eb7-8e08-c05730353db3","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4cac2b7d-f299-4047-be79-7eecc148f848","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":75,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"95bf2e39-9cf7-4f0f-bb50-423c57ca172c","block_type":"box","text":"to commercial banks and foreign governments.","page_number":75,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"2266f76f-2296-49de-97b2-723f2ff09ae5","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":75,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"d4f828f1-32fb-4e06-9048-3ff040db9f0e","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":75,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"25e81f64-57c9-48ff-ae79-0eb6ef941b06","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":75,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"83a25874-5d96-41ac-ace1-46835e9d9c8b","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":75,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"ffae896e-01bb-4731-9ce2-05bda7845bc6","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":75,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"3320966e-8760-497e-a4ff-3cc33272c15d","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":75,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"9601754b-f703-409a-ae1d-5f0d6df181bc","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":75,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"cd80b437-928f-4c75-84bf-453be1ad7559","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":75,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"86525502-273a-46c6-b217-ac0e35944e18","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":75,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"89527839-3af9-4315-8888-114326e82139","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":75,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"751b1e99-727e-452f-800f-0b2a458cca08","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":75,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"df5acafa-2f00-4e9b-a8ec-9b849bd47fba","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":75,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"818a3ca5-1d75-4b03-92e6-dbf7d0f23b1b","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":75,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"2fce7bd6-4e5e-4a74-82b6-f44130aa7742","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":75,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"4703d4b2-7db0-4f53-a57f-5e25d416d762","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":75,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"1c27cf25-78da-47e8-a176-f13a54d0834e","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":75,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"a8d5ced5-8807-4468-b01f-6b30d5f4821d","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":75,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"219abb5e-2201-42cc-848f-db0e3e77ff44","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":75,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"ac53a4f1-9e34-4461-af91-adeaaaf1e436","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":75,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"6929f930-6c91-48e5-ad47-7ed5c4ae5f9b","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":75,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"4578b62e-91b9-4a3a-a8fd-2d4e08f86d95","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":75,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"68e25b04-2d2d-4c87-8b54-a18792518139","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":75,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"4dc08dca-347a-40bb-80d9-4d4d0d69defd","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":75,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"01d8ae0b-4a03-424e-b315-0e2e18ad3fc2","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":75,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"b525a736-bbf1-4c9a-ae5d-f51fcb62fc42","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":75,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"821c0ff3-b87e-4010-a4a6-e3a25592af91","block_type":"box","text":"investment at that time.","page_number":75,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"5f81257f-6cd2-4aaf-9616-f22d83027c35","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":75,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"1b193ac7-ec4a-4b39-b843-2c03a1142dc9","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":75,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"e2b711e5-7a13-4abf-8b08-cc54b14d12c7","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":75,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"c7f072f6-2870-4556-b2d5-9632c1d45974","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":75,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"8e2eb2e5-7a37-4bb1-be2d-7d169fc73c90","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":75,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"76057357-cda2-4450-a078-14b77ed79ff6","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":75,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"415fcf02-7d89-4466-adeb-62c914d10c2b","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":75,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"c09ec293-247d-4897-aa2d-47070da6984a","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":75,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"4179e53c-f5b2-4daa-a875-54308b8d8ad6","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":75,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"f32fc6d0-b7ba-49a5-8b59-ea0c83f796e3","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":75,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"af324fcb-cc65-4217-903c-3c73082257ad","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":75,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"d8baac53-a3cc-406d-ab38-915082fea7c8","block_type":"box","text":"government).","page_number":75,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"0d38a3b1-114f-4568-b0c5-54b50c236f4b","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":75,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"1b368f5f-40d4-4734-a099-a6b84aa607f6","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":75,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"be361f02-1474-4907-8af7-c34bc8185d80","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":75,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"10069ff7-a60b-45e0-b98a-a7b81745cf09","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":75,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"01776431-0d85-4c86-86b9-2f17f57fd81b","block_type":"box","text":"foreign banks and other financial institutions.","page_number":75,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"6dd53b0f-6d72-4c08-b3f8-9dcea026b85c","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":75,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"990fdfa5-70f8-49bc-b649-e0451b176fa2","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":75,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"12eee0e1-d0f4-47c8-93c5-1d5a10ca52f8","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":75,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"04c54d77-d92c-4cb8-9471-5e8362cf620d","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":75,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"29c7f6f5-4b5f-457c-9c80-9eec975f6cfc","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":75,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"0e81ac03-dfa8-4002-9d8d-5a1290d8b196","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":75,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"2516fd8f-534c-46f9-9c01-95c5e85718d0","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":75,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"18ce1c9f-5a02-42be-b3de-eec3a07ae188","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":75,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"81dffd7c-8605-4a5b-94f8-488d788bd5e2","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":75,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"2a4f1d2f-e4af-4a6e-a928-bdb8dbf1ad5b","block_type":"box","text":"II-37","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d2b54ed1-bc4e-4dc4-b516-f4ba24a41823","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1fcd6e0f-7012-4bfd-b6cf-95b97043e514","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":76,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"041adf70-80cf-465a-a834-f206356010a9","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":76,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"aa1d0a7c-b96a-4de2-a81b-e35c12308183","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":76,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"104a1aca-ff45-4095-bba4-4403d9a7ec2c","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":76,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"42cd26af-06fc-4dfc-9144-1c72e01ac162","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":76,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"2d390b7f-d3b2-4590-a494-ddc8b35dc135","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":76,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"5cec5008-d85e-412f-8f5b-2216fcbe3066","block_type":"box","text":"foreign securities.","page_number":76,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"fc6b62ce-3b58-460e-bdc0-b33e35c6a175","block_type":"box","text":"Risks of Investments in Russia.","page_number":76,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"21ad647f-f109-4895-b7f3-50d08118e329","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":76,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"bfb815a8-87a3-4773-a4e7-5309eba6e491","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":76,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"721b5ada-c2e2-4ced-a070-b1d87db17f8e","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":76,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"7cda19a8-f8aa-4308-adbd-d689123719c4","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":76,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"32811838-7a9b-457b-a938-5acd02fe6337","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":76,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"192ad548-4616-4b4b-8392-426728face75","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":76,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"ed02d5ed-f2b8-479e-a538-a2b0d11cf1fe","block_type":"box","text":"developed markets.","page_number":76,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"73187edc-0c37-4b5b-8244-d3c2904d9dfd","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":76,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"4273452f-6872-425c-84e7-eb041d0528ac","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":76,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"0e1a807e-dd61-4cd1-90bc-0577fead600a","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":76,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"1b943649-6ce9-44db-85a5-92c2b781e949","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":76,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"83833c93-5d8d-4b07-9224-aa1f18ea2f19","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":76,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"7aeb2fb2-61a7-464b-85be-2d7d53769ee1","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":76,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"d30eb5bd-53c3-4b7e-b94c-bc14b1789efd","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":76,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"18df44fc-3fe7-46f7-95e8-9edab696ea59","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":76,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"40620001-3b4d-45fb-a813-c47eb7a8b09f","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":76,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"c577394d-3eb9-4150-adc6-e9870ca5afdd","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":76,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"120e15fa-3ad4-460b-a9a1-b513b99359b5","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":76,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"49dd1f16-196b-4156-9b52-a7dcd1310ba2","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":76,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"b6faf3db-959f-445e-81d4-244668e1120f","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":76,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"cc0098bc-46a9-4193-a06d-47d42b448e86","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":76,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"1838a74b-9882-45f0-aaec-468b26d24749","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":76,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"9d92ac2f-48df-4f90-a164-8b79fd082683","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":76,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"16909adf-922c-4279-bbc0-eedd390e5b1e","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":76,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"ea868955-8560-44f4-82cd-b2c4d8426c46","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":76,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"88ea3e16-df38-4b0f-82b0-06a94327c882","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":76,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"8225c8cd-26af-439c-a92a-708c53512a1d","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":76,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"52177520-815f-4993-8e7a-d2757a49f0eb","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":76,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"e1048f16-8832-4e21-b255-2d6c009b421a","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":76,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"fc8d5ab2-4715-440f-bb24-f2cd32558902","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":76,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"f2e3cb6a-0829-44e6-90da-c1594b84494b","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":76,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"484a9d24-121a-4838-b504-8e100b49190e","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":76,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"b49540d7-b893-4000-80c6-a68681a7afa4","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":76,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"71dba72e-c953-4f33-bcbb-37cf5d586180","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":76,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"28cffab7-9f97-44e7-9796-4a232b4f90e9","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":76,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"4d15808f-e83d-4b39-ad1b-cccf234fd47d","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":76,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"4522cc60-88c2-43a6-b49a-868a9ea532dc","block_type":"box","text":"sectors globally.","page_number":76,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"d1bf31e0-e2c0-4157-9cd0-7d08816c9b97","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":76,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"bfd25297-ed2f-490a-a759-34cf5e3d848a","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":76,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"3ba293d6-db01-4860-9828-b026ef20aae7","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":76,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"7cb99186-19d1-4265-9a92-2512947e34ba","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":76,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"394a978a-388c-4b21-97df-4ac46c7a0de9","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":76,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"405a7263-9c81-4216-9883-896e784653e0","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":76,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"7d4be64e-3bfb-49cf-8860-a5d42185c618","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":76,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"bdbd66ed-3440-49e3-a249-e9ac096fabe4","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":76,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"dae05eaa-6e68-433a-a2b1-ca96e0415e18","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":76,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"66abcd5a-d9b7-45f0-8d5b-9845240239b5","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":76,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"c59a1c06-e5ce-4eab-b603-80329dc61703","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":76,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"d3b7cb3a-1733-4b5f-bbec-45c3e3442240","block_type":"box","text":"II-38","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"25d08ae3-d4b0-4be3-b6b5-7c4eeb392899","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad1f6d9f-9528-46d8-b8e2-aa2e15c47ffb","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":77,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"2b819ca6-815d-4ff8-b2f3-ac0156a13c1e","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":77,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"103996d7-cd10-47d9-aea0-0a2d9dfb2d3e","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":77,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"83f73e77-598e-4e83-a649-20b03c35a7ad","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":77,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"9bc6ade9-627d-4139-a337-75f3b69bbf21","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":77,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"540a2f30-0d64-4891-8e5e-c7816ed396bc","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":77,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"975c8913-e984-452b-a0f8-cf76857b5c39","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":77,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"5ba1ba8e-c387-4489-b8da-41c891738383","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":77,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"ce9d5965-818a-48a8-8bab-a84686f9557b","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":77,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"023f0aef-a180-47a4-9991-5e88d7dbaee3","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":77,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"eb157ab6-15c4-4265-afb0-8e0b73a08aa4","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":77,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"9310467e-0188-46c5-92f8-baa5f11e91f8","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":77,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"91567bee-525b-49f2-b7e1-4d291ba3295b","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":77,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"1fc3fd28-8b4b-4985-ad60-3bcf460f65ea","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":77,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"dde5bd20-2be5-4bb3-9125-f4032683945a","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":77,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"cd9524c1-03d6-4be6-a240-98039a4c8b97","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":77,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"7b641d93-5f12-4cc7-a0e2-ea9fb0019808","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":77,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"3330daf1-a249-413d-ae89-c4632708ccbc","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":77,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"e6a6c638-5030-4856-9c9d-d9897c1c9abf","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":77,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"410b521e-a195-4c26-9a94-4481269c36fe","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":77,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"fbef603c-904f-4a74-bec8-76a7cdcff1b0","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":77,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"827a53b5-d7cc-4c5f-b1de-90a088b116d9","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":77,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"225e484d-6940-41fe-a246-218d914f0d4f","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":77,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"ca38cf64-f022-40b3-97a0-27d7b7ae6f57","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":77,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"aae0c1e1-339e-4e8a-98a3-96a6835f3944","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":77,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"18cde563-c89a-44ba-9d6a-ce14aba99102","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":77,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"419c575d-fa58-4fc5-be51-20928653047e","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":77,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"6f802c6a-f11b-403f-8976-791036c5161b","block_type":"box","text":"impacted.","page_number":77,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"edbfae3d-eddf-476b-a4d7-8fa7eb8d11a2","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":77,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"73fc8b9b-7705-4e44-a949-457932f37c7d","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":77,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"9727b955-ccfc-4a02-8ec2-f20341aede05","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":77,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"cdf4ca4c-1003-4716-a25f-75e25ef20251","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":77,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"1a0d5121-0994-4f44-b3ef-e3da537047ef","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":77,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"90da0623-2a49-4276-ab90-05ce125f6561","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":77,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"baeee995-5909-4a0f-8574-82999e9e3987","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":77,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"2068080d-6367-471a-ad19-5ef3ff30b080","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":77,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"2cda6540-dc5e-4728-bb66-3140c9afca60","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":77,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"7d8a0d59-e41e-4c8b-bd14-de211a3ad628","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":77,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"052ce981-11b4-48f6-b8c0-e97a4067013b","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":77,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"69cda998-5f21-428a-becb-8a854fff427d","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":77,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"e0cd3213-48b3-4122-92f2-0eb673ed79d9","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":77,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"24bdafb9-b8de-419d-9d6f-46acfdae5602","block_type":"box","text":"economy.","page_number":77,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"54604b33-dbd5-460f-b955-2e4ad77750dc","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":77,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"8d3ecb98-291f-47ce-b64a-72be4a087f36","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":77,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"abee91f6-ff5b-4c45-af0e-bfbe8e8e3eab","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":77,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"4074576a-87fa-4a8a-966b-781d54bca8dc","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":77,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"24c273cd-cc67-469e-8b86-321c947d98dd","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":77,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"1707f1e2-05e9-4345-89fa-f3b90ff8dfb3","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":77,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"48802360-9e3d-480b-b6d4-6e395f7c0425","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":77,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"cd014120-675b-421f-b984-ba7d999c9c73","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":77,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"7acbb3c0-bc86-4aee-9112-42699c2b174b","block_type":"box","text":"typically the case for investment managers.","page_number":77,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"a311ffff-3dd0-4b96-b2fb-e32a45ec481e","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":77,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"a15d0cd6-0320-4c32-8a29-baf2b8d154c8","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":77,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"f5efde26-a5f7-4bf8-afb3-cd684bdcef07","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":77,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"bb9bf592-ed84-4979-9078-c1ec1e758476","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":77,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"fcac0889-d58b-4958-9689-0a1352ebfdb5","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":77,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"4dbde5dd-24aa-4c5a-8afb-74be1509e691","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":77,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"ac1e1a4d-a2bc-4d00-a1d3-021349036b68","block_type":"box","text":"II-39","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"17fe8e8e-6e01-4313-b5df-f0d7a32ac030","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b3fb582a-2ecc-4f52-a0ef-e85e6d4de237","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":78,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"c9bf60e3-3a4c-4ff0-a232-9ede47cba5fd","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":78,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"9b319945-e9bc-469b-840f-e450fd44128d","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":78,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"e82d5c88-92b1-457d-b9de-17b8b462d651","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":78,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"e6cd5297-3a57-42f2-8a3e-bd416da6aa4d","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":78,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"dac34068-33fb-4915-bb18-948c90ba6fd1","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":78,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"0e2aae45-8154-4038-a928-66b95a7349bd","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":78,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"878b2d30-8795-4f9f-85fb-0b550768b9fd","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":78,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"78c5f321-333e-47f3-8d24-72a7ee3c2377","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":78,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"9e9c219e-f5dc-4b6f-9541-07445bdd598f","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":78,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"f11bd3d7-5c6f-47e3-b3bf-77bade22c867","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":78,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"7b51bfea-9bf8-4e92-9bea-52df8623c23d","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":78,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"f767052b-29a2-496d-88a3-ceff72b2f2fa","block_type":"box","text":"will be indirectly subject to those risks.","page_number":78,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"2a25574e-0cc4-4a19-84c7-ac64f7a8be6e","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":78,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"aaa088d9-c176-49a3-aa58-ff4fba2318e8","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":78,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"04342239-c23d-4bd2-8142-54932fad72a6","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":78,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"d076f9f1-1433-4b58-878a-9c32e9f68a05","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":78,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"8c695564-5cd9-4efb-bf89-b7bca215a1f0","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":78,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"52d60cd9-a908-45ca-a27c-89902bacf424","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":78,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"5117b91d-5537-4baf-8011-89dbce6925ed","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":78,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"6b751115-a0dd-4051-8596-65cff8f27481","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":78,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"6f41fb8f-b69e-45d4-9faf-44ee57e15240","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":78,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"dbf41bb0-07e7-4a42-803f-716200e19221","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":78,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"8471303a-ae8c-4ee5-8674-450c78572953","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":78,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"6ea23753-e608-478a-a087-656815fc59d2","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":78,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"8205dfbf-5e6c-4b69-946a-f583359e7a60","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":78,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"fdb0f952-d3b8-4a46-8857-566c026a1d06","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":78,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"4a40acbf-7929-429f-849a-6fc58557e3db","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":78,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"3130f3ff-4283-4b94-9502-2ef4985951c3","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":78,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"7fc27756-71c4-4e62-9b48-df0ed7062e44","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":78,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"a1d7e106-a589-4953-ac19-e7164d018c81","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":78,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"fac10ce3-1153-4b40-974f-2e519aceb3eb","block_type":"box","text":"impact on a Fund’s investments.","page_number":78,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"06afe4bf-dd29-4386-b4ac-68a887af9325","block_type":"box","text":"Brady Bonds.","page_number":78,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"7c5552ae-127a-4a67-bc1f-9bd9e2c93cec","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":78,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"98be2148-dae6-4201-ad8c-ba1aec3cbca9","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":78,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"1fbc1b30-9150-4ce8-94cc-b1f89188f441","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":78,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"e83dd296-1eb9-4ced-8816-5ebe3d1879e8","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":78,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"a74dc09f-15fd-4127-8e71-bb2ac53eed4f","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":78,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"974a180f-a055-494e-9501-7f043de1cd97","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":78,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"1db50103-3a96-419f-b503-f02ecf275a19","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":78,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"48f2df64-427a-4094-bf50-f62f6f26da38","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":78,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"443d3399-df97-4e23-86be-5db3ea43a34e","block_type":"box","text":"Venezuela.","page_number":78,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"8879b76d-1c38-4100-b654-cd34f13c8495","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":78,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"1285939d-9353-4d90-aa73-167077aad914","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":78,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"d10e0ca1-c82d-459c-8663-e25039d88a4a","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":78,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"764fb94d-37c7-45ec-bbe4-a2e7de415562","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":78,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"d83e6a22-b747-46b0-852f-ddd0c50eccf9","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":78,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"6473a998-6293-4223-b6bc-8aec03973ec1","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":78,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"3661ce90-2448-496d-92bd-c9b0e167448b","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":78,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"fd750634-4a11-4857-9664-8b6ed14c8187","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":78,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"44ee72bb-2d1f-45a1-9330-9b0ddc20fec2","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":78,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"5aa0f665-f209-4e8e-be7a-09079d908dc9","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":78,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"8856b35b-e7bd-48be-99b2-bc8bf9291965","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":78,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"bf4114e8-3eb5-4beb-aed5-800499cd02bb","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":78,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"fc6c3e79-254e-4a54-a392-232652d9bb91","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":78,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"de478bb9-7a79-4747-bb9b-021997753797","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":78,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"1fbe9057-699b-42e2-8166-9a862d72000c","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":78,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"c6f205d3-d56e-4c99-8600-3d3ae124e02c","block_type":"box","text":"II-40","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5f52cdc6-ec36-48b9-9062-73bbb8b21f68","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3cedf687-3013-4323-a94f-2d939c690c61","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":79,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"b6dbf914-4deb-428a-b6a1-1f63ad228b41","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":79,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"04afab93-3398-45d0-b110-ec2926e9d7bb","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":79,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"1d0888a4-fbd2-4b06-835f-be7f39a09c6c","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":79,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"eb74f6f7-b7e5-43ab-aefb-aec9ab61668b","block_type":"box","text":"China Investments Risk.","page_number":79,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"af3dfe27-6be8-4f78-ab15-79f5b0ad4a99","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":79,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"614bebdf-006a-48b3-a42c-a5ee0a5c5a6f","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":79,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"33d2a3c2-88e2-4c33-b4d7-ebb29fe0e15f","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":79,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"4be0cbea-927f-452f-8fae-0a1350317694","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":79,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"f9a425fc-2187-4688-a3a5-0d706f3c8005","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":79,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"5b757d6c-76d6-4005-93ad-c31837b6537b","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":79,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"23a4a808-be8e-4e96-bd54-52efb478c476","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":79,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"462cd141-4d4e-4771-8930-247d3439dad5","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":79,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"d891820b-7d21-4d64-a38d-156eab1458f3","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":79,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"c20350ee-737b-46da-8254-4014b794868d","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":79,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"d37fd5bd-33b0-4207-87dc-f58c151766b3","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":79,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"d85d6a87-e22c-4965-b8c5-f941856c8a53","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":79,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"883be8ec-f68e-44c3-8077-400dc157481a","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":79,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"c7252586-55da-4e58-a7fb-020fc1ce7775","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":79,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"bd6547c5-da17-4fd5-85d0-7993684e56b3","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":79,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"4ea06154-bf02-4ee1-9793-08c5f06ac336","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":79,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"79f47e51-8efe-4943-95a2-07e5166e464e","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":79,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"1e20402b-bfdc-48db-bca7-1f1bf4c1abc9","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":79,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"8b4b71b6-27e3-48f0-b831-65990e3beaa4","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":79,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"1fc44395-b3d4-4e84-9f50-8330fcf08cb7","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":79,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"3702b4aa-a417-47ad-ab20-9e783e3e30dc","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":79,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"eaf8b9c9-8711-457f-b431-7898fc94bb46","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":79,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"70c429ef-928a-4e0e-81af-dc4d4d574f7d","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":79,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"771aa224-8641-43de-b1f4-ef26a497b72d","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":79,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"b220ddf4-8419-475f-9192-f6acd29c834e","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":79,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"03723228-2f74-4715-b969-521f8537d2df","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":79,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"12a870af-a188-499f-8cd4-8c2b9c9a545b","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":79,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"95fe930f-d189-43f6-ad45-facf6cb05c0c","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":79,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"76504998-4b7f-4b97-a2c2-2ac69e4ab193","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":79,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"eb495513-8793-4b9d-90f9-095dd109ea75","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":79,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"a7c4f9ae-9d5e-4086-90aa-6826b6592993","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":79,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"f1a54990-7e79-473b-883f-ccd5838e0402","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":79,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"06fb7e6e-9333-4e0b-9e8a-8fc00fc61235","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":79,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"ffe01f8e-645e-4099-a12e-539bacda51c6","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":79,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"6d9bfef1-c749-4550-811d-29fdd3fcfaf7","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":79,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"bf0e24e7-5507-4c74-ba1f-0feee3b7cec6","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":79,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"90b46e26-a90f-4e13-afdb-341b82e01a70","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":79,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"daa0f25f-4c8c-41a3-9e38-e8f2815273f7","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":79,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"a7ae0f59-27f2-4483-98d8-6e4d05d9e2cf","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":79,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"8c1645f1-03ca-49d1-ba97-0df343320e09","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":79,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"be013fd7-f665-4ab9-82ad-0879ba48317c","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":79,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"75158b56-e5a3-4223-9c4c-d0f95bbd88b0","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":79,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"695ede94-f9ff-4912-af4b-00fa82f27487","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":79,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"f7112026-97fc-4282-abe7-30a468dfdcc8","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":79,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"c41a465a-a1fa-4b7f-985a-5830176db278","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":79,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"c14b3bc2-3f46-4de3-a71e-551142a4cac6","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":79,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"64d696f8-b8bf-4f3d-82f8-6381cc670325","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":79,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"fd4956d9-06e7-49ce-ad26-f0c0327e9c71","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":79,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"b5ff7c51-0656-423f-b309-b4af4b7d4649","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":79,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"e0758557-c50a-46bf-aece-44c27672d681","block_type":"box","text":"sub-custodian.","page_number":79,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"d39611a3-fc9f-43ac-b312-598448b6f712","block_type":"box","text":"II-41","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ede2815c-d0d3-4d26-abcc-4c812b26330b","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae2789d8-cbd8-40dd-bfc9-1d1f5cf373c4","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":80,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"b4dc9080-df99-4369-a1d3-592ba698f684","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":80,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"5431f2b8-78c5-4370-a25e-f2a0b4ed3b98","block_type":"box","text":"on investor protection considerations.","page_number":80,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"90371849-2fdb-4c8b-91f6-852d9edbeb0a","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":80,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"b8d9ed2a-8a7e-4885-a1fa-8cb4dbd60c95","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":80,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"b40b70af-7d36-4203-9b34-193bdb5ba7c6","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":80,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"1b935910-e9c6-4b76-9372-adf72131763f","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":80,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"0fae89cf-dd7d-4bbc-81ba-8b575d106172","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":80,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"cd303a53-2b0e-496d-9491-d61aee187974","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":80,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"4a490fde-5e55-4573-8712-64fd405aa846","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":80,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"48d3819c-7677-47b1-b8f7-e6ac074600c3","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":80,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"a0b37b2d-e019-464b-ac56-c74a1728aa20","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":80,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"98ec00c1-3ad9-49df-ac7d-78ce167b541b","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":80,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"4cc6baa8-e746-4612-a15b-37c1d6baf276","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":80,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"62341c25-0ee3-49c3-b9e5-38f8b209d88e","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":80,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"0e585e8b-7ec3-4907-9e05-9a5bc57a87e1","block_type":"box","text":"accounting firm.","page_number":80,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"3586fd5d-cde0-4129-b644-67f3ecc05b87","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":80,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"93544889-1926-4991-92fe-0338a95d24f4","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":80,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"f64b3f43-1fb0-491d-82e3-bf54815d0831","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":80,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"2b522f21-fcf2-4825-810a-0fd28781b6c6","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":80,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"17d0f4dd-d491-45b0-955b-24dcc234c1b1","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":80,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"78e068a7-3d2a-4b6f-891a-23220c6e6c4a","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":80,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"a726af95-543e-4501-8035-ab0fd83933b4","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":80,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"46ed7a27-8625-4789-b22b-1990633515e2","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":80,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"29554215-c529-4533-939e-23949d443285","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":80,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"dccb45df-d14d-4afd-b25f-b4d6ac443753","block_type":"box","text":"RMB (“CNH”).","page_number":80,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"fb6ae5ca-c78d-443c-82ac-85fc4ac0dfd9","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":80,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"ae176f83-e117-4c2a-9503-e760f81d6a30","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":80,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"eb9e16bf-c09c-49e4-a100-a72e68c612ae","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":80,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"232daae5-fadc-4080-8f5d-2f7d7fbdafac","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":80,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"81a2d3a7-30ed-474a-b674-894b4346c93f","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":80,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"b8e329b5-9eb3-40f8-98c7-47f8f5551481","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":80,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"e32a78fd-2784-43ce-862b-29026da79ba4","block_type":"box","text":"represent equity ownership in the operating company.","page_number":80,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"6bfe6001-adf0-45ff-be96-779f608be7c3","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":80,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"5d440b5b-3086-4472-8eed-021b9cc912b3","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":80,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"830d2dd3-0385-45b1-8f71-f9b75e384111","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":80,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"1787d83f-42f4-48af-8b42-9de98fd37776","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":80,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"fc82dcbb-0612-4591-9763-2d6b3f140f56","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":80,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"48ebee5f-7f25-41ed-ae59-048bc6d39714","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":80,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"0d0935ea-c28e-4f23-9356-e54c759caea9","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":80,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"711ec4d3-4211-420a-a9b5-e53b37f4d076","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":80,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"af43476b-835f-4349-84a3-a676715267b1","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":80,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"4bddf0ed-4ce4-4a09-99d7-694c6e465df6","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":80,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"43922f8b-2dd8-4d94-8059-c1e7f5cd5a1e","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":80,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"54cffdc9-e7e9-4bc6-99b2-be960befafef","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":80,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"57ebde48-eceb-4820-b3b6-8b4ebfc575fc","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":80,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"82a9bd6e-ae1a-4858-b7b4-eedd28c13698","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":80,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"bddc6a62-0f9d-4ec6-8217-b7807fd21314","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":80,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"33b9678c-753c-4040-a0f2-feebb8aee3f3","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":80,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"74d702b5-5d86-4843-9cb5-457d92880b09","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":80,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"0730f44d-9761-46e6-afad-3f8f98a50906","block_type":"box","text":"losses to a Fund.","page_number":80,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"a7e0a0ec-c6da-4c95-b5b2-2d66cda030e2","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":80,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"4c39ae3c-d7b7-42c7-98fd-5f0c676794e2","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":80,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"3b3baa41-b414-49f7-8272-413ddce3506b","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":80,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"562e5904-f682-4649-aad7-d5d0f0bbcf0a","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":80,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"04577077-81bc-4fd9-ab0b-27777b686b04","block_type":"box","text":"II-42","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c767ba45-6f94-4b9b-b0e2-56d4b86d1ac9","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"201e6a98-1532-420e-aabd-c7350c6be87a","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":81,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"5fd654fb-5200-443b-916a-04f289089f8b","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":81,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"78e349d2-9528-4f05-8216-c189f2a71a45","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":81,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"d8d89649-6d87-47aa-8d56-8f258a8c5e9a","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":81,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"7c852ea5-90bd-46d5-89e4-f8db21836f56","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":81,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"8cc00e5c-d7ef-4cec-ab06-34fc3a78ab2b","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":81,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"b7566fe0-d180-4cf3-a031-fb7f86b69c5e","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":81,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"d0e856e4-89f2-4e5c-8690-a406b39bf2fd","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":81,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"21ea0347-32ef-4f79-95a2-a9bf298d6e95","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":81,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"ce048ebc-d4a9-4123-9f20-79370bfd9fec","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":81,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"42b54c31-b97c-4374-98bc-c646e4ca87cc","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":81,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"db22ef00-79da-42a1-ab0a-9fb5a02aec14","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":81,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"06901922-033c-4bd7-9ddf-4fa9e0b8af69","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":81,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"b457c369-2608-4c80-a2b2-d322afd1cf41","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":81,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"68d09961-2910-48e9-add0-79458f2f78d0","block_type":"box","text":"such companies.","page_number":81,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"e1bb1626-9654-4833-b2bb-ac35a1db2aa4","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":81,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"4b4e3785-ac0c-41a8-9175-3370702883a2","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":81,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"f7f8d889-e94a-4eb9-bd08-77e9608c25dc","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":81,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"c39c480e-8af9-4c0b-85a4-329d962d0ad2","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":81,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"ad48fe89-ed54-4216-b692-7871ef8fe939","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":81,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"7b4fca41-7afd-47b3-8673-3556bdae2740","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":81,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"d9298ef2-da4b-44fb-9727-ee5fc68f0114","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":81,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"dc223277-04ae-49f2-833f-6b5369fda10c","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":81,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"77bff8ca-b7c2-47d3-a056-3e5f590ad02d","block_type":"box","text":"standards.","page_number":81,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"9c9b7f18-3c80-4479-bf68-8dd9ca2e15cb","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":81,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"18c59c9f-c98d-409e-a70d-dce0e899d54e","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":81,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"8602ae1d-be9b-4f58-8879-c8180be86e83","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":81,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"0a572a17-35ff-41cc-bbb7-125e43dc3645","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":81,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"a9613b6e-54d2-477b-bb02-fd8ea0387989","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":81,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"8a5d156f-1957-453e-91ba-34ba1082e598","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":81,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"290351a8-5a4c-48b5-bf27-16c8071f26ff","block_type":"box","text":"General","page_number":81,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"8c7dc607-7fe6-41ab-9d20-2880e908fbb8","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":81,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"6caedfa2-f839-4943-96e7-a6fbd979e677","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":81,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"b316b892-806b-41ec-ad07-e395e5451664","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":81,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"184ce70f-23c7-40e4-b245-94f137d41b17","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":81,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"b7458545-115e-4d02-ac71-d4c42da60792","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":81,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"8cf8666d-d92b-402e-8d8e-f22e5ec7d7fd","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":81,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"a4ec0dfa-44a8-4efd-b543-7c76281ffca8","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":81,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"5f63beaf-9b7b-43fc-9c89-d1c8b7c4b69e","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":81,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"63ef11d9-6ba9-4e4c-8354-584b4f6c9bd6","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":81,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"4891e92a-2a72-4114-bd9b-2d010cdd23fb","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":81,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"da4da11e-160f-4663-95b5-138553990435","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":81,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"6faddaf9-3dd3-4911-bd49-f04668059f19","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":81,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"5ace22ff-b125-4e04-ab59-eb4c462374dd","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":81,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"759fbc50-10fe-44d7-83f0-d1be6bdbc735","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":81,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"08af00a2-8b9b-4139-8e49-faac1e19b09d","block_type":"box","text":"company established by SEHK.","page_number":81,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"a29449b4-0da3-46d5-a02d-b166de2d4c66","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":81,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"1763aec4-4e9b-46d3-b450-f1e9089bef94","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":81,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"015f35a8-cd94-4add-8d03-278c1523fe59","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":81,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"706468cd-ba53-4e65-9dff-39c511b779f2","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":81,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"1dd86ce7-a0aa-49f3-961a-27ad3901a7c9","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":81,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"c105daaf-89fb-40f9-8551-9e4323dc5799","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":81,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"c7eeb491-2a92-4752-86ba-5b95295a3264","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":81,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"6da8afa3-70a7-4e7c-b958-d90c37693cbe","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":81,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"40bb7015-c26f-427d-b5a4-4e8e25cac4d7","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":81,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"bde8af08-c18c-4ae3-a705-44f729becdda","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":81,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"928e9a11-da67-4e86-9524-d8d6bf7d1533","block_type":"box","text":"II-43","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"010de5e2-26b7-4064-8d50-86c96a2faeae","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f4c5dcbe-aba7-4605-b81c-87d1d3d06e9d","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":82,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"c6308f50-179f-4c67-b960-63443853cb4b","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":82,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"0d9de55f-d3cf-4d26-a9d7-d66c19cfef4e","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":82,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"4b1f045f-6d0f-4065-9ab4-c22e3a7ddfef","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":82,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"23f81d07-2e13-4709-937e-1e41cf4eaff5","block_type":"box","text":"i.e.","page_number":82,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"abe804df-b1e3-4c7b-9179-9d9e505a2cef","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":82,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"95c77b50-a3c0-48e4-b69a-a50cdaffc208","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":82,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"077ee574-cbc4-469d-a6ff-68d87e020581","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":82,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"a537ba9f-d702-4935-9f06-40215feef323","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":82,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"9d1dc9f6-7667-4c4d-b955-4db518db13e7","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":82,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"edbaea1a-a24e-46f6-8306-df6ad495264a","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":82,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"e5cdcce5-f842-463d-af51-933dd20bfaf0","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":82,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"e58ff425-2007-4cb1-807f-262bd6b55fc0","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":82,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"20634662-8698-4da1-9b65-637e93ea0ff3","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":82,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"b055d0cc-4499-4d2f-afa9-81dc504fe519","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":82,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"0b9abf4c-9971-4553-9fd3-ed1e6fc75ecf","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":82,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"555af8e4-66c2-43a1-8ce7-761f54d2378a","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":82,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"90759670-786c-40c5-a7ff-23129f26ecde","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":82,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"a0d9c8fc-469c-42f9-af59-a0414cf9a322","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":82,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"d24dae10-cc38-4060-94c8-5833538ae95e","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":82,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"aab0d08a-ec09-4f9f-a53a-2238d74e3c05","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":82,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"e24f726e-41c7-47a3-b52e-9c616e976492","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":82,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"c0004bbd-d4b2-4bca-ad31-a2006150426c","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":82,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"8a9a9550-150f-4d04-9526-c33d0bf66da5","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":82,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"57949e4b-0c10-442d-ac09-900031a9c76a","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":82,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"27c64c7a-be27-4028-a1e2-58b6ea99b267","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":82,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"16a7197b-13d8-4996-b30d-f1406e4138c9","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":82,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"763d0912-11f1-4571-bafd-1eb507f781fc","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":82,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"dea1aa58-b536-4e3e-8a8d-89d19e693c5a","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":82,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"3c18f4b1-3521-4289-8cbe-9f21a7522a6f","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":82,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"d2cae331-e9e6-4120-9db0-a9b7b1ad64f3","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":82,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"7ecce016-85a2-4d5b-8f82-933fdb938f7a","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":82,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"c715777e-c05d-49fa-8a76-2ba4aae4654e","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":82,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"bab26843-8ff1-4b60-a986-674a37ac3398","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":82,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"768f92de-abfa-4986-92bb-86f61bc2c95d","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":82,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"f49424bd-0b96-45f0-ad8c-19fe83667e4d","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":82,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"c2e4f30b-f973-442b-a58a-f265f769c3c3","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":82,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"87f56001-e6d6-4bd8-9e3f-c4d66927b7b0","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":82,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"423fd2bf-7bf9-4b37-b685-6a1db4a6eda8","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":82,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"de10401e-4a36-4c9f-a3ec-190385e80148","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":82,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"62166403-032f-48dd-b58e-7f02834b154b","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":82,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"508cb987-40ee-4460-a35b-d3ed40df59b0","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":82,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"b2b05ece-fe94-44d4-a32a-318eca85a609","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":82,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"a891d7ad-2741-4e1e-af68-c372425cc611","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":82,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"20173190-f7c6-4592-8dcd-d02bce27a253","block_type":"box","text":"PRC.","page_number":82,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"9c94349a-e727-4e07-aa2d-a2c213d5c0d2","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":82,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"658aa499-2c95-425d-a6dc-dded54352e38","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":82,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"8024ae48-7ccf-4065-af88-cf1ea3c84551","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":82,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"ed2c0962-6e27-4d54-9c15-f16b92f73124","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":82,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"8e8b442b-b0dd-429f-a8e8-08268e6ea133","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":82,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"c17e0fbe-edd2-4e7b-b238-0ad2aeb0f256","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":82,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"995c681a-7fc0-40fc-9517-f794e5273016","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":82,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"b91e9fb5-ad45-46ca-b087-ab550824ca3d","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":82,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"9c0a3357-b6c1-4db5-b291-0c7ee87c555d","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":82,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"c26c32e1-a65d-4e74-8e78-135a48c6c288","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":82,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"1917e84f-0612-491b-8136-bdab3729a276","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":82,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"9c3499c9-e90a-4432-8952-84bac9823771","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":82,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"44514d52-0cc2-4c36-b208-049a200d67d6","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":82,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"3782d488-c262-423f-9d4d-aae76f485335","block_type":"box","text":"II-44","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0e5d5423-83f1-4265-a4e1-0d04a01af424","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"93dbb71f-a177-4fb4-8e37-6b62d01dee60","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":83,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"91dac8df-3f7a-44c4-b466-8c1e1a0c56b0","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":83,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"38606150-2060-4589-93af-2f74ce5bd131","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":83,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"6c588d28-fab4-4f79-8a4c-d75a54898d61","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":83,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"0acc5924-0180-4933-a49f-7a847aa058c5","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":83,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"afc63ac7-f6b9-4d5b-8778-81968b19b1bd","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":83,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"97d0dd2d-900b-4c20-ac8f-6e3d0d5b5e4f","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":83,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"34f553c2-43e5-4b3f-8106-b44555234ccd","block_type":"box","text":"Suspension Risk.","page_number":83,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"a0a1b930-dd33-449d-ae36-6294e1d6c289","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":83,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"1b885af7-673d-42c9-8828-382bd4c5b80a","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":83,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"1785877a-b1ef-43cd-b15e-e5d0cfad1a89","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":83,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"fddeed07-e1aa-4937-b97f-e3d35f9feeb5","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":83,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"9c7919ed-4737-4a4f-a5a4-b564309c55e4","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":83,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"c79dad04-65af-4f5b-9ad4-c33f1706d021","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":83,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"a3ff8faa-a692-490e-9569-00faee429d8a","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":83,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"6efa7711-c4a6-4fdf-b660-aca389715a69","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":83,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"ed59a107-f398-44bb-ac5c-ae933a2016cb","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":83,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"08c800bd-5dc8-4032-be5c-cd05046a4c0e","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":83,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"35c2fdd3-4ef3-4cd2-8210-c1d6437d40f5","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":83,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"86a8e80c-f0d2-4c64-9a3c-b0ed6e747579","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":83,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"e2b16b68-5d6a-427d-aed7-6e2f7ff763b1","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":83,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"b63d2a30-dfbe-4570-9371-3a6e659f916b","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":83,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"7b7391d7-53bb-4d7a-8d95-3ee2cfe01359","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":83,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"1192b22d-0b15-4b20-af4f-74880b45be65","block_type":"box","text":"A Fund may invest directly in the","page_number":83,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"0c09a9f3-1207-4abe-8845-f237cb58cfdb","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":83,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"dc22673e-7d8b-46c3-b5b1-e85333f7833f","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":83,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"30435fed-5986-4e38-82ef-80c8d9fa4668","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":83,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"d9f0c807-3f6c-4ea5-8c33-7d1e08441c1f","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":83,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"2aa4814c-d22b-4207-a661-df546352a678","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":83,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"48cfd540-fcb2-4fde-a2d3-b9d36e86bedd","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":83,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"899e9b21-6b9f-4e19-b9fb-45333629c81b","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":83,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"21e62a13-452f-4af0-aba7-c2ef3ac0676e","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":83,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"04ade357-c66f-4d7a-b1d6-7d9cf4aef36d","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":83,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"ba6c9c33-6d3c-49f1-92d2-beae633c1576","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":83,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"ce031b0c-6aa8-4ca2-b86d-330f77ed1f10","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":83,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"db720210-ff67-44e4-b2eb-7064a90d40de","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":83,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"b485ffe0-8969-42ca-b013-8a8e13634da8","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":83,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"421252c2-f7d8-4315-bf32-d32c51469f28","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":83,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"17efc5b8-1f23-463c-9b22-6b4806d87651","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":83,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"9c13c1a6-7ab3-45fc-b350-a4c276d4e6e4","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":83,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"0b235e75-db0e-4b37-95d3-faaa55e40994","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":83,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"0cb3c44f-53d9-46a2-8556-ca728dc9c812","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":83,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"6b11480d-2d80-4734-b1f0-2e5cea0b333c","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":83,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"59adb030-9609-4895-b833-9b21cfb7f45a","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":83,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"f0379142-e532-4da2-84f2-6416b4087cf1","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":83,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"af405275-cc88-49c6-8e0e-55cc8252dab4","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":83,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"16a54b20-b230-4ace-b845-44c548a99045","block_type":"box","text":"i.e.","page_number":83,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"f445851e-c04b-473d-bbf3-d69375c3f875","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":83,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"94380bac-53d4-4c66-8989-aee4806cb21a","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":83,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"de77204c-9cb8-4260-b071-4183ad7b93bc","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":83,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"5883c13e-c00a-4d32-99e1-5a357591e815","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":83,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"a5b31557-0718-4772-a7c5-f2b8afcc7cef","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":83,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"dfe9c14d-a311-46ba-a430-aeeb4f2702b5","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":83,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"c5f3d3ad-81d3-4f7f-9584-0b0b4a69b271","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":83,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"f9694c97-23dc-474d-bfa1-bee3539f61d8","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":83,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"ff9fb7fc-f68b-488a-bfb5-f18b509499fa","block_type":"box","text":"par ties.","page_number":83,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"addfa017-f3c4-4465-baf4-edc51feed28c","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":83,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"e72e04b0-b112-4f40-b07f-0732d1eeeaaa","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":83,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"0198bc0c-931f-416d-9f21-d97d1c66f61c","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":83,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"abce4c43-52c2-4115-9008-633ad9a12929","block_type":"box","text":"II-45","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c45eb6c2-9c45-4680-9267-df404dfca0b3","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"88d22e2f-70c1-4d72-82f7-b0ec93c3b7e5","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":84,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"559843b3-60ba-4a39-a100-a62c01243f4e","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":84,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"35b40bf8-d55b-488b-9a80-c4942785ca53","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":84,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"44c68563-cc83-4911-8f1e-51d7ec542a7b","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":84,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"42705f6b-a9ea-4684-b19f-cdadde1d230d","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":84,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"28e8050f-38ba-4828-b771-fab95ee488f4","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":84,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"4468b98c-a8bd-412b-8879-ebacfd320405","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":84,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"1c7e793c-27ef-4162-bf7f-062f9b759121","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":84,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"9feecdc5-050e-42e1-a00d-849b27b8845d","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":84,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"379d1f0a-4341-4fb1-aa1c-a91dbed16aba","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":84,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"56e61751-ca9c-4b6a-8322-4b22138a435f","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":84,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"a8c31cbb-df08-4cf4-91a3-4ff656817258","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":84,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"24324607-d641-4000-98bf-72b3996d78ff","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":84,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"edec4187-5d31-4533-a612-99e470c54e25","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":84,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"fb887a97-9eba-4986-b454-2bce3bcf9317","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":84,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"86952649-ac5c-4086-933e-e3aaf4107165","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":84,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"ee6b2ed8-1431-4a69-be80-3b2731e868b8","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":84,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"df9321ce-81e4-4f20-9791-a9719aeb9a65","block_type":"box","text":"per formance.","page_number":84,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"683c791e-8a38-4407-8a8a-52987e833881","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":84,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"b5d18af2-d122-4bb3-9b0a-d2a95b4e4c91","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":84,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"3bddf63d-22fa-48e6-aa21-86ec53a80e9f","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":84,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"bfe1c935-9e37-4db4-97fd-2ee98a6bd263","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":84,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"f95d8e75-d106-4043-a1b6-3c8a20db8203","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":84,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"0cddd06a-dfc5-4dba-9f6e-4cfceb9ab1eb","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":84,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"edf431dd-b6c7-47ee-98d1-511fbc0ab1ee","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":84,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"39952f6e-8aad-4259-af1d-ada46b3dd0bc","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":84,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"8ad7e96d-5c4a-418a-a007-38e1dec3b6a2","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":84,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"696bfc57-2543-4d75-9136-75445b96fb3c","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":84,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"557ba97d-eb01-4a85-a92b-0928a861acc6","block_type":"box","text":".","page_number":84,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"cb3afa62-bf00-4861-bc3c-2573d8dc0e7d","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":84,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"93cd64b5-0292-4b8e-9594-dfd67d3a93e9","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":84,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"9cbd47fd-bf0c-476d-a913-cef72a5ad673","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":84,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"1b3379af-d42d-4e3d-8b12-e71d6450608f","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":84,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"539576ad-a524-4ff9-b2f7-52f0842860ca","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":84,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"be24a700-cda7-40d2-a06f-2be973b2b054","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":84,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"b66f304c-0ad2-4f74-8c10-90ec262392e0","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":84,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"4cbe6a28-10e9-4f5d-a43e-04357990c7cc","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":84,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"b1734079-83e7-4adf-b50c-7a26da681b4e","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":84,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"6d841d85-395f-4604-aa35-b509c7ea2c69","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":84,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"0b7ffc97-e62a-4dc5-9822-4a3158868336","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":84,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"227ea0ed-5d41-4734-add1-7f9250636604","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":84,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"ee730e1e-00ac-40b4-89d5-08bfdb51fb1c","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":84,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"6ff83725-8d16-4e52-a58a-4b19e107bc71","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":84,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"025e3371-cd5c-433e-93ac-6c46e2215f99","block_type":"box","text":"without notice.","page_number":84,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"c1470fc0-6899-483d-84b1-58b80ce269f8","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":84,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"3fb8bf25-6c1f-43d3-93d9-e4bd128127a7","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":84,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"0b631e68-0f11-4d56-abfb-78212cc05692","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":84,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"13dcfd8f-18c1-47e4-8925-3a5086af7bab","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":84,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"b4b05fa1-cfc7-472c-a402-47f92345e29b","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":84,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"14e8db24-a0d9-4079-a058-f6c9549a63ca","block_type":"box","text":"December 31, 2027.","page_number":84,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"d63be339-7a49-423a-8e5e-f99ddb16432a","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":84,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"f3e35ef5-1ae3-4483-b9d3-d861ef74ad88","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":84,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"ebfbbc0c-0b66-45d4-ba75-c4d6d94024f4","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":84,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"cbf7aa4a-ac27-4a77-ab5e-99e04c5e5a9e","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":84,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"01d1d9c5-2dc1-4836-a606-07cbe48a0188","block_type":"box","text":"II-46","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"591edfda-1d84-49d8-90aa-cb3f1cb2c425","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e719569b-137c-4d86-8991-1132bf54baaf","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":85,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"008af51b-b913-4e95-9a7f-4d29457036c6","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":85,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"f94cf6c7-7105-46ce-a252-00131725fe60","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":85,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"d643dca6-cccf-4517-a2cd-54bf6c210583","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":85,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"cc6c00c2-198e-4117-a292-0572668ea309","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":85,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"e1a3ae9e-bb80-44e4-8f54-1f5736171cb4","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":85,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"0870b44e-d49e-46db-a65e-bb56dc445303","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":85,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"f808ecc8-7a8b-4a64-abfa-8a45d26bb0f0","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":85,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"7164f75a-df4b-4e05-b857-6512cb14956a","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":85,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"c419244f-5c57-403b-bfbc-9a4841a7c34f","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":85,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"6f6fcf08-ccf5-4d34-acb9-3e0462330200","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":85,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"2cc7da25-d520-4b17-aa5f-ddf3c95ff563","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":85,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"ecf71fe6-4ac9-42d0-9b42-60a14060384a","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":85,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"48f7f2f3-a921-436a-9142-ff2521d03b77","block_type":"box","text":"PRC sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":85,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"d427f057-2a90-47ce-a4c0-08e7dd0a80fd","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":85,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"544b273f-c35e-40fd-a1bd-07af6c983fb0","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":85,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"16d0044d-96c8-41e4-80cf-761308d57e5d","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":85,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"d9fa923f-ccb1-4779-acac-aab75394fc34","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":85,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"de61c7d1-e05b-4676-81d8-811b49501a14","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":85,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"63e6365c-e054-4af9-93cc-2da559db5338","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":85,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"cab78fe4-1dd3-4463-b278-448c8505ffb4","block_type":"box","text":"the PRC in notifications.","page_number":85,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"adaac943-9175-4c6b-9ea0-d6a9d955c46d","block_type":"box","text":"Investment in Other Investment Companies.","page_number":85,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"d9a4cb02-4777-43af-a34e-1b9adef231ff","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":85,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"09c91108-4169-49f2-9123-f6ad3f8883b7","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":85,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"01528901-1703-4832-9f89-00291ed85c98","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":85,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"da5e6e3b-24b4-431a-914e-a4f6c062aec7","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":85,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"86469507-7f88-48c8-88dd-c1a45f90805e","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":85,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"d5805590-a9d8-4773-8e7e-9cd2ecb67919","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":85,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"73215368-ca4b-4d5e-8a77-d7e7c7005214","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":85,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"0c17a8cb-d4ac-4303-b2ba-a344e8279446","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":85,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"75def079-dc8e-4ca4-86c3-4bea83a4f788","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":85,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"8d22d7bb-e5b3-4d07-ba88-0046e66b83e5","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":85,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"eb331a75-19b6-454c-bdcb-b7b68ef24d11","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":85,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"3385c869-f755-488b-8057-f9ac317d939b","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":85,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"c029922b-7031-4c42-8c48-927132a66b87","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":85,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"b39fc377-7c8c-45d3-8308-8a378364ec44","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":85,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"0b480339-c6a2-41ef-91fb-cace01b94390","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":85,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"07c2ab71-fab8-40a8-9818-e5e39855fa3e","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":85,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"f90f4ff2-90c3-49cd-b09c-6b5fed7ac696","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":85,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"91145335-c4ff-433b-9165-03a5614a933a","block_type":"box","text":"subject to cer tain conditions.","page_number":85,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"e536e43f-2841-4946-99ce-364c511f2b5a","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":85,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"44929351-1d7e-4fea-8806-0217ad2f77f8","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":85,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"b8621076-7291-4915-8cae-8e29b7d334b6","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":85,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"e3ee984f-2a75-47bd-a885-677717176734","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":85,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"9f73fbc3-ffb4-4071-ab93-d74c6e1c330c","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":85,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"c4634b71-9bab-4585-ab7c-15146baeba8b","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":85,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"e35b22ad-48da-4aad-95b0-7c2e4086598d","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":85,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"75676b3e-f81e-41ae-9143-a45173ea081a","block_type":"box","text":"loss.","page_number":85,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"c27d009e-30d9-4903-9f5e-24db359834f2","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":85,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"3c34346a-b699-4e2b-87f7-43f2b7df3bcd","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":85,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"0c2e0d6e-5720-4e0d-922c-708180db34d4","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":85,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"725a4416-e9d0-4b1e-899a-b46eacda5c88","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":85,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"5cef1268-0f0f-42a9-94e9-593e79952e77","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":85,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"7cb01377-2af6-4dac-8d94-ac0e2a00888f","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":85,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"d123bf00-36fd-47a5-a8a3-80e9f2b72473","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":85,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"91912dfc-4937-432f-a04c-8016e6775f95","block_type":"box","text":"II-47","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3b74ce8e-3c55-436e-9fb0-e2a7574a9627","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aa63c747-e2a0-4b37-a50b-98dae829426b","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":86,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"fe42312c-f42c-4772-b06e-0275967b7ca2","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":86,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"d5921576-568d-4e78-bae1-b7acdf0c553e","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":86,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"12a8bf10-6862-4ea8-8c36-9c50ba1e5570","block_type":"box","text":"assets.","page_number":86,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"4d97f1f4-348d-4cd4-8e7d-47dc9d38f687","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":86,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"fe2cc5f3-083a-4765-9676-2c51b394cdc3","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":86,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"264b2533-f912-48b6-b517-b962beacf44c","block_type":"box","text":"e.g.","page_number":86,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"b3ff066a-09a1-4599-8a5a-7431be1d50b5","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":86,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"b100dbcc-52de-41c5-8132-c2f1226ceb0a","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":86,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"b9e042f1-1a96-4259-82f5-5dcac7e34401","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":86,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"06487efa-be37-4989-b677-eafdcd8ab17a","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":86,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"0a3510ba-1c33-4128-9a80-e9df18e49bad","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":86,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"2c7cfc2c-bd83-4d36-a63f-bf4a1040e282","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":86,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"3ecae582-8bb4-4fa4-ba57-c365e71a1c4f","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":86,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"67c0568e-9970-4700-bfb4-b59059ea0957","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":86,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"79a52e3e-a6a2-4cac-a14b-6ab41ca93217","block_type":"box","text":"countries.","page_number":86,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"f7cca39f-fd11-4c69-831b-9fdf7a68ddb1","block_type":"box","text":"Issuer Insolvency Risk.","page_number":86,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"fcb0c7dd-2cae-4de1-8891-5832f4f1eede","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":86,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"98ae32d1-c9c2-4c0e-9e61-7b3118177099","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":86,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"cb14a10e-9c79-42c8-953d-ab63f55254db","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":86,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"f5109b4d-acfa-48e9-85fc-0952579afb7e","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":86,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"9464a44c-61fd-4620-afe7-af2f24822cc3","block_type":"box","text":"issuer uncer tain.","page_number":86,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"ebf15892-4d9e-443d-9925-6bbdce8ffcaa","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":86,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"cc611d2d-5e95-4681-9f64-7ba635ff24fc","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":86,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"ad20a29b-49e5-4268-ba12-3bbd7ac82fca","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":86,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"cc9eda84-a929-4cc1-b11b-822dcd98f41b","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":86,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"553f88b8-8d67-4b32-923e-ca5453ef9c24","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":86,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"7c45dabb-ba52-439d-84f2-f24b2a450b0b","block_type":"box","text":"eventually be satisfied.","page_number":86,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"56097980-a49e-4435-aea0-13cedd067287","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":86,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"c988a1e7-fd4b-4b9e-b0a4-bcf37b074e61","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":86,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"db1b7baf-7c4c-4e61-a29c-8408a0269de6","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":86,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"1c926203-2195-458d-8e3f-ef76b22a3ff1","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":86,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"5fa5a47d-ef92-43ba-9dab-397082795988","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":86,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"032f83de-5730-49b6-839d-24a55a08731b","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":86,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"8570bca6-4456-4737-80cd-1842611e376a","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":86,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"9f0bd174-4d66-431a-8b10-94c9c4c40c1d","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":86,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"79951354-5b94-4053-8543-a9d41c8d3d01","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":86,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"52cfefc8-0699-4b0a-816a-a03af614a10b","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":86,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"6567157d-a6e6-4ce7-9d8e-b0c3b82b3d40","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":86,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"f556ad97-2e0a-4ce9-9d6d-3e09e2cc4eb7","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":86,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"dcc8466e-54b4-4d96-aeb5-3ce8a13da210","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":86,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"2e85dc07-79c9-4035-8e8b-a3997bf24cbf","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":86,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"f069bc24-8af4-4aac-ad87-befc890a9a59","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":86,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"6e741f20-0961-4994-babc-eaf86cedf53d","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":86,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"0a782e77-848c-4cbc-85b0-07e4f7c39a3c","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":86,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"b45d6e60-38f6-4e8a-b3f6-df96ac0cd212","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":86,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"653f3d21-d000-45ea-ac3b-21eb990d01c5","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":86,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"f3ec4d0e-d889-4a04-a739-52d90b9b31b1","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":86,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"f89a1241-6623-4194-ba85-b5e04a8e05ef","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":86,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"69cdcf12-e79a-4169-ad7a-039662fab9f0","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":86,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"ff4debc0-f1d3-4b67-a861-b6667b5702fa","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":86,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"9928ed20-7572-49bf-b909-a1f3e17aa75e","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":86,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"e833f051-6116-4232-a691-f4e4aa29a718","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":86,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"e73da78d-190e-494a-a20b-e6f2cd77caa4","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":86,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"234ac8b9-3bf8-4896-9ae8-f94b8c624e48","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":86,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"81c97924-ab66-4cfb-b51e-b5ad546811f5","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":86,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"5eca9a05-2e64-477a-a620-ffddfc32b755","block_type":"box","text":"that assumed generally by an investor.","page_number":86,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"4b900b36-3dd9-4e5e-a7d6-dd08dd0021e6","block_type":"box","text":"II-48","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"023e1bce-40a4-43e4-a6f6-8751aeb6fca9","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"372afa5c-090c-4e60-a81f-16f64e221a4e","block_type":"box","text":"Lease Obligations.","page_number":87,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"a84eae4d-7d86-4761-8c06-fa592f4de13b","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":87,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"21a7042e-ab7f-488f-ad5c-efaf3cee1efe","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":87,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"69f3f9b7-1231-442e-9be9-4b982e5019f3","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":87,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"68ec643c-8156-4462-b7e0-d456d53943c7","block_type":"box","text":"Life Settlement Investments.","page_number":87,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"885b1b4e-5bae-456d-9bfe-039c39adc4a4","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":87,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"b843bcdf-b8af-4fc7-81fc-3004ec53c53a","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":87,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"0f4fd879-0b83-4428-b86b-6ab0c635dd7b","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":87,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"7b49dd48-6cbc-4920-ae3b-96c85c2a973e","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":87,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"b07d37f4-aaef-4400-a843-92f893c1d643","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":87,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"5858f9e4-7640-455a-8a1f-bd398c5562c4","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":87,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"e97f8ae9-28df-438d-aa85-6b89c8e2d569","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":87,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"b53b7de3-bd2d-42ac-9a90-2a0b95bbdd5f","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":87,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"8ce739d6-1387-4b23-bbdd-f5e63d297b6f","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":87,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"9ebc389a-e3fd-4b98-b6a8-dcd057350378","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":87,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"48172152-9925-4b28-a8e2-0151bae6308e","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":87,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"b77f0fde-e9a1-4b79-a779-a52dfcbab929","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":87,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"352a054b-eb71-449c-89d2-1f384be752ef","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":87,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"49e5a7d2-e713-442a-b1e0-5f988421b823","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":87,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"17812d6f-3f99-4ab2-b1c3-703e08b29118","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":87,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"e9f0aef8-403a-44ef-9be3-b0922272b14c","block_type":"box","text":"Liquidity Risk Management.","page_number":87,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"d2338288-285b-44b7-aa69-191acdf157ab","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":87,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"9b4eb89d-52bc-4e15-9014-d73662953f92","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":87,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"76954fc7-5f6e-4210-827f-7ceb042d9644","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":87,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"ae804087-5d3d-40dc-b5e6-2931c078526f","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":87,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"273b3748-10ba-43de-a51d-77ca871d130c","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":87,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"25ab3408-5fee-4497-bb13-b308f52240fa","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":87,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"e97d2902-d77c-4923-b4ee-6881e1fd9490","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":87,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"90bb3f4d-5e6a-4124-9f41-432ffa24aeef","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":87,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"702bf3dc-e009-4db9-897a-768e638b60d3","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":87,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"109409c8-92a8-4e1f-9697-13b2d1eb17a0","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":87,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"d2233890-1e50-4224-b4a4-df18889ce56c","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":87,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"f14a6ed7-3234-4715-89af-0e1df457bced","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":87,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"c18d5f14-6c06-46ff-8953-dbca715083d2","block_type":"box","text":"Master Limited Partnerships.","page_number":87,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"64063155-7ecc-49b3-8c3b-9a9f4c63ddd9","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":87,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"89148839-6ff8-4c2c-883e-9c0370965688","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":87,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"a2cb52be-e193-428f-b520-708139668d38","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":87,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"a1976a82-f4a7-4205-ae52-a24f6502f512","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":87,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"e2a9ad11-42f5-4eeb-9a24-14fc0ffdcb39","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":87,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"af9ef254-81ff-447b-8b6b-97034c2e1426","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":87,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"d140f406-9111-4151-9c88-4efcfa39c028","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":87,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"fb456781-80fd-4a1b-b54a-60d91fb3ee71","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":87,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"a5a5cd88-d106-453a-8e56-8bacd5350341","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":87,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"cffc8d64-ff22-4b47-878e-9799e66ece14","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":87,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"9b78edf3-c603-4f07-a48f-75ef86e0a18e","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":87,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"f373848b-c56f-43f3-84e5-b595c6c50868","block_type":"box","text":"in the par tnership’s operations and management.","page_number":87,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"cf51a2a7-901f-4fb8-9e6d-3732181339ee","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":87,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"9d091b6e-2d59-46bd-b064-e769d4ebb11d","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":87,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"b941b2d5-b27e-41c2-8732-a5b8305f9d1a","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":87,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"ad5df275-9e43-4642-96cb-b16f501eea29","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":87,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"0c083c77-3c9f-444c-ab63-9b275c66b2a1","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":87,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"b06bdab7-2943-4edd-8563-d52edc2038be","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":87,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"fe839c5c-96da-4d8b-88a7-cbf32bbd365e","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":87,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"7d256236-6f38-4b09-a122-a80304caf4bd","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":87,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"370792a3-6211-4be3-a281-9168fd234f6e","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":87,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"c27cd78b-345d-49f3-a269-91f2086499e2","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":87,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"b2b4351d-06ec-40fa-992d-50f5bc908bb9","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":87,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"561222f0-4e44-4cc8-b8ca-d608cf52e30e","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":87,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"1ef250c6-e238-419d-b7f1-39ab49ea89ea","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":87,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"8319730e-3132-4556-9a6a-d7671eb1a9b3","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":87,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"3371f6aa-fc03-4e93-9754-0a17985120ab","block_type":"box","text":"II-49","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c1a68355-0a08-49fd-b2f4-491bba774196","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b5062d47-be44-4cfb-8762-fed027754bf6","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":88,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"4b833488-0f08-457c-8588-5c2f3db707b7","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":88,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"dbcfdde2-4657-4c19-81b6-f7f3fc0e49c1","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":88,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"a782112b-5cba-4709-a876-a8bd572ff008","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":88,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"ca3adf1f-9d58-46c7-974a-c8f52c4b5598","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":88,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"f78d362d-ad3c-4730-a798-c6424ca89cbe","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":88,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"c95517b1-eb77-43b4-a0df-d49d0c371b81","block_type":"box","text":"Merger Transaction Risk.","page_number":88,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"f80a891a-c7f0-41ab-aa51-f43cf393bb11","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":88,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"be677520-16a1-4377-8afa-ba89c8cf2a61","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":88,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"fdfb155e-3424-48f0-99e4-d8c5d087a1d1","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":88,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"afb5254a-6f69-460f-91b8-ac8fddba11f7","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":88,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"d323ba8b-23bb-45dc-83f4-4c86823f80d0","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":88,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"8ed2565b-d092-43a5-bcc0-fb850966b95b","block_type":"box","text":"the Fund and may lose significant value.","page_number":88,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"97786815-b99e-4cbc-b388-f772002abcdb","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":88,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"353ee1e3-a5a5-44f6-a8fb-8b5d5ab8b87b","block_type":"box","text":"Cer tain","page_number":88,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"1de533e1-d196-49cb-bf67-f6bb5aee1757","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":88,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"bc58c34f-5b5f-4b23-a094-893687176880","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":88,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"30525b38-59f3-436e-9850-e9ddaa2d2b66","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":88,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"527c7741-61f5-42f1-a0ca-6b9e38b40bcd","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":88,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"5918550d-19f1-40f4-bc9a-c034ed9d5aec","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":88,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"e41ffb63-67cf-47b4-8f6b-a2e6f9628e5c","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":88,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"de81202a-0e3f-4861-827e-d8ddf8c79b0d","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":88,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"2c0e36a0-b781-4d45-871a-fba504c33085","block_type":"box","text":"branches of domestic banks.","page_number":88,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"3e8d0472-2a39-47db-b5e4-70d1dc7dd01d","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":88,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"2e3e418e-5ebc-4789-be35-cac8ec5545b1","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":88,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"881674d9-8197-4943-b453-74e535536480","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":88,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"7be5ee6f-50a0-4641-8a3d-1d3157b227f9","block_type":"box","text":"paper of a foreign issuer.","page_number":88,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"d3205cd4-d7cf-4c93-8191-603b965ab480","block_type":"box","text":"Money Market Securities.","page_number":88,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"b5e434f0-84ef-455f-abe7-79f7e88ac882","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":88,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"018aa028-9d10-48a5-980c-3c63e8a28c22","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":88,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"2be9cb26-3288-4b6d-a30b-8d31ef057258","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":88,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"e147db87-ad91-499a-9d8f-25baa031afcd","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":88,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"edb68e9f-1ea9-40c8-83e1-470b20657852","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":88,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"444932d8-16b6-43ee-b7c9-032eae9e0a26","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":88,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"f9fc899d-a95f-4307-80ff-641ffc250167","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":88,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"0250fc44-b684-4f37-8b08-a23821723910","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":88,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"7663b714-3492-46be-9467-23e38ae621df","block_type":"box","text":"agencies;","page_number":88,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"fef35ad6-4963-4ddf-a528-b161660ef766","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":88,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"683fdd4e-4b40-4931-80bb-ee9b5a71543b","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":88,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"224031d1-47f7-4a57-a92f-74ad50de527e","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":88,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"500b8e16-81a7-4cef-8c47-74a0b14d64fb","block_type":"box","text":"obligations and credit card receivables);","page_number":88,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"650bfad5-62fc-41f4-ba58-ecd55ccdf656","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":88,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"4370809f-48f6-449b-8c66-0011eaadb339","block_type":"box","text":"authorities and related custodial receipts;","page_number":88,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"481d0cf5-b781-4a86-86f4-0476761b9b1f","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":88,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"5eb72d7e-9ae6-4d82-9393-43868eef45f8","block_type":"box","text":"agencies or authorities;","page_number":88,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"9ada5d7b-db28-485f-a23a-c2ea504bff2e","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":88,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"df21f2d6-c42b-4c55-9714-a0b05ff41a74","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":88,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"80cdcfba-082f-4719-8209-83f7d59a82cc","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":88,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"9a76addb-dc0a-44a9-bc4d-dda8f306ff2b","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":88,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"9246f7d5-38d3-4498-a390-5efd56deb322","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":88,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"86b8af2a-85af-450c-b1de-2282bb519730","block_type":"box","text":"States;","page_number":88,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"75aa2729-170b-4275-8747-141cd77fe2a1","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":88,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"f76632b4-1e05-4d6b-89d1-083ecd68e1fb","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":88,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"d76b4e89-ce5f-4375-9d78-233f9d652314","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":88,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"0715f72e-faf2-45a4-bca6-c5a6aebd9f83","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":88,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"4fb27750-447a-4413-b2fb-849b746f8c46","block_type":"box","text":"II-50","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a4a49437-5b11-4047-8d80-b27fb7179cb5","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fcf04ce1-725a-4c93-882b-0dd45bdf0368","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":89,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"9e7bcc07-3378-42bf-bc02-62bc42fad5f5","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":89,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"a26d79b9-0fe8-4498-82d6-d66aaa9ca474","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":89,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"ebb00deb-6b3c-4b95-85bd-dee9c7c66f8f","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":89,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"c000595c-d222-4edf-a43c-4fbdca4e29f7","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":89,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"41c6f962-f2cb-46d9-be49-7e3861e84785","block_type":"box","text":"States.","page_number":89,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"760cb3ed-d646-4937-813a-9a81ee00d428","block_type":"box","text":"Mortgage-Related Securities.","page_number":89,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"bf5342ec-5fab-42b3-895b-ad4baf81a721","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":89,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"1c491227-ac55-4dea-90dd-60c41a438123","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":89,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"0de6c74d-160f-4000-b0e7-f9c6c253050e","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":89,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"7ba23742-6afe-439b-b67e-03d219dedf88","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":89,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"0405b553-836f-436a-9635-e1a17c27c9f7","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":89,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"f38da1c1-1757-460e-8b37-a48faabd22ca","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":89,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"b6f4c210-b3c5-4f97-b789-1e1546da9fe9","block_type":"box","text":"maturity or specified call dates.","page_number":89,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"7dc8f203-ef13-4ba7-80a1-7292ab3d7fa1","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":89,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"659a7583-30c7-42d6-89ad-4ba6be986079","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":89,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"409bcb49-cf16-4730-8ac7-f288193123c4","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":89,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"b5e18ce4-3ae5-416a-b83c-0be9852bfe9f","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":89,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"30add1ca-8249-4f65-b0a6-dede01ac610b","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":89,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"1e14baa9-36b3-47b9-858c-b871226728f9","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":89,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"5f35958a-51a8-459f-8d61-6a737e1646de","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":89,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"23766d91-4379-459f-88f7-7c22cfcaaa4e","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":89,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"c1c9a1c0-7c58-44f7-90af-07b946ce47c8","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":89,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"5ba56b09-b5ca-456f-a7c7-0c12487772ec","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":89,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"ecffc119-1347-49b3-bb81-91b0c3bf0416","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":89,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"7e8fc408-33ba-4718-be87-91014a88e35b","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":89,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"39607f2e-d29c-4314-8992-f627581e78ec","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":89,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"37d1795a-3328-4073-9e3c-dd9e1fadb6de","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":89,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"4885810f-2721-4072-87d2-f04ae81301a6","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":89,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"f9975cfc-dc65-4b59-8fc0-c9103ee4f01b","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":89,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"c2a3dbd9-0c13-4efe-bbff-44a0da25c1f3","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":89,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"1ff179e5-9336-4ff9-8f7a-2f0b2e8e0388","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":89,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"28755d12-8822-4801-b23d-d0434d8181f3","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":89,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"4f5a328a-f15a-46db-926d-e9386684c846","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":89,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"cfeb9500-3398-4f86-bb05-3526a9150056","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":89,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"88abdd8d-265b-4116-a624-04b9e979f776","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":89,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"a33cd5be-d294-4d64-8cb8-db71b26cdc07","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":89,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"d5698a39-d734-4a5b-85bc-7d9241acc61f","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":89,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"dd63c3b9-4747-42ef-9182-2d194a0b5ffb","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":89,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"77d361f1-82e8-499f-8b28-096e7bcda5f9","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":89,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"3caa3dcc-9132-4fdd-8b0b-b1d6d222206a","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":89,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"97d14b8b-25e7-42e5-b47e-5dac59d1169f","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":89,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"c5955ef6-4390-4974-8b0c-686af934a8fa","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":89,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"bab600f7-d8f4-41f2-9f71-db442a66ef5b","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":89,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"35384e7a-b601-4c00-bcf5-33c0faf9944e","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":89,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"5308612d-10c3-49f5-941d-441025ea4618","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":89,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"9b995b77-35f0-4397-b37a-0f46ec9e6709","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":89,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"85d8fab0-4276-41f6-b1a1-6402cd348577","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":89,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"fe207d21-1985-4e13-b816-ebb075d3bd3e","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":89,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"74dd3bb7-863c-4d94-9c74-fa625a94849f","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":89,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"0584fbdb-1061-40a1-a284-3dedba894015","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":89,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"ca52f31f-718c-4d99-afe3-d2d23bdaaf1a","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":89,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"689bc326-2b75-4700-8a66-4c8406ffb8bc","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":89,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"a473d239-a654-4970-a154-d28d55afb3ae","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":89,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"c089ce36-e6e2-4db7-965b-0c02bc303ea3","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":89,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"e94af2ca-8f6c-46a9-a978-1d68aae480da","block_type":"box","text":"II-51","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3a5c0cae-c4c8-460c-bcb8-efd9ce86d5fd","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e876dc7b-2865-4b50-88a2-76f399b9b02f","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":90,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"2904a625-28b1-41bc-9cdb-efc7a27019f8","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":90,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"78dc0f17-9b4b-4879-8fb9-762b5c5971ec","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":90,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"3b5c8b63-f84a-4c3f-8cad-65c5d1200ee8","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":90,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"7c2f5689-b2a7-4c92-a925-026fead008f8","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":90,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"3e72dad9-e50e-4d0e-8d4a-ad363e28423f","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":90,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"a9e4058d-3548-4b29-ab3e-a4f7d1cfd0b2","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":90,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"7f6b0f9f-1b46-430e-b59c-a792556edc27","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":90,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"4fc8d15c-799e-4b2c-ad1c-7d4b6898cf35","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":90,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"95c94bfc-84a5-40aa-b589-df79d835b630","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":90,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"a67d2de5-0fa8-4a52-a396-ab7dc79e5974","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":90,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"e8288a24-e3eb-4a82-b67e-47c00008f073","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":90,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"1388e2c5-f7f1-48be-a320-678418c7ae63","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":90,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"6078a4f9-f2a2-4fc1-bf04-7b58cf342f5e","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":90,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"845d4085-3601-42d9-97e5-fb0d86b63db4","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":90,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"a65b85ec-c05b-4994-a039-13452d353faa","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":90,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"65fbd105-7d6f-44c0-98d3-313e3683b8e0","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":90,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"fa9bd5d4-27e8-44b5-9f57-810ec61051ac","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":90,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"910c20b0-f700-494c-b87c-31c1e3649b60","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":90,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"8c84b42f-ab7a-4ce9-85c5-3a26570ad7f2","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":90,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"030cfb2f-019d-4a5a-b996-85eec219d105","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":90,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"7d254283-7990-4ef8-bb78-a79d0bcd96a7","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":90,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"341b0f96-08ab-4da6-b18b-43590b70e701","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":90,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"9ca66508-b712-4372-a5c3-ed171b90f939","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":90,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"39072256-3b9b-48b6-b559-7ebeb42f8ff4","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":90,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"3f477f20-9684-4d64-bbeb-c15d9a30a5ce","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":90,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"f1662683-f331-481f-96c1-1b38c27921f3","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":90,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"ae5d43a6-0de2-49ba-8042-26cb55642af0","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":90,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"c37d7062-3064-4d6f-ac33-93d380d9c6b0","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":90,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"774e5dc4-4924-4f5c-b08c-189e9d7f752a","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":90,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"6c3119e1-27cd-46f5-9dfe-915ede129cea","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":90,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"695bd804-69bd-4343-b505-bf12f656e9a6","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":90,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"a1c6125a-4b23-4445-83ec-a3d01376b93e","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":90,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"831185c6-8cd1-46ab-b70c-9edf56a5c8a0","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":90,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"45db8d1c-97f6-42ac-9497-37df0655de24","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":90,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"c544dad3-4bce-4bc5-ad6b-8bcfc9a32991","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":90,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"be190820-9f0b-497a-8ccb-5567923e5574","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":90,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"4d7cd218-e8ef-45d2-b664-49f2806867b8","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":90,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"5890d684-0859-46c8-9649-e076251c42ca","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":90,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"0120dd4b-a999-4a4d-9c42-6e2ff3944739","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":90,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"c882124d-c879-42f0-ae76-d19c19938364","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":90,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"49a30798-fb9d-498c-ad6a-ef12e8082610","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":90,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"eb864687-142e-499d-99c8-cdbac19221a6","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":90,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"457d18a3-d8cf-4980-9c1d-a58452189641","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":90,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"5e3a1378-35a6-4a16-8055-7701feaa3ba1","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":90,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"4b77b68e-add0-4a0b-b420-4992e4a67762","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":90,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"cf49cc23-f3f7-49fe-9082-8c3653393858","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":90,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"331e06ba-92b9-481c-a756-389868ceb9b3","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":90,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"8d813e33-998f-469a-921a-e8eae6cf5f13","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":90,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"16384c39-dca6-4303-85be-f6f1195cb9df","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":90,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"2b1b6fe3-3fdf-40d4-9489-777edfb3af69","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":90,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"5582a21d-d19e-4f7a-959c-111552350387","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":90,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"b409e1ed-883b-43ea-805b-4ffc2991c3af","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":90,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"3b9d1cac-efde-412f-9376-c48f419757ab","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":90,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"f264a413-174a-49b4-8cbd-7cfbe0770687","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":90,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"2f8594a1-8d24-4b64-aeb8-e1e42c0c8ee2","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":90,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"579bfa30-0f69-4074-ad47-925373b2a265","block_type":"box","text":"II-52","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"950a585c-256d-43f8-815a-5810dda10202","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"90096df2-93dc-4f0b-970a-cdcb6dec540c","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":91,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"7b619683-1852-4fef-b2d5-84da6fedcec5","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":91,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"4d59a3bf-e3eb-48b5-9c3d-933b34ccfa4d","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":91,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"9feb0073-3c2d-43f6-b6bc-b460365b2d64","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":91,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"83823c93-32df-4260-9381-8a3f2faf445d","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":91,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"a6f0ca88-ef38-4357-add9-da88a33c6812","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":91,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"6da5617b-4a55-433b-af8b-c5a07c98c2a7","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":91,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"97b8ac7b-eaa7-4f21-82aa-d852897f218b","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":91,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"6b25c099-85b5-4110-ab2f-fefadc503bea","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":91,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"abf761b9-afed-4169-8849-c166c58c2ee3","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":91,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"08ce02e2-57f5-49ab-9a5f-2229b1820e47","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":91,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"28f2f88a-d119-4b0c-bce6-5abae6b90eb7","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":91,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"e8116331-19ea-46b4-a8c7-8a856fee1a5d","block_type":"box","text":"of principal because of the sequential payments.","page_number":91,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"f4142c83-fb25-4bfd-95f6-cf1b3670da6b","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":91,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"6467e3f4-bae0-4425-888d-cd65a18a80bd","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":91,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"90fe633c-7b23-4351-834e-9fe837ba080e","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":91,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"d52cce8c-d568-4663-aef9-5c0cebf525a7","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":91,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"1c6209bf-66c9-445d-8662-5b20a4b6dbbf","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":91,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"4ee38569-ac84-42d3-ba12-017fa19ab659","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":91,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"827cb831-2b1a-4c48-9dc5-795bc27d3918","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":91,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"46ca4dd4-2a78-4b3d-9b63-6cf0d9697816","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":91,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"cb5f7fd3-9f0b-431a-aa38-e681f083c5cf","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":91,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"24dd3d6a-5ca7-4778-86e1-ffa62f9c8c87","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":91,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"fcb407cd-3d39-4f23-a0bf-1f47818943b0","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":91,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"3e62703f-a7eb-43f3-bd57-13189bdd54c9","block_type":"box","text":"securities of any single such entity.","page_number":91,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"18ba8526-6c76-4fea-bbe2-6cbdaf01f008","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":91,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"387e9b16-16a2-4cc4-a641-9809a9e987b4","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":91,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"b329b354-f415-471c-8b8c-2201f212e88d","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":91,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"abf7226b-8bb3-43ec-a28e-45f15d280ca3","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":91,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"59d38dbe-5597-4a29-97f1-8439923dfc26","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":91,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"ffc670a6-2e21-41c2-8bdd-2a06acc4954c","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":91,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"3167dffe-978e-44c8-adb7-487d516a0c8c","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":91,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"6225e510-2242-4149-9224-d79056afa86b","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":91,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"06aea093-08b7-439a-842d-578fc4186404","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":91,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"13a51961-c85f-419b-a4b5-0dee8dc596fd","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":91,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"122b1b8c-44dc-4753-8d8b-986f609737df","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":91,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"aa1d5bb3-1094-4709-8715-6fddeacb3b86","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":91,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"b3669349-8e6d-4f27-80a5-623721b07b08","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":91,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"d99fc903-1955-496d-8605-6e252dea4aae","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":91,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"41fb6dd6-939b-4294-a775-0581d96849b8","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":91,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"2b34ef6a-e694-4f72-9225-d8d9d4479a3e","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":91,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"c41ceb02-b804-43bc-83d8-ce68c00b24bb","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":91,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"01f07a9c-2870-42e1-b396-2509122e5fd7","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":91,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"c03b77da-f4e9-4da7-ad9b-aa1fc8559a1e","block_type":"box","text":"classes.","page_number":91,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"9f0a111a-879c-4512-b216-dc16fe0066a0","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":91,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"fe149e37-ee58-4451-ac66-699719465952","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":91,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"b6c90786-32a5-4dae-b629-a4713fa90ef8","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":91,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"75ea88bb-fc62-4935-8b17-b3637a1e483f","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":91,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"efe4a4dc-56ea-4aad-a77a-b1932fedf412","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":91,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"d65fb6be-7674-479c-bef4-7b89d2771858","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":91,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"57122528-6c33-4219-af30-f67eb6760b97","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":91,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"e01ddfea-595a-4999-b281-69827bd2a50e","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":91,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"95f81e31-87d7-4cd7-ad2c-88cf1dc90e3c","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":91,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"9f73d662-da78-49cb-86ca-5fc1693956b1","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":91,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"e1c1179e-35f8-4ac5-a4b3-f4733078e06e","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":91,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"85a09044-4081-4b31-ba91-8913bc20e49c","block_type":"box","text":"to a designated benchmark index.","page_number":91,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"203419fd-8438-4cf7-8826-a461f4f55794","block_type":"box","text":"II-53","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"23bfa009-5c41-4d55-a678-6dd4146e36f7","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cf853174-2ba9-4ec7-9e81-e0e620c02602","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":92,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"25be6aa8-3799-4266-974d-1965136b0825","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":92,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"a746f660-28a2-4152-844d-e849a66ab185","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":92,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"60242d2b-a0b2-4042-87f2-55f179336a0c","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":92,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"dbd94d1a-c658-4337-a510-7811d4e08f94","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":92,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"eb907a38-22e8-40cb-8923-59a99f84c9f0","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":92,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"df97ccb6-cb28-4377-83b6-412aeb9cd3ba","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":92,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"0a30267f-21a7-485e-9c51-cddb9d9cefad","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":92,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"e606e544-48f9-431b-8c6a-530b4a3d7a67","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":92,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"2f1f669a-3042-49a0-8e49-b460bf0b82b8","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":92,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"2abb8ced-defc-47fd-b674-8fd659f93cb1","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":92,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"b52909bf-773c-4111-b3a6-1863cc3e3318","block_type":"box","text":"CMO Residuals.","page_number":92,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"3b780a87-e2ab-4220-9efb-4fa781cf405e","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":92,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"6bb2b47a-6e67-4111-a5f0-e732a277414b","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":92,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"b21136e1-be8c-4de3-835a-844fdee21dae","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":92,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"2980873d-9e6f-4240-9957-580898c91734","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":92,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"dd34588b-72de-4b19-87c4-41bba088edef","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":92,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"c8b026be-5eeb-4bb8-9fac-c475a3a21cb1","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":92,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"075cea0b-f79b-46b8-be88-0a0422e1f5a6","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":92,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"e9377650-3790-42f3-b97e-495c6d5f2826","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":92,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"a5f7b38a-5188-4d74-87db-fccf3186bbb0","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":92,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"e726d588-2100-48fc-876d-0717601a3d4d","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":92,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"cf36ffa6-176c-42f4-a168-9c4f571ff1c8","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":92,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"1f56bbb6-856f-4ad3-a98d-12ba9a19a25e","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":92,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"29121c8b-5309-474c-ba3c-702f6314d43f","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":92,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"c862ba75-04e8-47b1-b749-506c38b193a3","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":92,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"86eaed53-993f-4aa0-a298-e8a0a4d4f10b","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":92,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"e42f9bea-d5af-4f58-93b0-017ae6456a34","block_type":"box","text":"a CMO residual.","page_number":92,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"e0c575fc-f37c-4277-b5a7-1d04f1c9e735","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":92,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"c2244fa5-65b8-42b7-b33b-1e0282d31325","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":92,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"d12a769b-bb99-4256-8c08-f7226ff046df","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":92,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"add5d00b-f847-4af4-acd6-787a788ba0b1","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":92,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"35bfd510-7fbc-4c9c-9570-1c6e2fa90df8","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":92,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"fad8d734-fae2-4b52-8b57-3852f18eea10","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":92,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"a21acc16-d794-45af-a66c-02b01faa9eaf","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":92,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"d0ca2683-6d01-40dc-9575-a771848a3b05","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":92,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"d347720f-82fd-4837-b585-49fe7f0a3861","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":92,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"f75eae05-5bda-4942-9613-f1d0a17fb46f","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":92,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"aec74f2c-f28a-4f9d-88cc-eb938346d729","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":92,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"07ff9cec-173e-4248-8f56-9f87064cd01a","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":92,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"efaee09d-fb49-4f62-af91-844c535eeb33","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":92,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"5f753e4d-87fc-455d-a6e5-ce6097beff08","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":92,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"cae93eb5-b857-4fc8-ae09-70ade529b250","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":92,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"3b7dd7bf-8d07-4b63-8023-8a66280f1a2b","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":92,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"78b4cc6f-b910-4dfe-af2e-eaf0d9eff43c","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":92,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"8feb7282-a090-42d6-8a7b-7a65bfa215f9","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":92,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"f77b87d2-1313-43fb-812f-ebf7f90fabfe","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":92,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"55886b97-8d67-4c4a-80db-86d72f9750c1","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":92,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"a6d1e022-2ad4-404a-8616-9a7d3c97d923","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":92,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"350f9ab0-6985-4d19-a0f5-043f378bf1e1","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":92,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"646323c7-dadc-4218-92d6-b0da24ba0984","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":92,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"7f08ae31-515f-49cd-add1-f636e6ec1000","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":92,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"de412a6b-e948-4caa-9995-f984a0dc6d74","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":92,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"12c0d33c-82e2-457d-b1ac-ad1849450cb2","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":92,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"e2bffbb7-3958-4b9a-b201-87c0858da9c6","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":92,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"21b81458-e980-4f53-92aa-9c6205cba2d9","block_type":"box","text":"Tiered Index Bonds.","page_number":92,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"9257f1de-0612-42e5-bf9f-9a5f4822db0f","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":92,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"98174ac5-53f8-40fe-bba7-80aff6bbbc5a","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":92,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"34ad6e43-2a7b-4247-9490-a7e51c2f56ac","block_type":"box","text":"II-54","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"902d87a0-19f3-472a-875a-70ae829c4fa6","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c6fd06a5-8d1a-459f-b5cc-a7ca09cee648","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":93,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"91253fbc-f135-43b1-aa8e-eb33a2265e3a","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":93,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"7c8d1e7e-b3cc-4f67-ab18-ac84c9d97e46","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":93,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"63a0f6ae-99d4-4b0c-b5ae-5e4b94aaf7a9","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":93,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"bac9bb07-5be2-4af1-98ee-6c1c4c96dc48","block_type":"box","text":"that of a fixed-rate bond.","page_number":93,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"6705e6ca-2a38-4f2a-9f4f-4cc36bf75eaf","block_type":"box","text":"TBA Commitments.","page_number":93,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"14ed65de-c125-4cdb-9ee8-3ef7267b7ee9","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":93,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"d9c799e1-9445-4e6c-a876-982c7e5270a2","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":93,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"513504c3-e769-43cc-8cee-f70b7f4c6532","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":93,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"c38b82da-70ce-4271-bcdb-36b06bdc280b","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":93,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"bcb447b0-6cb5-4204-b350-b959a8e3e09a","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":93,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"668f08b2-db8e-4ce6-bb4c-ba35ddaba557","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":93,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"7da38233-ccc9-40c3-8211-08b4804e7479","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":93,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"045dff68-d19c-429e-8633-f7ae9db767f7","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":93,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"1c9fe152-3ba8-497d-85a3-e8539ca585c1","block_type":"box","text":"below.","page_number":93,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"b0345eb3-ed02-4c33-a710-6c6106423d01","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":93,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"3bfb34fe-069d-4fb3-baf3-bfd207de25c6","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":93,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"1a8ce56f-12b7-40db-a594-39b4b9b1bf11","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":93,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"4512d54d-4bda-4466-906d-8569a700a3f3","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":93,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"223ab46c-bf4d-4af4-933e-70a4b78fc9ff","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":93,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"791263da-491f-4224-ac85-612d69195a00","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":93,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"58c113e8-1236-499a-8759-0968de5a6e65","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":93,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"7f28d73c-3ff6-494f-88bb-6303f94711d6","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":93,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"ac1ddc67-5227-45d8-bc7f-4cab92c8533b","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":93,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"0e0c9ac8-5e8e-4170-8abf-f4b6e49d3414","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":93,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"a590777c-7410-4a2f-b205-7f999fe94d16","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":93,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"5b96140a-70cf-4e49-9941-e13d22449447","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":93,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"169f37af-16c5-401e-b6f3-755d1de86ccf","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":93,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"a508591a-1849-4d28-8787-d6845a2507ae","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":93,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"487cacd4-96f6-436b-85ed-e7a1599b1683","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":93,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"28c76331-3270-4a53-8d00-1b29b77df0b4","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":93,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"03721306-b1b5-4bb0-bad4-b6dedab14c7c","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":93,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"b54239fe-8a61-442a-947f-79fdd64f35f8","block_type":"box","text":"securities in the forward transaction.","page_number":93,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"ea98027c-3aa5-4c84-a2a8-cc4f6d119f8c","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":93,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"07db6dc9-0363-4735-8175-276d940a4061","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":93,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"8552299b-6675-44ad-ab17-0791e6dc6620","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":93,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"b8c420cb-c68c-4cfa-8c50-db184643f71a","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":93,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"8151dc82-a6c4-4199-897d-6d222b64fd40","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":93,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"205bb332-4144-4545-8040-bb4da3b5933a","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":93,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"5b719269-6995-4ab4-b361-2c2ff31a24af","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":93,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"8b569dbd-b7c0-476a-aec0-7dfd001f49ae","block_type":"box","text":"securities (","page_number":93,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"8f16bc59-8806-449e-8dfe-bc5bbc93683a","block_type":"box","text":"e.g.","page_number":93,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"2fb793b7-e8a4-4614-a153-a3334c390b1f","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":93,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"672bd0b3-b115-42ae-ba92-5396ad310b02","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":93,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"28b9b98c-ef4e-491d-85a7-7c99c305d6c6","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":93,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"0bc1b37d-b6db-4175-a5fb-22f772940335","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":93,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"06bea38d-1b18-42a5-b3f6-a30bf3361677","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":93,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"c331ed05-50be-4eb3-8909-297dd4ba432b","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":93,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"ddb1ebcb-6ede-40ea-8882-c16376caebec","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":93,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"a12031fa-3b49-4cc3-8ef4-3fdc449d4f70","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":93,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"90955c98-ef8c-4a05-815b-fb6f83d59f50","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":93,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"739ad068-e7d6-4a7a-8903-78a7d3045341","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":93,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"86cdeb67-5846-4578-abb1-d435a8782dd7","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":93,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"24e04afb-9e73-4b9a-978e-e463d25d1674","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":93,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"62db90c9-9cd9-4345-aca1-eb57d8a927f0","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":93,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"4c99323f-4d7d-43ad-aca2-478a2ccbc5b3","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":93,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"2aae2d99-4ef0-4160-ae17-0359ac2b1fd0","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":93,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"6339024a-ffea-4b93-b60a-bdee90502bcc","block_type":"box","text":"Municipal Investments.","page_number":93,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"5b9f0254-277b-4edd-aa8b-d54509d5433d","block_type":"box","text":"II-55","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9a06193c-cac4-4803-ac15-244e12d84ab3","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"44c3d1c4-f01f-4d09-a8c9-df6bbbb7b736","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":94,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"bbec9177-25ce-410d-babe-a01f13f58e29","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":94,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"512f67f0-d44f-49c3-9833-b671c89ed780","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":94,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"003a2870-1ba9-4361-b65f-855458617d1a","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":94,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"45df76e2-eea9-458c-a938-6988b87e557d","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":94,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"f764e08d-4e1e-4e90-bbef-5a8acef0d1f4","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":94,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"bb1bfebb-b19d-4212-95cb-16204f97f76c","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":94,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"ee11e195-8645-4c35-b049-71283c6ae98a","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":94,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"2ab9a5d0-e910-4ba5-a8c0-d67efa27d27b","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":94,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"a394e9df-da8f-4196-9f2e-11f5446cf9e9","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":94,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"96bc9dff-7976-4d6c-8ecc-d94797151a1c","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":94,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"08a87a86-9bff-47af-8a27-98ca4da1251c","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":94,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"8886215e-7401-4115-8563-ed5d220e3e1d","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":94,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"e7f3e52f-bd39-48c6-8090-4b17e38e8231","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":94,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"aebc91db-6b45-4962-bba8-ca32a5866359","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":94,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"ae57ec5f-dfcf-4cba-bc65-4bdd2c414583","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":94,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"fa63bba4-47a0-414b-983f-3b832c673356","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":94,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"2e64c516-9857-4dcc-b3bc-6fd2307864d9","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":94,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"f901cd86-c40a-46f0-b87e-99d91890b0ff","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":94,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"178d6632-95a5-4018-a910-2435d07b6759","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":94,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"3043a4eb-6592-4c4b-ab1f-5dd6a8ef184c","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":94,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"6722c5d3-3aaa-48d6-93ed-51c8cab79c2f","block_type":"box","text":"The risks and special considerations","page_number":94,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"b6444d0e-deb4-47ae-b9fd-81639c22fdaa","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":94,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"5f26f275-d2c9-4103-b966-a5f967998ce0","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":94,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"8b08540b-0de0-40e4-b815-47bf920b7f6f","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":94,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"1d4cee85-5c7e-4004-b570-6dc3131b980b","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":94,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"191f6fd8-3ba0-4f7a-9e1a-24186643fba3","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":94,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"5ab44014-fa0e-4ca4-8178-e8c922246ea3","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":94,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"9ddcf670-c941-4876-9a98-0a2eb3dae21e","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":94,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"8d68dd98-9594-43b4-86cc-1d4579d85783","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":94,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"90f0515a-b747-4a55-b196-e21372b5571b","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":94,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"3f407977-b4e8-441d-ba8d-d9796fa8388d","block_type":"box","text":"II-56","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"715bb829-37f5-4523-8ab2-0e449d3a7234","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0927d2f3-5b7d-43a5-a86c-b60be9b2160d","block_type":"box","text":"Description of Municipal Bonds.","page_number":95,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"ae398d4e-79ac-4d1f-a893-ce9312e01e76","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":95,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"d33d515d-9815-4a1d-97fc-d7903b5ee884","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":95,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"28411666-4eb2-4603-914e-ebfdb6d28439","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":95,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"485e9014-db94-4cab-8e64-22883047da8b","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":95,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"183d5ee0-f5eb-45bc-a584-9d88f257e73d","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":95,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"a501c7ac-9c69-4546-952d-573f915f645f","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":95,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"67bdc436-3951-4c5d-b23a-49173fdaa68a","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":95,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"32123ecd-15de-41c4-8b3e-0f13f8ead079","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":95,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"38768c2f-9a9a-457d-a71a-a0ada315046d","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":95,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"603292a3-fea7-4440-83c5-6e7799ff833f","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":95,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"a391ad5a-3735-4c27-8071-32af798eadcc","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":95,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"c3b0b04c-d0c0-41d0-bc00-137eaf181be3","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":95,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"f548e848-5222-4c89-996a-33bd0c653780","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":95,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"534d4a2e-32f9-4496-ae0d-f1556076b619","block_type":"box","text":"General Obligation Bonds.","page_number":95,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"15ac8f64-7361-4f47-9303-541661326ad7","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":95,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"daf6cc08-d858-4529-a0c4-e44328d25c0a","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":95,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"00bda69c-e1a1-46d7-bb56-156954d2e9c8","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":95,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"71fd8aab-9b32-481e-b0ff-7867088dc149","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":95,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"b6515df4-05a6-4c67-9f4f-baf7786193ac","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":95,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"f5188139-4379-4e8e-bd65-b98cae8b04b6","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":95,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"698afb84-6016-4ddc-8c32-f172f3e63cf5","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":95,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"cb35df4b-6e44-4a78-8a5f-f7d615c36476","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":95,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"559f711d-9fb4-48d8-a5fa-7c41fe4598ab","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":95,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"374a3b28-ba11-4440-a314-4b848b796281","block_type":"box","text":"Revenue Bonds.","page_number":95,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"e425a86d-3dc9-4bc2-a42c-bdd732258b13","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":95,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"9d9e78e4-f95c-455d-88d4-2e470aa8431a","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":95,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"f6f0c571-b355-496b-9a44-ebdab68172be","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":95,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"11721072-d3ff-4cb5-ba63-4f1bc2f2ea8c","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":95,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"9b5f6c5c-e689-4446-975d-28f1fe6fd18f","block_type":"box","text":"viability of such facility or such revenue source.","page_number":95,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"78a15f9b-edfe-4327-a749-29a52b525028","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":95,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"646e2a17-3fa7-4028-bdb5-53950d76fe6c","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":95,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"ee0ef0e8-58b2-4dcf-a50d-af6f355c660b","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":95,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"0ec90ac0-d801-44f0-9bbf-ce392f3cb602","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":95,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"b63dc4d9-0a5a-4681-bd0e-afbb89a6bbae","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":95,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"9024b3cc-9dd9-45e4-a6ec-11d8db9d709e","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":95,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"fb3ad34a-e61c-4090-a730-bc26659223de","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":95,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"01e7492d-579d-4b1b-b264-0bed5084fc5b","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":95,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"432b76bb-9896-4253-886b-e01160d22403","block_type":"box","text":"PABs.","page_number":95,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"4c8349a5-a353-4b0d-815b-dac1b9d7bf5a","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":95,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"976c6efe-d527-47de-a375-02ad497a560a","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":95,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"759f139d-359c-42eb-bd44-0cec2cc2ea9a","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":95,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"4095dee2-736b-435e-bc96-fa20747c18ea","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":95,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"7627a768-8096-4e69-82ae-63b3968edd35","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":95,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"a4e6617d-c6a1-42cd-8ca3-3eae57bbee2c","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":95,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"718962b0-a6b9-4e81-b9d7-f7385d52347a","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":95,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"1f720ba3-c2c5-4031-9436-945f1715f9e9","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":95,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"eed75ce3-569e-4f3e-a63d-e4f1b3152ab2","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":95,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"38f1c269-c8b8-439a-bacf-cef490e3e85c","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":95,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"837d3c8d-d032-4231-a2cb-1c0c420c0aba","block_type":"box","text":"the par ticular facility being financed.","page_number":95,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"44b6bd47-b82e-4c73-863a-045f377714fd","block_type":"box","text":"Moral Obligation Bonds.","page_number":95,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"f14e3559-f11c-44ef-98cd-f09ee501a687","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":95,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"1a53ad42-4eb5-47c0-9906-5658fce3e14b","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":95,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"1297b230-780c-4957-a2a9-ae62fa50af1b","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":95,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"70a76737-bcaa-45b2-b5e0-bffdb0a9211a","block_type":"box","text":"that issued the bonds.","page_number":95,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"f0c4ae74-3de2-42f0-82ad-0d61851c1a82","block_type":"box","text":"Municipal Notes.","page_number":95,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"bb5dede4-22ea-4d1b-b591-7d760e7b482f","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":95,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"8807c39a-9c2e-4ecc-8dc6-3664ecac49a6","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":95,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"90511cd7-9656-40b2-ad32-0d964c4d96c0","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":95,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"c98f687e-4eab-483e-93f6-d2b32ad9657c","block_type":"box","text":"II-57","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c6029812-c5d3-4493-8960-9d69b1a457bb","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5f2b43a9-c82f-432f-8eb4-1ad39cf59b8e","block_type":"box","text":"Municipal Commercial Paper.","page_number":96,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"253f2a00-7745-456e-bf7f-c9a3742dfdac","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":96,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"a401f340-736d-429f-947b-f9f0017ccac5","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":96,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"8e69d934-cd31-4801-823b-f70e37a851a1","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":96,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"a0f79932-4276-4b2c-8a95-db6576e0c0c1","block_type":"box","text":"Municipal Lease Obligations.","page_number":96,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"0e7bc50b-28c2-4719-95b0-72b38db75a93","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":96,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"e69da217-e999-4422-9a5e-e81239222ebc","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":96,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"30e23ebc-bac2-4926-b998-809128536f68","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":96,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"ebb02d8a-de79-401d-91b0-c73804c074e4","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":96,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"8c0ac400-4c8a-4f4f-9d18-1dafaa316a90","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":96,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"19248336-cf26-4d71-a92b-b306e7010809","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":96,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"c79693cf-eb25-41a4-936d-a7588866fba0","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":96,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"d8de63c0-92ef-4b49-9c59-114d454d57b8","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":96,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"4e9c9fa1-4651-4d0a-b105-72c0b08a3bab","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":96,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"57b1ad59-6528-47c8-a0ac-2a5cf2be3af1","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":96,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"5f2a60dc-f50a-4b0f-8135-bcb1e821353d","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":96,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"7c93d473-60da-48b7-b716-3457836caf89","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":96,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"e6b0f210-1222-4db5-a26d-1990961687e8","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":96,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"72e4eda6-d2c1-4c85-9eef-78851250082b","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":96,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"3f0fecc0-a1f4-4a7b-9453-fd33784ec03f","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":96,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"34c7233d-94e0-41b8-b50d-eace43915833","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":96,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"6ad53129-231a-4a81-9ac5-c983cef18596","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":96,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"00f08f46-2ed4-4e3e-a469-5191a7f24ac3","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":96,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"634e7a40-83a0-4627-9ad6-37ad5e484b1f","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":96,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"b27f9450-947d-4b7e-a489-0e2556d68ae1","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":96,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"c0ea03fd-13db-4bcc-a46e-f8f0ae50eda0","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":96,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"b1907475-4393-4a9a-bc9b-0912c0529bb2","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":96,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"0d78f572-f9df-4f84-b44f-d1fdeac2c7a2","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":96,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"3968d659-c6aa-4888-8529-8a56bcd9c228","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":96,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"035c21ee-1beb-404e-b8b1-47f90ba264fb","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":96,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"7c167f6b-fcbe-4a2a-bbbc-aae721286c79","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":96,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"a96d86c5-436a-46fb-b2f6-4ad38b21d68c","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":96,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"0e7285f4-85a8-4f27-a712-9cb0dd2f8d3c","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":96,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"a25c251a-e3c7-4099-b5fa-18545999051a","block_type":"box","text":"Tender Option Bonds.","page_number":96,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"41d8b469-d497-4cc8-880f-2beb81a70930","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":96,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"122bc6a6-8352-4e0c-9c4c-95b428602f65","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":96,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"07c622bb-b083-4e62-9702-f50644d25808","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":96,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"bbb33d4b-d940-44a7-b810-80fa2131e3c9","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":96,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"fa4c0599-2ea8-4f74-9103-09eb6c9c197b","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":96,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"54236e77-3030-4f1a-be09-954060ebf789","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":96,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"d2a1f7e2-215a-4caa-9a20-b3d807451303","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":96,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"03048040-4659-46b9-8cda-7d865aac93cf","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":96,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"a7393c41-1c13-413b-938b-312c7d5d50df","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":96,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"cac8be02-0755-4e01-b585-1a1fbb4580fd","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":96,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"03beca90-c245-44cd-bfe8-91343a5cb414","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":96,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"379c0506-c1ba-47ec-8ead-cf5cbeda4c04","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":96,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"5ac13939-d403-4af4-8cd6-f5276a7d4b3e","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":96,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"42d01998-47b1-4b21-ae63-ebce0485a331","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":96,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"c4960c1d-12a0-4ecd-a0dc-351a2d66b68f","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":96,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"f6db3f0f-4ef1-443c-bc6a-d2995fb68e26","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":96,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"7b2660cf-a8e0-41ff-9ca7-0c8438b1939e","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":96,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"e4c2e98b-c8f7-4fba-95dd-470db978bc37","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":96,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"9d29ed34-3fec-45fc-86b2-b5d934af40f6","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":96,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"763b62fb-1d02-4af9-96f9-b7a75472727d","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":96,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"e40e093f-d162-4ccb-8827-de33f10df3e1","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":96,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"7810d22f-b700-4204-8389-30859b1e8df8","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":96,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"dd82584e-1437-42ca-a3ae-e21f231c0e2a","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":96,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"1bd7dc08-5b68-402c-ad2f-8ccca173f7e9","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":96,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"afc5bd10-75f2-4f11-a45c-a0cf3a886f80","block_type":"box","text":"II-58","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f31eefb5-f9af-4561-9d60-4e2322db0fe8","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"73a0f03b-085c-4c3d-9c01-6a8627dcc41f","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":97,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"1a404f5b-3e5e-4eab-9d38-2be0706cbded","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":97,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"27657aa6-159f-4b8b-9285-c55fb6f22aab","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":97,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"71c02be7-491b-40d5-a6b2-f54aa938b168","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":97,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"5e14ad45-ae9a-4719-8fee-adca9a73aaff","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":97,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"8ce14c7f-415f-4fd7-9fd5-86be590c41fe","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":97,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"a137a800-47d0-49af-85d4-ed55a736c376","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":97,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"46c60f1b-c9e3-4fff-af10-a3a135b006c6","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":97,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"7e0385fd-3396-4e03-8def-3104170dea83","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":97,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"6a8b45e6-a6a6-4ed8-b8f4-9f057717dc9f","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":97,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"dcb38a59-1573-42d0-b3cd-e96f29c87548","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":97,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"d540e215-7fb7-440d-94a6-7f1181073a7f","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":97,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"6d06f5a4-6950-49d8-b59d-d4e95387a338","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":97,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"7da18fa3-c088-48b4-8d17-759382186574","block_type":"box","text":"issues.","page_number":97,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"536fc853-288c-4abd-951b-96067dc02908","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":97,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"55fdb42a-e898-479f-ac78-308e94d14e7d","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":97,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"27afe7a1-e214-495b-8ae9-486da7759e08","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":97,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"7a8169f2-a8f5-4069-b30a-38ef2349b473","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":97,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"d01ffe4d-87ad-4858-bcab-aa15a7d210a8","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":97,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"758437c1-7b34-4628-99f7-c293380bfa6f","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":97,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"afe6444f-bb25-4f8e-91ec-9c43a386344e","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":97,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"72a78149-184e-4fef-afbb-d820818b697a","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":97,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"88bd9e06-0a1a-40f2-a558-c0def6cf5de7","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":97,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"44370c84-e0e9-460f-8f9f-2b0ef9c720bc","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":97,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"1acae1a0-cec8-4418-9cb7-1e9fbfb19f2a","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":97,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"18a63bb6-937b-401b-bad9-66c73223241d","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":97,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"d651fd50-0b4e-4d5a-842f-0e42feae8e67","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":97,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"92d046b8-1cd6-40bc-9e2d-eb83b7ada08d","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":97,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"fe8c7bdb-e8db-41ca-8ed6-ccfa21444b8a","block_type":"box","text":"i.e.","page_number":97,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"14145841-e69b-41d6-b850-7514a48c918a","block_type":"box","text":", the Fund). In contrast, in the","page_number":97,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"58a51d8e-c200-4f21-b965-5c1fd31a1de3","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":97,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"ae846296-6024-4632-9044-4b5a378aac2a","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":97,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"c4001bce-75cd-4af2-9f70-64325d3508c3","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":97,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"15b508ff-7cae-4185-9695-934658b86e20","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":97,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"a4b99eec-53aa-47a7-88ca-6b1c8b38ee26","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":97,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"01e12aca-5357-4950-8e33-ddac55b969d8","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":97,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"8be1ddac-b494-41a1-b4e7-145805b3b42f","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":97,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"0b457d31-b2e8-432d-acd3-e7790d9cca6a","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":97,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"b5d24e3e-804d-4869-9e7c-bd2868e0b55a","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":97,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"85e45b4b-dca8-4285-ad12-38560fc8a60b","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":97,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"6d42906e-94dd-4068-b1d2-98c74f40295b","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":97,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"c499ac22-5eff-47b8-9d73-7e561f44b7aa","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":97,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"732df0da-df7b-41cd-87ae-bd7b22462927","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":97,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"7eb5eff7-49da-4abc-bf31-fb99ebf48c18","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":97,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"d7329540-d143-4cd5-953a-c0618c330205","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":97,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"81f7ad68-48f8-4d89-8791-9948b4cba875","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":97,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"e1627047-438d-46ae-9a47-03a267c973c6","block_type":"box","text":"Trust.","page_number":97,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"bf0124ed-ad4c-4f47-8a9c-6c0e5591ab66","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":97,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"91f42014-53bb-4ca3-bd68-5a989f53d957","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":97,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"42a76653-8a71-4b46-b1f8-66a85a0a5014","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":97,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"45398bf7-a428-4914-aa6e-45a4c258443d","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":97,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"3edf195c-f03a-41bf-b797-0fa1f3439782","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":97,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"9ecc935b-42a7-40fc-920f-fcb279d5e282","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":97,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"a9f91a68-fc20-43a6-bb6b-7c2b51be670b","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":97,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"044f776a-9cf7-4d27-a50e-3c6680bf87b5","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":97,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"1fe8546c-c9db-4a21-a61c-55ef2152b462","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":97,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"255438dd-9767-4b43-bde9-20e9ce4b8fa7","block_type":"box","text":"II-59","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"566b5345-8ea9-4768-a51c-5f8867778bea","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"96968911-09b1-48b4-81f0-223f70f8d5f6","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":98,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"f60da2ff-4261-471b-97fd-96dab22eab4f","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":98,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"0c440edf-4d79-4c33-a502-aac5c20046e9","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":98,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"587ec470-09a3-4921-8aac-44e167f96411","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":98,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"73b5c5ef-7d29-4eb4-9e2b-11aa9244a5c8","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":98,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"af2fd8d8-7d06-4176-b025-50de5ccfb0d6","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":98,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"290277b3-5668-46d5-9960-857c918fd1ae","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":98,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"5fc5bc11-1dff-4727-9260-43ba3f24d447","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":98,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"9deb507a-9d46-4f9e-b7c4-4042c544c03d","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":98,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"c98648b0-15e8-48f6-8e96-23b560f7bf89","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":98,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"4e92d5f2-5eb8-47cd-ac2f-8b87099f374c","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":98,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"1df64c3b-f1db-40f1-abed-5ada638e7631","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":98,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"eef5d23c-0437-4947-9e82-d59bce32fa9a","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":98,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"4d10ed89-7566-46e1-8cc2-5ebe4dc52300","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":98,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"e9a0aff4-fc96-4a72-97bc-82a992f41856","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":98,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"af170cdd-1a41-4f68-9820-757fe75c8b46","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":98,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"78a96a1a-ae2b-40f4-956c-963a75a7f0b2","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":98,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"98c5b19b-703a-4418-bc29-5fa7e5205ad9","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":98,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"a010c102-9386-4781-9bf8-0bc6621fff49","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":98,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"031d670a-cdd7-4669-a2f1-b9ea1c377d42","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":98,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"844531c2-df77-499b-b941-94facc8fbfb8","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":98,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"65e4f4d4-56f2-4ab0-9b94-46e30104c85c","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":98,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"8d9b582c-412e-4779-8677-ca03a8f39500","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":98,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"178115b3-3271-4460-95bc-fa005abfd28d","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":98,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"284597ee-0486-4620-a29b-4305727eeef6","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":98,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"77183264-2064-45fb-9ec6-20b566dd6960","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":98,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"b225322e-fd58-4dff-98fa-312351cd29aa","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":98,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"fcaeca43-c0e8-455b-972a-ae551bae0907","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":98,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"bb13e621-6dde-4539-9500-6ffd1b770839","block_type":"box","text":"i.e.","page_number":98,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"ca18ea82-d827-4f47-b98e-49a9fae0dbab","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":98,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"768db58a-6af0-4e20-854e-9b7626f68c90","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":98,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"97c2060a-3888-4c00-a2cb-105c863fe7f3","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":98,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"5315e296-31d3-4380-90a8-a60effb08616","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":98,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"8dfa1746-728a-4fff-b554-8aaa3dde0334","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":98,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"9eaa6fc9-0cec-433a-99df-423a353e920e","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":98,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"fe6fcf61-8a40-41d9-88c0-8d6d6fb74b28","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":98,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"13ca9bc9-214e-46eb-a062-67fd3f3a0b2a","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":98,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"96b12a93-f6f3-45de-8d64-211e1c23e9ad","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":98,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"0b6ad797-b84f-4d74-be9e-cda7167f91d5","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":98,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"003b0597-aa80-41bf-9d8e-3137f8c171d5","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":98,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"fe95e978-9d9b-4650-a586-a813a711c6b6","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":98,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"028276a2-070e-4306-8bc7-d8590b0b2600","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":98,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"5cf8fbd3-cc7f-4d8c-8472-d6ee10af674a","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":98,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"e940a75e-76b2-4b8a-9a46-2577da6888d2","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":98,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"1e659d01-6531-49af-aca7-208b510512dd","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":98,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"6e3e4fec-e2bd-4ecd-89fb-6bb28b8734ba","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":98,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"8e324e23-a2b4-4e7b-a1b4-16116b9815d0","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":98,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"90c6827b-f318-4a7d-b517-45c941390448","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":98,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"052e3f41-9841-4202-b2f3-cdbe41525c8d","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":98,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"e0d8278d-2d95-4d8c-8d45-3d16287ab6d3","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":98,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"9bbabe32-2a04-4bfe-ae9f-6efd89e191f0","block_type":"box","text":"market is not yet cer tain.","page_number":98,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"271cde8b-d3d2-4b00-86ed-1b860ec7d27c","block_type":"box","text":"Yields.","page_number":98,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"b7c7b53a-fb08-4730-988f-343a646d9cc0","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":98,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"b11ba298-a46b-4db8-b67d-6e651501aa88","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":98,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"e635f750-d5fb-4aed-815b-48ac43d943b3","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":98,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"e73c39e7-00ed-4862-b7fe-0f6cfaefc185","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":98,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"6bd7afa0-ce29-41a0-9fe0-5d2c5558e575","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":98,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"4ccafdf4-6643-4bf8-81b6-3ce18046b043","block_type":"box","text":"II-60","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2bdd23b4-d504-46ed-8f34-e0b16b9fdba9","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5a7ae6bf-7fa9-4168-a3d8-e9ad0f6007b3","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":99,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"65e73b96-02ad-4def-8201-92f6cc2dee56","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":99,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"74d7394d-de80-4355-90b3-226f0fc9370b","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":99,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"71b638c2-0c83-419c-96b0-358514b99cba","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":99,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"c9c0db3f-43bb-4289-94a9-762b154769cc","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":99,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"e664e456-b268-4ef7-a2e1-9006ee36b5db","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":99,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"1b7b730d-3009-4482-9f1f-ee7b6ee65259","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":99,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"9ee06573-5d85-4f55-b1ec-fd32961bdca0","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":99,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"0ee87a42-c760-46f8-8aed-ea120ec40ac3","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":99,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"f323c668-6331-4a10-a340-2b7aad2a2090","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":99,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"ea836b33-6e94-4828-8c49-7950479a102b","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":99,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"d4f9d4e6-6dda-4e42-9832-dad3eba85808","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":99,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"5ce17ef2-6a2c-418b-8b47-37cfbf012a71","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":99,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"a176b2b5-0763-4353-9838-2c7425858387","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":99,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"de9fb68f-48c5-47ae-bf14-0845bc044f98","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":99,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"750b8a51-6a61-4857-b13b-8fb67af467a7","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":99,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"8c191293-2a03-4bae-8dc3-a9c6667fa5db","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":99,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"c04f58dd-fe09-40f4-aae0-b546f3642d63","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":99,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"c0e884fe-0ffe-4439-a1ee-6330afec20c9","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":99,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"5a13c22c-e8f9-4ad8-b3de-0cb284d929be","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":99,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"593d36bc-edb9-4953-97fb-9484b5276618","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":99,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"99bfd036-3d58-47ba-8985-51b6bc3c4b8d","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":99,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"38711c64-6a2e-4e73-a7dd-f190a7b307b6","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":99,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"98a4d09c-d9a2-4181-88c8-733cc9d0dcd5","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":99,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"a5204d5b-1ace-4fb0-883f-4ac88b1a0b52","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":99,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"a4604a3c-396b-4f68-826c-9d85d4097276","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":99,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"6c734fa2-4ede-4d5e-b713-2f4fb8fe533f","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":99,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"cc86a12f-ba86-4770-a4ad-874f5e8bd94c","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":99,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"5bc07f02-bb78-4f78-96df-32fed43226c9","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":99,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"08498cdb-2ed9-43d5-9a40-358ae68867e9","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":99,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"ded938f3-a05c-45c3-bf86-86e55b500a88","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":99,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"4438928b-8b29-4d41-8776-6065fa5fe6eb","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":99,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"83ac8041-c554-4f98-ba5a-86ffa2994893","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":99,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"405e4992-11af-44c6-b453-78cb5317acc7","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":99,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"68507ef2-1960-4914-9407-cec3dd3ea6fc","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":99,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"242a1721-bb09-4324-80e5-323b30af5b61","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":99,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"2bc5f163-7555-42f9-bf17-21a3db96b641","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":99,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"e2877992-3f75-4e88-919f-2c19c060eb37","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":99,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"c97875ac-6852-4507-bb40-062b13f3a044","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":99,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"f1e10463-a1eb-4899-8daa-cd599de9b375","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":99,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"e5710a78-a6a8-4aaf-b45c-23e0ba923e85","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":99,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"2282063f-1836-4b7c-824c-59309f38a6d5","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":99,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"ae544469-8053-4e28-bb1c-3e961546dc84","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":99,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"2d8e4143-0f03-4ca7-a940-fb4d3d72ffe9","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":99,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"6326f20b-cce9-44ff-b01c-3ea6ddb9da88","block_type":"box","text":"Call Rights.","page_number":99,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"3fb77f68-06e4-4cbf-a5b7-bc63071fc68e","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":99,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"6ee64b2c-f124-42f9-9378-3084dd8525be","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":99,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"96a0dd42-0bdc-4f73-a724-3fc66af7b648","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":99,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"496f8bb9-235f-4960-98fb-3f977a9f4fba","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":99,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"bd3b1413-3f0f-42ae-8eb7-a1ba80d7d723","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":99,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"75fbc724-c3c3-4a7d-8b02-d73b6de6d07b","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":99,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"6ab6e437-882a-4620-a193-1c2097be982f","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":99,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"db480180-7b59-4dbb-959c-589da7fe3613","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":99,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"adf8ba11-ce1b-4dd4-ae0c-c2937a1c8fe1","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":99,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"a16ac996-1562-4172-8e93-0dcf50290039","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":99,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"5d3f5311-6df6-48c0-8f96-0e89cd928767","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":99,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"00701d1e-8ba3-40bb-b697-3c4a25ce66e9","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":99,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"5f80f003-9a69-47f9-822d-7ff2339398ff","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":99,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"0c234b9e-af9c-4067-b4df-a98b399f6116","block_type":"box","text":"II-61","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c6bfd00c-5169-40e1-a066-bccf8a7719b0","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4af89ae8-7148-4a16-9b7d-83d339be8737","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":100,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"f806aed6-ebd8-4897-8a00-34d95aca5a79","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":100,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"33408fe1-cfd9-4954-af1d-5f7ae9e98744","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":100,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"c9ff36c0-cb17-4028-a4f5-a5b503af15c1","block_type":"box","text":"i.e.","page_number":100,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"9857cb43-91e8-4ad4-bcd0-2ccae981f9eb","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":100,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"3c75ea3a-49fe-4eda-82c3-38c5b79c30d4","block_type":"box","text":"rates).","page_number":100,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"43751158-ca51-4d2b-b1df-667366bddc23","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":100,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"3c040761-d5bf-4fce-8006-b6779d27c5fb","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":100,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"c06e15f3-a046-49f9-b95e-5be3b13c0445","block_type":"box","text":"e.g.","page_number":100,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"51dd53d2-e698-4542-b350-bcec32078275","block_type":"box","text":", an exchange of fixed rate payments for","page_number":100,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"48ab7f18-5dac-4daf-bdd1-2b455225f3d2","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":100,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"8864b847-395e-452b-a795-5c711aca810a","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":100,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"23dd6922-f7dd-4ff3-a60c-f55f0e8bab22","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":100,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"33be3488-cf21-4679-835a-950259e9019e","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":100,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"96a2fa06-af93-4248-b4e8-ad313b9e8c87","block_type":"box","text":"with the same attributes as the swap (","page_number":100,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"bc6f38e4-3a42-471f-98f7-3d38ce9ae618","block_type":"box","text":"e.g.","page_number":100,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"c47d9bea-020e-4dd3-90f8-ee61dd11a319","block_type":"box","text":", coupon, maturity, call feature).","page_number":100,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"684dab53-368f-4103-9852-6b01fc2a6346","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":100,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"b6d7edd6-176c-4f34-8e1c-7f8f91bffc8c","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":100,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"9d5e1a46-bf39-4b02-8a94-779eac629dcd","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":100,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"9a2133da-3cee-4e5a-8d7f-87c074256a91","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":100,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"14e41f1b-d995-4aa4-88f3-eaefcdf96453","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":100,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"14ff1eb9-6bbf-48b9-aa14-c0814b74cb4b","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":100,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"ae0c49be-d773-41b0-9c29-154d71344d21","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":100,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"254c693e-a5c7-4f14-9a72-070851084589","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":100,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"1833808c-623e-4df0-ab89-fa1473c1d261","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":100,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"61ec83a9-0ac8-4b73-92fb-5a9de59989fa","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":100,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"10b16134-2792-4ce6-991d-48edeb84b278","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":100,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"6258b226-02dc-452d-aed5-cd2654e7f7b7","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":100,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"81d918ef-1285-470c-a0ae-d2f8433e1929","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":100,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"462c2e86-a9da-4f4f-afd3-a3f3eab97006","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":100,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"225337d3-4319-40c2-9dd5-5bcddb35e37f","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":100,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"b78221cd-8b45-480b-9dbb-94ee25937077","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":100,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"a50c93be-0ad8-4d58-bf4b-10592b37f455","block_type":"box","text":"Insured Municipal Bonds.","page_number":100,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"883b1aa8-7ad0-4aaa-b52e-c3be513e74a1","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":100,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"ecfa6b75-3a10-40e1-a1f8-e18c66b3e4d3","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":100,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"30dda0d6-2230-4f21-b35b-49288b8e3fed","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":100,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"2eeda10b-83dd-4247-8d39-088495537646","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":100,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"1823eb85-0605-4f2d-ba09-0406f5cf12f9","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":100,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"735bc392-840d-4284-86b0-4d8421a67361","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":100,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"2a70b85f-21a5-47fc-be0c-64ecdbba411e","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":100,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"a20cb3ee-e448-419c-8052-e55a9df40c6c","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":100,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"54de9572-454f-445d-b147-06c840da6905","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":100,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"b501e49a-ef4f-43ca-9e98-626384fa740e","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":100,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"0593eb1c-ceef-4758-a27f-3d5d77408d8a","block_type":"box","text":"bond could drop.","page_number":100,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"617040f0-d961-4a9b-bf35-cade79f3ba90","block_type":"box","text":"Build America Bonds.","page_number":100,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"1e162fab-faa7-42c7-b35d-5f4200fea658","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":100,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"e3286630-a86e-4eff-a3df-7463a7068723","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":100,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"c6e379a0-55c4-49bf-bb35-776b8906fa1c","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":100,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"c4c1b956-80fa-4874-a41b-0a801a356c62","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":100,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"0177fb9b-fd6b-4561-b44e-85f890ca82c1","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":100,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"39226af2-8966-480f-ac11-24b74550c295","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":100,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"04c1cf82-a51e-4d04-b5d5-44461d6cb380","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":100,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"06c944c9-2c41-44ab-88f7-0fa7e22879cd","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":100,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"8705c250-991d-4da5-85f4-b0eadffd46e3","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":100,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"6731f014-031e-4f85-9828-cf97829a6add","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":100,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"7299c731-d2c7-4851-89d4-8fd218e5f618","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":100,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"2581f70f-b8b1-4589-a504-8b69f6fe9711","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":100,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"e1ff266d-dabe-4fff-9de6-0dd7add8fe6b","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":100,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"cd7ea974-5768-4030-ac80-f77a029a21df","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":100,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"b04cd2b1-772c-426d-8aea-4275c8139644","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":100,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"036c021f-34b9-46d3-a603-67e00213a255","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":100,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"12ebfca5-15f2-49ce-8121-9d748e9511d3","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":100,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"24fb4053-f651-44af-b82f-c9539fd92c0e","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":100,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"0828fe4b-cca7-481a-b940-44243a267392","block_type":"box","text":"II-62","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dbbb4442-8389-40e6-b4af-d99fc1e00d00","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a40cd021-9524-40ad-a424-1923536ab879","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":101,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"e9c3168b-ba85-4cb1-a115-2b2ff4b412e5","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":101,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"7b4dfc4f-60f8-47f0-be19-d2f96f62017f","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":101,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"a6965afd-1a91-4508-8818-acab5853db18","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":101,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"5e9b8f43-e72f-46a0-9a85-0d17a7c6953e","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":101,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"f1619a7b-6aa3-4641-9dfc-754c71e9bca5","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":101,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"67b86b80-5e3c-4879-87b1-8a1e3eac4102","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":101,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"dedf8424-8caf-46d3-b578-58ba81f58c6d","block_type":"box","text":"their face value to the sponsor (","page_number":101,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"c6ee7606-cdc2-4546-89ac-ca516c03dfcf","block_type":"box","text":"e.g.","page_number":101,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"957ba91c-db2a-43d4-9e64-1697daf74201","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":101,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"c65833eb-5e2b-499f-99e6-c6ffc3653357","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":101,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"03918a4e-346f-415a-ba32-29ebdb282816","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":101,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"4b7ae5bf-e43a-4adc-9123-f28a88f37b8a","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":101,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"9197181d-c957-4137-b987-448250930a82","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":101,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"26c3efca-7088-48f1-ad6d-16c526eb92c3","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":101,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"cd32b519-c3ae-4d5e-b25c-f768664efd52","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":101,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"832f8ba4-4fd6-4172-8fe4-be55234ea699","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":101,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"3dfecc13-4b4f-4341-9f88-0a8ba29cf9ce","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":101,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"e36f8619-6061-4ac1-8f44-3efe825a9e29","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":101,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"c441de54-cbd9-48eb-a3d3-c757dc2e7cd4","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":101,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"56191c4f-d15a-4c29-93c7-9cb77e1b6d8b","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":101,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"da34db65-65ab-44f2-ae59-53860997cce6","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":101,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"05c64e55-88b3-47b1-9141-ee91e14d8a2b","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":101,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"779b5f23-d6d8-4bd0-9a48-9a0105de8f0f","block_type":"box","text":"such opinions.","page_number":101,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"81975b60-c42e-4dfb-bf97-e7e2ed3142e1","block_type":"box","text":"Operational and Technology Risks.","page_number":101,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"966a43a6-a6ee-4e81-915f-0331e93b341b","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":101,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"b83de7f1-9f80-4aa9-9fa2-ade694e59cd6","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":101,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"684c5e77-beff-45ae-b48b-59b234e05ae6","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":101,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"25b13715-3ff8-436d-a31c-c0aa4a430a11","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":101,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"7bce7f09-89f0-49c1-949a-77ec5a3e3edc","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":101,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"88522089-feb9-41c2-a49d-8df6d939042e","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":101,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"b3fd73f2-7b11-43fd-826e-aac328c493a8","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":101,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"da43f23b-f7b0-4253-9370-d481bd405171","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":101,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"9b7a9fe7-37eb-4e4d-869b-cb43b7f987e4","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":101,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"e2b46ac7-fe5c-4674-8c3f-ff5ba3271dd1","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":101,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"43ef6ad2-5da7-4c52-8b22-811e5c47f024","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":101,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"1e1d7a4b-72e2-4953-b35e-d5bf85cac3c8","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":101,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"aedbb6a7-11a0-48d0-b313-f8153ebcd37e","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":101,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"cad4bb2a-02a7-4f58-af25-d60fc6e160a5","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":101,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"f512d93d-1b54-4a65-904c-28ef6c1e8a56","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":101,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"f39d934d-265f-4644-a5b3-139ca4363aef","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":101,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"83e28102-2683-4ec4-9fb1-253227622093","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":101,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"1b7b93a0-1738-4ec4-a2ab-3af94d8ba7dd","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":101,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"3bc8cd29-7d90-4218-8421-65f253b817e7","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":101,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"9b7183bb-132e-4484-b320-1d1e39283274","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":101,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"70eca0c9-67fd-41c4-ab5b-3ec75a4addd6","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":101,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"8ad31192-13f4-4768-97b8-ffbe087f4862","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":101,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"6712a68c-21e8-4144-ac6a-977669a9fe13","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":101,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"a89fe9ce-291d-4cc6-8eba-c6a930e4c763","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":101,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"91076828-8125-4dd1-8d2d-33668bb275b6","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":101,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"024b91ed-1d34-4fb7-9b18-713a367c4087","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":101,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"4cc87b03-7c42-4b62-a1d9-20dfa7ea8575","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":101,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"0d37d007-f882-494b-9d76-50fdca62c46f","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":101,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"6c1dcf16-01c5-4b30-ba9a-44566c596e4e","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":101,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"5d8b35a4-872a-4af0-a4ad-234040817fc9","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":101,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"84721bf8-0361-4229-bfa7-43f5401d24ac","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":101,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"8a7e67b3-c839-4a58-bd6a-d61b5bbc4d17","block_type":"box","text":"infrastructure assets.","page_number":101,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"b1339ffd-0db9-4ee6-bffb-fa28a8b04084","block_type":"box","text":"II-63","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7444e349-4ceb-4f33-b946-e26db048d69c","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c2561e4e-78bc-4301-a751-611acb6e7726","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":102,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"77274670-b2bb-4ba9-8fe6-d2e79a21d492","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":102,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"d9f24904-5d08-4650-b5a5-88e6c9073a57","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":102,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"578abdb7-e1cb-4ee8-8774-aa21a6a1c1b5","block_type":"box","text":"or services.","page_number":102,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"03b9407e-3b7b-4b19-a5f9-25e1d005f97b","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":102,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"0ddb7caf-4822-47af-849a-535842fdf0b1","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":102,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"c4473b21-826d-4775-99d7-1bd62e306dec","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":102,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"944468b3-cf8e-4810-ae0a-994c4bb505ac","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":102,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"c1ed56db-6008-4c13-86ef-aab2f8acc1c7","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":102,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"ea6ffaa2-976c-44d4-a23d-39fcd2f59e3b","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":102,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"27cca986-c96c-423e-abe9-a9aa1f27d3a9","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":102,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"99c5ef5d-ebc0-450c-8f16-2400d8f8d816","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":102,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"05093f94-aeb0-4456-b216-34e6c696f73b","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":102,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"d86f539e-250b-462d-9516-d60e9b2240be","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":102,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"fa74f658-cf7c-46c7-af3f-4b8ea640a40a","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":102,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"d6daa286-5c48-4c72-92b5-d0d24232b549","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":102,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"c8cee3ed-0c37-4ac9-9042-794253611f9d","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":102,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"4e56477a-3488-4c6a-91d7-017f36cca35b","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":102,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"3586d7d2-30aa-43d0-9f78-9c8d59568084","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":102,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"150db2b2-dbfb-450d-ae41-4b1360c0d71b","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":102,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"7fb40348-5f6e-4c69-a5d9-7adec8ed21d1","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":102,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"6e64ed74-faf8-444f-9595-c0e5117dae62","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":102,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"5a261e84-b317-400d-812a-1847be0c9781","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":102,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"a074fd98-2328-4558-bdf3-b22ab4d9731a","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":102,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"e135e38b-c77c-499a-9b62-0496eb8de5b9","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":102,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"e58d2d08-f28a-4200-9340-787c43e6d078","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":102,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"d7699cf2-a13f-47c5-b99b-857a613d83f8","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":102,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"b19c14a2-de5e-44b1-92af-ec282b994455","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":102,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"86c2451d-1e09-4c48-ace2-a37de0c8ef9c","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":102,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"383ada12-c381-4748-9d38-07f663ddc827","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":102,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"c933b9e6-88f5-431d-9aca-e10a707c9233","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":102,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"564adf6d-9a23-4c57-b524-a2e4c6329568","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":102,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"91947403-438c-4a57-a257-3c39456e079d","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":102,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"efeee467-d772-4829-bcfa-071594747a59","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":102,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"d6f646e6-bc42-4f5c-bea7-2e16e1ae5427","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":102,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"24f759cd-0e5b-4872-a695-8ea9c394f562","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":102,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"be22fa9b-38c1-4b0f-aa58-282bd986d535","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":102,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"d20aee54-bc7f-4004-a96c-3c664bb689f3","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":102,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"0733409a-8c40-4229-b23d-b78b16f1d723","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":102,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"6c114ef5-4a07-40dd-bcb7-c661a3a1e8d0","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":102,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"9d604c0e-a26e-4a83-8ad6-32da61a731f8","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":102,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"c619781f-614b-477b-9c40-024412eb90de","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":102,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"d0ed69d6-afd4-4330-b8fe-07e130ff7aac","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":102,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"8d344207-bd8d-4e8a-ac35-729e3bbd504f","block_type":"box","text":"resources to monitor and implement required changes.","page_number":102,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"dc4e9fbc-106a-4dd9-88d1-ad3fc108c0e7","block_type":"box","text":"Participation Notes.","page_number":102,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"05e4ab0d-4b80-49a9-bcec-529b239c1d37","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":102,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"70ae27e1-108e-40b1-96c3-729ac6d8f0f4","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":102,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"d18f0d77-b115-4e89-a258-a882743f7fb2","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":102,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"24d83622-525b-40ba-a3d5-e803abff87ac","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":102,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"1a84ccb9-fb77-4066-9231-a87c8d8752e0","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":102,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"024df5cb-f39f-411c-875a-37ac871be3d8","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":102,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"5eb3c5b5-a222-46a8-9c57-310ef94de8a9","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":102,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"6eb80540-13f4-43ef-a682-9a1d525e200d","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":102,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"82bdd304-17cb-423a-9818-13876de0ef3f","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":102,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"0305197b-1710-4b3c-9d04-54165ab32b82","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":102,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"f5565ce1-7f17-48d7-97ca-6079fde22312","block_type":"box","text":"II-64","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9d332e10-4d8e-4860-afe2-ddd71a418654","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2e6f767f-5c41-4d22-8cdd-efd91aa4a3d5","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":103,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"4cb4bbae-46e0-4946-bbfb-3e5dd7648e64","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":103,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"e92cf7fb-1f26-4f78-93a2-8f0f78dc5f27","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":103,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"0d6be2bb-a181-4a85-86f1-c556d2100e8d","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":103,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"0d6bcdd0-97e2-4710-883c-eb3376292109","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":103,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"1e0f617e-bdaf-43e9-a40d-da9520e30320","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":103,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"a7532385-dc8b-482e-9335-3bfb17c21988","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":103,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"83e8833a-bab5-437a-a055-a32e617b1e41","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":103,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"e5da9a20-c684-458d-a0d7-7d2587fd85d2","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":103,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"e431692b-b189-435c-8a2c-05d96161cbf1","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":103,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"b2775a15-ddab-4658-a425-9bdd56d2fc1f","block_type":"box","text":"Portfolio Turnover Rates.","page_number":103,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"b8df0ba6-2912-4a4f-98dd-954c022e98e9","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":103,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"a02b18ef-41bd-4080-b268-6f6c14f49d75","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":103,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"a5a95a77-f6a2-4a6f-aa98-32a2f8a920a1","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":103,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"1dc0ad5f-1a2f-459d-ade5-b9142e2afa22","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":103,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"13edcd5c-ffdb-4058-8910-26aa99e479fb","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":103,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"d98ba81b-fcbd-4a88-a028-ec9b9d8bccea","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":103,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"4aa857b8-d8c3-4880-bcd4-fa35b76d8216","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":103,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"7ad846dd-a2db-4026-bdc1-f9a209de6f96","block_type":"box","text":"i.e.","page_number":103,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"409a49b3-ab69-4fe1-b947-60a48d47f22e","block_type":"box","text":", 100% or more) may result in","page_number":103,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"3a91da1d-c28e-48fb-ad37-cdf575d55a0b","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":103,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"8d51ad52-50d8-46c5-97fd-197cd8b851b2","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":103,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"edd8a187-a94c-4f07-9485-985493825920","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":103,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"12dd4e40-089a-472d-9e39-fe5e1a06119e","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":103,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"cc375b21-f523-474e-8f91-90558ac26459","block_type":"box","text":"Preferred Stock.","page_number":103,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"26773c1a-a19a-44f8-808e-024641f3c689","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":103,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"3c94bdcc-6805-449a-af9a-0c0390855b63","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":103,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"1d3c5c2f-5c1e-4809-b1ad-e5ad58e86057","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":103,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"62011f20-08f7-42ae-ad1c-769eb0db016d","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":103,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"c70c5781-ea43-404d-9ee6-bfc998432f78","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":103,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"8c0e2bc4-8759-4610-aa8b-1c16b6fe93fb","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":103,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"9fad233c-5544-4675-aa92-47ccb9e55d44","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":103,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"cc1dfea0-a22d-4c2f-9863-aee75c3f6461","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":103,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"5afa7ada-c0cd-4e69-84c1-96b2de66c1a3","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":103,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"a4353723-e639-491e-bb11-0f86ff4412b4","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":103,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"45e949f2-9d1d-43b7-8ab0-01a2ef6c4cbe","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":103,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"17d32931-6590-4013-a468-04df03d9ca93","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":103,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"ee9cbdf2-ec41-4f67-bd9c-2520f798f115","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":103,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"37be9e93-b111-412d-a7a3-9b88222cecbb","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":103,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"0c67d663-2193-43ca-8cf5-dd1fc0268c7a","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":103,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"0e45968e-1fc1-4bec-85c2-f522cc3b0d5e","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":103,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"6c4448b2-a60c-4fe9-8638-85f14aeb4fc4","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":103,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"fdf53aa7-be85-4e86-97cc-e091d3d71b7c","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":103,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"8120baf1-c4be-4210-833f-4af7b50dd187","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":103,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"eed6d894-68ae-46d4-9703-f0ac6d30f32b","block_type":"box","text":"Trust Preferred Securities.","page_number":103,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"4fd07d16-80a1-46ba-bbd8-22218b63d9b1","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":103,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"fff31803-f950-488b-b04a-7c0b575f51a1","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":103,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"e8a70571-7d5e-45c1-8935-bd5a24bde2f9","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":103,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"7497c40f-07a4-4df2-8e12-28642eff3dfd","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":103,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"d498d734-fe7d-462e-8675-7b868aee0bb3","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":103,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"b64bca5b-b07e-4129-8af4-f56b3f0c40bb","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":103,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"ba1fa013-fa00-4f9d-8598-581a1aef6388","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":103,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"a591b756-e00f-4933-87ec-631514445cbc","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":103,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"fb4dc27d-8147-4d01-aee2-6a60ec705787","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":103,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"146f3c51-456a-4112-9ace-da32ab346df3","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":103,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"546846a5-d506-4d5e-9cd4-fa12dcfeed5b","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":103,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"e4f22364-2f17-4879-bbb3-f82a598154b4","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":103,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"9fdfbe7b-fcb1-4d16-8b78-da9fa3b4bb45","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":103,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"342119c8-6d91-492a-8e63-2f4695f453d0","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":103,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"f65526bf-69e0-42b1-97e5-3b08017034bb","block_type":"box","text":"®","page_number":103,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"e9ed25df-f7aa-486e-a6a6-4cd8ce5a5ed7","block_type":"box","text":"”); monthly","page_number":103,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"408b34eb-97d8-42de-8007-1184dd645de1","block_type":"box","text":"income preferred securities (“MIPS","page_number":103,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"041d76bf-014d-43ed-ab5b-e42387208298","block_type":"box","text":"®","page_number":103,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"fffe74fe-27c9-4e04-ae80-5006865d5a61","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":103,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"88c527a1-1458-45ea-86f1-ab7a7780bd5e","block_type":"box","text":"®","page_number":103,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"5083673b-ea1b-4828-9551-b3784c6d7109","block_type":"box","text":"” ); quar terly income debt securities","page_number":103,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"ba847c14-0bf4-4ed1-9d10-4a81369d277a","block_type":"box","text":"II-65","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e5a7e5c1-7429-4c3d-94e0-36e99a0aa781","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f85687ac-52fe-4706-b8f6-a4a46d005cc6","block_type":"box","text":"(“QUIDS","page_number":104,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"83ae8cfe-b187-42a4-ab71-f334b4c2df8c","block_type":"box","text":"®","page_number":104,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"62fcbeba-2c08-4f78-b6ad-165d25c2cbee","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":104,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"4c6a8e73-451d-4c2b-8cf2-e4c483120849","block_type":"box","text":"SM","page_number":104,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"751c6f99-306d-4d8e-851d-6177deb2d6e9","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":104,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"8804e374-1fda-450d-a04b-2e5e6742d805","block_type":"box","text":"®","page_number":104,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"b3c7dcdf-5711-4619-a456-a2eab3611ea0","block_type":"box","text":"”); public income","page_number":104,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"2c5a8c23-deb5-4d7e-920f-42e9a984129c","block_type":"box","text":"notes (“PINES","page_number":104,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"b0049d1e-4c34-4b8a-abff-88eaaf882220","block_type":"box","text":"®","page_number":104,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"9fd8e2e1-2fad-4e83-b39f-d89b385e23df","block_type":"box","text":"”); and other trust preferred securities.","page_number":104,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"8cd49a6f-1307-41a5-af9a-e8e74075e1a0","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":104,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"27bb4514-a361-4188-bec2-78f3c7a469bb","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":104,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"4f80d953-cd0f-4c12-a311-61b8721a1240","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":104,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"36ee75c0-7f9b-4842-994d-23904163433c","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":104,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"d7c080e4-ddac-41f2-94f6-0fec6d409427","block_type":"box","text":"regard to whether all payments have been paid.","page_number":104,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"59235aa7-fec8-4e2f-a957-f0b82521b6a5","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":104,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"7d69a489-a0b8-4c3e-964c-fc39822093f0","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":104,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"a5e30105-cb9a-435f-b3f9-33b9fd7903d9","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":104,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"e45c5970-62b7-4902-a5f1-5ad47b053a72","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":104,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"98efd9df-dbf4-4724-ba25-90ea9a2e0201","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":104,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"c2e0ddac-93e1-47d2-8f76-93c047475005","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":104,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"d1f06bda-097a-4709-b37f-16af24cae3b6","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":104,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"78eb567c-fcf5-4f3b-9384-c54e3c6789f4","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":104,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"1bbd12f5-2b1e-45cd-8d03-b0ab262d5631","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":104,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"58911b6d-6c07-43f2-820c-4d6c5588ee60","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":104,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"016985f8-4f3a-4bb5-9259-785f93d454ec","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":104,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"08a5421e-31a6-4eff-85af-4bc9b587c647","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":104,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"b9b7bc19-7696-4eda-93dc-0c46b6f9c5de","block_type":"box","text":"debt securities.","page_number":104,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"7bd1ac78-005c-4deb-bda4-7dc709d7d255","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":104,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"8528ddb6-8853-4d6e-906f-159adbc6cb83","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":104,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"82c3d0f1-0fc2-40e0-8db6-190bb6e948d3","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":104,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"a50f2c71-7751-44c8-bc22-f4a6a2a5715a","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":104,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"d18c5815-e856-4769-8a25-0c3b3dd3dfbb","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":104,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"9c005bc0-bdf6-4dab-a73f-6a265e1994fe","block_type":"box","text":"i.e.","page_number":104,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"8843ae0b-c2ae-4faa-913b-14d6a8e7878d","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":104,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"94a30759-053e-4739-9210-d7ce8c0d6191","block_type":"box","text":"buildings.","page_number":104,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"c3f54b44-99e8-4f61-9fe1-538a0ab5c14a","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":104,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"ec1c2cb4-18ac-49c3-9ce6-bcc1b64af557","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":104,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"6dc04b91-b9fd-46fa-9d40-503e7ded24ed","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":104,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"85350ac7-393c-4fb5-9089-9b27cd6bcf10","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":104,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"f6e8d4ee-ffa6-4a0f-9a3c-90b3a9c529ce","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":104,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"c969782b-7609-4101-b6ee-11691cbfdc83","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":104,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"e3fc445c-bf81-4ce4-8a8e-906448e2235c","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":104,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"b3669641-d44d-4f9c-98cb-84e7132597db","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":104,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"747ba6aa-f919-4415-a908-d818fd47d99c","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":104,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"4c104b84-5bc1-4a96-9e37-76dcfcc4f994","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":104,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"6dda1bcb-e42f-45b8-9f87-a0d7e771bbc9","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":104,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"0ab6aef5-4eac-4903-8fd2-5f2609c20d69","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":104,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"fb581eb1-1ba2-4d57-87c7-f50d85910d19","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":104,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"b6e2483d-2a62-4695-a24e-ce551cd475c7","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":104,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"7821aa23-95fc-4ddd-8623-5e13ccf508b6","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":104,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"e83e5a4a-5fd0-4cc4-8d93-9a64b5aaf9c1","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":104,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"83c15dda-5f9b-4eac-8258-78bb4baf0b84","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":104,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"ebc3e6af-95a0-4ace-a2ec-389705c3d242","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":104,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"390b339c-56e8-49cc-8063-92e0478f208a","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":104,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"7a5b81bf-f6ec-4cca-869a-9330645825d5","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":104,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"6190f018-c1a8-4094-bee6-1ff84a327b4a","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":104,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"970dc92c-51d2-4c00-85fa-160f8e0afb5d","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":104,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"3db74091-f6bc-48e5-8c70-6e0ad683fb73","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":104,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"6ffd34f6-55a2-4ee2-964b-10694ee2bf88","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":104,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"d3ff210f-5c89-4c62-833a-8165a1927cab","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":104,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"722abd46-1610-4c17-96a0-ae0e411dae1a","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":104,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"8c06725a-3499-47a9-b763-4285ec7816e2","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":104,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"e26051cb-a913-4a2e-883b-e4fa59a43542","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":104,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"854cb7b5-d7d0-4dff-94bf-9a573c77f91b","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":104,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"837b3ebb-e59e-47d5-9c21-d1eed3044250","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":104,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"9208455e-4c77-4c7a-8646-b7a92ed9de88","block_type":"box","text":"II-66","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e1b28999-8383-4105-a873-72328fa18b64","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e3660b7-7999-49ad-b37a-5bc5f3a7c8c8","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":105,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"5a5cf4e2-a989-484e-802e-b4c02325a5cf","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":105,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"758076b9-2cb7-483f-834d-605529bf84a6","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":105,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"2bed9d80-7122-4746-866d-c384391d250b","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":105,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"634234aa-5086-4260-9dc0-7d3b2cbf97ce","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":105,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"aa5275fb-8de4-49de-9082-76e7036cb54b","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":105,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"d974f26b-c2e6-44ba-bb47-9aa7a173c70e","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":105,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"b186cd89-e09b-4148-9727-6969dc2d2048","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":105,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"a2ace705-4655-4967-84df-f47870caca33","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":105,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"127e82f3-bc98-4ae5-89bc-0a60c5394ee8","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":105,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"3293e19c-5edc-4a1a-a53a-cf67bc119ea6","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":105,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"3dc2155f-3282-40b7-8faf-a51611719edb","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":105,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"e5971fdd-8acb-4c7d-be8c-80e13e93247d","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":105,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"622882fe-06a0-483d-a6e6-8afa29b3a080","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":105,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"4461c9fe-3810-4730-8ea6-1e66e59e6625","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":105,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"8316298c-224e-4eee-ab57-cede72a34e28","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":105,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"38afa02e-fae5-4a90-95b0-44f556d9a429","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":105,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"eabbfd2d-c74a-4a35-b8c7-595fd81a9661","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":105,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"6f6f0f45-eaf8-45d9-873d-63980275f1ea","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":105,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"3bbbc347-7e3d-4490-aa56-88a424b74a41","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":105,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"3778d3b3-a8b8-4ea3-b122-1069f3d2cd27","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":105,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"b233bb78-6f13-4594-b3f6-b648b14b11e3","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":105,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"ce3c4046-a904-4d20-9512-f5e2f3a64699","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":105,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"996e1ef6-206b-46a3-99aa-b2828b98fb1c","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":105,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"3903a631-e15c-4914-9b13-e6c5a5e7abdb","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":105,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"552762d0-4c02-4499-a5da-11e7a2d65c4a","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":105,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"9bf7f940-fc8d-42b8-9beb-ddc4012c1d90","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":105,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"8644f91f-76b8-4c9e-991d-25bd79cfea59","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":105,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"f1edeef6-5de2-428b-992d-ab5b31c945da","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":105,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"4e762152-dc2a-4f5d-8568-cb939ec84d3f","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":105,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"675da547-891b-44a7-b33c-a317ea499aef","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":105,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"b018431b-9fa4-46b7-b485-d62f70cb0647","block_type":"box","text":"conditions.","page_number":105,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"5a15766d-a57e-4728-9ace-e39b730378fd","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":105,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"39a88ca5-0870-4bc7-a274-3668d9661cff","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":105,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"1b130f0a-702a-40af-a811-5473b5b6718a","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":105,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"aa499a1e-b54a-47b9-845a-5bb0a2d08a76","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":105,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"781aa709-5f82-420f-86ce-448465bd1dac","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":105,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"994e70d2-0457-41e6-a308-58b791cb9f3c","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":105,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"60f01a53-5695-48fb-bab3-fe02524ef80e","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":105,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"7c408359-58c9-48df-93a7-a2d74b6d04cd","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":105,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"9cf104ec-f0ea-41b9-9d5e-6eb58201ad73","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":105,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"22ab90d1-a486-4e12-b61d-6a74465ce8cb","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":105,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"8f6452db-e660-4283-8de9-437013bb714b","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":105,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"a995f28e-9576-4f8f-8ce8-d43a3cb50e71","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":105,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"a3404390-a5cc-4f50-9c75-0d904eb2448d","block_type":"box","text":"affected by such events.","page_number":105,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"ed8ff4f4-9b9b-49d9-843e-80946c890624","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":105,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"27bea250-05f4-4278-9a2a-3c21c134c4a0","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":105,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"1cde265c-b57a-4641-8fe5-b6b883d5e2cd","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":105,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"aeb52c23-d05c-4306-92f1-a5f7dd4fe938","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":105,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"7a12f90b-6100-4dc0-abe5-7d40790a49a7","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":105,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"965084df-d0ce-452e-8d80-e1c813bfb1e6","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":105,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"e00208ef-e5c7-4c55-b986-4d37e17908e0","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":105,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"af5671bf-53d3-4cd4-82c0-c96cd5fcde94","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":105,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"79d68c23-66bd-4b6b-b23f-0e864181d6e7","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":105,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"72c12311-3b84-4acb-8eb1-e461b5e1a97f","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":105,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"e99347b1-140e-4f44-8517-3f9332923f3b","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":105,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"0d57afb7-fb33-421c-86a6-d40d4baac6c0","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":105,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"151c52eb-e173-4ba7-b05c-a180619675f7","block_type":"box","text":"II-67","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"909a3ae9-a415-420d-8044-40ada5e928a2","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a376e103-3944-442a-9a64-926bd77b3898","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":106,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"d877bc67-ba05-44d9-9fc7-b374ae2b6808","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":106,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"6e1dfa07-d89d-4328-9131-3669d1c986f1","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":106,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"64fa70fb-7c29-41ac-882b-5ed3b2dad14a","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":106,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"574650ee-1ca9-4254-9e0a-957a102f9c58","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":106,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"00264f0a-fb61-43bf-b085-f362339501d2","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":106,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"9c40a53c-34ad-4f2a-ab48-bf9683cd862d","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":106,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"767919e6-c976-4b6a-947c-ffdbac4256da","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":106,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"97728039-8203-48ed-9d11-b7950cacdc41","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":106,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"d11ca96e-3177-46bc-89fc-39fd207eccde","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":106,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"aeca8580-38bc-4f58-9c5a-4f0269ef39e9","block_type":"box","text":"investments.","page_number":106,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"3fdeaca1-fef5-4370-b3ca-a5226210b64f","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":106,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"cf26a5c5-451f-4417-80ee-07126109e69f","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":106,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"dfdf2e21-034d-492f-ae57-1ec39aa1a986","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":106,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"e31b6879-b1fb-4fbe-9822-054a2d4a3155","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":106,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"8d2e64c5-1dc1-4eb9-bd14-38ffcd54ff48","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":106,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"02bc5601-4976-4f82-8160-b7582ecbe0ba","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":106,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"4e785b09-03bb-4680-9a7b-8f912effae03","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":106,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"9d87e89e-f97c-49a0-8e56-24a1e7da7caa","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":106,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"355766c7-a244-4654-9b14-a48e8dd3913c","block_type":"box","text":"Legal and Regulatory Risks.","page_number":106,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"4c9f5a21-5720-4b36-a402-11e92b145d2f","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":106,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"3135a3db-c44b-45ac-bfea-9c852d2e91de","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":106,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"3dcf4f68-a30a-4168-b08f-9f1bb2351c18","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":106,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"e6555f69-bc44-489e-9364-55e3a6d82a75","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":106,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"9dc3cb26-0e00-4e23-9669-7cc6c67c353f","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":106,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"533918c9-18a0-4f2b-a0c4-bf02bfa8f515","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":106,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"452f3117-1dd6-4542-90dd-488ab4a09fc6","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":106,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"9be6a904-ac0f-4d4c-8506-f213f7837958","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":106,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"8be641d8-aa0e-40ae-bdca-4dd2e89d20ea","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":106,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"994438d4-09be-489a-968e-f61b4cfdef05","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":106,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"bcedc262-fb2c-4864-81c7-85bffffc7d0f","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":106,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"76ae1dc9-19fd-4b9b-a7fd-eadf8e12034b","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":106,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"30cba477-70c4-4d87-bd23-b84da976b382","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":106,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"5304d9e6-e361-41ae-b446-72eba8da5720","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":106,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"0156e229-5e96-4d80-8bf8-37f0e284f44f","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":106,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"59c83c90-e834-4e13-bea1-8ef6a1e1e36b","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":106,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"895e11a8-0c37-49be-860c-c26be2a03e87","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":106,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"e2b6ed31-defc-4f5b-a540-e23f2def9c1e","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":106,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"c36501b1-1312-4e57-ba26-7539985ef0a8","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":106,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"b7918877-6107-403e-b92b-f9a240a48054","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":106,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"6aa1f235-c89c-4190-bfa7-b64e6b1d60a3","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":106,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"ed2f0074-8816-43a1-8314-8237ff87d6f7","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":106,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"4686ca94-5be8-4400-bdd8-03ad47bb12eb","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":106,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"f389f73a-4802-4e40-bf8c-5482d2da7e93","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":106,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"b42ef6d2-d97f-4de7-aaf6-d9bbc11b588a","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":106,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"6d87fc15-df28-47b8-b936-7b81c81e7718","block_type":"box","text":"Geographic Risks","page_number":106,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"a550b807-5753-43ee-9f80-98708dc09543","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":106,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"5bb5850d-c7a2-47cc-8630-1269146cb733","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":106,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"0d9e1a56-37f3-4e37-966c-48817de558ec","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":106,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"ef8ecdaa-e889-4ef7-ab85-e8da09770833","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":106,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"ce8789e3-fa29-44e7-8371-a49823689bb8","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":106,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"d3111886-f135-4310-8944-03d08b01442e","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":106,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"d08e095e-30d7-4174-b322-79834843ad03","block_type":"box","text":"Fund.","page_number":106,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"209d1b0a-a404-4c63-8670-aae8a391c287","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":106,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"0e1180e1-dba8-47ca-b3e0-e729f7b6944b","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":106,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"6a022135-23f7-4339-9e13-f2862c2c5031","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":106,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"b3116beb-cfb6-4dce-87d8-9f74120b2477","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":106,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"1955b58f-9234-46c4-ad8c-3d04f36bcdba","block_type":"box","text":"or any other changes or reforms to the determination or supervision of a Reference Rate could have an adverse","page_number":106,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"8bc03b38-e296-410b-ad69-b8aa443efb0c","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and cer tain derivative instruments)","page_number":106,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"0eb5b8b1-c096-4d5b-b8d0-9ff0649f7cbc","block_type":"box","text":"II-68","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"92e979b0-27e6-434e-83eb-f4479d0bba7c","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a83d9267-a28a-4f4f-a469-bc6f3cca1ff5","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":107,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"421e6186-bd76-439a-a8d9-414e68e36c47","block_type":"box","text":"imposed by a regulator or by counterpar ties or otherwise may adversely affect a Fund’s per formance and/or net","page_number":107,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"9a175a6d-f841-4e4f-94c0-c65f8be2f252","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":107,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"50ba8840-8994-4bac-a4c1-fa97d614ec95","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":107,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"f83a99fa-6b9d-4d75-a5b9-09a37328b238","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mor tgage-related securities, interest rate swaps and other","page_number":107,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"65096957-d256-476e-bf9b-020406b0ae30","block_type":"box","text":"derivatives. Instruments in which a Fund may have historically paid interest at floating rates based on LIBOR or may","page_number":107,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"d678c49e-6e6f-4c55-9d0e-4f103e127a1a","block_type":"box","text":"have been subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a Fund","page_number":107,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"450b6463-6a83-4a2f-be1c-c43fb28fbca4","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":107,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"0bcdecc7-b964-47c2-b717-b8df5d1e3d91","block_type":"box","text":"transition away from LIBOR led by regulators and market par ticipants as a result of benchmark reforms, LIBOR was","page_number":107,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"f3723f18-3f12-4d1d-acbc-00cbeb373f8f","block_type":"box","text":"last published on a representative basis at the end of June 2023. Alternative Reference Rates to LIBOR have been","page_number":107,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"55dbca50-689e-4101-a712-f22fc40d42f5","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":107,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"d6d4a880-2359-497a-b781-7a44f80de218","block_type":"box","text":"e.g.","page_number":107,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"5f1c5d8f-28bc-407f-870a-974fa91bc9ce","block_type":"box","text":", SOFR for","page_number":107,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"81537169-10f7-44de-87e2-0a1e9760d68c","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":107,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"18842a38-0a57-4349-be5a-9dafe367d7a4","block_type":"box","text":"associated with the transition may remain that may impact markets or par ticular investments and, as such, the full","page_number":107,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"e3a0abdf-c80f-4d38-86b1-21c154f6a3c9","block_type":"box","text":"impact of the transition on the Funds or the financial instruments in which the Funds invest cannot yet be fully","page_number":107,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"27b277fc-5ceb-4fa9-ab28-c7f7b71efada","block_type":"box","text":"determined.","page_number":107,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"c65dcbce-7309-4e17-ad31-2ebd13bc1cd3","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":107,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"11076a36-7a70-4002-a901-fe61535a6ebf","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":107,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"26fec235-7092-4b70-9686-af9ecda570a9","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":107,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"e64c5cf7-17be-40ea-95da-f6ec83b72c5f","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":107,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"ce7a7760-d555-4c73-86eb-586baf21baba","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":107,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"24b9e72d-fe93-4799-bd20-bc761494c1c7","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":107,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"fda6e820-b95c-44e8-88d1-32a280ec4301","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":107,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"f6a2dc54-5db1-4064-a155-6724132d4312","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":107,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"7374789b-8821-4be7-95c2-ee4ac6058e3a","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":107,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"7a697cc2-eb97-4372-87dc-4541a803f300","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":107,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"519b8aee-68b8-43f7-997f-003e0850d008","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":107,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"5c470e27-4a94-4ffc-bdf8-f86f686837e8","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":107,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"d4518f70-8059-40f2-b336-2dd86a366051","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":107,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"d257416c-787f-4398-ae14-a5a64edb43ec","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":107,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"53f2ad4d-a9cf-44d4-8d6f-d8bdd4160901","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":107,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"9ad75242-9ec7-4a9c-8f95-142e7991b882","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":107,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"22a68ce3-9c13-4ba9-9d44-bfc6600c77f0","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":107,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"20dd5357-9500-448c-b50b-fab06cf0a1e6","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":107,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"c4aeda6d-557c-459b-aba4-a92bb6e9a753","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":107,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"77942e93-07f9-4065-b0ed-dea02eb0a786","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":107,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"726439ff-ff62-40a8-85e0-3dd860f97514","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":107,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"1eb2f304-ccfb-414c-86ff-e58e580a87d8","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":107,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"e3ed9f50-0efc-4249-a51a-30432e38fc51","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":107,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"f470f2e3-5668-4573-b02b-50b80b619c31","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":107,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"b6177493-c3b1-4a6b-84ba-2fb97788a2f2","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":107,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"3ce66d00-e049-4014-a57a-d66aee138b16","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":107,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"0f5749dc-066c-4684-8dba-3656b54df9ea","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":107,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"fdde7d67-5672-4e2e-8699-f3e168be06b5","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":107,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"c262d0c0-1513-4720-8303-37d292abe351","block_type":"box","text":"consequences which cannot be predicted.","page_number":107,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"ab395234-f7ef-4da8-a2e9-55208816c950","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":107,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"f60590ea-5f57-4884-9884-ce6c609fb5f4","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":107,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"9270b554-3988-4f7d-bccd-947abf522f2b","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":107,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"f40e05cf-2908-402d-b944-7af9738e9ee5","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":107,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"0da4cf2c-83e2-46ff-95dc-90fcc6394735","block_type":"box","text":"term of the agreement.","page_number":107,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"2447e20e-5de2-415e-bfe7-a9fc3e8cde4b","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":107,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"22ebb8fb-87e1-46aa-9c55-73e6083820e2","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":107,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"9434e8ee-6eb3-40f3-993f-9b9ee35b6697","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":107,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"35faa4d6-de34-4d31-9500-feff4c73c0bd","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":107,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"80e2d468-6479-44a8-8583-161fa44acceb","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":107,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"7663beaf-d2d7-43e4-8d54-424ff5402410","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":107,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"6d695e55-ea0b-4eb0-80d0-da3fc8896064","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":107,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"e4c2b0f6-a5a8-43fb-811d-a9ec658de2dc","block_type":"box","text":"II-69","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"666df9c3-2e5d-4e47-b434-2e30b1b49150","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"47ba9372-df74-4bbc-b059-e17a31ece6c7","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":108,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"df7999dc-8aef-44e4-86da-b77e860af00b","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":108,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"869a738c-7b18-48bc-9669-7c1f41f044ec","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":108,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"c3e01509-5aca-4e62-8c4f-e034504c7f8d","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":108,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"1a6eb71e-948d-4dc4-8e1e-1f30465b45bc","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":108,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"e01eec3f-8108-4598-a789-f44dc154e94b","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":108,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"1815c60f-f2fa-4d4f-837d-e1352ef4576d","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":108,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"8018891b-2168-4cc5-a9df-00d348c3396c","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":108,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"bd68da9e-c012-4808-8ff8-a790d5e51ac5","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":108,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"be9242e0-d450-4a5e-af26-3b6f0171b999","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":108,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"3e323787-baf9-4a09-9abc-2527c7ac4789","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":108,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"f352072f-81cc-4e02-baef-baa0746a243d","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":108,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"4ef5d5cf-f422-47ce-b61a-30d6486ed69c","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":108,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"fe488f99-80bb-4b2a-99fc-847484a41b83","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":108,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"c3627745-0cdb-4a2c-8acc-e1686c1eed39","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":108,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"5aeafe70-89d0-47e8-81b5-c364f8500888","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":108,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"f2733cad-1a20-4dbf-93d8-8dee78b88019","block_type":"box","text":"or by another authorized securities depository.","page_number":108,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"12655b0a-3dd7-467e-80a7-233aa672b5a7","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":108,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"16f90e94-c9a0-4f5e-9789-62189c86cbbc","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":108,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"d1304ffc-c01f-4881-9d0c-9da8e33ca032","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":108,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"9a6cb9a8-02c9-49f3-8fc5-eb82fb9a9e47","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":108,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"76c9d006-1596-4373-b3c5-3b283f0ac66c","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":108,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"4104c6d4-12a4-40a1-8b86-cce6c3c97de6","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":108,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"172d6000-ff9d-40a2-92db-c58e5475deb6","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":108,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"99ebd667-8d4f-45b6-9779-9b41540f522b","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":108,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"4f7d75a3-19aa-48dd-80aa-7d6a5afc692f","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":108,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"2e32ab4d-ffca-478b-b13e-6f7b1a5d9faf","block_type":"box","text":"the repurchase price.","page_number":108,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"a63b0e46-71a6-4302-bfdd-7bcb51aa4be6","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":108,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"10a5b540-6d68-4a30-a831-350cd2189408","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":108,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"4d39ba44-daa4-4e29-9e7f-ec63d1ab7ad4","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":108,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"f0f9df68-547f-401a-b9b6-24d87e541367","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":108,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"75d84a5e-f211-44b4-bbb0-77f912dbb16a","block_type":"box","text":"strategies without the repurchase obligation.","page_number":108,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"43a55af0-1fee-49b9-a028-4092d032e914","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":108,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"80bbad4d-b831-4842-ab07-00c6b569a514","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":108,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"9bf7c29b-7162-4098-baae-3b67b99b1c45","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":108,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"371fe887-1e3b-4015-8979-ef63bc8b3db7","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":108,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"defc9f79-ecf3-4ad3-a547-450d84fceab5","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":108,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"782d0ca2-4b48-4318-a290-9c4cf4cf9034","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":108,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"94bb1ff8-53a8-497e-b44b-a7011dc8dfcb","block_type":"box","text":"i.e.","page_number":108,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"1fea9211-c333-481b-a772-8d72105edc6a","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":108,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"c850b271-ca9f-4940-8c93-28c7ef8b53b3","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":108,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"8123318a-b6d1-47cc-96b3-8d7bb9df37ef","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":108,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"0bbd0b9d-35c1-4244-9763-48fc00bb5798","block_type":"box","text":"and income involved in the transaction.","page_number":108,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"e9bccc05-6c26-4c62-bcd9-427234c845bc","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":108,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"bf1c654c-f7a8-4a06-a877-f748abbf6514","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":108,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"23dcd21c-b48e-452d-9c38-8c6d34222a1e","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":108,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"bade064f-b533-4070-871d-35d4ddd77cf0","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":108,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"e4e53a1d-8487-4988-a7c4-17923b2b5f66","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":108,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"d069c872-5e3c-42b1-9ef2-1207ef0dd279","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":108,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"43350595-40f5-4c6d-8a76-98f52d28c9b1","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":108,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"47feb0ac-ff78-4dc7-ad0e-0e24f26778a2","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":108,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"1415cf6a-76d2-49d4-8b50-a072a60cd103","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":108,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"e71398d6-4797-4ea6-8737-126f83ac8c26","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":108,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"2a200bf1-d162-415d-88c6-88929b9769f5","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":108,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"68c7852a-8ad6-475b-b0b5-8cea1477c83b","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":108,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"6e0cc6a8-d651-486f-b45d-44dbfc357e72","block_type":"box","text":"Restricted Securities.","page_number":108,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"8509d0fd-b170-4f64-9d2a-03900795def3","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":108,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"448b4e9e-980b-4d36-98cd-6c8aa2adf005","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":108,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"94fcf267-5806-4104-a2ae-4a8beffde96a","block_type":"box","text":"II-70","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f92718c1-a6c8-47bb-97c4-0075734a6dd1","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"31156b32-e7bd-47f9-a754-6eb78e34f014","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":109,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"700d4193-6c9c-470b-a918-141a71676bc9","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":109,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"5f7d4d7f-4261-47e3-82c9-00c5b2e48e12","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":109,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"79b1f84d-50b8-4bcd-be63-46b7ad8c2477","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":109,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"de9b909b-afc9-4810-9ce6-2797380ccb50","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":109,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"2a62705a-0ede-4bab-bb29-8d2d0c11c477","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":109,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"a4e9a150-ad85-4014-9e58-cca0ebecacc6","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":109,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"cce3f3fb-25bd-4b34-abe3-90e2bd9159eb","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":109,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"c0479602-2597-43f1-a872-7824e822dbea","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":109,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"12f5db65-7471-4f42-80b4-377387c4433c","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":109,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"42ed862a-6912-4bcf-89e8-7b545850fc19","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":109,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"98e9166b-6695-4ed2-a481-8c5f2b0b8820","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":109,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"d370d48a-8713-4e0e-9f27-de7552312b6d","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":109,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"41adb3c7-f19d-4603-b6e3-022bfcb599d0","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":109,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"9c568f7f-ab51-43e0-9fbb-dcd07b616199","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":109,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"81a30217-b6b5-4bcb-b7f2-4df6286ea480","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":109,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"f5462282-e1a3-4489-905e-fe9aefbbe8fc","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":109,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"94202a34-baa5-4519-8195-5edeaec3898e","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":109,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"9a89ed85-dbee-4609-8e95-894145b30128","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":109,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"d2929993-99d6-4036-964f-0115e6863f72","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":109,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"617420c5-7eca-4e6f-8d5c-ca4299ab3736","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":109,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"f04e421f-e1fa-4fda-a980-803db014222b","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":109,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"dc7c58e1-ace3-41dd-998d-8b8f606838ec","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":109,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"501d505a-7b3f-48fa-a767-513836ccaf45","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":109,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"95288f32-e99a-4675-976e-8bd9d8740a37","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":109,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"37538e48-d04b-4e5d-b8ed-9051d3b1e893","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":109,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"bca435bd-2696-4c7d-8991-4fa4c587f4f8","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":109,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"34a539f3-d2ce-462b-a6c6-d05dc0d55dfe","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":109,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"272f8f22-2287-490c-8487-bf63db214ec2","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":109,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"eec6fad3-dd75-40c9-b490-d86e29a40299","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":109,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"da4e8ffd-5494-4a08-b998-ac93e215eb51","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":109,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"2f6f5ca5-c8d3-41c0-9d8d-51ed6f4b0d9f","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":109,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"013a7953-58e2-47de-bec3-a6ccce6b3236","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":109,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"25eaa36d-c948-4c30-95b0-d8a16cfb72ca","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":109,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"babf8115-2544-4e1a-ab07-666b2960e896","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":109,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"9e24ebd3-ac9c-495f-9935-dc02e46c911c","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":109,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"8668e71e-2c0e-4718-ac3a-7428d66ed507","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":109,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"6207e190-80a6-475c-b5fd-a2c6b1cd437b","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":109,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"3f01fd0f-988a-455f-8446-78485da0a2b2","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":109,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"1775c6f0-b329-46ad-902b-40efdaa730c2","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":109,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"e0749be2-0495-496a-9f8e-9c64b6e3a5e5","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":109,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"2e775a13-43ff-4b79-a2a1-6b1ee12f4a56","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":109,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"b0d00552-2cdc-4cd3-b714-b95476edf94a","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":109,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"edb50b11-e08c-46a4-8de7-1878152a7905","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":109,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"f1520bfd-a162-4448-ab96-1bfcca5e3ff2","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":109,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"b949efe1-6885-4942-a9c3-cefe964949c9","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":109,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"613f2676-8af8-49f1-aac0-e7f6d00016b6","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":109,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"64108955-83d3-4863-9e58-ddc4f7c3c294","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":109,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"fe84b748-be2a-418b-b8e7-553b50979476","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":109,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"1f896320-aa96-4e47-b19e-5cedd15c441b","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":109,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"c97a1161-c972-45cd-966e-50a0cb1bdf32","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":109,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"71ea8881-5721-4358-90a9-2b9f221add01","block_type":"box","text":"especially as that Fund grows in size.","page_number":109,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"1b79cf8f-051e-4ad2-afda-42c81aa9d346","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":109,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"4565b5cd-2483-46cb-a302-92791c774849","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":109,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"d31b6c70-9973-4cb7-8378-0f7c698577b7","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":109,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"dc3b21c4-1cc5-46e9-9720-38bb2bafb8f3","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":109,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"0de888cc-8c74-43f6-b486-346e4bc40917","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":109,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"1adb0bbb-e5fb-4fc7-b5af-485679209568","block_type":"box","text":"II-71","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3d6da2e1-b2c5-4e14-aef7-5fb87793550f","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a0cc7295-1a71-416a-b831-497f02e17989","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":110,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"ea05f4a8-3bc9-493a-a610-319d9cfd5653","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":110,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"bdc8077f-c241-41bf-93fc-3f7749a57de7","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":110,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"eb7c4448-352b-444a-b129-b285a4ded915","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":110,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"b00f7988-dff1-4c59-b36e-20fd643266b1","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":110,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"19450849-1bc5-4eed-958a-8fed77cbef35","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":110,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"c7a06547-fc9f-47eb-9a18-ba95063a0fa1","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":110,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"d70d25fb-402d-4170-9441-5bb5a363cd55","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":110,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"cc5da070-553a-44f3-9cb0-753ff2cdd920","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":110,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"0fc44e96-059b-4e99-9ddf-77b2f7f2de72","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":110,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"01449f20-53bf-4f43-b62a-96a1351710f1","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":110,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"1cca9064-fd1c-4995-9452-9abd2a089104","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":110,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"54d1dc6c-d8ff-4696-b0ab-29598067c897","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":110,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"def126b7-3cc2-47fc-a4c4-891ee296729d","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":110,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"99f01841-7863-48d4-8d9d-e6c6b2eea557","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":110,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"d4022645-21e8-43c6-944b-5d3d7fc4d0ff","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":110,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"9b600158-1794-4ea2-a029-4a413e27e7c6","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":110,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"764adb77-8326-4396-a2ea-42a471585d99","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":110,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"078409ab-d976-4a58-b318-2c1325c07f15","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":110,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"5dc797b1-a7a6-4b90-a68a-30b4a305bc2a","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":110,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"553dda38-bf95-42fc-a24b-068f5dde41fe","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":110,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"2e2c0b26-3ddd-48e7-8b57-4fd03c122479","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":110,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"e0a39b65-c1b2-413c-86ad-e0b9e6106165","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":110,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"ef64a66f-6185-4ccb-9b9d-00e2c1da71d8","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":110,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"79dc448c-37c9-42f7-b22d-cebb60c758af","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":110,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"2d6e1c42-3e34-46f1-b14f-cf7e3242faa5","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":110,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"39bfcecf-57a4-4077-8967-8cb9cb430db4","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":110,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"92315817-2a88-4d3c-b996-9379539d1779","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":110,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"55723550-f74f-47af-af3c-687d0a48a8b5","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":110,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"8285cebc-b6a2-4345-997f-0eb9a51615e5","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":110,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"37a671af-727b-405a-8c24-1f8ea9d39b11","block_type":"box","text":"similar financing transactions (","page_number":110,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"000ee610-803a-4bec-8f91-adb5de9a8f1c","block_type":"box","text":"e.g.","page_number":110,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"573c7f13-c54d-497f-bac0-f0fbad850b9a","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":110,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"9cd871d2-5f3d-419f-8c20-ab6098db377a","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":110,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"271a48bd-3df0-401f-90fc-45b25fae1968","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":110,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"4f70b982-c62c-408d-a225-f0cac6bdbc6c","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":110,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"660b6cbf-b393-4519-8a9f-3a49b41d61c1","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":110,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"593de697-7037-468d-b144-4b8d8683e74e","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":110,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"318623b5-b365-422b-8081-127df15cf47d","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":110,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"f9f4b2fb-0ae9-4f8d-b16d-1e21456512b1","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":110,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"09bfa516-ef20-4dca-8d85-f33ee5c1af83","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":110,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"876dc46f-b438-4761-9156-95e30fdf7b75","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":110,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"c80688e1-40da-402c-9629-8318aad16071","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":110,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"d5aafa53-6a2e-46b1-a9b2-eb396736f7a4","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":110,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"50cbe3d1-baf5-45eb-8d92-6809962db792","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":110,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"ca10a930-7f9f-4238-a749-757300e430d4","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":110,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"da909d78-7e93-4d5b-a13a-37724092177b","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":110,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"11d0c2d4-c0ee-45fe-98b9-a189ec97ec38","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":110,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"4ed49b31-5a56-4a02-b092-907aedc38e1b","block_type":"box","text":"amounts to be received under such agreements.","page_number":110,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"1ab9a4fe-5ead-49d6-819a-73357c473480","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":110,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"4613e667-42ad-42ce-bf38-0ca871745209","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":110,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"740322ac-c708-4df6-8b98-6493c1f82935","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":110,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"f771beb9-04a0-4a19-a66a-eda39f6ab98a","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":110,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"742f2675-bf57-4cc2-8590-c1d92f00b9cc","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":110,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"563c31c1-a02f-4d68-a43b-682a9ec51e36","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":110,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"984efc8b-2cb0-43ef-8f8a-ecbcca29d86b","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":110,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"679b8744-1aea-4882-a90a-c4c91f591144","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":110,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"4569fdd8-725a-45b2-90b7-3c90d40137a5","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":110,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"ea520f19-5e4f-4ff9-a24a-e9ae3ea20f0b","block_type":"box","text":"II-72","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b2b0c4a2-ded4-47a0-b9fb-44817eb8a8e5","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a102cebb-434f-4ade-bbe8-e45e60d33ae6","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":111,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"cbbba8eb-f008-4283-ae21-5b914c107364","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":111,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"ea667d3c-76fb-4542-bffc-3283601d2376","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":111,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"e2d30a54-ac54-4a52-8a0a-312354724655","block_type":"box","text":"Rule 144A Securities.","page_number":111,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"5d47ac6e-6432-4a7f-8ec7-ce68fc4c65e3","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":111,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"b67aa156-9f5a-4552-a6fd-1346746fb47a","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":111,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"bb6389ec-e454-41e0-b897-f4e91a8fc9e6","block_type":"box","text":"Securities Lending.","page_number":111,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"16a5fc8d-46a0-42fc-9059-2a2c72a9debc","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":111,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"cc75fe18-bde7-4481-9b32-91cd79e09b78","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":111,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"d8f4fa45-34ea-409f-8fc6-e4f1c9546548","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":111,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"910d4831-b1bf-469a-a64a-804120b07765","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":111,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"d7f0199d-a517-499f-ac3d-c14448e01bc6","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":111,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"1a58154d-1996-426e-8991-0fa9653e122b","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":111,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"75ae519d-9475-4f21-b54f-d1570c8fce12","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":111,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"6b6b5061-78e0-4555-b252-ce810f7fea7a","block_type":"box","text":"the securities were not on loan.","page_number":111,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"12e6e516-0b5f-4092-abe9-ae52a29b4786","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":111,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"c3cffaff-33a2-440a-a0ef-112ca7900781","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":111,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"1b5a6b57-aad3-41df-8717-518da22bfb96","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":111,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"6269a08d-ac29-4d5b-90f8-09fad8aee76e","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":111,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"4b297987-869b-4150-a6db-e2fed006d4e1","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":111,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"cf9d5b99-e6c1-41d7-b33e-504c861f56cb","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":111,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"d9354801-e87e-4711-910f-85005196971a","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":111,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"23c912e6-d824-49ae-aab3-9464281546ac","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":111,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"4f122256-5987-4696-90b1-ef2ad44c54d4","block_type":"box","text":"i.e.","page_number":111,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"1db73bbe-f96b-40ee-a2c7-2b8693127952","block_type":"box","text":", the risk of losses resulting","page_number":111,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"46b3f61c-fd23-443b-9503-9559c2b59c60","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":111,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"4c78e5da-5ef6-4fda-bda8-8aaa92510d4f","block_type":"box","text":"i.e.","page_number":111,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"56be786c-ef9c-438c-b055-fcb05e1f7f4f","block_type":"box","text":", the risk of a mismatch between the return","page_number":111,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"4f3caa35-b5b9-4f84-a552-eba5731f33e0","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":111,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"7418a302-10cf-477b-b9c0-50c5b660dc2c","block_type":"box","text":"i.e.","page_number":111,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"e92f49f4-3f76-4a98-8d88-be49ba05c21d","block_type":"box","text":",","page_number":111,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"71c94637-6b8a-45f5-ab6c-fda8bc0ed6b5","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":111,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"b1e9000c-f7e8-4cc1-84da-e113d4c04d31","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":111,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"b5ed404c-89c3-4568-987b-b6736eb019cd","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":111,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"1fb61354-4b64-407f-89a9-29a8ae73024c","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":111,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"ab697d4c-ab90-40ca-ba6e-ef38ac7080ef","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":111,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"5182bc16-07e6-4408-bf4c-07aa7e47556e","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":111,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"ced5d0b8-f052-4975-b83c-a2bfc940301c","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":111,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"9bbc4248-9ec0-4db9-9141-b20f90746f8a","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":111,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"b0b5b254-889e-42aa-9eea-13341b98aa5b","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":111,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"0f857843-b32d-4ac8-9ba8-d1b87a181956","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":111,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"c7b83768-b84a-4d1e-a20e-f1ee44d0c02f","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":111,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"af21f0c1-8326-42b6-aecf-0f39037bd1c0","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":111,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"f3efc6da-a1a8-4238-952e-8c76e8767348","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":111,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"1669ec8b-e742-4a7a-b2e8-f57141ee4a64","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":111,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"6ea81935-cb9a-4072-9720-af3a6b31f408","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":111,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"f53ecfd4-619d-4749-9d3b-ce859099df29","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":111,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"fda446ba-d547-4012-92d5-b9288e9c45dd","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":111,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"f22922ae-a960-4fc0-a40c-581b22c11435","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":111,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"683187b5-f9d0-4adc-a7e5-cb23db9a6cd4","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":111,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"7a62f93d-c1eb-4c0a-9a2f-4d2fdc010372","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":111,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"c2651053-6fa2-4f3f-a064-8b93e4d83978","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":111,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"b90f1411-473b-4be3-b8b4-6b753fe32990","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":111,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"c0bda525-3961-4198-8a54-84a081c3dd5d","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":111,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"ae4e99d5-bf32-489b-b3db-527a29f75d57","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":111,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"8f3f7d20-ba77-495a-a55e-be5aa4932949","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":111,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"96b204dd-cbe5-4df9-a504-6232e986081d","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":111,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"815fd883-615f-4fd8-a7e5-9596c01b08fa","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":111,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"b566efa5-e456-400c-bf90-da0eea5193be","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":111,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"5c06fd69-f23b-4c39-89dd-cb166c545f28","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":111,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"7b158cfb-cd8c-4c43-bbb8-0f101175e2f7","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":111,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"6f3afea4-367b-4639-a6ea-f33b123ae0d1","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":111,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"fcd7b369-c25c-49df-9945-bb84399b138a","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":111,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"0fef100c-74ca-4628-a607-c83e997846ac","block_type":"box","text":"II-73","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"78aa5cc9-d515-4eb7-91f7-b021a41627e4","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"795abaaa-33e7-44a3-940b-d760deda68ab","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":112,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"de082d48-1ba2-407e-9a82-74d5cd079cb3","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":112,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"b1cb4d38-f188-4610-8f2a-ec2fdae6c8bc","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":112,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"ff8a4478-4eac-4544-8a84-3c30937fb609","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":112,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"74aca24c-b6ad-4e21-8e97-6493a1ed1edf","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":112,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"de064d6b-9e80-47ad-96ac-90f68633d6a4","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":112,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"a3e0b561-c916-4e66-9a38-44ed3edbc651","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":112,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"351c657a-888a-45ee-87fa-fa373d3a1544","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":112,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"a8b6340c-f324-45a9-8d95-b24aba6d6872","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":112,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"1da33e77-4e61-4f07-82e5-6c575f03cb5a","block_type":"box","text":"the current expected compliance date.","page_number":112,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"d2a4b991-575e-4b42-8f45-d278ea728743","block_type":"box","text":"Short Sales.","page_number":112,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"14caa54e-9a51-4f76-9b89-7764086a3039","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":112,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"cd1979d1-967e-4523-ac99-5588dad3a2e4","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":112,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"9b43be9f-47ab-4919-9e87-e80ebb183415","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":112,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"6b23754a-a92e-40c3-a360-e9817e5329aa","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":112,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"980bb98b-1040-4a4d-9183-d4d781b94a1b","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":112,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"5f9f027f-6b1e-4fb3-8c0d-1282c52ad462","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":112,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"1701db5b-40b2-4268-92ac-bc619df95905","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":112,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"bb7a202a-e963-4604-80d1-019a69452855","block_type":"box","text":"securities to the lender of the securities.","page_number":112,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"ff394434-4c60-49fa-ad62-b0c1d4b97007","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":112,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"296cf77a-d17e-4a6c-b00e-62e493afece9","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":112,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"52f64a76-09b1-42ad-8f82-e4767de6025f","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":112,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"e417813b-2f6b-424d-b261-7a98c8297214","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":112,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"3efa7e12-86bf-4c49-a612-188585303a7a","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":112,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"2770dae9-b43d-4b9a-a1b8-9ac48e731ea2","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":112,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"28e8af61-0668-4643-ad38-982237b80dba","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":112,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"caa34bce-e73b-450c-ac21-93857fe214e6","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":112,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"635b29f8-746f-4509-bef2-5467d92cc850","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":112,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"6f64177b-3917-4364-a8c6-8ad86df37af3","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":112,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"fba6dc63-5b77-4787-8502-f7608837d8dc","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":112,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"710aab97-117d-45d3-8d50-53192f6a4301","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":112,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"4f5e1803-902e-4e43-afa4-919813ec7fe0","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":112,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"ea4c4a80-cef6-4456-9f2c-2ebccb5f4875","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":112,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"9918af0e-7adf-47c6-a832-8702de8f5fe9","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":112,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"ba343016-28b3-4f5e-8074-95cb4c9e337d","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":112,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"5944f0a4-fe90-4720-8d8e-270b70a9a1b0","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":112,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"7a4089a4-01dc-4f40-8137-f1d8b4f22e8f","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":112,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"51e576b0-6671-4aa3-a270-3cfdc0064b81","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":112,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"36aeda08-84ec-4177-8908-3c9e91ca9d2b","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":112,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"1361bd81-da1b-4ff9-b70a-4ca559b2f68a","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":112,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"f182908a-d364-4911-9daf-189d3c22c6f2","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":112,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"2575b046-ace8-449c-a300-ebd48372f300","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":112,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"c1b8b21f-24a8-4ea7-86c8-49a5d5b11c70","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":112,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"9c394432-1a93-4c58-8eb9-e462b820de69","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":112,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"4d17ddae-8ce7-4be2-8a1d-4d01e2a691bc","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":112,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"002d78e5-3c6f-454e-b888-16250ac7cea8","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":112,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"171ce236-18c1-4268-9672-e88607e12940","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":112,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"a7fdaff9-5521-4cb3-a6a3-64d543cbe148","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":112,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"b5ad33c5-85fc-4c0f-94fc-7a80e619e97a","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":112,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"611996d5-a212-47fc-b433-200cbd5c3821","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":112,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"9bd6bc10-1f54-4b9c-ae86-3858f62c9ab9","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":112,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"82d50493-d94d-49f5-80de-6258c6c9910f","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":112,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"ad9b48c2-ec28-4f32-b161-3fb19c888370","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":112,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"35b62e45-f14b-473a-b588-d0259b91062f","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":112,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"4d50ad91-3c51-44cb-bac2-eaceeca04005","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":112,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"0787b07b-7789-49de-8923-9bd931e00522","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":112,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"7c0ce151-469c-46f0-a661-c4215dc9164e","block_type":"box","text":"II-74","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"03948921-a047-49d6-aa1a-2c7c83a2669e","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b31dba31-b288-44d0-b584-d50e66c1d36e","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":113,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"65da14dc-e236-46c4-97fb-56ade914c2d1","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":113,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"a628f2f3-d39f-42fb-8eb5-c8d208a768c5","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":113,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"a05a4398-39ab-469d-b88a-0aeb2afa0e5a","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":113,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"5c2cd08c-ddb0-4e27-9ae5-3ffed86800e4","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":113,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"a3f82a4c-d228-4701-b02a-511287ca47bf","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":113,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"0c30d30b-e62c-4152-9151-60054d3db188","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":113,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"1c297895-1bb1-4a17-ab36-60b12be8713e","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":113,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"98e1cf0b-b09c-4cc7-b640-b8ab86866575","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":113,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"d134b2e5-8de7-4ba1-a0ff-ebdca149aa0c","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":113,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"d9f6f835-2cb7-477b-90c2-07f2ea30d0b0","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":113,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"d4c0a4f9-11c7-4c02-b09a-b8fb1f9b135e","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":113,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"4430443e-43ee-45c6-a262-d13ea6f405d7","block_type":"box","text":"Standby Commitment Agreements.","page_number":113,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"7d932224-6735-4f5c-97e9-a9d67dbddf04","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":113,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"4fa8d8d2-89f8-4619-a45c-112fee851ceb","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":113,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"218b4353-e102-496a-b426-ab86f3bbb69e","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":113,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"836ab9ec-62ed-48a8-8b17-8ade1ae7bee3","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":113,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"cf2bd0b6-8885-4c33-927f-ed7837dd4152","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":113,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"90d1f90c-c965-4cd4-a94b-5a9c878d6625","block_type":"box","text":"advantageous to the Fund.","page_number":113,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"25990409-c3e1-4089-8eb8-1d802f07722d","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":113,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"1c7bb78c-73df-4dd6-8bf1-5bb382f1d4b5","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":113,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"1b97fb31-3390-4b35-a0d2-87d429d19130","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":113,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"b23af6bc-f141-46d5-af94-7f4f1bf84e2d","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":113,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"f97cef03-3af5-4aaa-ab80-ca10264fbb7c","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":113,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"03cc9d5c-79e4-437e-86af-99c922c3598a","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":113,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"ca471bd8-248d-4db6-9e20-c3bc049eacd2","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":113,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"f06ef5ce-8080-49ad-9526-8d389da3e47c","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":113,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"7be8b3ed-a649-47d8-8e17-3d093943ce29","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":113,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"aee91787-6765-490c-b705-ef79374d81a4","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":113,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"f194ca9d-18f8-44fe-9c63-49ccd2415a89","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":113,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"9377f11c-3033-4965-8c88-de8606b3688a","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":113,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"c162d8dc-e685-40bc-ac0b-1205c3caca9d","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":113,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"b4367e49-c360-4cf1-a7e2-8929cbd5392c","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":113,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"379f6ff9-c5ff-4a42-98ba-2602eaa3543a","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":113,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"82d775d4-4cc1-4abd-959b-becdf8dd3097","block_type":"box","text":"Stripped Securities.","page_number":113,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"591cdc19-b85a-4046-bb59-c48126bee875","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":113,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"ee48a84a-70e0-4c51-8b6a-57262bac32df","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":113,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"7384e86e-f16c-4722-92af-5166412a381a","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":113,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"4bb1df24-59ad-4f52-9162-3c04abb57151","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":113,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"4f48735f-8ce9-4322-b0bd-9e005bc505e6","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":113,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"45512aeb-ee71-44e4-8244-a73a5206990f","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":113,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"735d8b2f-e95f-4a3a-9205-3a0f8c970fed","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":113,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"7509b165-0926-42e4-b74a-ce5a361e9e4f","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":113,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"510ceb27-dc92-40fe-b0c1-034ca03ccd17","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":113,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"e8b7940f-b5f0-4c5d-90c3-474720848f6d","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":113,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"121f5edf-4525-430c-9036-264865b44c60","block_type":"box","text":"Structured Notes.","page_number":113,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"413a2263-a94d-4a56-9934-0d4b8a3a2aa2","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":113,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"76aa6cfa-52da-46f4-9551-e3f408da5828","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":113,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"cff360ac-551f-4d72-b640-635ff537ccd6","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":113,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"65884cb3-02ca-4399-ab87-f7954b9d7732","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":113,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"19dedbeb-81f0-4ac8-9e8f-e76c030b87b4","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":113,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"b06b0f12-4295-4a25-86cf-70830f9aed5f","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":113,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"25ee3e87-ab32-4282-84ee-cd7b333e593a","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":113,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"b70483c2-9ff1-449c-90c0-b174f9775046","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":113,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"225a35b7-ef39-47b2-914c-d6264fcc2395","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":113,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"c31d3e49-b810-49c7-bce7-6292c0cf7144","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":113,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"d249a1e7-5ec2-4a57-a478-d46396077258","block_type":"box","text":"II-75","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ee6b0e29-36be-4607-a6a7-009a558efac9","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b7663f4c-7a39-4934-b50c-c4aeaa4ed1e1","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":114,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"9e334652-6a09-4374-9ce1-a3b5ce33ecdc","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":114,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"a639fa78-0408-4110-b4da-640f32fce9e5","block_type":"box","text":"the risk of loss.","page_number":114,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"b6ee4766-f1da-47fd-a6dd-71af44831748","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":114,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"b3610a53-8f3a-473f-843b-aaff72e9bb49","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":114,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"55d32257-c15e-4fbf-abd2-1aecabe384c3","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":114,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"28140c26-ab51-4de6-b6a3-ecf296328f89","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":114,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"a9ece763-e64b-4e6e-8161-2ac43c0d8bb7","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":114,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"3d410f7b-dc68-41b9-b0a9-c75d4be009a4","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":114,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"fa61183f-8f86-4dc1-a365-75a3aa716339","block_type":"box","text":"Taxability Risk.","page_number":114,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"3b4eaaf9-7c1f-4dd0-9e50-19391467df1f","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":114,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"561d9848-1ad7-4414-9375-bf59902ba246","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":114,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"d72bbd05-0459-49f5-9d3f-faacd27b2481","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":114,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"ca3f3400-884a-4ebb-b3c2-c6212c6b4cc2","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":114,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"3ee067d0-90da-49c3-8236-86391529a584","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":114,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"3fe3eeac-c696-4a05-af86-6018f6d1e8f4","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":114,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"d97f3465-5c17-4262-b0f3-ba1c1bf54c82","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":114,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"9887c147-95f1-484f-ab62-c52b9ed89359","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":114,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"841c6f66-09e0-4557-a375-b8d3e74ef348","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":114,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"e8ceb8c0-db8b-4d19-9bde-745428e6a23e","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":114,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"33378126-92d1-4544-9c2b-677a83cd8894","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":114,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"c8ff138d-ed74-4f41-af9b-c41250e12352","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":114,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"a11913bb-7bd8-4064-998a-44e5c56f4cb9","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":114,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"0172c2da-5681-47db-8d4c-dcf61c814791","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":114,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"f85c5148-fa56-4967-9247-ef25f4f704c2","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":114,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"ca57b4ce-5bd0-4a18-8ccf-5a363b9c58c0","block_type":"box","text":"the value of an investment in the Fund.","page_number":114,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"190e6536-6540-4626-b988-75a6cdc1e2bd","block_type":"box","text":"Temporary Defensive Measures.","page_number":114,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"9e8d3631-9819-4654-b118-f337c9b450bc","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":114,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"3d4141d8-f5a0-49d9-ae52-9c9d85c9fa47","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":114,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"2cc9965e-b5ca-4820-997a-5cece812ac2c","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":114,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"1a464b14-e3ec-497f-9f19-d89e8e8bf18c","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":114,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"97ad5df1-1348-4d4b-91d6-b88d3b5821de","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":114,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"c1c88cee-5e02-408a-84fa-77a862591c95","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":114,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"83a3de2c-6541-4ed7-9123-ac8a43cbee82","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":114,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"21c2f20e-7613-454a-986f-4bc5e443a2e0","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":114,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"015e12a6-68e9-453d-8e89-4b039a27cf6d","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":114,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"742720db-3adb-4bc6-ac00-fa4e95b25e6c","block_type":"box","text":"its investment objective.","page_number":114,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"f61bfeff-90f8-4180-900f-c3ecbed6dff2","block_type":"box","text":"U.S. Government Obligations.","page_number":114,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"6ab20800-406d-4fa1-b871-0b73df64c10d","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":114,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"bd597946-70d9-4411-8a92-a5e6ec3889f2","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":114,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"f61fab38-342b-4712-bec7-052fb1fc2fd9","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":114,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"592aae23-8537-4356-a34e-c012e297bf85","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":114,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"9fd256cc-8254-4f35-b052-cd49f03605ad","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":114,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"e03494d4-721c-4932-8466-e965c66ebd03","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":114,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"af76bcd3-26bc-434a-ade7-b70229a52cd2","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":114,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"ce97d7fc-f772-4558-aea5-5a978e374f19","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":114,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"4f644ac2-e6b3-4ea3-b383-c552fed60e42","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":114,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"8c908166-f66e-43a0-9a3d-3736241616ba","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":114,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"dae95d4d-b928-4989-b15d-3506bb68629a","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":114,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"f945b32d-a6ca-491e-9282-05744817f5c8","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":114,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"5e47fe09-aa75-449a-a0e0-bf3199406b11","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":114,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"fdf5a381-4022-44b3-a9d2-d9ad76c5c635","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":114,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"75eb4c03-a23f-4441-bf23-e08a7ede720c","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":114,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"b409748a-40da-4b2d-803e-4fab9ec18243","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":114,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"50c672b8-b9e8-43e2-a852-8fed810c13a6","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":114,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"00b59d75-fcfa-47e8-ad72-3824bd615e78","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":114,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"3191e877-e6b0-4921-b4e2-1148cf9610be","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":114,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"c7e14c8a-58d1-4dfc-be4a-43a6ab4b4efb","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":114,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"bccd9c98-0a8f-4a3d-920a-c5668868e4e6","block_type":"box","text":"II-76","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3399e3d2-1087-41eb-99d9-fbb59b7f64f6","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2e30ef12-c1f9-4473-8fa4-3ba91dbb3130","block_type":"box","text":"U.S. Treasury Obligations.","page_number":115,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"726fd142-d151-421d-a25f-272752e34541","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":115,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"419fd552-9f9f-4e18-97c1-35f5013b1b64","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":115,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"b9447cc2-3f96-493f-a269-59f3b2c392f4","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":115,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"c33db46c-0048-410f-8837-c2988bdef447","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":115,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"d6131a33-09c0-48b5-bfb4-aa0da7b64ab0","block_type":"box","text":"do so.","page_number":115,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"d03b04fb-6890-4451-850e-44864b11fe0f","block_type":"box","text":"U.S. Treasury Rolls","page_number":115,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"1b5d0220-eab0-4854-af28-d7e3558ba6c8","block_type":"box","text":".","page_number":115,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"c94cc030-f9ed-49b8-84ff-51deb0a0a2ef","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":115,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"c94a7f65-9a30-4055-b180-9f4922884706","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":115,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"2d83f3f3-e91d-4662-9ec9-2964f38cf929","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":115,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"5555384f-397d-4ba8-903c-afeba35abd16","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":115,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"5072af05-4302-42b1-9ff8-a97396d8f0be","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":115,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"b916c92c-6a65-46fd-b88e-0c0e867216f2","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":115,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"d59fe627-ab64-4b71-8558-ef9dd3255572","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":115,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"aa0b8c6c-5095-4922-9932-13f0a0e2f20e","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":115,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"76a89df5-1a7b-4a18-9575-0053611bd5dd","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":115,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"eef3a4bd-9e16-4550-9344-24b4853611b0","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":115,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"465cbab2-f3ec-4b42-b7c5-9df64fe2ef36","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":115,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"7689ff2f-ab7b-48c2-915f-8cd42b62cb31","block_type":"box","text":"Utility Industries.","page_number":115,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"7c692784-bbdb-4e5a-b020-24744d7f36b4","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":115,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"42ad37c4-5766-4288-8942-3324f2028835","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":115,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"257cd7cb-783c-4d47-b449-f2c1b17d1cc2","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":115,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"3a8d397e-e150-42f2-8fdb-9ed44c59d65e","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":115,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"4bac539d-7487-418e-833d-ab72814517b2","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":115,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"f21ff15c-01a4-40c6-80e7-61e814f73f32","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":115,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"13d358fb-f4d7-46aa-a096-cda942bd065d","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":115,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"6cf377b4-2ac7-4f09-8888-997fba132b44","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":115,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"b3ba4f8f-02b4-4132-9e01-b561ea5b1c7e","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":115,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"890d0ca8-e064-436b-9071-f5f2272575a4","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":115,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"cb391b82-76a4-4bba-8c57-44a5831410c9","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":115,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"94ee6fbe-5b7b-4170-aaad-8244d739aa54","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":115,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"50efafbc-09cf-4a78-99f0-f893099ab9bd","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":115,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"2f990dac-d4f2-48d9-81ab-a9c26ab9a160","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":115,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"c0d818ff-8236-4169-869d-f3ec21e3ed9b","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":115,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"e6e64bb9-9443-43e1-a5bd-1f7727cbfd1a","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":115,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"1d900ac7-eac2-475f-9bcd-93b6dc14cf07","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":115,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"b52f602f-cad2-427e-a27a-0ebd14bb62b9","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":115,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"38238398-0847-4ae5-88d9-865f6ef5e6e0","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":115,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"15622479-7d28-4eb4-96a4-f62ec056562e","block_type":"box","text":"utility.","page_number":115,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"65389eb3-ad2b-4df3-8857-2f1ad6b6fff2","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":115,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"ef690c26-d5aa-40d6-a554-76f44a040560","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":115,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"1a2b91f5-7ce2-47cd-b321-06348122584c","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":115,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"d1735647-1e65-4b8e-b2c2-23e6b609cd30","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":115,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"ba9ece23-85b1-4425-b1e5-f68ab0360bda","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":115,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"335d8154-a697-4784-91fb-d5be4ba7c7f7","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":115,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"ed6d774d-b8ea-4dd0-9630-b9030df84d9d","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":115,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"24a3616e-669c-4be9-965a-28fd1fe997f4","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":115,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"01dd17eb-2a3c-4e4e-9f5d-870228e782bf","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":115,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"68babf06-a3af-4381-ace7-0914771d74aa","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":115,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"814d890a-ca8e-4176-ac8f-884fdcdde46a","block_type":"box","text":"continue in the future.","page_number":115,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"4953f2c3-b679-4f50-ab99-29afe9e5dbf8","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":115,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"5510f03b-029e-4ccd-a27d-191fcaceb83c","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":115,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"d7ba5835-c672-494c-9d3a-2eee60193894","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":115,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"05fc34a3-b3db-4252-a58d-8cb38cfbca5d","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":115,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"48c262ba-29c4-41e8-a47d-6f7213042188","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":115,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"aaba6f2e-dd29-4330-8694-f4e1359d8eeb","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":115,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"ec211bb9-6c42-4679-816a-c30ef0bf9ff7","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":115,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"0b919eac-e80e-439c-9257-2c8f9e29e313","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":115,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"67d2fa16-357a-4c37-922d-757a680703cf","block_type":"box","text":"II-77","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"21fb7525-9302-4df2-8806-8a5b7e4f217c","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ac8e20f3-9372-4021-838a-95722ee0c5e9","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":116,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"a6e76061-9239-4374-94fd-582c02bfbc47","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":116,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"381e30d9-c258-4634-b10d-dd21cb38bae6","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":116,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"491f85d7-da64-491e-b1f8-bfd94b45ed5e","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":116,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"99c8a0b2-f862-44c4-bcb2-127c5d7c07e9","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":116,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"363e1e77-7575-421f-9420-14032743de9b","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":116,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"8a7a29b6-288a-41f4-b5ed-ff86623fb7ae","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":116,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"f713eddb-cf98-467f-a309-37f4ec695803","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":116,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"bf459856-65a7-4d55-870b-720f62d2618b","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":116,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"edff42f6-b0ed-43a3-99b2-349048f36b79","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":116,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"ff603d79-d94d-4ebf-9456-089279268f66","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":116,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"2829397e-1d85-46a2-b1fe-1eaee9def497","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":116,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"3c224252-5ebd-438e-b6d7-14a6b4128f3a","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":116,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"8bedb428-8d7e-43f0-af26-6b142a61da71","block_type":"box","text":"ways different from regulation in the United States.","page_number":116,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"8d496eaf-8aef-4350-be9d-b3aa13a3fdfa","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":116,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"4ff41297-57d8-47a3-b7ed-c014118b4b36","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":116,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"becbf337-fb4c-4c99-9855-435b8a7d8f3b","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":116,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"89197b42-2e89-43af-9337-8c824b92721c","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":116,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"3e4d2f2a-fd66-4baf-8439-6856732a75f3","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":116,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"0d55bf98-c42f-4c34-af85-16bd5605cf64","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":116,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"98c4910f-b344-442d-b219-05e4834d25a8","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":116,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"a9776e4a-ee43-4212-8b05-973aa9d446a1","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":116,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"debf0f4f-4638-4941-bb9b-eaab601fae06","block_type":"box","text":"increase.","page_number":116,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"74f785bf-445e-46b8-8032-7073ae34aa33","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":116,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"3a2933fd-5146-496b-ba38-73ceefc13ec1","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":116,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"d50117a6-9bec-4159-84d9-cc9018ca5356","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":116,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"d10987b5-b803-4ccb-8804-493f1b82840b","block_type":"box","text":"Electric.","page_number":116,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"8064fd60-ea69-4790-b7c5-168545e3e86f","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":116,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"f79fa21b-103f-4ede-b544-83c23d0ab40a","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":116,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"a5aa4be0-4e83-4a0f-9fdf-a1caee8bac9d","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":116,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"eb946909-6429-4c80-a264-4828c9f19f7f","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":116,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"b4d74d0c-9efa-4d79-984b-22791da53829","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":116,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"8b5e416a-cc73-4802-ba8c-0c6dd28de632","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":116,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"ae679b83-b7b7-49fa-a098-dba33100815e","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":116,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"bcb3dc07-90ca-4b44-8fa0-0dfe77154b76","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":116,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"3bca6592-b227-4f93-bb3e-4d4fec6ccb2c","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":116,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"4cbdd1ff-72eb-463c-8481-955ee75874e4","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":116,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"cb3070e0-214a-4408-ba91-da3993cb30dc","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":116,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"6a795951-3071-44a3-b0db-78bc9aa67adb","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":116,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"f37222fc-97b2-42fe-96cf-de0f2e61a7ac","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":116,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"f2810820-2d05-43b3-a5c5-3014f89ed373","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":116,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"5cff7b2f-8acb-4154-a898-7ae8fd968147","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":116,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"d8aa7c1c-361d-4dc1-a50f-f87f1ce78fc5","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":116,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"c171f4b6-a08d-4dda-8d87-f08eb09147e1","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":116,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"15fdb96c-9fd7-4c16-82b9-bc6a4aa8ba7e","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":116,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"e8821ef4-5445-4746-909a-b81b8b3beb90","block_type":"box","text":"and for decommissioning such plants.","page_number":116,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"ce6bf4da-24af-426f-be2f-c6097c994451","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":116,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"98d857b7-0454-4c4a-9864-686c540d8c64","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":116,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"45c970ca-1311-4b85-b9e3-c12c6460af44","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":116,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"2b85c2fe-2d6b-415c-bace-39ea5e96a5da","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":116,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"16ffc719-a498-4fd1-a447-1f457e79ffc6","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":116,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"780f18ca-8517-4551-bced-3aba8603f8f2","block_type":"box","text":"greater predictability of cash flow.","page_number":116,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"744b04c9-3403-4f9b-9215-19fdbbd991af","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":116,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"ebee9105-3fad-40ab-9af3-0b92b7409efe","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":116,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"913fcc18-2f14-4725-8c49-a10fc50ae427","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":116,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"b3b25fa2-329f-4668-8d99-d35482e84a8a","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":116,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"68c328a5-1642-427c-8fe5-120284ff3d5c","block_type":"box","text":"II-78","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8ddce818-c1f6-4cd8-8655-7d71faa3994f","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c72c7d32-7d11-4d16-b994-d585f40eda49","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":117,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"f21f14c9-e463-4007-8b09-db1d3df50658","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":117,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"a0c9c7f0-1865-4e48-b8f2-950a0ad26d2b","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":117,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"3b827607-3cd0-410b-87c3-fddca7653dd5","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":117,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"5b910004-55e4-4cfa-9b51-89d82a43349a","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":117,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"5283148e-d382-496d-871e-8fa5cccc0e12","block_type":"box","text":"Telecommunications.","page_number":117,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"19b6c09d-030a-4886-af8d-0e6b5e5a1168","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":117,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"c2845215-a69a-420f-9820-cc1356b117fd","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":117,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"aec2afc7-f1ca-4ea1-a27c-29ac964e7085","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":117,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"8addf49a-eea5-4059-9bc5-5204bf5b897b","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":117,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"3e4a8492-c88c-419b-a06e-098cb955f86f","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":117,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"88edf3df-7a51-46cd-ae88-de57f54857f5","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":117,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"2cb44961-d12d-425f-9bad-788d85762c74","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":117,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"c5d12a15-4c63-49be-a3da-352410c9d4cd","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":117,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"156278f2-946c-4992-96c5-0e13475757cb","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":117,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"1754c92d-a0f7-4624-810e-8b69b30c236e","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":117,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"eef4c0c1-fd06-4b67-a641-014e69ca0d17","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":117,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"6fa9f329-a675-4b44-af91-fa4d1f76921c","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":117,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"fb5c41dc-00e6-4f9e-8c43-7383021e9060","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":117,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"186d9a89-b827-4f3e-aed7-c1045164c1d6","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":117,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"683538b3-2186-4f3d-9f38-946134851e16","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":117,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"201ac9a0-6fde-4730-aad7-d0e982fa6793","block_type":"box","text":"residential, corporate and governmental customers.","page_number":117,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"5ed8e500-d3f4-414a-ba62-903dad9750c5","block_type":"box","text":"Gas.","page_number":117,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"46ae7d9b-58d2-4d48-9fbb-ddc8532e35c0","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":117,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"84e195a4-340e-4191-a533-33abfd1dc03d","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":117,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"287c88d1-5e2e-48bc-aefd-d4aea385498d","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":117,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"538c74a6-d6c7-47fe-9f89-4ea07fb6b848","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":117,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"5e0be699-d995-4481-9934-43ea53d9ab8b","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":117,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"c1b0303c-279d-45a9-8070-ff00b336619f","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":117,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"eff8e99c-c515-4836-a949-d6089c76e155","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":117,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"f5519105-6630-4608-8622-86d9f613032e","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":117,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"aa8b4b4a-3da4-4c44-aeda-23af3f87a1d7","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":117,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"905e5917-e81a-4bf8-a158-5ad563cf4941","block_type":"box","text":"Water.","page_number":117,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"20b80255-fd71-44ee-80e7-d73b4a307807","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":117,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"9541ca3f-3563-4708-9452-bacd560d69fc","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":117,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"08b27290-bff5-40d7-9d35-548b2155d0bb","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":117,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"9b4e8920-e146-4dcb-9ce9-e7b25c252a35","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":117,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"f86e8b83-b4f1-4d16-a344-a842ca5555ed","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":117,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"a75615e0-3fdf-47f7-a856-a439e9db53b4","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":117,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"d4299a4f-4d32-4aee-8f22-e7337c5e557f","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":117,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"92f06d2f-9bd0-4ab5-9be4-6bcde962f9da","block_type":"box","text":"Utility Industries Generally.","page_number":117,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"f6bbd85c-889d-4192-a68a-d8cadf0db595","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":117,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"2a9dbfbd-068d-4aab-8ed1-ab0c1a9150a8","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":117,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"a178418e-0db5-40f8-8d30-079ae8918dc1","block_type":"box","text":"not develop in the future.","page_number":117,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"3464efd2-89f3-427c-8be4-ccb0074dd8cf","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":117,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"a4fd9a79-8b0e-4e59-b4b0-7700f0b96a19","block_type":"box","text":"A Fund may purchase or sell","page_number":117,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"97ecb01e-ad9f-4d8d-8136-6a9b4bb57102","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":117,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"ef86819b-488b-4038-adf1-275a0c1588bd","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":117,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"1c0cb01c-c204-443f-9c26-6b18cbc275de","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":117,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"6fd54174-736b-4daa-8f38-0e1cf35dfcea","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":117,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"b4dd46d0-1300-4f3e-9a2f-0ef51c853775","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":117,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"e4368f22-d8e2-4af8-aa09-8cfa06b55efc","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":117,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"b8a19f29-d989-4dd6-8043-454a84a1e1c7","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":117,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"051a8e8f-678c-4400-97a4-36e4622d39b9","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":117,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"6a58f573-af24-482d-8a23-b4857e23f0a4","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":117,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"96db4899-5a62-416b-b65b-51a889df4e1a","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":117,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"675fc1dd-5161-491d-aad6-0952221c2350","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":117,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"ce984774-70b9-45f7-b2d3-f7bc80e2ff87","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":117,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"c732d10e-7944-4706-9e98-ba9f0c6ededc","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":117,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"aab36adf-7b3e-4594-969c-da854d40e738","block_type":"box","text":"II-79","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c02d62a5-ab95-447c-bec7-42de3685300a","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5da7958c-c1f6-4a74-affd-7e2f9493116b","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":118,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"0624a29d-1851-4ea3-906d-5c55d2117766","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":118,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"01269661-8b72-4000-b7cf-92fb01bfaea7","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":118,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"7ea79f65-2053-454c-9b94-4901ab691219","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":118,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"c2ff736a-39ec-4e82-9ed5-95c6bdded3c8","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":118,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"0e128c4f-914f-498e-a44b-3e9b318a3fcd","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":118,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"8acf0e46-d40b-4ecf-a870-9cc075d8a8e4","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":118,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"88095279-1346-41ab-8c89-74438f2f10d7","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":118,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"aeb64949-5770-4044-b8b0-97ee76f8dc03","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":118,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"e4dd86af-66fe-4334-8203-77922bab940f","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":118,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"b977a03c-6546-4e2c-9b17-344a0a319dcb","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":118,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"39079f54-cd6d-4b0e-8bf8-d964e9090234","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":118,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"edd093c1-fa1e-43ea-943c-3886a8f474dc","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":118,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"4ffc469a-1da0-4831-a605-4d491bb06f7a","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":118,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"eeaa75d8-b964-4328-a84c-2c2e332f9ed6","block_type":"box","text":"securities (","page_number":118,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"16678a91-b148-420f-917d-ac6b0ce321f5","block_type":"box","text":"e.g.","page_number":118,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"9eca5ff1-f2e2-433d-bde5-34a64bb20517","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":118,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"0af06713-0b53-4c2e-9001-56d9cee9f99d","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":118,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"4da97ea4-bf42-4d2d-987c-e0ee4b917d00","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":118,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"540b4666-cfab-4e95-8d7e-48ea58522578","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":118,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"e051f2af-8bfa-482b-a4c2-d12d14766ed6","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":118,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"688b9137-0c53-4bcc-beba-ce39a8e8aab9","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":118,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"0a4071c6-344b-456b-ae00-3f94a531bb9f","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":118,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"79e21869-5ec5-4a2f-993c-ffa7526d5557","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":400,"width":800,"height":11}},{"id":"f7756808-528d-4338-af88-20337657b4e7","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":118,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"cd8fef9c-c29a-4ef5-911b-55d28a37115d","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":118,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"b2aa5f07-f4ac-4481-8b9d-7fbf809a47bb","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":118,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"e17c1aa1-96b6-4ddd-bebb-8bce113cad60","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":118,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"df48aa4a-6ee1-4db7-a5dc-874a8fb9cec4","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":118,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"db4eb619-db18-4c9d-95c7-fb2afce0a633","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":118,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"8bfbb373-b06f-45c3-86da-7f62bb040191","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":118,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"70b08591-61c4-4e23-a1f6-c3389db029c3","block_type":"box","text":"Yields and Ratings.","page_number":118,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"9fa42ea7-079a-4779-8a94-78123be0d030","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":118,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"9d576dfc-9e77-4fb4-81c4-d218a363fc01","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":118,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"ad19998c-5f28-4cf2-874d-08449155ceb1","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":118,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"e9d71098-e4a9-4241-a51c-e7e30a4026c7","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":118,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"aa2df882-c5fb-4464-a164-f5e58d429ddd","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":118,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"ce1610b7-ad39-402f-a64d-ed1c2ced7f9e","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":118,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"43689a98-bf5e-436e-8ec4-78ec062a8fa6","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":118,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"f4555384-34d6-4ef0-89b8-b3470dce955f","block_type":"box","text":"continue to hold the security.","page_number":118,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"ec72f545-f6ff-4cfd-a6d3-42a29fd444c6","block_type":"box","text":"Zero Coupon Securities.","page_number":118,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"770524b7-0d9f-4ba7-99ce-7d43ce1aa147","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":118,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"d08870f5-1d42-42fb-805d-b687ce1e3e47","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":118,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"06b55b91-4a26-4511-abe6-233c2b549464","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":118,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"b1f9cf5e-f05a-4631-a180-d32f747ec7fc","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":118,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"18707fc5-1447-4c21-a2cb-094af2f4eb4a","block_type":"box","text":"security.","page_number":118,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"fb6bdb71-9c52-4a7e-beda-fa2cd4fde871","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":118,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"3d0cc4d4-a09e-4e77-8185-cd040d4a0c3c","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":118,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"4a0c27f7-2e1c-4e0d-8e88-39aaefb13050","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":118,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"5647658c-02d1-4760-af0d-a89fda01e6e4","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":118,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"a8b222e3-4ea0-41b2-b3ab-585c7fe0afd2","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":118,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"be6ec69e-9ac4-4664-8118-41dfadbf8fbe","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":118,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"64584bd8-a15a-4c06-9fbf-2ce95ca0d2a1","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":118,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"eeb21d7d-8c3e-450c-b1a8-0a5953495e0e","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":118,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"ca07e482-50f7-43eb-a841-3d9df6f3aa87","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":118,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"4a09a880-9655-452d-8b93-19c36428b579","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":118,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"dc8dd4f5-5174-4354-822c-285e25481bc6","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":118,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"ed32d791-73c7-4e79-b27d-8881f3f87d88","block_type":"box","text":"II-80","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1fa1febe-6b08-46a9-ba2d-4086f42b7d70","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"42484b9d-8baf-46f5-a9de-38b7c99054cf","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":119,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"6042ea41-850d-4d12-a847-e807a5a06266","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":119,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"4ff84fe5-dafc-4159-a0e5-0848f3e80c6d","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":119,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"0fa52d43-084d-4924-9097-4e0296834b87","block_type":"box","text":"intervals.","page_number":119,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"f28385d7-fef5-4129-950a-cf0b493ab0ed","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":119,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"ff4f528a-79b9-4d9d-8434-1fed2962c5d7","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":119,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"339f901f-bab9-458d-8d42-1722f6b7c941","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":119,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"b43fb297-c151-471e-aa5c-635c17551b22","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":119,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"69b810b6-7260-4b04-ae8d-4a51e610903d","block_type":"box","text":"exposure to zero coupon securities.","page_number":119,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"5e121aa1-e8d6-46eb-ac9e-ce97e291d106","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":119,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"c41ce857-9866-4ebe-81dc-c85fb7bea18a","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":119,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"55822e5c-4652-4d79-92a0-20aa0a583f39","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":119,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"fbdd2ac9-e128-45b2-b7ab-4431aaa150a2","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":119,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"03b45e3f-d8d0-4745-acf4-1eff399ee9b2","block_type":"box","text":"Suitability. (All Funds)","page_number":119,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"4c6227c5-48d0-4f59-99d1-3f7e306f9bff","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":119,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"c2a03a90-c341-48f5-8dec-d5926f3f3205","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":119,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"b03318da-c6ac-4e79-945a-158197bf04e7","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":119,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"13483956-2eaf-4c9c-b4da-4e269076e282","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":119,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"371bbeb5-e2ed-4856-a24b-4854c79d9b26","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":119,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"4e126635-f6d5-4961-91ca-2afdf0abea9d","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":119,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"c65f2f58-43c0-40c5-aa41-40d93f1cb805","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":119,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"d0126d08-8267-47fe-854b-9885cdd2b4a1","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":119,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"1bd5061b-26d3-4694-a3fa-c1b2e86610eb","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":119,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"4d68ca90-22b1-4997-a063-ea7ce1832e51","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":119,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"144df916-9c4d-4965-9f46-55ecc24d445d","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":119,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"eb774840-6843-40de-b491-6b9600072144","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":119,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"b4d78ce9-e9f9-48ab-9f17-23c77bfaeb5f","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":119,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"f29235c9-535c-4d8c-a8c9-d9a6e61e1cda","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":119,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"ba577827-222a-487c-a22e-c004ab0819ca","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":119,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"a878504c-9429-483e-ae73-907b393fbfb7","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":119,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"9d7d8c2a-00b8-4a31-8254-82e0777993fa","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":119,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"4e305687-7cda-4f23-8db2-37d13eb57868","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":119,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"1f2baa78-455c-4812-960e-31d88206463f","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":119,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"67c6ee97-766a-4731-939b-db30e4fbbad4","block_type":"box","text":"(","page_number":119,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"4687e198-11dc-42cf-980f-cd4818f78a35","block_type":"box","text":"i.e.","page_number":119,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"f7f3544d-acb2-42cc-976f-65b4988add73","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":119,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"9832332b-0c21-4e96-be3a-d9cf6fdb95d4","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":119,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"4ef3ee18-38f2-442a-a328-d96edcd332a3","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":119,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"9628d557-f368-4e14-b196-41ffdccede8f","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":119,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"87cd68c3-ce4f-4ddb-abf9-c33df0666623","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":119,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"51a5fe75-71ac-46e5-a7c4-f373d3b680c0","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":119,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"249460fa-c577-4c6f-ae43-26f6eabc2301","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":119,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"8f13f1bf-dbbf-49ee-b960-e589a8070160","block_type":"box","text":"regarded as the sole issuer.","page_number":119,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"197c98a9-7371-411d-b9a9-7522cd77348f","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":119,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"5b8e4409-2028-4778-a3bb-530ccf2fd5e7","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":119,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"0329551f-2f29-46e9-90f5-6389fefcf5cc","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":119,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"f305c3a9-46b5-4896-9016-809731d1e7e7","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":119,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"5e1ddd0b-a9c3-490d-aa64-ceda9c77369c","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":119,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"6afb26f2-8782-447e-81b6-bbf5f6ca8474","block_type":"box","text":"75% of its total assets.","page_number":119,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"af4d336e-8dcb-45b7-8f53-a9135ce5a249","block_type":"box","text":"II-81","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ba5ee5e3-ea86-4abd-8c1b-4f62e8cbc6b2","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8ffc79e3-0919-45f2-bda4-e044dacc5f7c","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":120,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"08bd5879-c63a-4d84-8bcc-1fc77ed96b13","block_type":"box","text":"Directors and Officers","page_number":120,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"eb4c2592-e416-4d5f-a1a5-d6d1cff3e850","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":120,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"af35e389-0919-44b3-98b8-1aff90ffae45","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":120,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"50a85d2f-1377-4f02-9a15-b1b88c7db59d","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":120,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"f7477249-93bf-43aa-865c-7ccd48b30220","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":120,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"00dcff87-33ff-4e93-8b43-85243c647c91","block_type":"box","text":"Management Arrangements","page_number":120,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"f24de39d-891d-481b-9930-3268db9475f8","block_type":"box","text":"Management Services.","page_number":120,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"657636e9-65f7-4acf-89c6-1526afc9f0b1","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":120,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"6f8a1bff-9fca-4885-9706-e1d75df778a8","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":120,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"afacd787-4ff1-4514-ab9a-2cd397d5a28b","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":120,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"98ae6f70-af84-4a6d-98f1-3a75a67fdf0e","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":120,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"6e644e9f-1a5a-4d95-bb96-8631f25fedb5","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":120,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"b968ebb6-0f7b-4b43-9dc7-2adc8896bb54","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":120,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"bd03e5f2-acdf-4ea9-850b-ad4da45e1aa1","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":120,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"b23905fb-6c33-4b25-a158-5b4233db1d3b","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":120,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"3b5b9ce7-4c0a-47b5-8bdf-1677d37d2811","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":120,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"8f903b76-3038-4319-a6a2-cab0988701be","block_type":"box","text":"Management Fee.","page_number":120,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"af45651a-8188-482a-b5b0-085ac79750b1","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":120,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"1fdeda0c-f166-41ff-bf3d-9b96bcf467f1","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":120,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"8452a8ad-394c-4b6f-abea-0d430e5ad2b8","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":120,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"a345849d-6706-4a84-83bc-6e99469be186","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":120,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"da96bbc4-8976-4705-a52c-b84cf9bb87b2","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":120,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"ae45bf3b-42fb-4aba-b77c-24bf3390231e","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":120,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"5f0a309d-ebd0-41ef-a6e8-1abfcab6c206","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":120,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"b7bc1681-4fb3-4a55-b9f0-b037ebb0d861","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":120,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"1682f7cb-a342-4438-b0c7-317bcdfb4e88","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":120,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"e7e5338f-397e-43b6-820a-d0790a0d93f8","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":120,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"6a000423-dce3-41b4-bdb9-7f8dd6d2e0ee","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":120,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"37f607fa-9d6b-4a13-95ce-99301d013caf","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":120,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"ba35fbb7-2b17-4dfd-b765-49f175bbd8a0","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":120,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"dc3f5322-1164-4946-9fce-fbd2cd0fa54e","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":120,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"9aa04b92-cde0-4c6f-879d-47543b52d035","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":120,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"a73ee14e-617b-4d8a-9c60-50ec2bc5d0dc","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":120,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"0af140c0-b56f-4635-9340-9442d95c0d27","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":120,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"ff786795-6e6b-4f95-83f5-a72c8fb8108e","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), The Bank of New York Mellon (“BNY Mellon”) or JPMorgan","page_number":120,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"76075bb1-bb4e-4455-a7e8-ad8f9c502796","block_type":"box","text":"Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as applicable, and","page_number":120,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"ec717eb0-3faf-4db4-9720-9a055be68858","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. The Distributor pays cer tain promotional expenses of the Funds","page_number":120,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"2021e3b9-0d84-413a-96d9-26bd8c23bf8e","block_type":"box","text":"incurred in connection with the offering of shares of the Funds. Cer tain expenses are financed by each Fund pursuant","page_number":120,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"a6d749a1-630d-41c7-b344-1518eb47b4fe","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":120,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"c2073e6c-cc8d-455d-bd0b-b0e0c16b0fcd","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":120,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"977b4181-dd3e-4233-b864-0e193515be2c","block_type":"box","text":"Sub-Advisory Fee.","page_number":120,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"76559a2b-271c-4f61-b32e-adc71a40f5b1","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":120,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"d667e211-8241-4e7c-913e-b1cdea0881e4","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":120,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"fb899359-1359-4832-852d-4c2cf8d795ac","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":120,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"1236269a-dd0d-44ae-b64c-586f4a75236b","block_type":"box","text":"Organization of the Manager.","page_number":120,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"4fcfa74b-793e-4dcb-a574-0c52ef22ede2","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":120,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"24f4ec0f-5c27-438a-a5c7-600983ce96bc","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":120,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"fe2f50fd-b288-41b2-8308-40cc7b0d6190","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":120,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"0173a614-af2c-441c-9be6-1a9f6c54d649","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":120,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"508af559-0366-43b5-be4c-379a485cfbde","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":120,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"99dca843-8102-407c-8bd6-71804ba324d3","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":120,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"6eb70543-4594-4d26-a8d8-986b66de7ba1","block_type":"box","text":"Duration and Termination.","page_number":120,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"7ba9aa6c-e7cb-4256-a0ab-5cbd6e322614","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":120,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"e2ba4d64-7bc2-405a-b2ee-cbdafd7cc99e","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":120,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"9880b2d1-f235-4a71-b42b-efccb61cf930","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":120,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"8e2143e5-0f8c-4c60-96df-3e10b327542a","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":120,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"1ea1de5b-be86-4e4e-be3e-bb7487ffb1b8","block_type":"box","text":"II-82","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a88d35a1-6136-45a7-9fcf-3870c00c7ea5","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"71079c8c-8692-4e5a-bbe9-a5ade43d8c17","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":121,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"63e86f26-5f38-4edb-9153-27194a6929ab","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":121,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"b5e69462-f7f2-4d78-a4df-c472bd148c0c","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":121,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"9f63726c-0758-4cca-84b5-917f5a733854","block_type":"box","text":"Other Service Arrangements","page_number":121,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"886fe81e-c696-456a-aed9-ed59e3b0fc19","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":121,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"7a71a938-daa2-4653-8151-0bd3a2f38923","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":121,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"dcbff8f4-90e8-4e82-9f5f-2017a2ae6302","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":121,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"c9bfb1a4-03c8-4fa2-b152-50d96f79b712","block_type":"box","text":"SAI (each an “Administrator”). 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For information regarding any administrative fees paid by","page_number":121,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"35a1c15b-dfc9-4b73-b643-8270f1d6e5db","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":121,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"2bb9c783-b313-43d6-8e1d-77ac6f2fb012","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":121,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"0a721d96-b42b-4e90-aa76-4bc1d08a6261","block_type":"box","text":"that Fund’s SAI.","page_number":121,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"a058f3f1-bdd6-49c7-a6cb-2c4c40e49cf4","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":121,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"60dc8e5d-9d26-46ff-978e-1d7bdf49cf28","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":121,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"e5392933-270d-4fd0-9971-ce429c385a51","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. 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Such contract is not assignable","page_number":121,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"746ceca7-2882-461d-ad78-ff39f4abaa46","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":121,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"1cd16e27-f14b-4810-920a-b75501d346a5","block_type":"box","text":"shareholders of the Fund.","page_number":121,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"c601069d-3a3e-49a0-975e-e1373c470bd9","block_type":"box","text":"Transfer Agency Services.","page_number":121,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"beb8875a-f18b-46cd-8a7f-6c171e66f19b","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":121,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"bfa33ead-96ea-4be9-b86e-c1493be88861","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":121,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"72f04cc0-a7ca-46ba-a688-51ec9edd0bfe","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":121,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"090afd01-2b5d-413e-93f4-3701c7c8a628","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":121,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"77186ea0-599a-45be-896c-53b8e69bdfa9","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":121,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"a5d9438a-66f4-470e-a97b-53863fae0574","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":121,"box":{"x":68,"y":513,"width":839,"height":12}},{"id":"d1079efb-cfe8-414f-ad87-9b418e8f962c","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":121,"box":{"x":70,"y":528,"width":831,"height":12}},{"id":"e022f471-afe6-4445-9e26-e28a0bbf64fb","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":121,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"89f2c4c8-1b97-454e-b14f-d3c3310078cf","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":121,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"1b4b6011-5bf6-4e3f-8578-a571ad49593a","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":121,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"a78d2fb7-4a97-4bc0-8865-be94efd18eaf","block_type":"box","text":"class on a recordkeeping system.","page_number":121,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"cef48d9c-9521-44c1-acc2-7327cbbea0a0","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":121,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"8f90f4ea-29be-4fff-b5c2-fb7e3313dbba","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":121,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"a48bfdc0-f657-423e-bfbe-a7a0fc3af33d","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":121,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"d334d3da-cee0-41cf-98c5-0ec2f01f7478","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":121,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"6272fafa-f40a-40a0-b79a-de269ae53f5f","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":121,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"99d085f0-4fad-494c-ada0-0007f3f0a72c","block_type":"box","text":"Custodian Services.","page_number":121,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"064e6c9f-eb16-4c42-a6ae-a11455df9e3a","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":121,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"1b24a73b-122b-4861-a786-169afbf80e8e","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":121,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"a2d76839-c673-4062-b6f8-a32b53c3d290","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":121,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"5e205926-b446-490e-a488-2086b4d37c75","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":121,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"47618ce8-d4d0-4cfe-a5c3-85bdff475c24","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":121,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"ae07a656-aaae-4ff4-b58a-cdc5dcbc1ef4","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":121,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"2c98b846-35e4-44cf-a37f-ea5ef09e557b","block_type":"box","text":"cer tain assets.","page_number":121,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"1d699afc-4a23-401c-b11a-d5dedb7b6f86","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":121,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"8e70b86d-3ba3-48b7-af72-9dfe5132d12a","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to cer tain Funds, on a monthly","page_number":121,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"812f9b7b-2b0b-4094-9d69-6345e6b3f53c","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":121,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"c85dbdee-1a4e-4478-b2f0-c2bf80b40059","block_type":"box","text":"credit”) or a charge based on that net amount. With respect to such Funds, the custodian fees, including the amount","page_number":121,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"ef37f7e4-48ab-41ae-9cec-138d7456be24","block_type":"box","text":"of any overdraft charges, may be reduced by the amount of such custody credits, and any unused credits at the end","page_number":121,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"f442eb5e-acfb-4393-bc44-010b2da206ea","block_type":"box","text":"of a given month may be carried forward to a subsequent month. Any such credits unused by the end of a Fund’s","page_number":121,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"524b2d4d-d417-432b-b034-99651fd972d6","block_type":"box","text":"fiscal year will not expire. Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":121,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"1dac711d-ca06-46e9-ae9f-8159cfd30485","block_type":"box","text":"Fund.","page_number":121,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"deacf025-feec-4763-a9db-d539caabcc1e","block_type":"box","text":"II-83","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7e8ad000-91c6-4da9-99af-78e2b4995fe3","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"482d0cb6-b545-4ad1-b817-10f0230bcc50","block_type":"box","text":"Accounting Services.","page_number":122,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"d62253b6-c297-46d6-bc68-65fb54495407","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":122,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"047595f2-4af8-4f0e-9061-1732431ef08f","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides cer tain accounting and administrative services to the Fund. 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State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":122,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"38a05e0f-e7cb-4d9e-bf43-7261a7ad8ea8","block_type":"box","text":"Master LLCs.","page_number":122,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"0c8e3aba-9af4-4c81-bd4e-d162db896152","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":122,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"0c1d7ff0-7abc-4825-bfc6-e21efe9f7b36","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Par t I of each Fund’s SAI for information on the","page_number":122,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"4b199502-e24e-49cc-b4bd-b69a699b13ed","block_type":"box","text":"amounts paid by your Fund and, if applicable, Master LLC to State Street, BNY Mellon or JPM and the Manager or, if","page_number":122,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"45ff1943-b566-4bdf-9a0b-5fbdc01ba50a","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":122,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"cbd49687-bcf9-4226-b482-bb9aef1839e7","block_type":"box","text":"Distribution Expenses.","page_number":122,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"8168edbe-5421-497b-861e-c9b0206e3cb2","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":122,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"782561c6-e6d6-48e8-8cdb-7a727742b33b","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). 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In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":127,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"b3d27ef1-1f8d-4b43-ac2b-1b03470bc6c9","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":127,"box":{"x":70,"y":846,"width":817,"height":11}},{"id":"8b984940-e2ed-423f-8c9c-e8363bb1cf89","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":127,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"c645e12f-1b4c-4074-b08d-7e95db2dff38","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":127,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"46107c08-b54b-4fc2-84c8-f0c45def7beb","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":127,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"e02dfaad-4cbe-436f-8137-ca4a5ce69b55","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":127,"box":{"x":70,"y":906,"width":785,"height":11}},{"id":"63bdbdf7-4c5a-4463-878c-f9d3219c5668","block_type":"box","text":"II-89","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7b3c3ab1-c153-44cb-993f-00578686d30b","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":127,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e16a70e0-7729-4f9c-a695-d264b53c30c3","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":128,"box":{"x":69,"y":45,"width":767,"height":11}},{"id":"19952c9d-567a-4234-a720-721d047e3d73","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":128,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"c5f0526a-80c5-4e7e-892d-aa4a6c2e6c70","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":128,"box":{"x":68,"y":75,"width":827,"height":11}},{"id":"763c62b2-55eb-469c-b0ce-5a9cd3a1fb6d","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":128,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"5051606d-98fb-452d-a262-4fa292d7ccca","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":128,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"217a6c10-565d-43c7-9e65-c8468f6195f7","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":128,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"e46eecf1-a2ba-4837-b57a-312031f58e61","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":128,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"a1cf4363-f7c9-4aa5-b210-b5d613dca231","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":128,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"7f5f019f-0804-4714-b123-56b3a9c31800","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":128,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"513a882e-3821-4d3a-9262-b9fa0787d853","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":128,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"d58063a4-6edb-4a43-b724-b815537a5022","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":128,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"b4ba1ead-d70c-4f73-8d84-e1d367392c78","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":128,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"cd372c89-51e9-437c-b078-de921c818f65","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":128,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"eef907cb-4eed-4dee-b5e8-dd9e25e48820","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":128,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"9c2fb89e-4c0b-4f1b-b2c6-52ea2fed47ad","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":128,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"07186883-413e-40ba-b957-689068d2b8bd","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":128,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"35d92d2f-5f89-4e20-9a81-07df61f4741d","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":128,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"4240d0b6-cf60-4c35-9f26-1d5f3a4fc111","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":128,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"139e3e3f-67d8-4433-8d80-02315305dc1c","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":128,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"732b5cc0-63aa-4254-bd1f-690a7667a093","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":128,"box":{"x":70,"y":339,"width":780,"height":12}},{"id":"5638a57c-88b8-49eb-bf23-db8b3bf2de75","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":128,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"a52d0ebc-29bf-42a2-976b-d84cc3eb73a5","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":128,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"9bb39bac-6ce7-43b9-8095-153cae9d1512","block_type":"box","text":"Funds.","page_number":128,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"07917c13-6951-4bde-a90e-be4a06fc7881","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":128,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"0b8542c0-3877-44a0-9893-8073e03a9e8c","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":128,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"998ae042-8324-49f8-a0bc-8da6ea498ad6","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":128,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"7b37d06d-b5a7-45eb-9f4c-7abe354e07ef","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":128,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"c33a2b07-1669-47f6-9e6f-3c73d9eda9e5","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":128,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"e2eb2a8a-bffe-4d83-80ff-ac50cebb4ba2","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":128,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"2dee9a56-83e0-4c1c-8fd6-c6c6a6fa1eea","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":128,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"e2a81bda-50c1-48ab-80c2-9c2f144cc00c","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":128,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"058dfbc5-247d-4e1f-b6c7-b18bb541da42","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":128,"box":{"x":68,"y":536,"width":421,"height":11}},{"id":"06e38e50-963b-4b2f-a5e4-b7ec886f1205","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":128,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"d3b7d5a1-3ee3-42e5-b2f1-a6fd7b77a943","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":128,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"ba9b30ec-7c50-4564-86fe-1528640312a1","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":128,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"dd9cf487-2402-47da-9953-2f46bc110604","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":128,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"6cc9a620-3537-44c9-be58-c5b5121b0fae","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":128,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"5854c94d-416c-427f-bf34-f28815410f3e","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":128,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"35fe729b-1f42-48ea-b4b6-d442b1845ce5","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":128,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"4273ae7f-17b5-4e36-9ff8-63f789ea66f5","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":128,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"ce80e995-2e50-4add-9721-1f393675ad1a","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":128,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"c53b0186-edd5-44ad-9a1f-c640da1a5058","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":128,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"6e80577d-696e-4844-a900-81853af0b06a","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":128,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"81a9f918-ef50-4b46-b97b-d08b4059f99d","block_type":"box","text":"case.","page_number":128,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"ce7a927d-a003-4283-9a56-7a9c8a33ffcc","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":128,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"6b8ebd04-d3ec-4bab-98e8-e54a670d5dfa","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":128,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"47128844-1770-4dab-9cbe-6d0e0ac0258e","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":128,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"c801bc60-81e1-4fcf-9fdd-93e91338f5bd","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":128,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"93eb4bf8-91f9-4a91-b2f4-a467d634efb7","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":128,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"d13cf429-702c-4ea9-877e-1b93342c21c0","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":128,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"9bbf65a3-40dd-4aab-b0d6-d67d946ec3a5","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":128,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"fe1044c5-fd9d-4abf-a7fa-81eb28fafc63","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":128,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"f83b3bd2-c9b2-4460-a37e-bb40edbd6f31","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":128,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"7b852a47-3db2-4449-ba99-fb06a9326e92","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":128,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"868351bc-493d-412f-acd0-a67ebd5bdf4f","block_type":"box","text":"II-90","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ad2a3bde-b7a0-423f-84b4-f67235df5b06","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":128,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a7d26cbf-3db8-4dc7-a69b-ce937feca7f8","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":129,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"144facf3-2ce5-4238-8046-d42c115654ec","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":129,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"bae63ea5-e2ba-4461-a78d-5a7e14a4c912","block_type":"box","text":"accounts and accounts under its management may limit the investment oppor tunities for a Fund in cer tain emerging","page_number":129,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"e9f7ab05-a68b-4d5b-aee8-bd416bcf0962","block_type":"box","text":"and other markets in which limitations are imposed upon the amount of investment, in the aggregate or in individual","page_number":129,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"12032bb5-5e19-4869-b188-e60173057497","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":129,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"bef505d0-6134-49d0-8c49-08ef6c5a0fa6","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":129,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"9e4c2e72-e5d9-42a7-aae8-080612f6f329","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":129,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"1d1e4ccd-bde7-43ec-b2b1-8df6ca9524cb","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":129,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"64d98774-dfbb-4092-9353-70e83554a0bd","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":129,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"893d276d-0b9f-47da-a2b9-895567d2ba98","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":129,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"24eb0318-e553-48b2-a405-8ba2203cfa5b","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":129,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"0f99c687-f10b-440d-b082-21452cfdc19d","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":129,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"3f5510c9-c094-4ddc-8b80-6b2ec5f41c47","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":129,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"555e2312-2cd3-432f-8b50-65d073fd2fe8","block_type":"box","text":"managing a Fund.","page_number":129,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"50c6999e-eae0-47d7-b2a1-b53bc48130a5","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":129,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"a7aa2ae7-a870-4c4b-8923-27a1081446bc","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":129,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"feb71c7e-ea69-4a3f-9b3b-a79e05a1e766","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":129,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"97412ecb-b19c-4664-96f2-dc6867d50507","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":129,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"c4704ccf-e561-4cf9-987c-309836db57aa","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":129,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"d96f005d-e744-4209-966d-baa8f53f58fb","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":129,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"415f2276-19b3-46a7-b52b-8e746c54591d","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":129,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"409d3ccf-7944-47f1-aa5b-33f1ab7a856a","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":129,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"012797ae-452a-4e47-970f-614e5ded3299","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":129,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"cf0474f7-333f-4df4-896f-9be879ccb4b7","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":129,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"408615c5-270e-495e-80fa-072d9325a155","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":129,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"c0421282-205d-48ef-9ea4-a7cc53cc89ec","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":129,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"fa8bb667-37b3-4cff-8fd3-a2cd45572a02","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":129,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"1db7f140-3f86-4eaf-b970-c39e7d7a3ec9","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":129,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"bd8fb310-df53-46c7-9f0f-87fed8e60fb5","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":129,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"d8813435-e0cb-460d-80ca-09ec74dbf396","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":129,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"ef2e47f1-f478-4ce9-81a7-b7828a1d207e","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":129,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"72b64c3f-5387-4639-885c-981911dc6ee0","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":129,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"93817025-51a5-48ce-b5df-b2e4a646b850","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":129,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"904cf027-6187-4419-baaa-f7af92069569","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":129,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"5d00fb60-234c-4c13-b899-c90438118161","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":129,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"0cdc8e32-2db7-4fa9-a394-9ebf7bf99c41","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":129,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"e97c3f0a-e981-432b-b8b9-7ae63e3b070d","block_type":"box","text":"under management for BlackRock.","page_number":129,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"39ad25d9-6e00-4c03-88ad-8967d723cbe2","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":129,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"e90693e0-a9e3-475f-ac2c-56b572800e56","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":129,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"e8201fe8-4929-4e7b-84d9-a3adda0c0c83","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":129,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"38324a65-6ea6-4779-ae5e-b09bd32e9132","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":129,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"e82fdf6c-9390-4a43-96d2-70f423541149","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":129,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"526e794e-7e37-4beb-82a2-9c1246274cc0","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":129,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"12e1d234-460c-448a-b6a5-00bb2141d0d1","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":129,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"de4ebdbe-cbba-4ba4-9720-0014aff49637","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":129,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"21f27e97-c5c4-4135-8e2b-ae49a4a08160","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":129,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"da6873d2-ae14-46b8-8b51-28d1e0196d41","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":129,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"1d61b148-59d3-4b22-be24-1e29ed423db3","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":129,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"1c30f94e-709e-4e79-8e31-1528b8604b51","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":129,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"8e60ae24-967e-45c5-b3f2-add037438db5","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":129,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"e054cc6e-3217-4f4e-9826-58438e047c33","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":129,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"a9400766-308d-4c19-a84b-a0bd864ce41d","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":129,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"34bb48bd-75ec-4d71-b9c2-4ff330d7e175","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":129,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"e5fb0f67-f5c5-4a68-8829-a9402ecda523","block_type":"box","text":"II-91","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7476c7c5-6087-478b-b352-579137b68527","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"81201eef-1f2a-4391-b16b-8679ce8c5c1f","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":130,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"10c4574f-37fb-4420-b522-8a7f220508ce","block_type":"box","text":"any such fees or other amounts.","page_number":130,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"cd5f2cd9-6d0b-4583-963a-061f58290251","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":130,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"cbc8c10c-37f8-4346-8ba2-c027a7817113","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":130,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"f5daaa0a-b5ff-4d6c-bf62-db2912ceb728","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":130,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"3e8880b7-0202-4a22-968c-6ea0a14fba8a","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":130,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"3e166490-f4a1-451e-ada0-ec1ed784e61c","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":130,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"1f61006f-9304-429a-a898-e12627d6ba4f","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":130,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"4f27e966-9a85-4522-a0a7-1c2548230e21","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":130,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"2a934ad0-579a-4671-b20c-58fd15ae87f2","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":130,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"efbf9f8a-72b6-4c13-a1ad-aa23fe6ddfb3","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":130,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"acee1492-2d5a-4290-b63d-132c93ade79c","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":130,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"00280eca-486e-4a8f-aedb-3cf128b07366","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":130,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"1db401eb-732c-452d-bbef-2ec32ce64c66","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend par ticular","page_number":130,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"f5553ffd-98fe-40fa-8013-4d2e492d5070","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":130,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"05385c74-f535-43c9-aa3b-21ae7cf7663b","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":130,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"b793a720-8e5e-42e2-bc39-e5826a9cb8a3","block_type":"box","text":"BlackRock. As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":130,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"8801fbc4-e060-4fec-9efa-713a902884ce","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":130,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"f30ad205-d300-47b9-82dd-d28641d47542","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":130,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"cadba840-381a-44e1-8bb9-b928a04f70a1","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":130,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"0907ff17-5585-48c6-bcfd-a8614345e613","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":130,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"b67db14c-cba6-4c8b-bf4f-7ce67ee3e954","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":130,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"b7ed8a7b-bf15-40c1-8433-fe1a9ea77176","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":130,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"550a717d-3940-4231-b40b-c06049de665e","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":130,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"7d19f43f-fa07-40e2-8565-05fc8cfa7099","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":130,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"63897249-ffbb-4747-98cc-42f468876549","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":130,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"8a5efb05-a4e3-4ee0-ae5b-ccbd360a5465","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":130,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"019c25b2-6613-460c-92b8-d5d242888d35","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":130,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"6256eceb-f628-4712-a1cf-9668de42d9f1","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":130,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"16061eae-44f8-4d29-82d0-cd54a67d9511","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":130,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"06659190-ead3-4e9b-b24a-3c6fa26ff8eb","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":130,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"fcc2685b-5514-48d9-b5bf-c77f7b273808","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":130,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"1ea0519d-f9b8-4e8b-af69-34e44a2012e5","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":130,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"90ab21b7-96aa-4118-84f3-cf8f4e5c1f65","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":130,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"17147058-035e-4c4b-b814-2214fd81f01a","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":130,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"ffa0ed72-e9e5-4f29-814f-87898dafbf81","block_type":"box","text":"regulation.","page_number":130,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"094757ed-3308-4b5e-ab4e-27c44d16a483","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":130,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"8194594d-6635-46e7-86c7-4197cb3109f0","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":130,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"8ea92ae1-cbde-4e0e-ad8f-6788d08150f0","block_type":"box","text":"various program limits (","page_number":130,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"68628ab2-fd8c-43ca-8503-d5d7d26d0f61","block_type":"box","text":"i.e.","page_number":130,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"f769373c-be30-4ae2-a50d-edb00775dfca","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":130,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"f9cbd450-5ac5-40ae-ae55-bb25cff4f00c","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":130,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"42ce34b9-77c1-4372-b74b-3209485a7ce9","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":130,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"d01b5731-6aed-42f0-b8cf-8ee9c81c2ba3","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":130,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"0df6a280-0e4a-42aa-b22d-eb256ae4bdda","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":130,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"4b4e93c1-20ec-43cd-a3f6-30baf83bfa1b","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":130,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"432b7f0d-c358-4eb0-a02a-2832ddfa8bfa","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":130,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"93dce5d5-ee0b-4bf9-aa7c-adf77541dc60","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":130,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"7d9c19df-dd50-490d-a0fc-1ef83efe5a66","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":130,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"f0dd1a63-c6ba-4ca2-a09d-e5816dae36da","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":130,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"73ca5a6f-26e9-4b79-ab70-44bec25270a6","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":130,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"ff0a332e-7a97-44f5-93cb-42d717e37cf6","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":130,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"5e62941a-b88c-48ed-820f-77de267ddf7c","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":130,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"1875295e-7d4f-47cf-befe-25d7ba788c0e","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":130,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"55450dd3-3dd5-48e0-9c13-b50bb80c17d0","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":130,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"1bbce8c6-3eff-443d-a287-e02d5161e9c2","block_type":"box","text":"II-92","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"192b650a-201a-4445-a657-1d3e66c5a045","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":130,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"65cac8b4-a653-4831-ab21-809f57fd5166","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":131,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"f345c6e3-7b51-460d-b3f7-5e90994689c7","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":131,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"455014e7-ac2e-479b-b979-8b50e48a0f6f","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":131,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"2c06f13e-0897-49bf-bbdb-6eee06100073","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":131,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"8348fcda-3e49-400b-91ee-87c5e8ae51c4","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":131,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"596e77c5-2d57-4873-b543-42fdfc28f187","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":131,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"3cf1638b-2f24-43d9-9416-9e02e1b97cce","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":131,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"29a58395-cc3e-4ee2-ac23-25e9097b5210","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":131,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"898d31e9-d239-47a7-a3cd-cf3fdf1db984","block_type":"box","text":"than through client commissions.","page_number":131,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"51d509ed-4682-4258-bd7e-edf26134d5ac","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":131,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"e4e74305-c721-4867-b08f-d3b36d8afa76","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":131,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"158981b6-3c8c-44aa-860a-37d0198f8c7d","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":131,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"27192518-2fb0-48dc-ba4e-4f69242aaa71","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":131,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"e76b0ed7-6d62-43f4-afbb-b5145fe9e25f","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":131,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"71692f9e-1eb8-4bcf-ade4-211aa8a31e7d","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":131,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"669e7f6a-dc9d-449f-a1fc-6be9bc9552b3","block_type":"box","text":"research-oriented software and other services and products.","page_number":131,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"1249b3a0-e26f-4f7d-b231-ad7660fa8994","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":131,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"2d6d715f-cea8-4a7b-ac76-623c6cc1f223","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":131,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"56129e57-bde9-4c97-9f1b-88ebce74080b","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":131,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"29ebdea8-768c-414e-9ba9-5af7f407ca57","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":131,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"fac39b2e-5dab-4a26-a8a9-08e54e36a5df","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":131,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"cbf7fb27-a835-463b-8767-0af12e2aa4e7","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":131,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"f181545a-b0ee-4cfb-8710-89540546c473","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":131,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"04f1de61-2728-4476-977a-8f7c6bd614b0","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":131,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"07bad993-1e8d-4932-a9d1-4624dd16d4a2","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":131,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"2d8de1bb-9fe2-419f-9727-834ee95d25f9","block_type":"box","text":"and services itself.","page_number":131,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"23b270f6-f48b-45a4-b990-26a1166ce39b","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":131,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"28b9bc28-752b-43f2-ae3d-adbd1da63c47","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":131,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"039d0bcc-7804-44a1-bd8f-025928608d49","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":131,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"2252aa43-76ba-4dc5-825e-c4e401c022f0","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":131,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"36a9f09f-d38b-4605-8054-850bb93c0ca8","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":131,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"0036d4d6-5c76-4525-be9a-3a6d98e90adb","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":131,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"095c4a6c-2b1b-4f1a-b527-34c47f657cdd","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":131,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"29d9a6c0-e301-4c9c-af38-600581135afc","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":131,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"23f354f5-0fba-421b-b93b-c05311b67f50","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":131,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"79762080-3431-4cad-96d3-c05107ea595f","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":131,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"4f4cdd21-fb7c-4e18-a9d3-bddfc3f4d00f","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":131,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"a6e83ffc-d8e6-4ad6-867a-43122f7150f3","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":131,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"bfa16ac3-ba07-4d82-b360-0bd601b2770d","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":131,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"ecd939da-148a-4a98-9b58-731770ba9cd7","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":131,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"9787fa36-b442-4467-befd-fc130f596b47","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":131,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"03fc05e4-df52-4732-a8d5-3e7729677ba5","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":131,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"e9fc634a-ffbf-47d3-9207-6c2ba7da148d","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":131,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"d8e8b100-5f58-4d66-a7b7-e007fc421554","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":131,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"1fc49dc2-4e57-4215-b1c9-b41987ada515","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":131,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"8571a28f-750f-4e58-b27a-26c0d284e73f","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":131,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"0c493b1d-b058-4080-a2e8-2ef343217f3b","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":131,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"0cd5072c-6e28-471b-b7bf-9670eb62b640","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":131,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"abc0bafd-aaa6-481f-8efb-f93075e2a462","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":131,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"95242853-1b72-4c55-b414-da3971598596","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":131,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"9f9da5e6-cfd0-48ad-886c-064bdf2c3c2c","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":131,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"9734424b-4477-4b8b-acfb-f6527803d230","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":131,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"bec90303-3a37-4f10-82ff-eed5d4c77229","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":131,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"9e8e9b6c-9e40-4050-8750-1c0cc3250196","block_type":"box","text":"II-93","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d9a8e6f9-614d-4145-9fc3-5d014aeea520","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":131,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d470b031-7901-4d8b-b9a8-edef834744d9","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":132,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"9076c2bd-1721-4274-986d-10aa225dff8f","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":132,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"59bbaeaf-2fa2-48ba-8926-33f4251d47cb","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":132,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"48f2d827-56ef-451d-bad2-4810798f441e","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":132,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"bf205dd9-aeaa-4907-b48e-4736b531526a","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":132,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"58db9f5b-c580-4ac9-ad3a-c00b1b9bf273","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":132,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"9d86a200-7117-4e4a-bc47-622cf57edba9","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":132,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"fc060440-ecfa-45dd-a344-d17eb724d674","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":132,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"4d34d599-1370-44e4-9568-b186d29898b0","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":132,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"648054ff-ff03-4314-ace8-dd6390ac038b","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":132,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"8389ef95-310e-4289-b920-b561ab5a6b04","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. A Fund may also invest in issuances (such as","page_number":132,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"41795cc3-3e9b-437d-abe6-d8c72f09d90b","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":132,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"d311d6bb-aeda-4875-b299-181dec0e8ef9","block_type":"box","text":"relating to the proceeds from the sale of such issuances. In making investment decisions for a Fund, BlackRock is","page_number":132,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"9e017837-d99b-4048-9c1c-7b0fba5a1cd8","block_type":"box","text":"not permitted to obtain or use material non-public information acquired by any unit of BlackRock, in the course of","page_number":132,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"fb930a76-c92e-4a0e-ae8d-25f8a2fd4671","block_type":"box","text":"these activities. In addition, from time to time, the activities of BlackRock may limit a Fund’s flexibility in purchases","page_number":132,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"b461c2b2-75fa-4507-9667-bdad094cf03b","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":132,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"7dc750d0-ae46-4f3d-a0be-399baf8912a2","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":132,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"24f4e878-e1c3-4e7c-b8dd-450d7c596232","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":132,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"5647ae22-3600-4150-9d25-4f629c98cce5","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":132,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"d3801a6f-a99e-4fb2-8813-d16cd555c06f","block_type":"box","text":"sales of the Funds or other products may be greater than remuneration and profitability relating to services to and","page_number":132,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"6f1ea976-1b65-4f23-8115-8e937fae6a98","block_type":"box","text":"sales of cer tain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":132,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"176a37d5-5306-4a88-803b-c341a44f8332","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":132,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"6641fca0-e805-417c-a83e-991f4303cf5b","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":132,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"29315396-3343-42ee-86f0-d91f0e2bab72","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":132,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"49c23b94-1a73-485f-b213-4dc9c567ccb9","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":132,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"e836fe49-050f-462d-a2e6-1999bef11dd3","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":132,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"7b6d24b6-b73e-437c-b355-3c1674ba28c4","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":132,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"c8af4bc3-56b4-4b1e-af27-2253e335ac1f","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":132,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"4b4f8cd9-006d-4428-aba0-761505a7e6c8","block_type":"box","text":"the same securities or investments assigned by a Fund’s pricing vendors, especially if such valuations are based on","page_number":132,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"a2517e07-4f55-48e7-876e-f5c5b51edf9f","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":132,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"4ee228e3-99f3-48f2-ab5f-ed0dd5450c9e","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":132,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"65b70e03-44c8-4c28-a06a-9df2e99bca54","block_type":"box","text":"may be instances where the Fund’s pricing vendors or fund accountants assign a different valuation to a security or","page_number":132,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"ef88f7be-5d53-4361-932d-4c0fc8234d8b","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":132,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"b65e4895-c02b-4d1c-9c56-287a1978e8f6","block_type":"box","text":"As disclosed in more detail in “Pricing of Shares—Determination of Net Asset Value” in this SAI, when market","page_number":132,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"51ed3942-1c64-48dd-b610-5a56a3d77b1d","block_type":"box","text":"quotations are not readily available or are believed by BlackRock to be unreliable, a Fund’s investments are valued at","page_number":132,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"f17ed451-db90-44a2-99f5-61e4b4106893","block_type":"box","text":"fair value by BlackRock. BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":132,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"5dfcae66-099e-47e5-9174-510af102b080","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":132,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"6546a6ca-9550-4da0-97e5-3c678d627271","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":132,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"68aa8b59-b622-4f37-8ea4-24a793d1225a","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":132,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"9b41ce02-0212-43ef-981f-465ab4e5a367","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":132,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"b7382f93-f7b5-4075-a096-ef92bbe47170","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":132,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"ed9fa9fa-f59f-43d9-8c0e-b39509fb14a6","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":132,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"ef0c7f8b-ffa8-4b84-98da-5873dc9c7476","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":132,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"a52faf18-216f-4333-bf64-03371e904d64","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":132,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"42e31078-ec89-46d9-bcf3-e99e0aff6fb0","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":132,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"a34b6b58-0edb-4a5e-b2e2-a3eecda0f701","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":132,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"5f718491-7897-412c-b8f1-9a71ef2f5587","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. 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As a result of","page_number":133,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"ea843026-aafe-4be7-884e-e91b1f66157e","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":133,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"fb25435f-d173-43e5-825b-572252872482","block_type":"box","text":"employees of BlackRock that are the same, different from or made at different times than positions taken for the","page_number":133,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"54a9f511-14a2-429c-bb2b-24a757f9cef8","block_type":"box","text":"Fund. To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":133,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"5619a22d-7e9a-4232-8698-41324bd7eaf4","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":133,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"b6d7db03-6228-4e5f-b157-77ac2862672b","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":133,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"494e80df-ca9f-46c4-9f27-b22dc3c5ce53","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":133,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"55096d51-c45d-4e14-9aee-261d95840d38","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":133,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"99321677-8f64-46b8-a99b-192872601eef","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":133,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"8f42eedf-444d-467e-90c3-b8a234b31da9","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":133,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"afff682b-a6d3-4e39-af38-26f66909ae25","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":133,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"61da9678-ed91-4e6b-ba2f-c490f943a2f2","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":133,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"95d3a20d-a1e3-43ec-a802-81c584328a1b","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":133,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"4ac3c164-f648-408f-954f-6948c615bfd2","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":133,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"0196a0ca-f7b1-473b-8687-40aa52238530","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":133,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"b4bdbe1e-4a14-4ecf-88ad-46a9d4a19b83","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":133,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"b04411a8-1183-4503-bc28-49ce09a959ee","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":133,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"5c8cc857-9e09-47d2-8958-3e2d3b5b2988","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":133,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"6f6cca15-23fa-4a9d-8e0b-bcee01c43630","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":133,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"4d965e84-60d4-4316-a620-01e6a819ac36","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":133,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"ecc5a6c3-74f7-4e12-be92-2f85c543f4af","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":133,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"ef91ab0e-9338-48f6-a313-bd70ec400246","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":133,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"f1845902-8942-4a76-8e72-e430ffa9065a","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":133,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"67fa98d7-7e04-477e-9d3f-0422041b399b","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":133,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"79f51db8-63b1-4722-a6b7-55528cd7473d","block_type":"box","text":"public information about the company (","page_number":133,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"d3257580-4149-4fc8-8eeb-c66da93ae17c","block_type":"box","text":"e.g.","page_number":133,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"bad36e7e-f33b-498c-9eec-83aba6649337","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":133,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"7b170add-d94d-4756-81d9-eb8c3934d849","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":133,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"caa92f1e-5004-4c48-b762-fee4ec01f96a","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":133,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"2910d3ea-2629-44fb-ae42-9902ad9e65f0","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":133,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"168d9dca-fd4e-4c57-a0c8-6115b79e4908","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":133,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"67666a6b-414e-4184-a03b-c0843dbffa1c","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":133,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"70b587d8-6bf6-4d6a-adbd-7f6edd4c1a22","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":133,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"9266cc34-eca0-48c4-afce-a2f7f0b0e590","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":133,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"c5412738-f42b-43b2-9bfe-1f2525b5fe0a","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":133,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"c74c7832-3918-48d5-b07f-fb2ea9ba7177","block_type":"box","text":"of the issuer.","page_number":133,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"22c1facd-f527-4466-bbf6-5fd1144428ca","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":133,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"4594701e-2aab-429e-abdf-e12b49be3595","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Cer tain","page_number":133,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"cd164288-d906-4cdf-b38c-117db718b5f4","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":133,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"9b92d206-7972-4006-95a9-042bf86d413e","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":133,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"29ddfb11-7ec8-4f13-916e-88d7e1cef7fa","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":133,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"5d483e06-6a30-4f4b-8781-cfb1f49bb7be","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":133,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"3de713d2-48bc-4c83-b625-a09b7c1cd258","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":133,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"252790b7-ff1c-47df-b72e-9df068622460","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":133,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"bdda829e-3b0a-4e2c-b020-a47846bf7e86","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":133,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"b8d768a2-fdcd-46cd-9b5b-50027ca9990b","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":133,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"320d8b93-3577-4f28-a5c7-2439d5602583","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":133,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"636db77a-f5da-43ae-976a-3501aae6d6a9","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":133,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"3eed7780-350d-4725-9ca4-a66355cbda4a","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":133,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"46bdfc1a-1bd3-43a9-8b4d-52357240ca75","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":133,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"b02103fe-379b-45bc-ad91-224486c578d5","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":133,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"698904e8-7c6c-4e40-93a3-4b8009bc28fd","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":133,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"c1382060-8f85-496f-9dd1-7dcd726b0d5d","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":133,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"dcf443ec-820a-4755-b516-f13dd2c97b09","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":133,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"82463989-2112-401a-a3f0-26005eea3127","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":133,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"79122996-60d5-4037-84fd-a00e8bf7b2e9","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":133,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"a70848c7-68cd-4b4d-95c0-ffa0aeb5e280","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":133,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"9bf61a8a-3889-497f-9dcc-daeb077e8821","block_type":"box","text":"II-95","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b18b5bff-d389-4422-9983-e7a33539b88a","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"73329ac6-1b90-4d51-8495-b2a4ae7b57a9","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":134,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"bb04fba9-97a2-4bb6-b1c0-fb46c946e3b1","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":134,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"4a77aab5-a5b6-4794-a3f6-39434aba36fa","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":134,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"da2ae8d2-dbb9-42ef-8468-125a7c843498","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":134,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"992c92f6-cd9a-4e87-a929-285aa0fcfa06","block_type":"box","text":"a barrier.","page_number":134,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"5008345b-f726-41bc-a839-89dcaadc379b","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":134,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"bf4a51e3-84bd-45cf-8c08-892cd48756e5","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":134,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"5b0bc09a-c374-4cc4-86bb-adc1611e38ac","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":134,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"1e3b1fcf-c7f7-41d9-8840-e5e5df0cc59a","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":134,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"3b244126-c29a-4a64-9a54-cc0d8689c28c","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":134,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"1432ce72-64c3-463d-bbc4-9f154207c535","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":134,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"cc842690-c68a-4188-9cdb-8bdc7698cb08","block_type":"box","text":"that operate in cer tain industries (","page_number":134,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"d887f91d-2818-4250-83cd-1f6acd339bf9","block_type":"box","text":"e.g.","page_number":134,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"2fb8adc4-0e8c-420c-b9fe-c660b4abc8e8","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":134,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"6f571628-fc99-4add-93ca-7513df3952a9","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":134,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"cc0ee175-145f-42c4-b21b-71cb5221fef9","block_type":"box","text":"e.g.","page_number":134,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"969f2c05-f9d2-4d10-b8af-19dcfdc7ff38","block_type":"box","text":", with mechanisms such as poison pills","page_number":134,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"d89e5a31-c062-473c-a337-7a6bee9d93d9","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":134,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"3e3248c6-0a37-4fd2-b4db-182df67491f5","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":134,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"721d5b26-7b46-45e2-b623-81ba06933820","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":134,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"b6f5e915-2933-4691-810e-4bb65f0107f3","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":134,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"9f88b90e-f08f-4cc4-b662-5aa62234b49b","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":134,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"b5c15ff8-3dbc-481c-80b0-acfc75cad13d","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":134,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"569267d2-a21c-44d9-84a3-7d2c2b193309","block_type":"box","text":"seek to make indirect investments (","page_number":134,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"bc7164c4-2d17-4435-88a7-37b7b1ab418f","block_type":"box","text":"e.g.","page_number":134,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"c99f8fb5-1b35-4ee6-86f9-a8a668bc2afa","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":134,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"aa71ded2-0f65-480b-888f-5673f30e6151","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":134,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"03cb0e4f-c655-4927-88e7-e32b04dfcc32","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":134,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"b9b989b2-9cdc-40d2-933d-590d77612f5c","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":134,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"f2353659-263f-497c-8c2f-ef6c8429f6ae","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":134,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"4df6094f-1871-4213-93bd-60d52413e712","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":134,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"ab8b5e7e-733b-48c9-b040-512578da79d0","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":134,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"9135a301-9674-4ffa-943d-f956d94c4d88","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":134,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"3db9bcda-1df5-4b51-aed6-b79dec87d7ee","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":134,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"918e4aac-e638-4657-b166-5130f02f704c","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":134,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"e950ad94-7ca3-4651-aae4-e555804e3bf9","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":134,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"f942e115-6009-482a-84e2-e4de988a4178","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":134,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"0347e780-7b33-4165-9d43-a8c115682550","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":134,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"7a56baf6-ae21-4b60-8b88-11284e636f4b","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":134,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"b240d253-d857-4f95-a03e-125929f895fa","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":134,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"e1f83fd8-c30c-4d90-89ea-7d7d5186857f","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":134,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"2fbd5099-db3e-40ea-bb93-ee0f9fc8df71","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":134,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"2908d656-f5ef-4c50-a002-f1903a663297","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":134,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"2db3e642-f7c1-420d-b892-902c65c145d4","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":134,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"81fc8e1e-d2c1-476e-b0ed-b10353aefac5","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":134,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"d75435db-262c-4ac4-8a46-93365b0a1e13","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":134,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"dd519522-1f11-4f6e-9251-4864fbe32f6d","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":134,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"92d1b81c-10bd-4d2a-885b-14cd3c83864c","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":134,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"d803e444-941c-45b1-bc23-584e154604fa","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":134,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"dc4ecab7-f565-45da-a27f-3f8d69d1e849","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":134,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"a43673e2-641c-41f2-9080-f062ef62eb12","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":134,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"3d857ce4-71d8-47db-a12e-5b1118aedd65","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":134,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"52d21cf4-ba53-4961-a204-0baf89463f69","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":134,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"f69a028c-0f9a-42d4-8d4c-83389ef304ee","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":134,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"47258075-953c-459d-b57c-99b7ae0e0e78","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":134,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"303a9704-934d-4dc4-b5a1-5465880d31a6","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":134,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"f5ade714-2e15-4489-91a3-7335d1f47527","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":134,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"f8c55d76-ed09-485b-a66c-1cb0e79e4820","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":134,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"2a3d4f15-d8ab-4ec3-97a6-a904d199a75d","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":134,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"0c2dbd73-f16e-4c4f-ad66-025b62ff7792","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":134,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"f31b209e-6700-4082-98aa-b8b38c87a970","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":134,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"5440cc3e-c597-4cfe-aa64-8775110e995b","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":134,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"1de01942-3965-4e34-a2f4-b14014b49d31","block_type":"box","text":"II-96","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"be80abd8-39bf-4b74-a82b-1e5c31dcff7e","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a381749d-f007-4df8-89b8-33b0d098fee9","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":135,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"7fd43ad5-fc8c-4dc2-8b89-b4a74ae27d5d","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":135,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"f0d1b754-2f2c-4a4b-867a-5ff1e60ae19d","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":135,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"fda376cf-85d1-4c5f-b058-7a4ce922d5aa","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":135,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"68150ec5-7a2c-495c-bdff-e19c822879ea","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":135,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"2393545d-74f0-4591-8f9a-eff19d1706bf","block_type":"box","text":"strategy with respect to such security or asset.","page_number":135,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"0f4cd741-4136-46db-9078-cfe4dc650f96","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":135,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"9df5e225-486e-4137-ab16-34f9c486777f","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":135,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"bad943bb-fb5e-4425-972b-426534761156","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":135,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"0fa6914b-4e6c-44da-b048-0611560cfd51","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":135,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"24748d4c-09ed-48d4-8ace-645634c86ff5","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":135,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"f7001a24-0d8a-47ce-97d9-39bf54c600db","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":135,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"bdcb2a2d-54e0-41d7-9306-9b2a3a265af1","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":135,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"2f958ea8-9f05-4a55-810b-737c773887d3","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":135,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"708b973a-60bc-422b-baae-9fd55ea9cc6a","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":135,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"fe98050a-4ac5-45dc-8fd3-aa217fcfe087","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":135,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"1d731e2c-51a8-40e6-bfbd-22192592759b","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":135,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"53cb4133-09f8-47b5-8e45-5cb9dbaed141","block_type":"box","text":"e.g.","page_number":135,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"2a282f72-614a-42c0-b643-a5766c441929","block_type":"box","text":", custodians,","page_number":135,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"db20ffba-ac81-4cba-9d7b-1af06cc37667","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":135,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"edc52a6c-4c0c-4369-b37a-19da1ece4905","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":135,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"07643f73-a162-4acb-94bb-e4842787dabe","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":135,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"f0dc17a8-3bac-4594-9a37-45dce74f4ea9","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":135,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"8a995e60-e550-455f-825b-ce7bb4748e8b","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":135,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"f2189027-455d-42a1-bc1c-e1f206066fa1","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":135,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"afb61b20-7eef-4d0d-a595-47ea7a33e56d","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":135,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"01c6ab1d-4ca5-48ca-9b93-60c0c7f360a7","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":135,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"d0fadf15-fb75-418f-acae-49767aff5f64","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":135,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"035e4278-4c7b-45ea-8556-54edc1c8e7e8","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":135,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"4146a1ca-c362-4133-befc-073c18649b29","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":135,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"2a827e3e-7de6-4c48-861f-8dd7af5c454f","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":135,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"061d25c6-1631-4572-93eb-c23ef44ccb8f","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":135,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"ce254869-d323-4740-8c84-9178b03ba29c","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":135,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"89a279aa-850e-4130-ab8c-84478681d234","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":135,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"2a361e4a-def2-494a-b16f-8de9b02d1d43","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":135,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"1c8da284-33d8-4634-bc51-08ad0ce42af9","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":135,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"b3ba7fd7-9900-4471-967e-5dd56acb9aa5","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":135,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"9c155faf-c0ff-4034-b971-0727c0dcc7e0","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":135,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"1aea3cfb-b256-4345-b92f-83ee1477f06d","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":135,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"c5ed4fbd-6935-412a-81c4-36d1c49e0339","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":135,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"f35872ff-f419-454e-9e79-54388635a134","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":135,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"a1975488-df20-47d4-acb1-aae7b2b6bb9d","block_type":"box","text":"provider.","page_number":135,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"670c0b4a-d1cd-4f61-9997-c4f03c1bc3fe","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":135,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"ba63d72b-88ad-4c9f-84f1-600e4921e9c7","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":135,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"ba794afb-8542-43a2-8910-c3817212b82e","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":135,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"0225a00c-342d-4051-a6eb-354206ce6c29","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":135,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"a8346f01-77ba-414b-9d95-6a20f0bc9e73","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":135,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"82c85cb8-c6b4-436d-b5fe-3e315914bb93","block_type":"box","text":"PURCHASE OF SHARES","page_number":135,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"15cddcfd-8cdb-4d19-b154-c31609ef9249","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":135,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"b5e7031a-2bfe-464b-9334-22d7aa3b62d3","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":135,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"481a8144-417c-464c-a1ba-070fc795ee82","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":135,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"17cad3cf-c642-4484-a534-ee3f4c9ec21f","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":135,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"dd1ae3a0-d6e1-4131-9249-d50a2bc2470a","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":135,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"4023fc94-b400-40f3-8c87-dbc002205f4a","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":135,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"b9e9194d-0b33-4679-8088-8f134a2029ad","block_type":"box","text":"II-97","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5cf91475-954e-4dd7-8683-a0dd268dc6a4","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9311834e-9e21-47ba-a808-6f599d54aed4","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":136,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"c351f98a-6328-48d6-bf03-c9371ec01f01","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":136,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"29c77083-e4b0-4f8c-9703-a9a559de03af","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":136,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"68cbcf20-a1bf-435f-aa32-2c38c3ae5bae","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":136,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"4e3d386d-3839-4f22-8312-37f1f1a8198d","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":136,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"4db370b7-a064-497d-9bf3-90a0ece14c9e","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":136,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"c9c9dc49-4fdc-40f2-83b3-1d292db5dc70","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":136,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"fa7c1a17-017c-4181-ad19-bc3347065de3","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":136,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"b65adb78-4220-4738-b656-732acbc4ac93","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":136,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"758c56b3-147a-46ff-8b86-885c58da3862","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":136,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"cdab78cf-2df9-42f1-b058-e7883a1767f1","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":136,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"ecdbd9f3-e63b-4065-83fd-0bff90e957f2","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":136,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"ec6e82de-dd99-4b29-89a5-653ee356a5ea","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":136,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"a54c05ae-6186-41b5-b2ac-10c294d51a5c","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":136,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"67b663da-4610-4e1b-a8bb-374c7e665712","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":136,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"561ac089-a03b-4eae-ac5e-ff8942e84c50","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":136,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"8046905d-6c59-4532-80ff-c6563899eb83","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":136,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"e230f356-7ac7-4da3-a772-b1a09974a416","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":136,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"46c2e1e0-f297-4724-8a8b-d8904dca7968","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":136,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"1a6fb416-409f-4fdf-9409-e364d6596adc","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":136,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"cb8cf3b7-60f5-4138-afb8-94f5bf2abcc9","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":136,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"57006209-8e19-40db-9e61-2ed0fa0239f8","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":136,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"e94a2722-0711-45ed-a16e-72083f57a115","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":136,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"6fc04dc0-45cf-4441-a68d-e0c6ef113f15","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":136,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"7ffcd384-6f94-4744-98af-6add4594acee","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":136,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"3080965e-0a2b-48a7-816d-155b28d1ae87","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":136,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"6dbef831-3520-44fb-9bdd-6023c0930182","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":136,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"42b9bb43-7e3e-4ffc-996c-218ce7a02c0c","block_type":"box","text":"investment is $25.","page_number":136,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"6b47768d-2a1b-461a-9ba3-9a09e9ad44ba","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":136,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"db6426b3-64b4-4b65-a4d4-4ec1696b5ddb","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":136,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"c9b6ce77-e3eb-4731-ba1a-bda3998ec1dd","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":136,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"e496508f-c3bb-4164-b127-cc67fd5e3e64","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":136,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"0a9ed137-e063-4bf0-81c8-9a4f310f1205","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":136,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"bfcb3dc3-1760-48fc-a775-902727a9426d","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":136,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"7c92c792-ca76-4392-b301-bd3842d58c6b","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":136,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"5f69eb36-0aad-4dad-8add-051f31267437","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":136,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"9d2330dc-b93d-4802-b42a-776c32839344","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":136,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"c3e5644a-1ff6-4c7b-a527-9b56b7b69ae1","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":136,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"3a803b54-777a-4cef-9b3d-cda7631aaff1","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":136,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"4b26b765-97c3-487e-8709-44d7a2338cc2","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":136,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"26c8bd7a-0ea5-4a72-bcfc-dab6b97ca93a","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":136,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"f868f2c0-4d68-4b7e-b664-ecd3a3d80b81","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":136,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"514153c0-99e1-433a-860c-6a4222df0c76","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":136,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"9184d920-5974-4959-9805-4311b5f111a6","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":136,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"a367eba4-46c6-4998-b928-91967376fcfd","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":136,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"8b164ee9-b7e3-4268-be53-fa41b8a3474e","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":136,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"5aeb76ba-036e-494b-9f90-795e311afbc2","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":136,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"cdb79d85-d900-4814-a68d-31c674dc9967","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":136,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"dd207626-10f1-4832-831e-45b9c7ab48dd","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":136,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"c914426a-3133-4560-a508-5904f65ba8b5","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":136,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"37a6b1ba-3c4a-40e5-bcdd-c2891960e086","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":136,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"8fe440cc-4408-4738-b167-5e8582bcceb9","block_type":"box","text":"adviser.","page_number":136,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"328cf564-f7b2-431c-99c2-e065e10a2773","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":136,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"bce01399-c5f5-4c8c-9e6d-ca9730c3be3f","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":136,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"baea9ff4-7cd6-49a1-bd0e-b06f22d0ac4a","block_type":"box","text":"II-98","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b2a51701-1e09-4867-acae-45c7f37f67bf","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"182a3a05-c206-4d02-92ec-0b972b910890","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":137,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"539badc3-21f0-41f6-a252-4d7502067068","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":137,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"9b4545d4-3be0-4e32-8c79-090195dadcf5","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":137,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"aaa53fc4-b9ec-4733-835c-340136ff586b","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":137,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"6494660f-249e-4924-800b-ceab7a1f1be6","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":137,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"e6548613-7825-4990-9070-a6786a8d194a","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":137,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"ab280ec4-b42d-4e45-8082-5470c5ba736d","block_type":"box","text":"also be restricted from making additional investments.","page_number":137,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"18be9b65-1096-4154-bb4b-ee51b3c43582","block_type":"box","text":"In-Kind Purchases","page_number":137,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"c315e7db-fca8-439d-b27c-94189b6938a0","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":137,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"a552660e-98e5-47fb-a2bd-9a31531dbd45","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":137,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"28f27685-27af-40c0-999c-3a5f95d34ddb","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":137,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"d4bb642c-e60d-4953-b514-a65bf23b311b","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":137,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"5e76ab3f-6532-42a5-82df-c2e85f7415cb","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":137,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"b2ccfb70-e213-4853-a3cc-a6bdb3c406da","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":137,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"40d648b2-4498-430e-9fba-92b08da2179b","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":137,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"2b678def-2b6f-4fb0-b397-96817721ecf0","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":137,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"a749d6df-6c4e-4a24-b1cb-fb9ca5c0f794","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":137,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"c1ce39b2-c380-4efa-ab0a-82d5ffbd2dc0","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":137,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"b61796eb-0a8e-4f5b-93fe-17706981dae9","block_type":"box","text":"has settled.","page_number":137,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"aff2432e-6f1e-44b3-99c6-0946b73330ac","block_type":"box","text":"Institutional Shares","page_number":137,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"797c3a82-3c5c-4c9d-af7a-e7c249127507","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":137,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"6fdaafa8-b72a-42ee-86c3-f22c6e235ede","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":137,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"5f24a217-373a-4e09-9b71-4e415d1f328d","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":137,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"345e5824-bc62-4ab2-a70e-2be4343088bf","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":137,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"e017dadf-4a7c-4de5-9a6b-b1a9b3f63db6","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":137,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"34112f54-ba31-47a5-9724-94229c02bd38","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":137,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"02f4dcba-51b4-454f-873f-89e2dceb8393","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":137,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"2e2afd24-e3bc-4016-9b70-3cd7995e7196","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":137,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"1a9ea994-0ae7-4e24-97c1-066b8a1e25e3","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":137,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"103810d1-9ad3-4780-afcb-ef7edaa79c41","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":137,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"68d30501-7cec-4fb1-ac2c-4144b91001fd","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":137,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"fcef7a3c-70dd-41ac-9395-4aa5ca076bd4","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":137,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"887a56e7-e85e-45fb-b946-4472f110043a","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":137,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"ce3553f7-1439-49d1-968f-442a49ec71c6","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":137,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"4803439c-2db6-4716-b352-b16ac719d09a","block_type":"box","text":"these fees and conditions.","page_number":137,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"a6ca7b60-c5c7-4586-891e-a53cf33c6de8","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":137,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"4369ed71-2a26-4779-9623-3d1b7789a36b","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":137,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"efb08cb6-bbef-4a04-89a4-bec25b7e295d","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":137,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"d65f760b-fef0-49c1-9b60-152ca4fa57e3","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":137,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"350510c9-05f9-42cc-bfc6-f8f585b26b77","block_type":"box","text":"incurred by the Fund.","page_number":137,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"760a0f90-94e3-40bd-b521-6999f0b2f59e","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":137,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"a56861bf-057f-4c79-ab78-680153e7ff5b","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":137,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"d8704904-9339-4522-8b21-7c64ecddbf83","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":137,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"188b021e-bb79-46dc-8a76-621889defe0f","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":137,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"235c0767-0c0c-4886-91cb-1fb528b483a4","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":137,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"9f781618-aae2-42eb-9196-c7322d836830","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":137,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"22e458f2-4312-4b92-be5d-5d1f33a258e3","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":137,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"1ae9c675-85cc-480c-a371-03f8d1fbac5e","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":137,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"1679aba6-36a2-49f8-83fe-bddc63489bfe","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":137,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"23eb6a8c-57e8-49da-8de3-c7f11dfc89fd","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":137,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"4afbfd21-4b03-4a56-a434-5be4e4db5cbb","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":137,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"cb1698bd-b886-4500-b36a-b3a21120a9b8","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":137,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"04ad2c7f-4b2c-4be9-8981-7e06427389ed","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":137,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"5fb466ba-600c-4935-99cb-a8b82169bd25","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":137,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"9f32b38a-8758-4541-8a90-e77ecbf45d44","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":137,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"6ce131cc-9676-4567-95c8-8021d6ad0d70","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":137,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"60ac20fb-a96b-4303-a22a-6b545a32bb31","block_type":"box","text":"II-99","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e8790905-b99b-41a0-a400-4e41a51413c0","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4149ea82-115e-4446-83a9-8705e371c7e0","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":138,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"aa29127c-5877-4d95-8c43-b3a4af710801","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":138,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"e0b15a0c-2fee-4342-90e0-101849d4aa03","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":138,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"a2c3cb0a-ad0c-4884-87d7-9a0ac8345127","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":138,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"2165e92a-3b59-46c4-a3db-0aa50f7942b3","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":138,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"2d816702-c21d-482b-87c1-7a672a321343","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":138,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"05ca0f67-e013-406f-b163-c34b17bc8310","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":138,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"7a2675cd-d316-44d0-a775-44d08079f218","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":138,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"bef67e53-ed92-4117-ab6a-a69e016cdbc7","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":138,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"00f8895a-7815-42d1-a6af-f337a1227c58","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":138,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"b0ca70e2-cddc-4d05-bf0d-22610734cb7d","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":138,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"ce8f6d4e-0ecc-4354-8faf-38cffd02bfa7","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":138,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"68abc7fb-305b-469b-acc2-f3e02497aa3d","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":138,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"05061d0b-3052-4af5-a76f-86b49ca92602","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":138,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"566224ff-68b5-42d5-8aa2-fc3867021c9e","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":138,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"8a6c0952-1bf0-48e0-9fd7-818f20e5cacb","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":138,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"73800c1c-abf7-4191-b6ac-aa34055b5561","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":138,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"f91aad18-340d-4995-876f-c3707605c30a","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":138,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"0286f3c2-37f1-4273-a06e-f07aaa13e56c","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":138,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"ff2655a4-6a23-4ed1-a731-efbf25725602","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":138,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"a1759625-37de-4817-902b-5d1fb162b840","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":138,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"0342e99c-8a29-4598-80a9-61287eb14c7e","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":138,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"916bd34c-8390-4ec2-9179-61a1ab6455c4","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":138,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"2b8696af-ec4c-4907-a090-218c1234083c","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":138,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"a79de043-ae90-4ed2-bb24-58740602a062","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":138,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"54cc043c-a9c4-44f8-937a-0d644bd3017c","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":138,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"0cca2a89-4382-4d75-be30-429c743f3eb7","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":138,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"5b31fed5-63ea-4a5b-aac5-2e0a2e937bd4","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":138,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"1a135ae3-0191-4a98-ac9a-c792f4b098b1","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":138,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"c81cd574-1e98-497c-ac5c-02fbf064e02a","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":138,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"159b2baf-7085-4571-a0f0-01a7b49a23e5","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":138,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"b0e8c4c8-d15e-488e-9ee3-a0696bbf7729","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":138,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"19b07771-5409-4361-8b3e-005424420baa","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":138,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"43cc069d-c226-4484-89d3-c792881d7257","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":138,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"fd6a30ca-77d4-4ce2-8e91-5447e6820279","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":138,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"cf14daa3-ff81-4ca9-9864-1e898fa5978d","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":138,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"99fc13ff-c50e-40fd-9bfe-ee2a5a6ac2e5","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":138,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"b5c2a05b-72de-4cd7-8101-834a30e07e8c","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":138,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"08548381-8ffe-483d-8d7c-89986a8e470c","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":138,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"f3781b20-fb87-4f0c-9ffd-b8543766c29f","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":138,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"aa085a82-069a-40d2-b8b9-a930d32091fc","block_type":"box","text":"periods indicated.","page_number":138,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"3d28e217-9715-40f2-a14d-7579fabb6b99","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":138,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"f613d3ae-c5d2-47c2-bd93-8145a0d76e90","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":138,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"9b621b73-f8d6-4f45-ae95-1ed4cd96a7c1","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":138,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"c0f70a7b-f538-476e-9a31-cc5ebc9e224e","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":138,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"10dbab37-da1f-4bd3-866e-64cf0af4bdd3","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":138,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"3d98537e-2f04-484e-b5d4-eeeed545241d","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":138,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"bd866869-46d5-474b-8224-8d14bab9d492","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":138,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"7580ff09-3c7f-482d-8e70-a79a8d064e91","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":138,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"c57e5b69-3764-420b-875b-6e925f399ba8","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":138,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"fcc4d8e2-40de-41b8-a62e-917533b57200","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":138,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"6e7ed8f4-6e02-4349-a1ce-26260aa79214","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":138,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"fdf36752-6f29-44b6-968d-d993cf8c6261","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":138,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"17221eb2-5bb2-45cd-98dc-26ef752edf55","block_type":"box","text":"II-100","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d031b691-256f-428d-8e23-68f253ca6f76","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fdef26ef-de3f-45e9-96ce-0a075ca2a6c5","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":139,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"200bc1b4-5853-4b2f-99c9-f013c049cdf1","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":139,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"18949894-d471-4af2-9855-f5d69ad42cfb","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":139,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"8f3d57bd-b26a-4124-beea-b4f1cf8ce330","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":139,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"44e90ae2-f36f-43ec-b0af-0c1e34f5c299","block_type":"box","text":"Reduced Initial Sales Charges","page_number":139,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"8834b13c-7e39-46c5-9da7-9403981ffaff","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":139,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"8637a9ed-21d6-40ae-9ae6-7f058fbadee6","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":139,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"ca9349d8-14ae-4783-ad34-89a6b2c4925d","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":139,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"00cce2fe-0568-4ecf-91f4-d8fb6a515e54","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":139,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"8099be7f-be44-43d5-99d4-17f287bd728a","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":139,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"417db8ba-575b-4937-99f1-5013646076ff","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":139,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"c70088d1-3c08-43ec-a8ae-f063223a1d56","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":139,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"3885c11e-bdbd-4ed9-b10f-9c5a1bbac5d1","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":139,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"7ee01d96-4430-4e9d-9804-5977820a668b","block_type":"box","text":"Reinvested Dividends.","page_number":139,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"a3af7449-9d02-4f4d-8a82-4e7178d29192","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":139,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"8e71451b-7db6-45e1-8931-b67e9004479d","block_type":"box","text":"reinvestment of dividends.","page_number":139,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"312aee3f-457b-4397-b6e6-ca1aec9cb3c3","block_type":"box","text":"Right of Accumulation.","page_number":139,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"83526ccb-3ec7-4c73-9e44-a8b01b4baa0c","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":139,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"843e4d3b-677f-4edd-9ac7-2798f7e6d279","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":139,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"f1a9eb10-f359-4572-8379-e3ce994d9835","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":139,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"ac5aebff-af38-4de2-b9c6-7e76d043c973","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":139,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"eb37e750-3cd6-4f0c-8d57-a2cf8e1c0a7f","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":139,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"6f03aeef-2b9b-4574-9df1-d26366e3641a","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":139,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"e89731f6-c108-4cf7-a67b-25dbb06df7f5","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":139,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"8ad7d428-a216-4390-b424-0c81633db2cd","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":139,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"81515339-7862-4179-9c8b-bffa16cf18d6","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":139,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"9dfdbf4f-18e4-44bf-a9a5-c9a4218f753e","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":139,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"5d75c935-b566-4580-88f4-3b9d1c6ebc4f","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":139,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"677ebf53-8452-4975-906b-f05ea29deae8","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":139,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"28d34d4e-e7f9-42d3-91dd-775173cd7945","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":139,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"c7b4c887-711b-4162-8340-0511b79a881d","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":139,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"609b252e-88f8-4095-83a8-d8c49ddf0703","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":139,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"d5f927ae-ab62-43cc-8813-ffd2f536c370","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":139,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"e47be380-ac86-4321-8413-fbf93f28b170","block_type":"box","text":"Letter of Intent.","page_number":139,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"8798e178-3655-46ad-99f6-c762b2bcaf99","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":139,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"0474eea8-2fd0-4d71-8899-bfdaf04443bc","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":139,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"bb6c9ead-fe0f-41ab-b182-a9cde535a86a","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":139,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"8feac7ce-aadd-4469-9370-1f7f242bece7","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":139,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"07b91d0a-a607-40e5-afc9-a1f678c5d915","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":139,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"fca0cb37-abba-41ad-aca4-f76462845542","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":139,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"caf2c248-4772-4531-9bfa-7a65e5a5fe83","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":139,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"079312cf-8129-4b2d-ae02-13eaf9cfb587","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":139,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"7f03cdc2-90c5-437d-aaeb-71102804bb28","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":139,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"ee3b3bac-3753-43b6-82f0-ea02e58cd7e7","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":139,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"444fdc97-bb12-479d-9c64-817040b8aac3","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":139,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"4600255f-f915-46c3-8e26-aa98442b9493","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":139,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"db2856a7-c487-486f-9792-3317906a068d","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":139,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"60b9e2b2-90bc-41cb-9489-415eccb5180f","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":139,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"6495d0a5-6210-43d5-885d-9aea54c2da9a","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":139,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"4b9035fd-c852-435a-b4b1-58abe3a809ad","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":139,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"0676efb6-d446-49f3-9a32-b558fb68d352","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":139,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"fdb16d13-b8c7-433f-93c8-85758659ade4","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":139,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"9c8586d9-dc95-481f-8fb1-50c4c1f5f78e","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":139,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"619fd7c9-e1e3-4fe7-a75a-417a60bc48f3","block_type":"box","text":"Placement Fees.","page_number":139,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"8fc08b5f-7a77-4b2a-b4e4-c5aa2aabf998","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":139,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"b290623f-7d24-4ac3-b690-1edec67d95d3","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":139,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"0148b781-52b0-4e49-8946-9d7495fae52e","block_type":"box","text":"II-101","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"adb211dd-f8b5-48c5-96d8-6224f6f51ea0","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c0545a6f-56fa-4c5d-b14f-34979c9f3653","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":140,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"784a3892-0076-4768-b796-b31f747226da","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"44680baa-04c4-40ef-85fb-cca12f2996a8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"dbae0ae2-732d-433b-ad53-f36b71ca56c6","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"8be5931a-e20a-4175-8b26-d72801ff0ceb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"7b27a253-c0c5-4347-a539-04d8f3feaa83","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"26bcb4cf-228a-4341-9156-a470f69675e8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"d3566ecb-1d21-4939-8f0a-57cda9521b3c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":140,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"83610432-dfec-4257-a9c6-578f662e90e3","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":140,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"7f9eec23-e8b6-45f0-a861-76b55079a8ac","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":140,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"0c5ef8a3-40e8-4285-930d-a91881e05e2a","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":140,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"9d0de194-6bfa-499d-9be6-b816ef64e6d2","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"79c2a9e2-320a-4c23-9d8f-0498b486bf63","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"48297ea9-9010-4038-9c13-263560e01fb3","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"9a601ff2-3d17-4875-b4f9-f3cd97af9cb2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"b6ba1b7e-dd70-4ac8-9224-482b576d61c1","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"da93e02f-9fa9-4a58-8f7a-1fef390ab287","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"6b8c7878-f57e-45ed-a512-c199ef134eee","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":140,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"bf2d47bd-64e5-4070-ad22-86a587d20769","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":140,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"cee2bdcd-10fb-44b2-9cb9-d2c7979ae55b","block_type":"box","text":"SM","page_number":140,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"7381be45-fed0-4ce9-9815-3fa62b05e17b","block_type":"box","text":",","page_number":140,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"8030fbf4-d91d-43c5-a253-838ecc18b6c2","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":140,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"b3a72ae0-f564-4932-8f7b-cd6183fdeefc","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":140,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"3f1a2258-4cbd-45d1-8c4f-0260310efe0a","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"1c9e28d8-4cde-4fae-8727-e26ae92a373b","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"337789f6-226a-4157-8ddd-1c7f48f56efc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"bd6dd5ab-21cf-4d96-9cb9-218851c14f8a","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"c3f1b784-2978-46eb-8706-2437dd50c3fe","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"296b86c1-4778-41e6-b7dd-b6b66c462bff","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"94b83e7d-b6a3-4b78-9e25-c3cca8a06e97","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"d67d6ec4-9c72-4337-852d-4a4c995517ed","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":140,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"aa58e5ba-1e45-4b28-9a57-440ae068a8a2","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"942ec35e-b14c-4977-8b8c-e30e9e4c50f4","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"3abebdd6-58eb-4e7c-819e-4b1ce23da38b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"b73f57cb-358b-434f-8e1f-45d9808c6e4c","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"5ecf977b-6595-4186-97f0-04a872bb1427","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"4190321e-a2d6-47b4-969b-0df265ff7c3e","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"bbe05daa-2ee9-49a9-9267-00d562437032","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"ed53572f-77e6-4f8a-ade5-4e25275a9cf7","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":140,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"f60a048f-cba9-4512-a687-9559251525ca","block_type":"box","text":"may be up to the following amounts:","page_number":140,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"59b38480-bec5-4a0a-b70c-8aee192702dd","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"c96f4b3f-f34a-46ca-90d8-e453dd200ff9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"c048208d-412e-4324-8987-4a36dc2d8809","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"560535ab-1496-4e4f-bed1-67f7673a3ba9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"667ba06c-e1a2-499a-b7d4-502d1a099220","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"60516288-59d0-47fb-bd51-b704f6555156","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"87a3f2c2-3fb7-4fba-bc04-07abc710ddef","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":140,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"b9f4be47-87a9-41f0-a23e-7c3793600bb3","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"0d34fec9-7918-43a4-8595-c3951e9d5ebd","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"715efe08-0b75-4140-9a15-fcdf05f06c54","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"798b8c7c-f635-4a01-ac40-49727780fd01","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"c09f7f8c-1796-430a-930e-339d916d28c9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":140,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"3890bb2d-275d-4afc-aef2-2f51f25ec2a3","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"ff65d5dc-b24d-4c6c-aab3-855cbbf1ff4f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":140,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"f48fcca1-0665-4e4a-b0d4-cb2c17800b34","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":140,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"93f41d97-35d8-4aac-b884-e4dc52725de5","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":140,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"6864c11d-80d6-4ae4-8b04-580ebc0f7652","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"ffc16fd7-276d-43da-be28-89fed35ac8cf","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"ad763789-283d-4074-b69b-9af5a671b4ff","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"7df6fec8-5b71-4bef-b29f-a53fb75c22a2","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"549abb85-9a45-4e95-b826-4bb10df24402","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"f8c51741-b795-4688-a164-15fd5449c8bf","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"25e2bb8c-ed18-410a-bba4-3b71da1917df","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"a0f8b5bb-1c36-40ee-933f-8e0c1e9f8660","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"c4414e6c-cad2-4a78-a2c4-4f33a3b7f50d","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":140,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"606c8949-6d45-4f61-aae4-f4aa5a1fe8dd","block_type":"box","text":"$250,000 and above . . . .","page_number":140,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"03d7fde1-0d22-4a44-9b03-8384cefe98d8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"dd7d15ec-ccd3-4b7e-b3dc-362cfc2a883d","block_type":"box","text":"II-102","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"29d8f478-f3aa-4231-97f8-4b8610bd5d34","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"afce22b9-38d1-4a7e-acc9-2044af6ef095","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":141,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"5693e601-541b-4bb5-9dbd-b199a34419bb","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":141,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"8d1d87e5-7fe3-4ef0-b5a9-1f256d97e1c0","block_type":"box","text":"the following amounts:","page_number":141,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"85014655-5e5c-4f11-8b27-781cbe71696c","block_type":"box","text":"$100,000 and above . . . .","page_number":141,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"99039f0c-3437-4ea3-a46d-6cc8c893d22a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"ca3b28bc-387e-4c24-9b64-bbaa80f5b078","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":141,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"3c9da402-8def-4c36-b6bc-d71e858cc2ef","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":141,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"e5bf3d94-0400-4686-be86-16e6d7963b8f","block_type":"box","text":"$250,000 and above . . . .","page_number":141,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"1ecd5659-7582-49ed-9a7d-30b4f5850ee5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"a7debfd8-780f-4b67-86a3-2e97fa28ab06","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":141,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"80580b6e-758e-4bb0-9073-f3881a349eae","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":141,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"6f47ba6b-cf60-4894-bd59-e12009666037","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":141,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"dfe8376b-db2e-4b5f-8cda-5d68b99c5ef5","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":141,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"686f29c9-c455-4862-a69b-b34c6eaa866e","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":141,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"655e8e53-8b8f-453a-9674-5a91c01c9b28","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"8519bb49-979b-48ba-9cdd-af8177479eed","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":141,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"27245ef4-7343-4a5c-87f2-be56ec7dbf86","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"796f17ea-361e-40c0-8251-fdad9dbe8219","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":141,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"0f5dc07a-9b11-4ade-b59a-78f238af075d","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"723132cb-8b13-499c-a062-c6a2361f986e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"6670fdaf-83f5-4a86-8641-75e3a3eee2c7","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":141,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"6f35bb8f-cf22-43fc-803f-acced8a0d103","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":141,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"6a2a34f7-fd64-4214-a91c-f5c8a9e32766","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":141,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"cb121f41-36b5-4f2a-8af5-50a77ee80004","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":141,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"a363b472-f4ca-4f91-b514-c6efa151f3a1","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"91245a2a-b601-4807-b97e-af83447fe78a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":141,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"0031391c-26fa-447b-a7f8-2221701132bc","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"b86cdd88-aa65-4f3b-84ff-48ae9e5ba46b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":141,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"eeb3cb3b-2f55-4889-9b2a-8d5ae90a1cb2","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"a8f71a17-20d5-4641-958f-06190aa011d7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"967784fe-9004-4d6f-a06f-a7317b13e32e","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":141,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"9e886c44-db82-4de4-a3a2-6016d27be4bb","block_type":"box","text":"®","page_number":141,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"de9838b1-eb5a-4bfe-9ad2-e46ed39619cd","block_type":"box","text":"Index 2030 Fund, BlackRock 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amounts:","page_number":141,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"f66d5da0-e772-4d38-bd9d-633be1f969c2","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":141,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"209df2a6-dfad-4cc5-a99e-2852cae91b0d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":141,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"bdaf2d66-aedb-47cb-8449-87697a9fe1f4","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":141,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"d3454b4c-d702-456a-bebc-09caa5247db4","block_type":"box","text":"SM","page_number":141,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"9bef1865-248f-4a2e-9bef-1799bb4b2285","block_type":"box","text":", the 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Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":141,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"7f6ca067-8c55-4893-ac44-90f983660d17","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":141,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"9d2cb350-a541-4dea-abfe-e03a4f0da68f","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":141,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"c5e26bd2-af32-4bb5-a461-75caab86d6aa","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":141,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"98718346-d165-4fdd-8cdb-bd1ca20adaf8","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":141,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"7270c4ed-18c7-4e88-9277-da9d96506a4a","block_type":"box","text":"$1 million).","page_number":141,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"adfe706d-7696-49e2-b9b6-f726b8a34e68","block_type":"box","text":"Other.","page_number":141,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"371f54ae-ef5d-400e-930d-a6794e686de9","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":141,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"1585557d-f54e-4f7f-b50e-50c883a333f9","block_type":"box","text":"(a) cer tain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":141,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"a0527aca-dc06-4349-a42c-88345c292107","block_type":"box","text":"not include SEP IRAs, SIMPLE 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by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":141,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"cc8f48ca-906d-4836-9ca7-04bbf4a0f236","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":141,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"f25dd9e9-ceba-4342-9768-b58711d31a98","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust depar tments exercising","page_number":141,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"29fd9f85-0e1d-4bb0-823d-5006310a3ad2","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":141,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"010176fc-060e-4a0b-8a15-71fd8558eff2","block_type":"box","text":"II-103","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1d76d9c6-8e71-44fa-9ef0-fbbd02958cc0","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9192c614-9478-4dbc-9c7a-56272fc71669","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":142,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"858314f0-e8d9-431e-89d2-6d014a7142c2","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":142,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"b27b3a78-d34e-45d4-b951-478f607772ab","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":142,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"5d93adfe-edbe-4e2c-b09d-bf6a3b9a2c6f","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":142,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"07609611-29de-49c6-be47-74fedd2b2271","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":142,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"8c5d07fb-dc4f-411e-8942-acb56f721f90","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":142,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"1fc8c247-06f5-4fc7-86a1-28488b190d3d","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":142,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"d52431fb-7de8-4442-8adb-2ee198f94080","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":142,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"5c67e13a-9b1e-4f0e-9e2b-18f6a2cbc33f","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":142,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"e9e885f8-1b1c-4391-b89a-d2a617c5123e","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":142,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"a1fe36d6-82cd-4161-9872-850417dd897b","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":142,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"171e9984-c407-46f4-8fe2-a6fa2e1140d7","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":142,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"4b30e8fb-d2b6-411d-808c-c805fb2e30d4","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":142,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"a34f2d3e-8cee-4eca-97db-1d8582bdedf1","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":142,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"6a2363c8-8a80-4bd9-bbdc-27e4884fe20f","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":142,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"609a66f4-1ac4-4d98-b60b-054bb92d4ba5","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":142,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"1101152e-84ac-4323-88a9-72d3e27e47c8","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":142,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"f302badd-4e5e-40a9-b7ef-f71df7d9693f","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":142,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"4d4e7d5d-79cf-481b-ba37-1428e87f13b0","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":142,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"8594d908-3291-4525-b52e-90c012146e5f","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":142,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"404905f3-8442-4517-a3e3-dc6edd42b589","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":142,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"f7642a7b-ac86-477e-8944-e694e6b96e9d","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":142,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"709f02a8-5b5d-4313-bad8-22abd6876224","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":142,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"aa6bfffe-fc27-48f1-b040-83261924d77b","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":142,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"8b8061b8-5e3b-49eb-8c47-ec9034269807","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":142,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"8f022856-e227-48a2-8b6e-4cef1e87edd4","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":142,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"68671d03-d71a-4f61-80df-e450bd9bb314","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":142,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"8da457c3-01da-40a5-ab17-1d1e03c8e9bb","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":142,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"aa7d522a-757c-456c-a920-640fb1adf376","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":142,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"7a3bfd38-0626-423d-af17-1eb991b8dea0","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":142,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"e9a740e5-0df9-49df-9e32-7a5079cfacbd","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":142,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"59122dfd-36da-4cfb-807b-c1fba7454306","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":142,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"f0c8c000-22c0-46a1-9a96-2a593b47d71b","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":142,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"61e89043-8d4a-4dcd-a3b6-5b8330d05b42","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":142,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"969117cd-1903-4d90-a0ab-ae2a50d284f1","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":142,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"6af64423-87f3-42c6-a887-40ec7929d041","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":142,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"4327a7fc-c9d0-40c6-b602-7ffd65112344","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":142,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"1e5c21bf-07d1-4736-9b9f-d4052eeed4a3","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":142,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"2101382f-4f43-486a-ac41-2a42516067d4","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":142,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"405a0be5-07b6-46f6-a988-89805b4c59b1","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":142,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"0ef6df30-9bfa-436b-90bd-29351a4e662e","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":142,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"9037c06a-8b73-43e9-8ae5-ca7df3336fdf","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":142,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"9af2b035-3bf3-40b7-a24f-8a59c0c90055","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":142,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"ad1d3557-33c3-4266-8e2c-30582c194716","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":142,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"8a428357-e90b-4277-b30b-064eaf9e8cac","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":142,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"ec01c424-f1a5-4d62-8c55-8f0254d85413","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":142,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"e1dc090d-e442-4803-89ef-919017787ad4","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":142,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"01a53c62-ad9c-403d-9947-c4843dc12ea4","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":142,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"c623e0be-02eb-4149-8c3c-45eda3d9c96f","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":142,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"17e79ac5-6f8b-44fc-a422-2413d4b0a49a","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":142,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"2f205916-e264-4b35-87e5-b99c0fc80b2d","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":142,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"667a0fd4-9ab2-477b-b408-3a60780478a5","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":142,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"bb5f3063-8b96-464f-b8fa-66fb8e2f0313","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":142,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"b1d570f5-8047-4aa0-bf36-0076c99d9444","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":142,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"183b5a84-2644-40e5-a067-deb92bbfe869","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":142,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"dc382700-94ea-4ed9-9aea-e87972553574","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":142,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"348bc8fa-714d-4a7b-bf93-92815cdf8b64","block_type":"box","text":"II-104","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cb529ae6-56c2-4b8e-b48a-61577e7b6634","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5570954f-07b1-4070-afa4-13d1b63cbde7","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":143,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"fa56fbab-4909-4ef7-b09d-a6e24860d3ab","block_type":"box","text":"the absolute discretion of a Fund.","page_number":143,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"545bc6ac-c70a-453c-964d-49dfd6446c21","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":143,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"25c46c3b-efa6-4589-b5e4-54854a7869c0","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":143,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"75cfe0b1-e70c-4daa-a896-f9db1830fe2d","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":143,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"e2d4275e-3e1b-4e4e-94a4-88ccdee182ca","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":143,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"c782f664-0750-476a-a17d-7c7ae88483ed","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":143,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"4a715afd-9018-48de-93f4-7f57829b7c0b","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":143,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"7eab0215-830b-406a-b410-166374f28b19","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":143,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"61036a8e-1d0e-4541-ba0c-a437aea259c9","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":143,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"a7afee1a-335b-498b-82db-30d2a0a951e8","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":143,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"311f5801-727e-4672-8731-3b616eaf7b34","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":143,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"9f597180-8e6e-4e6a-b52c-e421a737a35c","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":143,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"7733e23d-227a-400f-bf48-d5b0a4faf081","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":143,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"31bd92ba-834a-467d-a24b-95f5914c373f","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":143,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"be923916-a1cb-45b4-8fed-258ae5585c07","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":143,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"30065a09-8b35-41f7-a850-792d6736610b","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":143,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"ad61cff7-fa4f-42c8-8881-5fe38a93b207","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":143,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"15001847-73b4-426e-beec-7124f5266e1e","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":143,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"74b9ff0b-0b55-403b-bdaf-30d7800a9e49","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":143,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"4648cdae-ad56-4682-b993-f587c05ad218","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":143,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"06fc9e19-2017-489c-bed7-f08918408397","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":143,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"61e7ef5e-a25c-4800-8a3d-214c9ab591ff","block_type":"box","text":"public or private investment company.","page_number":143,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"1796acf2-7213-40e0-aeef-a4acedba1957","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":143,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"9dbf6677-8195-4bc9-b701-bff58095851d","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":143,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"07fe5219-08e6-45ec-a3ee-da392566f165","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":143,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"61e270d4-6457-4cf6-bf42-fbdc77ea2776","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":143,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"ebd4f539-a71d-4fc2-b827-8960ac7cf92c","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":143,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"3f2c9f8b-62be-4c31-9a9d-1c547425488c","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":143,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"a0e775cd-9ee3-49df-9aad-e8cee5aa83aa","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":143,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"474f1811-458b-4f37-bf57-38997701a2dc","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":143,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"53e51dcc-674c-4e42-8cf3-911a4e2bd86a","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":143,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"29f9cc78-7b82-4475-b273-025b91fee5e5","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":143,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"5fd16368-9b59-40f1-8acc-7ee47a2c214b","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":143,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"af15bf76-d8aa-4b4b-b250-09fc736c1891","block_type":"box","text":"intermediary associated with the account.","page_number":143,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"be02fdd4-a1e3-424c-ae70-b839c02f4998","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":143,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"3dffbdeb-477f-41d8-becc-195809a45b91","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":143,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"ff615b07-98a4-4e5f-b5f7-30bd7a89824d","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":143,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"601e2146-9647-49b7-97f1-871fecf45d52","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":143,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"cd4ab79f-cb79-4dd3-acc1-77ad1f26942b","block_type":"box","text":"CDSC shares.","page_number":143,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"deaaf276-4510-4c58-8c79-509edca32397","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":143,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"063ea005-3208-4fc6-80f2-bcae1c34597a","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":143,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"be3b5515-4db5-4cab-aff6-26337de4bafd","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":143,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"1bc83a50-4983-4700-ab32-35be619db45e","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":143,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"9258598c-cd2b-4e10-8faa-b0465cb32826","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":143,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"b647cbfe-ee4b-491a-a234-d05f00dcbf73","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":143,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"6e5945ab-b7b2-4c07-abf5-a7673b32e14f","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":143,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"7b3fae91-ab67-47de-971f-2f9f5905999b","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":143,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"564c8c78-7bc0-4e8e-9048-debfb37d83dc","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":143,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"5b02b35b-6f31-4b70-b10b-ac6d63fba057","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":143,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"8c3d852c-3a5f-4895-9e7d-93dad756eb42","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":143,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"dc84fd59-2d97-4493-b6e8-36996e0ac3ec","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":143,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"f431254e-7296-4031-8b63-30678ecee253","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":143,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"8ff2e073-7c85-4117-880d-e940ea580192","block_type":"box","text":"II-105","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"aa91703c-4034-4f7d-9c16-dbedcb4decc4","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"57710120-eded-46d6-b3bd-8207aa97642c","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":144,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"2eab4baa-5d54-46b2-8679-271ae62fdfb5","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":144,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"03830a17-fd87-484e-b141-579172151566","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":144,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"d917023d-dee2-48a4-9ee0-46a901ef5c51","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":144,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"ab5896ff-a63e-40f9-82de-0c16da9fdfa0","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":144,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"90d65642-3242-4bc0-9dcd-dbcb51a5cdfb","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":144,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"1e1725d5-4ff1-4c70-86f0-4cd906341d56","block_type":"box","text":"Investor A Shares.","page_number":144,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"b6fcb0a9-6249-4fdb-9841-de673f09497c","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":144,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"cc9c48f9-3fc8-4fce-9887-11b3a0da10bb","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":144,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"9a6cb683-638f-460f-b749-429394948d64","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":144,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"da69c0bc-a528-4be4-a6c6-a7347a4d4e45","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":144,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"79f4eae6-81f1-4d3d-964d-241a4e2ddfb8","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":144,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"a721ec22-c6d9-4783-a3af-cba2e74f0c11","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":144,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"7617820c-8c7e-4943-94ec-570be8a61b78","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":144,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"a578283d-87fb-46a3-967e-76bc324d8361","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":144,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"2ba64cbc-3460-413e-a7c3-786d04e66991","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":144,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"4cf83b71-1124-4715-9e2e-f9e0ff8d710a","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":144,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"56c32a9f-68a1-4815-9eea-92558b6c8b1b","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":144,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"0d0d55ff-63cb-4282-bc4c-4ca0fe12b163","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":144,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"417d3fcd-8fdc-4479-948c-10ef1138a4cf","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":144,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"8e9795bb-3129-4a35-aec1-1a7d5c73b762","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":144,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"9448363f-9516-4da9-b8fa-68c658722f81","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":144,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"b7eeb4c7-7b0d-4309-8f7f-2182958cb61b","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":144,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"06120793-f4aa-4fc5-9fe5-1f6806b59b82","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":144,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"a323d3ce-c719-43cf-b69c-e061fadb3fbf","block_type":"box","text":"“Investor C Conversions”).","page_number":144,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"094bf477-a4ff-482b-a63b-c76246c92c7e","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":144,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"67a8b579-c5ca-4bab-b568-923071e8d421","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":144,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"81ada42e-6e6e-4749-bb3e-99482fd4d922","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":144,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"b71cf7de-2af8-4e2d-86bc-29d6d61ebe70","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":144,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"5be80816-6f33-47e3-960a-b78e08d870a7","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":144,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"4c3ba997-7470-4999-afe8-b47a67660791","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":144,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"85b861ef-e4ba-4a47-9e0d-d03953bea799","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":144,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"bcfc0de7-c121-4744-a618-a5ae8ace0eab","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":144,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"818b8ef1-8391-4f16-86ac-2603712b0536","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":144,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"804532e7-ef7d-4e25-ba8a-e7c22ee8f402","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":144,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"85cf7fd4-719d-4736-8e46-f64774e936a9","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":144,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"26956fb5-053e-46a8-83a4-02db327d8faf","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":144,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"0ad60d52-eb39-4122-ba44-24c6a1ec04f3","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":144,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"76b36088-43e1-4d5b-9add-ea3225f9a9b0","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":144,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"88c72a2d-3af7-4f70-b99e-5e9dd7c55445","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":144,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"a11f77e4-b2d2-47ed-85ee-f62b9bbbeb70","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":144,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"85c9ae0a-b0cd-44b3-965c-626850c2b754","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":144,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"c9bc0a21-ba69-45b0-863a-901ded311e53","block_type":"box","text":"redemption.","page_number":144,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"f54557d8-d903-47cc-b076-4d658c30ad46","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":144,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"cdefd97d-363a-40ba-b348-4b76052148af","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":144,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"67af0a12-7f7b-4ca3-ba0a-d7dd6986a62d","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":144,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"dc8b3596-7922-4ff0-bb95-77ac2f3d572e","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":144,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"f3e27e38-1983-4b9d-bb63-ec11aa7c6270","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":144,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"b6b55d3d-4889-4a11-88dc-b1484e2aa327","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":144,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"34474afd-9cc4-4644-85aa-8e2688b8e7bb","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":144,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"fe6edbad-36c9-4caa-a3a6-300fa244fad6","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":144,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"861e4375-fd61-4b61-b05e-6f78f911e9a1","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":144,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"4c248780-aab7-483f-85a5-7849b3accc1e","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":144,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"455f66b7-2971-47de-8b51-89085a2e310d","block_type":"box","text":"II-106","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"29a916a1-2f91-46f8-98ce-fcdf2073460b","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ba159250-53ac-4ad6-a12a-13102f308d85","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":145,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"364c53b1-70c4-49a6-819b-73b62543b3c4","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":145,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"32c55d4c-5de3-449a-8700-b97e8d9c4cdd","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":145,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"387f45a6-7521-4d11-b586-2f8447eff55d","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":145,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"91abf60d-0f84-4f25-8367-cda6f84fcce1","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":145,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"59b9e0f6-eabf-4bae-9b59-6112c51fa022","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":145,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"c1226433-6043-4f21-beee-d40412d1a83e","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":145,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"3f43666f-4d85-401b-9f46-cc5a9f522712","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":145,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"778b0531-799f-4b3e-9ecd-bb5fa24e2bce","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":145,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"c55cb062-4226-427e-8e8e-f3f47de9346e","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":145,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"b8fef4f1-f759-46d8-8ced-f1169a1792ef","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":145,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"3c6e750c-0ea2-439c-9b2b-f56aada57735","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":145,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"26f22d87-2fdf-40cb-937c-5d95368ebb4d","block_type":"box","text":"Class R Shares","page_number":145,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"57d1c945-a6e9-448f-b799-acf250c4b763","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":145,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"b53d80f4-c3b5-492d-a588-07de8f8c48f4","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":145,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"34d45ee8-049a-4b7f-9652-171297806d5c","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":145,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"cd34f27b-6bf1-416f-af5d-b482be1493dd","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":145,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"2aedd86a-8660-4f5c-9ae3-87eed81602e8","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":145,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"7dce60a0-56c7-40d5-814d-a090064f4689","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":145,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"038b46d5-3741-4bc8-99fd-ae0e3e353bf5","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":145,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"ea498152-7895-40ff-a66b-4ff6c6da914e","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":145,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"56f8454c-e7eb-4d08-8933-852fbfa22a72","block_type":"box","text":"Class K Shares","page_number":145,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"c2a1e927-e0d7-481b-9482-c4196f2fa74c","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":145,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"d090d2ee-5f8b-4048-9394-d90d59f32b7c","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":145,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"6359ce64-2818-4d94-bb2e-1b263ffad87d","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":145,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"f1436b7f-75c5-4655-be98-b67553c3e99b","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":145,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"12c2017a-5497-4512-8884-6049d38bf01f","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":145,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"3b6c0aec-748e-4ad8-9ebf-60752df2d4a2","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":145,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"497b9f3e-632c-48f7-b20c-52687ff2dd64","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":145,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"ca5ee04d-9f3e-4eb7-9ac7-72d9ca86ecd5","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":145,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"aa1cd322-39c1-41d6-89a2-5d18ba5863d2","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":145,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"c6288f0a-fd6a-47b3-a847-ded1dfaaa4a5","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":145,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"d7cb554e-38ec-4914-a098-1d824fd265eb","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":145,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"78a362fc-7f92-4984-8c50-75b38c9e86d8","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":145,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"4ad93fda-55b1-48ed-a6e6-0d169c6d1235","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":145,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"fa6068dd-64ff-4d84-b0a3-8761a7dc04a3","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":145,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"20ce4d1f-7e78-4b83-9eba-a8b90563ca71","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":145,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"776828c4-c1c5-40af-87a9-ec30e5888262","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":145,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"6c3c41f3-ff36-44e1-ae2c-5bba6dc8dd90","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":145,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"bc48a33c-fb53-4ce3-a154-e0431e41e985","block_type":"box","text":"distribution and marketing agreement.","page_number":145,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"4bde2a64-994c-4a6d-bcbf-ae7aee3cd07f","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":145,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"7f200789-ecab-4571-a165-2aaec1f76626","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":145,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"d547e1a0-4833-4038-a7b0-66277aba3f23","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":145,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"88c22247-7634-4ef7-a0e4-be2aaf0dca71","block_type":"box","text":"Class G Shares","page_number":145,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"00ebc95d-bd3f-43f3-89a9-ac1353dcc8d0","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":145,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"223f1176-547f-4fb9-90af-55feb8bc564a","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":145,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"1676ca66-977e-4dfb-a6a8-0224b01b1bbe","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":145,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"baef94cb-e3da-4f57-b3dd-3d4fef1166c1","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":145,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"d8c7dd28-9670-4695-b9be-b35939ec5c8f","block_type":"box","text":"eligibility requirements.","page_number":145,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"aaaddb6a-ac8f-4795-942f-1a8b6d66dbb7","block_type":"box","text":"II-107","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2b762a5b-df89-4032-93a2-48d1f1a7a21d","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bd2f02d3-d44c-4b88-9bea-98bf778d1ec7","block_type":"box","text":"Service Shares","page_number":146,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"6d4e8380-7d8f-4a64-a231-9b73e78224b9","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":146,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"830f02d7-c782-4c94-a049-3707123adc63","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":146,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"f112df5b-07aa-49d4-a4e4-e2ad71990d49","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":146,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"3980e37e-a4eb-4fca-9c4a-02d302b48496","block_type":"box","text":"®","page_number":146,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"a39020ae-567a-4c16-a5b4-b7cd9b27c549","block_type":"box","text":"Fund in 1996; and","page_number":146,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"38c4955b-566f-4f5c-ac46-891e4e0fdd4c","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":146,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"93bccde7-f351-4e4b-abc3-888803230b2b","block_type":"box","text":"SM","page_number":146,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"e5973d1c-7ad2-4eb9-bc60-27c41f218faf","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":146,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"8f12ab3c-b388-4242-96cb-05554e41241e","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":146,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"46a18a7a-683d-44c7-a50b-e4f6bc7b09fa","block_type":"box","text":"BlackRock Shares","page_number":146,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"9a722f1a-07ac-4f46-a92d-d80f213e4d68","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":146,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"d847bcc2-391c-4dae-8019-62141ec1a63d","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":146,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"b97d79ba-c9a1-41b5-959f-4c8c8c31b9c5","block_type":"box","text":"fee-based programs.","page_number":146,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"1bae56a8-5129-4e56-bf16-be03742b06ef","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":146,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"13b9a11f-1b0a-49f6-b96d-0ecc037d23cc","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":146,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"de40c006-b332-4e40-9285-aa1027f87151","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":146,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"09ab3e6d-ab1a-4f22-bfb8-44d4d8256a8f","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":146,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"001d3bb0-6eb7-4079-ae6f-c8cb62fb6dfc","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":146,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"2b6ad311-1319-4c3f-9c0c-1c2722eb8439","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":146,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"eade3e2e-84dc-402b-82c5-466dd4ce1193","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":146,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"ef13b478-e991-4fe1-a7a5-27eed2d18ba8","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":146,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"944750bf-9c6f-44a6-8388-46a974457622","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":146,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"a60945f8-ec99-47ce-9cdd-208233af321b","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":146,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"ada57291-4778-41a3-b1c5-b9afe72e9208","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":146,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"b3cd2a41-83f4-4f86-905c-06ebfb831bd8","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":146,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"cc7077f2-b5de-4d91-bca2-6ffd29901d89","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":146,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"43cb6e53-c72d-4479-ba7b-db0ef3e66a58","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":146,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"7467bde6-930c-4bf7-97de-7ecab924d23f","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":146,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"d4cc78b8-c3e5-4d16-9bdb-77487fd47fb6","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":146,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"23c7afe4-784f-45d3-8ad3-164642d89687","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":146,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"7fb3dab4-01f8-4223-8ea9-868f4f0e2259","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":146,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"36bd1d7b-1372-401e-ba09-3238c75c72ef","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":146,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"ce1a72dd-718b-4953-8847-f4180467d33d","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":146,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"c3fdfacb-231d-437c-a4b4-28121ecbb944","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":146,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"f8e3a391-5fc6-4482-ad49-491e96cdf258","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":146,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"54901310-09f0-4d6e-b269-cabbb40c2731","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":146,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"035b8d4e-f28f-45cf-9f3a-f44950a1238a","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":146,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"074bc485-514c-4c63-afc9-b0d0e4b76f07","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":146,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"6acbcd39-f7f1-4869-b8e3-b29743e4d04e","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":146,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"c14b1203-f5a3-4404-8b1b-6875bd80784a","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":146,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"2fa3a9ad-3aa0-4f1f-a389-094097d0ec55","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":146,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"a9b839c2-fc61-4aaa-aad5-4a158def8582","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":146,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"d709ec0a-4f63-4758-a72d-573a7316c97d","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":146,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"59ba41de-c206-46dc-828e-bbb4f5bdb848","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":146,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"8e5aa50c-11c1-48a6-85b7-ad4b706dba23","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":146,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"6a33f65b-c59d-4fad-9df8-f2afc31c5ffe","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":146,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"81202287-1fe7-47b0-8b5b-91f4adb9ebaa","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":146,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"b4b996a2-50d3-427b-9d12-c03440fc22b3","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":146,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"cf1d1373-28b5-4dd4-89be-d68b474ca5cd","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":146,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"f27e4d48-0e70-4858-9a72-c448b7fd20c1","block_type":"box","text":"compensation for selling different classes of shares.","page_number":146,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"c87d42f3-dbcd-447b-aeda-30fb428d10dd","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":146,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"157b3243-5331-4921-81bf-c55316d20440","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":146,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"207bdf85-47ef-4322-898b-e60531807210","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":146,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"6edfc725-1b93-4956-89ae-ca00a7536fd4","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":146,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"33862e50-5ffd-49c8-b8a0-3c0f20d7d909","block_type":"box","text":"II-108","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"db6548f1-af97-4370-bc73-37a901c33b37","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"49e723a0-03fe-41be-ad76-61eb0d069db1","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":147,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"bffc2fef-68a2-4fd9-9b7e-43a909de3e2c","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":147,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"0b2428d1-fe6c-4a3a-9b70-0734483d0b61","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":147,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"19feb6cb-326d-4857-9538-4c30c8271ea6","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":147,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"dc58abc3-2301-4799-890c-4c8533afeec2","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":147,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"4100ef2d-5e1d-4540-870f-aeb0d34eca22","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":147,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"0f2b0826-c7c0-410e-b752-b85e8f5e0c15","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":147,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"2df63d93-449d-48e6-a91c-9f730f9ef25e","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":147,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"3ce86176-1c65-4db5-bc50-d9d652e47f15","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":147,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"c1debed7-fd3b-4f38-b593-f3d345ba7bdb","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":147,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"eb744e73-8b83-4b6d-8bec-b53e73f80dfa","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":147,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"149ae5ea-5b48-48d4-a945-3886ad4fc94a","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":147,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"3db279af-2d70-4bc7-8ce5-59edc1dda070","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":147,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"9c1786ab-3908-4aed-a325-b39a4f5c69bd","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":147,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"299ef4ec-ff30-4fdf-80c0-9fccb7dda044","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":147,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"9b40fcac-1328-4050-bcf8-9c3fca062908","block_type":"box","text":"easily accessible place.","page_number":147,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"474b7e82-66a5-409d-b9f9-f06952860404","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":147,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"66c30fa1-4e03-4546-867c-1f94563e0a1c","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":147,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"2665ea52-4929-4485-b4fb-48b696981621","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":147,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"d1c72a4f-e0bc-4097-b215-985441260aa5","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":147,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"c545cdd1-5466-45a1-8f95-1d962e6df8fa","block_type":"box","text":"fiscal year.","page_number":147,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"8afc03aa-461d-4c72-93f0-96dc312ef7e6","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":147,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"802cb253-e20f-42b7-b77a-01b0dac85a3f","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":147,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"6510f75d-a799-408f-accb-d8d1ce1ae544","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":147,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"2a96cdf1-24cf-45af-bf92-7e41955dc16d","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":147,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"9cc68bfb-a108-44e3-af28-c73f367e89c7","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":147,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"717ea607-f94c-425a-9951-6fd4f3ef0684","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":147,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"529441dc-6595-4c9d-954a-3a2da4068560","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":147,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"67056fcd-9d5c-46ac-845e-13db00d233c3","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":147,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"102d1b4a-f50e-45da-877a-1e0efbfdfdf8","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":147,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"6a399a1c-dd06-41ae-b5bf-48302324ccd0","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":147,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"a9ad498a-7ea8-4052-a66f-4919fcaec6c7","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":147,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"7df1d953-3311-4075-8546-589963c4d85a","block_type":"box","text":"and Class R Shares of your Fund.","page_number":147,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"807b7bd6-3f9e-4e61-b044-a858ea73083b","block_type":"box","text":"Other Payments by the Fund","page_number":147,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"acadeb54-eadd-474d-8aa6-7cc7a97dfefd","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":147,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"ac703148-8e63-4f8e-b77f-2a7cadc5f23f","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":147,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"0c95f827-9526-4eea-b883-18d06a92953a","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":147,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"4a955131-8241-4f01-ba14-09b1a8df0271","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":147,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"285c596d-db83-41c1-972a-be16e7b85116","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":147,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"49da0769-6d99-475f-be87-c21e3b365995","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":147,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"3a8303e6-07ad-4488-9777-e8b725c39473","block_type":"box","text":"of these payments may be substantial.","page_number":147,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"ce4375c8-bffd-4102-bfc9-abfabce98058","block_type":"box","text":"Additional Payments by BlackRock","page_number":147,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"9945e5b3-32dc-439e-bbca-047d992d0cd9","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":147,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"7f81b5bf-7668-49b5-9d08-de29ebc4ec9f","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":147,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"9fbcc223-3efe-4ee2-b428-0db7d1d16063","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":147,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"e2861414-0dfe-4fa6-85ea-74469291ec3b","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":147,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"dfbc436d-c978-4f0f-afc6-9feffd584824","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":147,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"1cc6c049-4fe8-415c-bdb6-ece68f1301e5","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":147,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"1a03d603-6017-4a46-8a06-8668d86f10f1","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":147,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"f579ea1b-5ce1-4e03-bb39-66e11d965f7a","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":147,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"6f2917f6-6428-4ad0-8259-9dad8e88832e","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":147,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"e69f7416-7dd5-4872-b0bb-40335f38af80","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":147,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"c28f4a82-595e-405c-8673-b0c8333d7bbb","block_type":"box","text":"II-109","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"916e1afd-01fc-4e77-a261-cde4fba8d8f7","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6caa7bc0-7a2c-47de-aab7-031e626e691a","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":148,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"cd11f60d-2f75-4cc5-9eb1-00d7e88f74b4","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":148,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"1ca34fcf-d904-4b14-add8-d2479f47ceda","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":148,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"65893bcc-6235-4ab2-9245-9e4a403ebd06","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":148,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"d7aa8a84-2cad-4b6b-847d-4dcd289b22f4","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":148,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"87e501c4-0b54-4be8-a0ba-b6067707dc0a","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":148,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"6b553312-03ee-4a22-81f4-0732b619e8a0","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":148,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"05cc8112-dc10-4a99-97d9-86f36e7e2351","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":148,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"7b11afae-decd-4120-9dd9-fd944729ade5","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":148,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"aa9644e4-a420-4d0d-a4e2-850e2961becc","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":148,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"85b51984-4e08-4ad3-9b65-7352b23dc6b2","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":148,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"88de9d04-dcd4-47d3-a6ed-71929c330a0e","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":148,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"ff2c8d20-b4b9-4684-a52c-3e5ee30dc85d","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":148,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"0fc78a7e-9d19-4aa1-8d2c-fbe0e32005da","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":148,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"58f133d5-30d5-4a8d-ad6b-1fe55b6fcee0","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":148,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"d7142950-b2b7-41db-895e-83e6bc624fc3","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":148,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"e089e0bf-1ffa-4294-8fc1-eb2d35741927","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":148,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"d5dfe165-1e60-49d9-9f9d-68ecebae79ec","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":148,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"fec6d119-86b7-40a3-8079-98c14e22b36c","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":148,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"925dc716-0aab-4858-8875-4d79d763d89a","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":148,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"bdd29072-8082-45e1-9057-1c49ac3d17fe","block_type":"box","text":"Funds.","page_number":148,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"1b8e5b99-aae7-49a4-9445-06c380864f86","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":148,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"a5f98080-d9f6-4076-8539-b6d0786ac63c","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. These","page_number":148,"box":{"x":101,"y":415,"width":740,"height":11}},{"id":"92936bb9-8684-4530-a36c-3a98638bebfc","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":148,"box":{"x":70,"y":430,"width":764,"height":11}},{"id":"4792e9a9-3211-43fb-bf72-dab4659a8dde","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":148,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"74586e3f-9381-4391-8332-d92fc87d9733","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":148,"box":{"x":69,"y":460,"width":742,"height":12}},{"id":"f7d8a29e-648b-4466-a5a8-64438d4efae4","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":148,"box":{"x":69,"y":475,"width":820,"height":12}},{"id":"826d7d45-06d3-465b-983f-8b88fdadaa57","block_type":"box","text":"the Fund on the Service Organization’s platform(s); “listing” fees for the placing of the Fund on a dealer’s list (which","page_number":148,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"4969f886-2808-4def-b3a2-74567bd0ce1d","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in cer tain sales","page_number":148,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"accd9e23-d82f-4422-8761-dac087965c23","block_type":"box","text":"programs from time to time; fees for providing assistance in promoting the sale of the Fund’s shares (which may","page_number":148,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"70ef7d3b-908d-450b-81a7-38ec1edad18f","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":148,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"75270cfa-dedf-42bd-922c-576cbd998dc7","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":148,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"0c15f84e-9ffe-4e16-9ed0-ca4af25e9727","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure suppor t. These payments","page_number":148,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"efdfe9ad-9c85-4472-aca2-d768f89660f6","block_type":"box","text":"normally will not exceed the sum of (a) 0.25% of such year’s Fund sales by that Service Organization, and (b) 0.21%","page_number":148,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"22e87ace-3f39-47f2-ab04-922565cff30f","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":148,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"30f75ea1-7f8c-4d7d-a1d5-17209486e1af","block_type":"box","text":"B. Shareholder Services","page_number":148,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"848c2b1b-867d-43a6-acb4-03215fb83955","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":148,"box":{"x":102,"y":642,"width":754,"height":11}},{"id":"d5b4a3b0-20ac-48bc-af86-f1de85863095","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may per form","page_number":148,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"61ca614c-37eb-4140-8c2e-0787b6c565c5","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have per formed if the accounts","page_number":148,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"8edcc79f-9109-4c9d-8782-6f1c66aa7947","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":148,"box":{"x":69,"y":687,"width":839,"height":11}},{"id":"88280c74-0842-409d-a92c-f837e6b7bfb0","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":148,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"187f12f9-8473-4eca-9f03-39eb71f90e15","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":148,"box":{"x":69,"y":718,"width":837,"height":11}},{"id":"d08d799c-410c-4e72-a1f6-7c8a36bd32cf","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the per formance of these or similar services. These","page_number":148,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"f12a1e0f-319b-4eab-bfe6-c7d92e23e38b","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":148,"box":{"x":68,"y":748,"width":827,"height":11}},{"id":"e63dddd0-3bf3-42bf-aec9-73f498551aff","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":148,"box":{"x":70,"y":763,"width":328,"height":11}},{"id":"bbfcbab7-0001-42c6-bbee-9c4bc1d5f839","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":148,"box":{"x":102,"y":786,"width":299,"height":11}},{"id":"64daff7b-d08e-4e3c-a9b3-47dcb71b7bb6","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of cer tain analytical or other","page_number":148,"box":{"x":102,"y":808,"width":805,"height":11}},{"id":"970ce1e6-42d6-4597-b11c-b10bf1768cd3","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":148,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"c5cd20a4-2f81-4486-868f-c3ea4c567482","block_type":"box","text":"suppor t. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":148,"box":{"x":69,"y":838,"width":821,"height":12}},{"id":"9b8875b2-05d4-49ba-ac15-62f0a2f2127d","block_type":"box","text":"D. 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Service Organizations may charge their Customers additional fees in connection with the","page_number":152,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"747bbc70-fe87-42fa-b328-8589593514e3","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":152,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"ad7f3e64-e9a3-41a7-adca-6b7468e71fcb","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":152,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"794f74e8-702a-4d1e-b7c5-dc74b95be960","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":152,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"1fc6eaf9-7a59-452d-89e0-91452bb8bb3e","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":152,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"2655baf1-0945-4b73-90f5-8d2dd15ca7b1","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":152,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"60ae49b7-a819-4f29-9430-00b5f7cbb36e","block_type":"box","text":"appropriate.","page_number":152,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"cb83f79f-0a81-4256-8c0f-3faeb275a3ee","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":152,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"8b2c2a6b-b672-4efc-bc61-bb4afec4b180","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":152,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"5115ab28-087e-408b-8335-ba3d021c275e","block_type":"box","text":"described above.","page_number":152,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"e5f30b1e-2f98-4788-96fc-4571b4a59f70","block_type":"box","text":"REDEMPTION OF SHARES","page_number":152,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"15000deb-8e81-40ef-9123-2c2cf387fbce","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":152,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"09e536b8-3bd8-4843-a7a9-23f900c4992a","block_type":"box","text":"the right to redeem some or all of its shares in kind (valued in the same way as they would be valued for purposes of","page_number":152,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"b9376417-e4bd-4193-8051-c7c0444d2c76","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s por tfolio holdings at the","page_number":152,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"678923be-7413-411a-b972-c011bdd08153","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in por tfolio securities and other assets rather","page_number":152,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"71f181b7-12ab-4cf0-b08d-6c304328d2dc","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":152,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"01298641-5c5e-4b75-98fc-b59715a3eeba","block_type":"box","text":"able to accept securities in kind, and may also be used in stressed market conditions. If this occurs, the redeeming","page_number":152,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"b3e95855-aadf-4ded-b15b-7f285c010dcd","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to conver t the securities and other assets to cash. Each","page_number":152,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"48364066-8347-464e-90da-f84ad799c180","block_type":"box","text":"Fund has elected, however, to be governed by Rule 18f-1 under the Investment Company Act so that the Fund is","page_number":152,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"f4e5b839-0cb0-4c0e-9476-8fa505f76355","block_type":"box","text":"II-114","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"88047abf-c3f0-461a-b64e-5f534a831be9","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"34a37f6c-9268-40cb-95a2-d9f799f8e956","block_type":"box","text":"obligated to redeem its shares solely in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period","page_number":153,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"b08ab363-eb0a-4620-b8fe-dd0d56982f47","block_type":"box","text":"for any shareholder of the Fund.","page_number":153,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"2715d8c5-c0ff-4261-8bf1-f480e245954b","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":153,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"565a7c9d-14f7-4c3d-8bc5-637ee193088d","block_type":"box","text":"redemption. The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":153,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"7e70b68e-1d8b-4eca-80a4-70e9ce95d5a2","block_type":"box","text":"time of purchase, depending in par t on the market value of the securities held by the Fund at such time. Except for","page_number":153,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"436ad806-98ee-4524-bf5e-be2c4da97de1","block_type":"box","text":"any CDSC that may be applicable, there will be no redemption charge if your redemption request is sent directly to","page_number":153,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"31336295-904d-4125-bee3-808dd93e10a7","block_type":"box","text":"the Transfer Agent. If you are liquidating your holdings you will receive all dividends reinvested through the date of","page_number":153,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"d065dc0a-2d5a-4140-b3fe-2968042e8035","block_type":"box","text":"redemption.","page_number":153,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"01f14eab-562a-409a-bb30-0a58172c8ccf","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":153,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"facb6d47-01ef-42e1-adea-e21f4545d4cf","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":153,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"4ada92e9-a7c6-4448-a3b9-fc94a3eeccf2","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":153,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"e1467a3f-1138-4737-8de7-f333217f8283","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":153,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"804571fc-1e7d-4c40-8dbc-5b261ac5cfc7","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":153,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"77dcc95e-735b-4b98-826f-414ba5fbb3d5","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":153,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"eaf732fd-bcc1-41ba-9777-b91e23903302","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":153,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"daa95ba4-5e3c-439f-89a6-b9b22d8413fe","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":153,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"da6eb73a-fbca-4ba2-9978-6f87fa895cc2","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":153,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"e2f39ac5-8f10-4586-91b5-466f799c8743","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":153,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"519a1dc5-64ae-468d-8a0f-f259a36a0f5a","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":153,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"b33140ab-ca21-4b9c-a3e3-b66495319ad5","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":153,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"9b133c28-e761-46db-975b-b7acb59a3655","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":153,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"19d690f7-44e6-495b-b005-98574334c6d4","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":153,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"6d65e9dd-2f9d-4637-86f5-4dd80ff7882b","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":153,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"f4662325-2880-4b4f-a4a3-6ad07036e384","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":153,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"3df47065-8097-4193-b525-a419877dcc93","block_type":"box","text":"Redemption","page_number":153,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"90abfcb7-cad1-456a-8d61-c405a27fdceb","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":153,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"80c0d7e9-2af5-4ffb-9365-666ccb12ab51","block_type":"box","text":"Redeem by Telephone:","page_number":153,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"34e5d2c2-e1cb-4c61-aec4-d177fa9eeb2c","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":153,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"7aff22eb-3778-4358-8066-ea6c2b955f0c","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":153,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"7735bbbc-94a4-4bea-a07a-b9a8d4e26456","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":153,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"cfc80735-2932-425d-b38c-4d2ac3abe2f4","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":153,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"eace41d4-a44f-439e-b9b8-74198c1b5be5","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":153,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"93731fe3-5bf3-4224-afac-1f54476c3814","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":153,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"b1ef25b3-e4a6-447a-9f19-20cfd6a5717d","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":153,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"2eec2b14-20f4-497a-b097-77cf3d106958","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":153,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"6ff66799-044e-488d-9873-d1f7ab59c440","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":153,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"6c107e5b-665d-43eb-bf3e-00bf6dcced58","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":153,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"0c821c82-bd22-42a8-87ec-e05a37d000ef","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":153,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"66f6e1f8-36e3-4792-991c-8da764d9be36","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":153,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"0a46496e-e890-415b-9e39-cc96c8a672a5","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":153,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"076a52f4-aca4-4a78-be2d-307d54412ca1","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":153,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"d6ba9e76-bc60-46ca-b8b3-f1966fad3753","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":153,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"6a2ae478-63bd-4cc0-a4a9-683f704dee7e","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":153,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"17c98da4-e4c0-4b77-b55d-5550df477430","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":153,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"758be928-a5bc-400f-b3b0-c64187589ede","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":153,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"4a8954fd-155f-4fef-844e-ae7c8c960e35","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":153,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"3cd5268e-7246-436f-8f17-5ee256e6ca85","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":153,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"d51555da-099e-428c-902d-a7ea32a42a1f","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":153,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"f576794a-bf02-4a35-b9aa-8c6f12a916d5","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":153,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"b0616a0a-dc91-4cdf-be28-04294ad13d37","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":153,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"f0708ee3-ddf5-4141-93b8-7a53393d0475","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":153,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"2fe9de71-837b-4ca4-929a-1c0d2451fc3b","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":153,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"d3f81377-b5c0-46e6-831b-e506c1878ba7","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":153,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"065a1b3b-d151-4f1c-8346-3be8a93604f6","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":153,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"5571d2a3-c72a-4088-90fe-db81b49c2dad","block_type":"box","text":"II-115","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b5e44f80-a899-46e1-b498-96286a112da2","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dd159c80-8877-4e33-ba92-0da1a2e14cb5","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":154,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"7f8c0442-f2c6-488e-969b-09efcb175365","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":154,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"73b443a9-0f11-407d-be5a-bd088cae3854","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":154,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"5963357b-1ec0-495a-bea8-326c141b08aa","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":154,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"6eaebf84-0bae-4aff-adf3-5165b141e7d9","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":154,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"2a2416e9-ae6c-4ce3-a3cc-2865efa31a29","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":154,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"c0af1dc2-eeca-49cb-871e-84dbf578700e","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":154,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"0c260f19-222d-4409-beb3-1656741d84ab","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":154,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"8ffad1d1-35b6-4079-9b9e-63e4bdde2851","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":154,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"bf4eab1e-7980-471e-b633-1a810b53aad2","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":154,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"fcbbf8c8-7ec9-454e-ab9c-5fc7ba272031","block_type":"box","text":"Redeem by VRU:","page_number":154,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"60caf274-a6d2-49b3-a7e0-db5c0f0b80cf","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":154,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"b23eaab3-7df6-4969-b2c5-5a0bdceb2d56","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":154,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"e0e9fc48-90a2-4403-92f0-3145ec1d0702","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":154,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"6bb16cda-674b-435c-b3de-9f73c796183e","block_type":"box","text":"Redeem by Internet:","page_number":154,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"98387816-afe2-4efc-ae9d-e312dc115371","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":154,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"95d0570f-9b4e-42a8-a292-0df55077cc43","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":154,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"2196c84c-f418-42fa-a8ed-da7bd8bcbd6f","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":154,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"81f6fc68-39a5-4c60-b1c6-92e9cb87645f","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":154,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"3b8622dc-68fc-417d-9523-d73a287407ef","block_type":"box","text":"institutional investors.","page_number":154,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"42ebef8f-a10b-4629-b69d-0313b76a7ef0","block_type":"box","text":"Redeem in Writing:","page_number":154,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"1ae810d5-0f50-4862-8119-636450cba824","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":154,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"416fa960-1d2e-4b67-a272-db75e9708ddb","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":154,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"fd6ddb96-cbf3-4e17-b41e-75bd6ea15264","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":154,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"aeb72f37-b804-4c92-82eb-8bdb8763ab63","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":154,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"2c0957ca-8fb3-4cc6-8d4e-7f14bfe1b22b","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":154,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"3045406f-5fb6-4218-ae69-06a3b74a31c0","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":154,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"e45459ff-07d3-4eda-8cb3-4900ffb5b0a1","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":154,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"d9efa3e1-2615-4d2a-88d2-38a0aae73aa3","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":154,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"3493076f-973f-436e-87ad-05fde4dca104","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":154,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"88e22c10-a93e-4548-b1d7-bccafd0d6583","block_type":"box","text":"or wire to the bank account of record.","page_number":154,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"b65f2583-154e-49ce-8843-3d32bef83231","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":154,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"14a2a7a3-6bca-48b7-8343-93a8f01d7af1","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":154,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"cc98c3c6-3f0a-4018-b6f7-2d321b2df7bc","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":154,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"afc99f0d-246d-4292-a0bf-fab0eb6529db","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":154,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"f65c12dc-e992-42cf-8f43-fd59d002c94c","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":154,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"713909ed-35d3-45f1-b792-c0bca0c21d18","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":154,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"f7a9a0dc-2869-4e5d-b22e-8d4af385af19","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":154,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"f6368a03-c4b7-4afc-9c1d-479fe3373765","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":154,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"713a91dc-6ef2-44fa-9f9d-07f4cac170a8","block_type":"box","text":"redeemed by the Fund.","page_number":154,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"cedc3323-5a66-4aeb-924d-02d94fa71af4","block_type":"box","text":"Note on Low Balance Accounts.","page_number":154,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"90ae1881-3e65-46f3-b5dd-606b34f29cee","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":154,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"2d135856-68b9-4967-bda3-eed2a9d04531","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":154,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"dd96b9ee-a1ac-4473-8e21-011b2e99b97e","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":154,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"216a584b-5d8e-4313-85d4-4416bec5236e","block_type":"box","text":"for any reason, including market fluctuation.","page_number":154,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"58d1f9ea-4dd0-4d66-9e00-2666dad818d6","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":154,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"3d235866-ed49-440b-bcba-4f27ef7bdbaf","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":154,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"81bba1a1-122a-4fad-b515-6f32942d88d0","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":154,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"3a308b4b-b3b8-42cf-84e2-303a96457ca5","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":154,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"6424f994-7553-4a33-a3e8-929ed1ef523e","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":154,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"0abf68a3-41c5-43c7-adee-4b31c52e06c1","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":154,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"ba6aebe0-23dd-412f-8fbb-48d750d8d3a3","block_type":"box","text":"Redemptions in Kind:","page_number":154,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"af7e46b2-ca70-46fd-a12b-1cd074fbdf34","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":154,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"db5a1448-2432-425d-9a77-d077c46ec220","block_type":"box","text":"whole or in par t by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":154,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"262d1f6e-c551-484b-83cb-6588b371f209","block_type":"box","text":"Fund’s NAV, except that each Fund is obligated to redeem shares solely in cash up to the lesser of $250,000 or 1%","page_number":154,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"eb166ede-1ab5-4def-8aed-cca56f93a5ab","block_type":"box","text":"of the Fund’s NAV during any 90-day period for any one shareholder. Redemptions in excess of those amounts will","page_number":154,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"42cc6686-2ca6-4c49-be64-894ec34836d3","block_type":"box","text":"normally be paid in cash but may be paid wholly or par tly by a distribution in kind of securities.","page_number":154,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"10d587c4-4896-4f5a-9ed3-8cbe392c383e","block_type":"box","text":"II-116","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8d033ff4-4ef2-45d8-b83e-2f128235cb37","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"225afa76-1f45-4ae3-becf-b66c3ccba0be","block_type":"box","text":"The specific security or securities to be distributed will be determined by the Manager and could include a pro","page_number":155,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"76777777-9300-4ecd-b803-6cbba1c937b7","block_type":"box","text":"rata representation of the Fund’s por tfolio or a non-pro-rata representation of the Fund’s por tfolio depending upon","page_number":155,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"ff51ef6c-4d66-47f0-a652-369d87612bc9","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":155,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"15137386-2565-46b5-89cc-3780a22b9f02","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":155,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"a6390f0f-dc90-4808-b9f8-88dcf4e64491","block_type":"box","text":"considering cer tain factors, including, without limitation, the por tfolio management team’s model or optimal por tfolio,","page_number":155,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"c667d28d-4911-4e90-9c37-8e14b342203c","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":155,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"b32f5841-58df-41f8-9d8e-940fe3a156a2","block_type":"box","text":"liquidity of the securities, and the tax basis of the securities. There is no assurance that BlackRock will select to","page_number":155,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"26bcf1ad-3d48-42bc-a16c-c66fc2b823aa","block_type":"box","text":"retain those securities that will per form the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":155,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"5c39e20c-5909-4985-a0a2-f509c9a36c0b","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of por tfolio holdings","page_number":155,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"56df3715-4086-4cd0-9bce-d385a19ad3ae","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":155,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"b742c804-f61c-4f34-a0f7-32b11a4b606c","block_type":"box","text":"The Funds may effect redemptions in kind in an effor t to, among other considerations: (a) manage the por tfolio","page_number":155,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"8fdcb379-6aba-42ed-a518-4a1c695a6c1d","block_type":"box","text":"efficiently or for any other por tfolio management purpose, and (b) externalize cer tain transaction costs that would","page_number":155,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"b6c0ef6e-a9f6-4f1e-9ab3-1a8106f439f3","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or por tfolio turnover. Redemptions in kind may","page_number":155,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"62b8978b-09ab-43df-9951-075dc9ab25ea","block_type":"box","text":"reduce the need for the Fund to maintain shor t-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":155,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"ffe08114-b484-49c3-b880-7815b4076da2","block_type":"box","text":"for the Fund to sell its investments at inoppor tune times, and lower Fund capital gain recognition, all of which may be","page_number":155,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"7fcfd8e7-db05-4230-899c-c1669eba151f","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":155,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"4a20672b-ecdd-4161-aa04-5bd5867e30bf","block_type":"box","text":"redemptions in kind can or will be effected when they would be beneficial to a Fund, and it may be impractical or","page_number":155,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"3b409590-e598-4748-bf4b-61757054ac46","block_type":"box","text":"impossible to effect redemptions in kind with many or substantially all of the Fund’s shareholders because of, among","page_number":155,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"53e2dd2f-fe23-4e13-a13d-d1d9f6fce96b","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":155,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"5802ee96-5f9d-434c-ba42-2672011cd014","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s por tfolio, or a","page_number":155,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"abd457f6-6493-4fbd-bea7-829593fc4deb","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":155,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"ea29b3c2-05f7-407d-8676-17941539e71a","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":155,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"4d98ce6d-c564-409e-a474-be8ee915ee45","block_type":"box","text":"kind rather than in cash. A Fund’s ability to pay these redemption proceeds in kind relieves the Fund of the need of","page_number":155,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"011a7cbd-9c0e-4988-a45e-00b778388fa0","block_type":"box","text":"the Fund to sell the securities that are distributed in kind and incur brokerage and other transaction costs associated","page_number":155,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"10f4e8b6-9267-43bc-b050-e35dd180b0ea","block_type":"box","text":"with such sale, and may have the effect of reducing the amount of taxable gains the Fund would otherwise be","page_number":155,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"95e064b0-3503-42d9-b5e9-e9cfccd5daf5","block_type":"box","text":"required to distribute to shareholders. A Fund’s ability to engage in such transactions is subject to, among other","page_number":155,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"98f38f85-f18a-4980-9b5a-3da4009ff96e","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":155,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"0c9f3585-c43c-4cbd-b227-6aedf5d12db3","block_type":"box","text":"to transact in kind, and there is no assurance that the Fund can or will effect any redemptions in kind. Financial","page_number":155,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"8738ab49-1b03-4708-b0be-d4bb454ef0d3","block_type":"box","text":"institutions that par ticipate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":155,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"17030904-378e-414c-9eeb-3c78a0164d13","block_type":"box","text":"doing so. The Funds’ shor t-term trading policy shall not apply to the transactions described in this sub-section.","page_number":155,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"a61cbc8c-140d-4234-9955-ad72c39c801d","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to conver t them to cash, you may pay taxes","page_number":155,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"7cf68c5c-7763-48f9-86da-32aff9edb614","block_type":"box","text":"and brokerage and other transaction costs to dispose of the securities. You may also receive less for the securities","page_number":155,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"c03da240-cfdb-4b98-94d2-5c5954185f6f","block_type":"box","text":"than the price at which they were valued for purposes of effecting the redemption. There may also be a risk that","page_number":155,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"3ff53132-4a81-4d3c-a625-fb09ac1b9332","block_type":"box","text":"redemption in kind activity could negatively impact the market value of the securities distributed in kind and, in turn,","page_number":155,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"287344a3-94ea-4659-b690-ac78fb62b998","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":155,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"7d171d8c-6c43-4352-a658-873932a68ec8","block_type":"box","text":"Repurchase","page_number":155,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"5f204d77-d994-47d5-9d2c-f926dc25643c","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":155,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"13c058d8-f924-4820-833f-f7e534a4a46d","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":155,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"61aa8f37-f634-4dec-b40a-ab0a290bbf59","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":155,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"44a7f16d-c2af-41f1-86df-b7de58aabf8b","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":155,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"145928fd-d754-4486-b095-5b6dc2fed577","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":155,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"8d3eba8d-826d-43ce-ba69-60e5bac19293","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":155,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"baf9de93-9870-4cd0-8e55-492e4c445efd","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":155,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"f955efb4-d8bd-4eb2-bb0f-7ad2a64ca203","block_type":"box","text":"next business day.","page_number":155,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"cb10ef96-f9b4-4477-a8c4-d63cdeb18c00","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":155,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"cb204d74-f99d-4b5c-a56d-8b283d616473","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":155,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"f9b7214b-5ea8-4425-a7c1-067b2cb7acfb","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":155,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"addb1d5b-d055-4d2b-ba70-ff06dc616d2f","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":155,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"a346bbec-4431-4298-b618-5ce1f3830390","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":155,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"337b0242-183e-4812-a64d-c3217bc38e6f","block_type":"box","text":"redeem shares as set out above.","page_number":155,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"3a6d0484-55a6-487e-bc9b-bd2329acef76","block_type":"box","text":"II-117","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6e366ba0-3927-405e-90ae-73ea72e5ad98","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a3877b46-f422-4b53-8024-f17fec630552","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":156,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"71ff120f-2925-4a9b-ab0a-d2dc9fc81516","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":156,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"8ba3667c-1cd7-4c0c-8680-071ecae35527","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":156,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"fa5fa19d-1a6f-4571-abc5-98b7635f85fc","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":156,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"a449caea-f099-4e29-a035-e029f821af7b","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":156,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"b72a59fd-4992-48ff-ae8d-1f52a86bcc5d","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":156,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"8417ff64-a823-42ee-b38b-78ca775d095a","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":156,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"b940dcf4-cfaf-4014-8a6d-6fc73565b6c2","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":156,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"cd448c7b-3f26-4da2-ba8d-193abd3cd011","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":156,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"f446dad6-4a59-46c7-951b-d6be38f4c62b","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":156,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"18da5198-bc92-4ed2-aa10-14d6c7dd2fe1","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":156,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"bd3394c1-7246-4c7c-9419-0e4d20323ce3","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":156,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"698abd88-2d68-404a-9cc4-b7cde9979430","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":156,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"6c09bf79-22fe-4742-b9ec-1fef21d88c6c","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":156,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"a61b817a-8bab-4465-8259-0272a4446132","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":156,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"d4278419-38b3-4f30-9284-9c43f75b2993","block_type":"box","text":"Investment Account","page_number":156,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"ad2dfff1-1480-46a3-9e16-a2727031619d","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":156,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"0d193dc5-e050-45ef-ae21-88f7e01d8140","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":156,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"d43dd403-a2b4-489d-9a3b-c8ed5622e82a","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":156,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"4713bc42-969a-4252-b1f2-36467e41ca62","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":156,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"ac1087d1-855c-4a5c-84dc-5054f801eda7","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":156,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"f61d7228-8723-4612-a41a-bb2d1dc396b4","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":156,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"f56bcda7-6e76-4ef0-ba06-9c4aecc2de21","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":156,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"57247387-c1dd-4d58-87af-7e055b90f705","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":156,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"d8e08d38-0ed7-441e-9315-37ba7b7b7eef","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":156,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"19b3bebe-6f96-4ed8-8e7e-6eb1ef37eb24","block_type":"box","text":"automatically at the Transfer Agent.","page_number":156,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"b016f879-1565-4a8c-a73b-33942e1d88d9","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":156,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"e5a854c2-72d0-41a8-a829-ac472e515636","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":156,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"f1189045-4f94-4e05-9891-33b65a47c633","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":156,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"f73459aa-b296-499c-af2a-f168a5049ed1","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":156,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"ef5f9889-aa92-4044-b888-1cd6e6bc9812","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":156,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"619b5918-0e3e-417f-a802-e1ba1b739f57","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":156,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"61123217-69fe-4430-a371-30ea102e7fde","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":156,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"92b4320f-857d-42a2-9ade-fd938b508ab5","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":156,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"a01d120d-d107-4fae-a06c-083ebbe6968d","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":156,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"a6290dc7-ce0b-425c-8cb0-0ea660b1d924","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":156,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"bcd6bfc2-491f-45b7-b899-969c36c6723d","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":156,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"42e1724c-ff5d-4243-96c3-d995d8b22e93","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":156,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"dd8ad332-9198-4d11-a418-3f2c99b62274","block_type":"box","text":"issued.","page_number":156,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"96a4acd8-7e92-4f70-bfa6-a72bbf598635","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":156,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"efef6356-3161-42c8-89ed-66ee5938e327","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":156,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"68db9456-ed5c-47ce-96ff-d9a965067bdd","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":156,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"6d189792-ee3f-46a4-a45f-854f2ea43385","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":156,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"bb0452ee-57ba-49d0-8007-993ae574f8aa","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":156,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"e13e348d-c261-41ea-90de-0fc46e9e7267","block_type":"box","text":"Exchange Privilege","page_number":156,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"d6b17f4e-c7a6-41bb-9c34-b013d007a115","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":156,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"f3090c21-dc4a-4fdf-81a2-71fe567bb112","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":156,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"1b7cda00-49ba-4bfa-834c-9a13ce143b37","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":156,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"ae5d4a1e-d60e-41b3-b959-ac19d721b0ae","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":156,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"0086d364-5ef9-4ae0-bdbd-35ffc193e236","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":156,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"84456a63-2883-48d0-a835-a6ebd0242a3f","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":156,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"ae97d3d3-b8ee-4413-b627-de2b60e0ceae","block_type":"box","text":"II-118","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"aa4983e8-a126-4681-8e0a-5a87c7b079bd","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f74a6b8-8419-464a-b47c-e2310870f5f0","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":157,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"95b17ecb-09ec-488b-93cc-453db18ba1a1","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":157,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"40191d8f-f27e-44b6-8a9b-8cca4e5be38b","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":157,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"1d07559c-1ad5-48d0-a1e7-7070495ebce0","block_type":"box","text":"Institutional Shares","page_number":157,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"6cc19680-de8c-4a9e-8612-18d1a82041dc","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":157,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"f67c4680-8e1d-42ed-baef-422dc3155e46","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":157,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"3a4376d4-ab4b-4065-ab74-eda952d0715e","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":157,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"ebaa2eb9-4bca-45c6-9e58-8b9f005748ea","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":157,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"ca7cceea-d926-4c62-a09a-798c0ae49337","block_type":"box","text":"for Class G Shares of other Funds.","page_number":157,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"c918501b-5db4-4be6-b31f-fafca0fc379d","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":157,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"15707afe-b7f7-4f06-b11f-a9c2e5c69534","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":157,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"24748c89-07d5-4fa2-a1a6-1ee8c9fa71bc","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":157,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"10543de9-daa6-46a6-9057-dad4b51204dd","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":157,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"eff37154-8def-4343-a3e1-98070a606f4a","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":157,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"575373a8-0dad-4a4e-84b1-5fe19a43af8e","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":157,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"1854481f-f34a-4b06-9faf-6500bec9c066","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":157,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"db8f98be-536b-44a2-982c-eb2751f27dd3","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":157,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"ee6c3f39-5f1f-44ec-9668-14e8ca332642","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":157,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"9b6dac03-0e6c-4fdb-84a9-d65d2f7001df","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":157,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"eef273b6-083c-460c-ba7a-9bf924a15988","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":157,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"79c22f8d-03d4-41d0-9199-278dcdd7afbd","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":157,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"6925fa7e-758f-4837-b808-76ff0bb5aa87","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":157,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"ac3a352a-95d0-497c-a1ff-443fb4f7f770","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":157,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"139303d3-2e63-432c-832b-4108bc1d7aca","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":157,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"0aaa58ca-cf52-4746-ae79-af40b62a4b30","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":157,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"18c65597-6bf3-4e1a-8627-5ce7d1e16846","block_type":"box","text":"Exchanges of Service Shares.","page_number":157,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"ae48d20b-7603-4bf1-8ebf-a6aed156b306","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":157,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"279c081e-c5f2-4b83-b3fa-0d449eb38c8f","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":157,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"4f156d6d-fff9-4e14-ab17-8c3ab377ed7e","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":157,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"d7bf7b53-fd97-4a21-b9db-e29a451257ff","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":157,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"8fc28d61-efdd-49f5-8736-47879163b0a2","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":157,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"f1b88e12-f46b-4ebb-a39e-29e8a993f6fb","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":157,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"18828dbe-adbd-4e73-a257-7694166a6f5a","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":157,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"c84d2581-1de2-4bd4-9d7d-1fcabf9b9a5d","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":157,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"b3fead19-8594-4b70-b619-16a840775e9a","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":157,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"bb787672-bab1-4608-9a68-df76a4fa515d","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":157,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"bff001f3-2bcb-4c77-9056-9635464d87a0","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":157,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"6b6344a6-7789-4b73-b27a-38b3b31e3d22","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":157,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"2188044b-2585-4555-9afb-6a29b8177f68","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":157,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"7cc136f8-f135-4fda-a6c7-691bb5b1596a","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":157,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"b9cd3304-9b41-43eb-b17a-67dd1d1a61de","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":157,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"20a63d70-6b9c-41cc-89ce-1d641cd2e9db","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":157,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"c56fc382-2bc4-4dd1-95a3-f6428918c2fe","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":157,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"114eba86-4c12-4ea9-a496-3edf1de742b2","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":157,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"f4451886-12f5-4db8-86d4-99143459fc54","block_type":"box","text":"exchange.","page_number":157,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"34b95f39-2c6d-4f9d-91e0-f76ca66168f9","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":157,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"0811e0f9-31bb-4666-a023-32966bb19086","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":157,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"249dd440-9d82-4094-a818-802f874d9646","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":157,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"44389d18-65a6-4b02-8396-f42396d0042a","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":157,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"0978c6b0-c260-4769-9374-c7b4a6e27488","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":157,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"f3e9a198-be6d-454e-b852-94d52fe442a4","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":157,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"6334779a-06f7-4bba-9cb1-cfad48ae188e","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":157,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"92049a72-c7c7-4653-acfe-6c10e477368a","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":157,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"f3347b18-a4fc-40d7-9e42-b4be31567b31","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":157,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"269340d7-3bdc-45e8-9670-25fc4809de81","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":157,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"e7767a4e-66ba-4993-bc91-407f2bf1af67","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":157,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"a26f9e13-3999-451a-8760-c84c2c5d0108","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":157,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"dd9d07c9-f466-44b2-8a66-daa057a3fab3","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":157,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"10f3ff27-bb5c-4251-b876-9a045bcb8861","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":157,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"a1329861-45b3-47c8-999f-ed018a2fbbf7","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":157,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"4dd44166-726a-46d2-a376-7d10b2fa36a2","block_type":"box","text":"II-119","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c9c3d63b-36ef-4084-9f79-d7abe3197889","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bc91701b-a2f8-4c69-ae5f-bb8901d2d0bf","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":158,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"24940b8d-6198-45ed-a83c-2bcd51740769","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":158,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"dded841f-1a15-4297-a220-c41a3d2ef23d","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":158,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"40604744-4708-4ebf-97e8-4c3a4db75643","block_type":"box","text":"Transfer Agent in writing.","page_number":158,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"62e333ad-7a84-4434-9f1e-299afa72ba88","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":158,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"5fc8e596-5f08-40c3-a94f-5aa6e12b97f2","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":158,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"247f5de5-a73b-4eaa-8bf8-808b010fd0e0","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":158,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"f71fa079-81ad-4af7-9d20-7619ad600c4c","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":158,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"51550e1f-14b1-43b6-87b3-fde38b066e53","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":158,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"b1a4dba0-3a4a-4cb1-865c-1963170ce22e","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":158,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"3fe35cfe-6669-4216-a9e5-15b3dec459de","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":158,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"a8fd770f-7512-4297-9690-bda51329fd28","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":158,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"bf15f4c1-4f5d-464d-a9b4-4ddc999255b6","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":158,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"91629423-e8af-4168-8473-2b9eb10a6845","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":158,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"4617bb81-7b2f-4f2a-9a37-4ea8e9607cd5","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":158,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"69fc1388-2c33-4b8b-86c0-ae91177b759d","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":158,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"1e28871c-fcd9-412b-849d-845c62af72df","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":158,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"597f9f37-4859-45e4-9fe3-2eb604f735c8","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":158,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"1c4fc574-85d4-43e2-aaf8-4937eabdbb33","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":158,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"bed4b588-f3ec-4109-ab15-bb9c9f9bce77","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":158,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"4dfcc14d-8370-4b96-ad40-acbb20139ad0","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":158,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"8a455af0-76dd-4b64-81e5-7f550ba94a4b","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":158,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"b8bb1a28-f353-420f-98fc-2ac7161bed0b","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":158,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"46af459e-bea8-4dfa-bcae-f5bd5c5c1c87","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":158,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"e3b2d3c0-d525-4bfd-a99e-1585d5bd76e1","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":158,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"e3ac8f2d-bfba-40d2-bc2a-cc085b9a36a0","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":158,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"b10fd99a-08bb-4308-8480-bed83d856013","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":158,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"6b2c44ed-00a8-47ca-bdf8-ca35f6481606","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":158,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"f58e9ac1-0889-4abf-b9c5-40e928024d42","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":158,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"bb41cfcf-1bc0-4b1f-8e84-7a25cb63893a","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":158,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"6cd4bc05-dd44-4356-b725-204b00097488","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":158,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"d04db0b2-6a74-4ad1-9098-dec010c3b933","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":158,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"8f6e7911-d47d-42ae-91fb-e515b5107427","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":158,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"0fea9fc5-3ce3-4b15-89d5-52ddcdf618e1","block_type":"box","text":"may be distributed by the Distributor.","page_number":158,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"1c40fde2-e451-44cd-9f7e-2daeefd5d06e","block_type":"box","text":"Participation in Fee-Based Programs","page_number":158,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"f7f77f8a-6674-4410-8adf-07594911b7e8","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":158,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"1033f8cf-9287-47c5-aeb0-41861a5bdd1a","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":158,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"50c43756-e5e8-4914-8669-fc0e7e46abcf","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":158,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"2e124b62-ed4f-405f-9d31-9b7e69564795","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":158,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"e2d88bfb-10a6-43f1-ae2f-689d7ce6c74f","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":158,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"f17fc7a5-339d-42ae-9a00-b7cb6c9278f8","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":158,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"cd2e6291-bb29-4787-8a63-42487b53e0ca","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":158,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"aee70e0a-bd03-439c-a8ef-86846295cf2a","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":158,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"cd6dfc33-9d45-4fed-b0ad-fe0b9e63c706","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":158,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"d31e48e9-3cb6-4b75-9cca-ad21f9c01fb7","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":158,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"1f1ed8ee-9f35-478e-b2f7-875d5be9a592","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":158,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"a886ef5a-fa5f-4821-bd33-90d61454ffa6","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":158,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"68020fe4-a775-4f2d-836f-e28841275be6","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":158,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"79572085-0e1e-49eb-b13f-5f7d38c2214b","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":158,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"3b18a0fb-a97c-48b0-bb69-5b0b56a11e6f","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":158,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"ec7ad679-c8c3-4d2a-867a-23e81bc33a47","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":158,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"6506bd40-2049-4528-9fb4-e3cfb095d8ac","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":158,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"ba442ff2-dcae-4599-99ca-f5857e854468","block_type":"box","text":"II-120","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"73214fca-0c72-4a7e-a9fb-57ca6eaf2f53","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d8cca612-b306-4d58-8246-a955900cba1e","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":159,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"030c7909-c865-4440-84da-5b8d0b40d9c9","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":159,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"2e9e6904-9e18-4768-916e-0cdd3f982e88","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":159,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"0f3bd655-5d92-4a18-bb9f-3ae14db17014","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":159,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"fc07951d-8fda-4fb6-b212-8d611b6b1450","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":159,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"17c0757e-ee77-462d-951c-9927f56ea6a5","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":159,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"d35bd49f-c1de-481f-ba86-01b9df3dc985","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":159,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"485ceed2-9725-4faa-bf52-bcea9343d0e5","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":159,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"914b573a-8091-4894-a668-3f344566f5ba","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":159,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"65b66dca-903b-4fad-a955-b482104ecb90","block_type":"box","text":"information.","page_number":159,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"a44dd7d5-1e6f-40a5-93db-fd4938b65fa3","block_type":"box","text":"Retirement and Education Savings Plans","page_number":159,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"f68f3d3d-eaa4-481d-b323-a9cd8df0f960","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":159,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"91ea6ccc-9d45-4a05-8c20-3b3c866a69e7","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":159,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"f43d9abf-f484-41a8-b80b-0f3e5d7284dd","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":159,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"6868eedf-bc77-4606-a0af-34bc6f1d4688","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":159,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"60edf3cc-101e-489f-951a-4ae7ce742d40","block_type":"box","text":"your financial intermediary.","page_number":159,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"8c5ccc9f-8de4-4cdf-874b-4ed5728f285f","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":159,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"f04cf69b-06cc-4d6c-8d77-b64f945811f9","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":159,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"caa71ac5-7a15-47e1-8b6f-d5ff269c0c80","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":159,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"198b7d06-b820-4155-bf0b-1b88ab531154","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":159,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"ce7b1740-0aae-4654-a795-cd164e75f696","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":159,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"05b0a0cd-e04d-4958-ad32-90020a7463ad","block_type":"box","text":"Automatic Investment Plans","page_number":159,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"37b20182-c809-4971-b2d9-94a18895fb62","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":159,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"07ec1d6c-05c3-49f0-b828-18eeaa156d34","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":159,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"ed8d33d7-8f72-4a53-9c20-a4ba42907957","block_type":"box","text":"®","page_number":159,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"3b4e4c82-72b8-486b-a365-bb323feffc48","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":159,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"068d5f1e-46fe-420e-a909-8626eedf9a49","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":159,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"561497c1-bdde-4a79-a728-1cbb1672a43e","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":159,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"1e947cd0-77ef-4671-a4bf-bff814e3aca2","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":159,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"8a29bfad-22f8-4a52-9788-239fbe3684b3","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":159,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"1989cab0-a069-4ec6-9032-a2a38aadb8de","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":159,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"9aa9bae2-2b1b-49f1-ae0c-a23044d932a9","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":159,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"f2d315ab-2134-43bd-87bd-2dac38e8cfbd","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":159,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"f14dd603-9480-4c7f-b4dd-99779956be22","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":159,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"a7340d96-b090-44ac-85b3-fb804a0e8afb","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":159,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"e1cc0d50-6b9b-4b55-8487-3138893cb72a","block_type":"box","text":"Systematic Withdrawal Plans","page_number":159,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"20ef7704-378d-43f9-8da0-470cdd408e4a","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":159,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"c780f9c9-38b3-4bc2-86d5-8f7b422afe3c","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":159,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"e4f44c77-3240-48a7-aab7-4a4ae75bfeb9","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":159,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"e50cba8b-5808-4b11-9915-cdafa953f444","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":159,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"4348b6e3-01d3-41c6-ba94-f13d4a6506f6","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":159,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"7ae12626-9ecb-4ddd-acb3-94dd233ee41d","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":159,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"4b087eb9-5142-491a-879b-fd5cf9debf37","block_type":"box","text":"www.blackrock.com.","page_number":159,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"d5e4278f-eb34-4605-a8a8-2a137f693939","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":159,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"841103b1-4d59-4830-92b6-740315d98b31","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":159,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"fc4ec8b5-89a8-4739-b494-2fce9486fed0","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":159,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"d09c3183-1f53-4671-a8cc-ac1bec9b65df","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":159,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"d03ffe9c-14dc-4fc4-a01d-7a6bec3ef284","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":159,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"a422b05e-4529-4ea0-9efc-06f1a37d8995","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":159,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"dd424ece-a635-43b9-b69f-80ad79ddeea1","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":159,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"fbca7299-98e0-41a4-bfe8-4508b01ba543","block_type":"box","text":"II-121","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"49659fb1-b8ee-4bc8-ba44-aaff9002f134","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"906e8085-8d03-414b-a3d2-2b0bb39f7a9b","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":160,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"f8da5ec3-eb1c-48f4-9fe0-ab4856d263fa","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":160,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"e73f4d3f-18b7-4b94-98de-039a47796e86","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":160,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"d9d2e22d-307c-4f1a-a3f3-0813b6e6c22f","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":160,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"d8830755-c59a-4817-b03d-4ac1baa69458","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":160,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"356328ab-bae7-4cec-8dec-57e69edc0c8f","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":160,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"d219ab6b-489a-4b82-9a7e-e7ddb5394880","block_type":"box","text":"Dividend Allocation Plan","page_number":160,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"67b5dc8e-f935-4b46-8feb-c276349ceb34","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":160,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"996b6137-d8a1-49cb-aba6-fa9fda89d110","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":160,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"12516b04-acbe-497e-b36a-6d16701581cb","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":160,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"3830a013-c6b1-4ade-ac91-5c18fa85acfd","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":160,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"d560d8ca-f6f3-4d44-9a32-bf1cf6a7d9e6","block_type":"box","text":"PRICING OF SHARES","page_number":160,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"e1f29011-3ed6-420d-846f-8857047bda1f","block_type":"box","text":"Determination of Net Asset Value","page_number":160,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"6f4bf3fa-16c8-4975-b44f-1f478a2f9c05","block_type":"box","text":"Valuation of Shares.","page_number":160,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"52bb033d-5c30-4acf-ae88-d95e36c5a561","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":160,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"c371926e-1f5d-49a6-a9e1-bb92cd230c09","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":160,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"66140abe-8a74-4f71-99fc-2c6a5ea53c7a","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":160,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"ba328329-1e7d-4d97-9c16-a573d8a66f45","block_type":"box","text":"Equity Investments.","page_number":160,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"eb4da871-4d35-4079-a97f-bbaf50496aac","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":160,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"89208e77-4fdc-42c9-9402-237d9b4edfb5","block_type":"box","text":"e.g.","page_number":160,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"492c6489-6fe6-4695-8ddc-d4fd8cbe4fff","block_type":"box","text":", NYSE), on separate","page_number":160,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"ed0e7b36-c828-4d50-aca4-913dd3753817","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":160,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"aedd7206-1aae-49d7-b955-5394f1ea65ad","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":160,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"7f030227-7f94-4d48-85d3-d96f541a7108","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":160,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"7a015513-a791-4632-8d9b-57413144de0e","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":160,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"80050abd-c1d7-4683-9d2e-947a7ca2b590","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":160,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"ce2e29a0-f411-4d71-b3f6-06414a8a2bbc","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":160,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"81f62fa4-fcce-423f-a14a-f0b268238197","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":160,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"ac79743f-3277-4db9-96b2-643f2198d01f","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":160,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"21ed15c7-d26c-46e3-8029-2594e1c98a65","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":160,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"e996e3ed-0c5a-4850-ae89-a6584086c6df","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":160,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"ff49ea48-a6ed-401f-9bb2-5e987e93d968","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":160,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"e5a0611f-140d-4d92-815e-ca22e20a5fa0","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":160,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"85cbf63c-5082-4eaa-aaf4-b78100711f1b","block_type":"box","text":"defined below).","page_number":160,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"baf08caf-47fd-4953-82dc-ec044ba6da29","block_type":"box","text":"Fixed-Income Investments.","page_number":160,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"b1540d71-b692-47ec-a8fb-2288386dad2c","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":160,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"a7d99237-a099-47bd-b179-f85f1a14f197","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":160,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"9f8363fb-276a-4dba-93cd-d96c41c58ef8","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":160,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"bac9796b-b8a0-43e1-a13e-a00228c3ecab","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":160,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"347ff763-595d-478f-8009-a61bb400122f","block_type":"box","text":"e.g.","page_number":160,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"eb89ee3e-e16b-488e-a221-9074902e3247","block_type":"box","text":", recent representative bids and offers), credit","page_number":160,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"d9a8ea66-10b7-4e1e-83f3-a3ebe8b24c12","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":160,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"c6779b65-860f-4a91-840c-cc9b27b77cd8","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":160,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"53696438-9187-4cfe-9cd2-00b989e1fba0","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":160,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"20509047-e451-4d73-bdf7-a6e219522f48","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":160,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"cc23364b-b43c-41d0-92d5-2b35e737c7b6","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":160,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"ae0263bb-f1b6-4a63-af13-66b954dec590","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":160,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"c0babf0d-2a50-46d6-953d-d75262bc2fc1","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":160,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"cd91105c-7708-44db-a8ba-fe0565da0102","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":160,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"6bd9ed3b-952b-430a-a8f0-24ec24e32150","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":160,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"0794693e-03c1-49d7-871d-4256c936a07a","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":160,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"54cf77dc-5852-4aaf-aa5d-5ce3ae26db30","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":160,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"220854b3-954f-4665-a03b-09576a7b118f","block_type":"box","text":"attributes of the tranche.","page_number":160,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"e7adbe2e-5466-4925-b1e0-3749e36a1255","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":160,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"b15a097a-e25d-4674-9c59-1ec0b50612d1","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":160,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"a4073e1a-c103-4d09-9a1c-874bb81cac2d","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":160,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"b54bc96f-d629-46ad-a439-e20d1d1a3a97","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":160,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"8f60c6ce-0b7d-4f53-9fc4-c0c51bcb540a","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":160,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"ccd4c15c-4477-4a41-84d6-b7587ff492cf","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":160,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"93b3e6ff-f51d-4596-ba8e-7a9fdb9b2259","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":160,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"7923fe1d-592c-4e32-ad96-2d833d9e63a5","block_type":"box","text":"II-122","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"32567ff3-58e5-439b-a9b9-ac91ac4d12c2","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f2445c32-06e4-4b8a-b7a5-6b5c9b1d6490","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":161,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"bf1bc27b-9988-4a41-a6a8-8bf2971449a4","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":161,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"7fb756b6-3226-4c16-9c73-e58bf29ebc55","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":161,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"b5b9dd55-04a6-46d9-b1e3-0caec4e63eb6","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":161,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"57815738-ce1b-461a-a5a7-b7c670e3d95d","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":161,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"3b160cf8-c4c4-4d6a-9129-894d06d866de","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":161,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"d78cb7f8-6b6f-46f3-9785-3ebcf9863756","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":161,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"e2931439-7529-430a-a5cc-c5461cd514c8","block_type":"box","text":"Underlying Funds.","page_number":161,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"798e11d7-a729-4577-9528-d0649c8ed35f","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":161,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"9fcefa24-642f-473d-9f70-3cc18e2f2ad2","block_type":"box","text":"market funds) are valued at NAV. Shares of underlying exchange-traded closed-end funds or other ETFs will be valued","page_number":161,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"1cb9f5a7-9d4f-4ef8-b439-c68f9fd1542a","block_type":"box","text":"at their most recent closing price.","page_number":161,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"c19a01ce-e825-4278-ac21-2284b0ffaf4c","block_type":"box","text":"General Valuation Information.","page_number":161,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"99ce530d-eb42-46ed-8506-bfa7f58ce1bf","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":161,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"ce79bd7d-1dcf-42d4-92df-940336ee2883","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":161,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"ef6fd554-9231-4a46-a10c-be25c3cc864e","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":161,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"67c75ffa-1eaa-42de-8411-cee4a1fd0f50","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":161,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"123b1019-761c-466d-9668-2173526c6745","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":161,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"4436fa1f-6a09-420e-9721-13acf7f18172","block_type":"box","text":"the revision.","page_number":161,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"9c2a4c0d-9182-47a2-a665-3c0ea3cd4271","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":161,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"0914f3e1-5117-4645-8ddc-f4b31844c3bb","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":161,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"81d19245-9135-42e2-a66a-e19f99758cb6","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":161,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"70d5f133-8216-456b-9c3d-135e254ad041","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":161,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"3fb2eea7-ac53-4606-a4b1-214acae69019","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":161,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"ce0d6e69-5032-4be9-a7d2-6a78da04b4c3","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":161,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"d13b0f77-325d-4dc5-bfb2-c9163e848f99","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":161,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"c7d8a2d8-f086-42c0-982f-5c72fa72b83f","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":161,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"23db8184-88f2-466a-b364-7bd8ffe5d910","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":161,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"8d854bd8-d758-4891-8eae-00d8030045a0","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":161,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"bb1fec15-7704-4ad9-b736-30f6051bc7fd","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":161,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"cca14a84-8369-44b3-b68d-6143835e2378","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":161,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"6e222cfa-fc63-486a-9302-611372432988","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":161,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"0e862008-6916-4235-92f4-5d34af58496d","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":161,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"8ff9801e-cb73-4940-8c4a-482e27598ffb","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":161,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"bf299d0f-b431-4e4b-b839-f60256785d58","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":161,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"a44ef786-5185-4042-a68d-36b2e0947c48","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":161,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"7eb9f68c-bbad-4e6e-a03e-712538f8a96d","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":161,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"634fbea9-41b1-4646-80bd-3be514835777","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":161,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"fd7cb5ed-2c7d-431a-8002-358290542628","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":161,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"4347d685-137a-4b3a-be00-4ab0ce50ca47","block_type":"box","text":"Fair Value.","page_number":161,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"916f80a5-806a-4b01-8f2c-338a0306aeb9","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":161,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"8dedb720-528f-4e6e-a597-1537fe1831e4","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":161,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"a97859df-c900-4172-9fe1-12985a988c60","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":161,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"f7a68d4c-45e4-42ee-91c9-73d823f3607a","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":161,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"76d061b4-ff83-46b7-b44a-8e9f7f8b1b7f","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":161,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"44643921-c138-4467-a7ef-a4d694ca0eaf","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":161,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"b959ba8b-6b6f-462d-9ce4-7e2d86690094","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":161,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"6aadc5ec-4169-47a6-aa50-affc13b2ffc7","block_type":"box","text":"(","page_number":161,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"88899eb0-b578-4343-86c4-4e50adfb5b0f","block_type":"box","text":"e.g.","page_number":161,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"b297ec5d-0dce-446a-90ab-6ba04fb23a94","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":161,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"cd255d48-7fec-4d58-bfc8-1a4cacf00d4a","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":161,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"98fefea6-2965-4cfa-bf50-1c35a45b6877","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":161,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"06504ff3-1afe-4fb8-b582-b44de00e4c1e","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":161,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"11bb1e1f-e6a3-40a9-84f0-ffa74e47380e","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":161,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"5c2b5301-7226-4f08-aa3d-aad4a451d347","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":161,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"37678efc-214b-48a5-ab6a-09b9741a8bd8","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":161,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"1055c614-1bcc-465c-92ea-09b6cdbb9bc4","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":161,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"4613704b-f79f-4bca-8ceb-a250a3a08872","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":161,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"abaaf348-567d-4822-9ceb-d53962c5d757","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":161,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"4c50c1b2-ef98-4f8c-a91d-872bc17ea95e","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":161,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"f785bfb8-74ad-4044-9ca9-8761a99697ec","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":161,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"d645be78-4db0-4398-b0a3-dcc969996edf","block_type":"box","text":"II-123","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ca0394fd-3ea2-4aaf-8576-5beee7b29c22","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e6904a9-6697-4dea-a939-7b49399162e8","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":162,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"06a7bcad-2bf8-4074-8714-9074d2f6f357","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":162,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"dd04e66d-619a-4079-9872-3bb349014620","block_type":"box","text":"pricing time.","page_number":162,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"a999d928-bd4d-4e7c-a95a-b271b9f542a9","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":162,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"8d431d15-6f10-44ab-bc62-126a672a11d0","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":162,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"e99c55fd-4e89-42e1-9877-636a2a04b81a","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":162,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"86e489bb-9acb-4556-bea0-829464298653","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":162,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"0c12d24f-bc37-4e1e-9314-4999c3135743","block_type":"box","text":"assets and liabilities of the Funds.","page_number":162,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"8301f9a2-4541-487e-80ff-53ae288c174a","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":162,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"0183708a-6cec-4479-9144-1466410d79be","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":162,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"6b8ba746-752d-45f2-be86-16fa05fd781d","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":162,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"e3de08bd-7267-437d-aa68-25271a44c66c","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":162,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"bce8fb1c-ee71-4771-b8aa-d39da14511e8","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":162,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"a41237c7-4297-4180-a5a9-00c53278edef","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":162,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"82f91b7b-46d4-412c-bfa6-17863a4b111a","block_type":"box","text":"valuation models.","page_number":162,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"bded0849-f5af-4d69-a26d-e0a0e7a3f72b","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":162,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"b60cd797-a6b2-4c66-89eb-0a8072a3d775","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":162,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"d1da7724-de4a-45ed-a474-2c9330156333","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":162,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"ddc5eefa-0793-45d9-a682-5dd44fdeaa8c","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":162,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"da95fd05-e35c-4640-ac4e-1cfd9490ed71","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":162,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"881ebaf8-10ea-4e05-a909-3795bb4d98c6","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":162,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"f6bf02c9-c4e8-49d6-8d2b-306eaee49ceb","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":162,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"8d912ef8-042a-4014-81e3-49382df792cd","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":162,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"c33e90e2-aa6b-4761-a874-a257dda3c968","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":162,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"1102fc43-9bf2-4b48-a9c5-edfe3265a4b4","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":162,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"03dbead9-6ea4-4fa0-9d53-fc6528789081","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":162,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"4345a5d1-c641-4bf0-8dd7-171ad4378c71","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":162,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"24b05242-0161-4465-8d32-7ab6b4774af3","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":162,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"340b053d-cf30-4780-8751-d0b53b65b20b","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":162,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"12cfd447-4ec3-4a76-84b0-83421ec18a5c","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":162,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"fa7ea9b8-efa6-4ca9-89ac-e9228626e6c9","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":162,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"d4295b39-7249-43bb-8dd1-e77cba901962","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":162,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"189cfd72-a4a5-4b8f-9ba3-5d615a7f2f49","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":162,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"f705cef2-3743-455b-8b4c-4039e9756db3","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":162,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"38ae063b-e623-42d0-bce2-c96d49319665","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":162,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"572186e3-8dc4-4b93-a29f-1a0ba6ff26b6","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":162,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"e9ef9231-71bb-418b-81b3-05b0cb55720a","block_type":"box","text":"par ty determination of fair market value.","page_number":162,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"6be98130-7917-44b1-aa42-be39b4c75265","block_type":"box","text":"Computation of Offering Price Per Share","page_number":162,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"cc5c9034-87d0-47c9-94b4-331531f1ab1c","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":162,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"578f3770-19bb-44ce-8c92-b8b70b26b1e6","block_type":"box","text":"the offering price for shares of your Fund.","page_number":162,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"3792554b-e7a8-4c70-ada9-a84e77f109d5","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":162,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"7d4d8a95-9cb0-4c3d-8e68-11852270a061","block_type":"box","text":"Transactions in Portfolio Securities","page_number":162,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"0d4367ca-132d-433d-b895-92d8322d1944","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":162,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"fb601dd1-6e69-47d3-a552-ab5d6cc1f56d","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":162,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"1dd961ff-79b1-4936-a9b7-4759a70a478c","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":162,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"e3537266-bcb6-4c80-b19b-b978d28dfe1e","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":162,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"f6c56bc8-2c9a-4749-ad12-31ccf45327bc","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":162,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"5ed40189-522d-45a7-8efc-43cd5c34ade0","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":162,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"6bf1ebe7-d996-4201-a7c0-0f8df6d7a188","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":162,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"cab8325f-8e90-4ed5-93d2-485c2d5dab9a","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":162,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"092c5127-2c6f-4b01-9ad4-5078088d4473","block_type":"box","text":"II-124","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3a97b56b-4e42-4b7c-a381-3cbe34244a3d","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e0c9ee75-42ef-43d0-aa16-a6b9ee7148b5","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":163,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"334874f8-21d4-4c9d-a966-1ef626240628","block_type":"box","text":"reasonable in relation to the services provided.","page_number":163,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"7735307c-f6b0-4b24-be9b-50d7ea4137d3","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":163,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"8a4404f0-103e-41ab-b80b-52404beeff52","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":163,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"2f9201a1-70fe-4b89-9b6b-9f1514fc5b5d","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":163,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"782195a5-c66a-48dd-8259-ea333cc330b5","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":163,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"d8a0be4f-7a78-4d34-b22b-27bee2b783f8","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":163,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"330976b5-32e3-4cc0-aacb-1e1ed236e55f","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":163,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"bea2f7cf-a5a6-4b62-ad80-2d9dfdb6db82","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":163,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"8a3221e0-f9c3-422b-a832-839ef955aa34","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":163,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"c01cad74-16b6-4789-9008-d5cfc9433395","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":163,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"696c8c3d-e9b9-4a79-8a3d-2a664118ef41","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":163,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"b9d835b9-f642-4a07-a976-e5a0f66fa35c","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":163,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"72c37a3e-7893-40c0-bea8-8a1d6170d93a","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":163,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"f4a8c381-5c1e-4332-97c5-0dd8cd505def","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":163,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"480142f3-b8fe-4bd4-a24f-b52402c01014","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":163,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"2be97e31-0bc3-496e-a41a-9c21123cd3f7","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":163,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"eeb4a544-2a9b-45d3-885d-73450b31830a","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":163,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"aea34aa4-192b-4ccc-a4b5-d5c828e13849","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":163,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"3a5cfff0-7bbd-4dec-bcf3-66dface8d996","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":163,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"b26387ca-d7ea-487e-af93-593335f57589","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":163,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"0fc70c4a-19aa-4b3c-aac1-7b5edf7dbac5","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":163,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"449168cb-cd8d-45af-9318-ec305f262c0a","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":163,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"877b66c9-3967-40a2-887a-f380d36f933c","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":163,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"5938684e-e963-43c9-852d-b43fb8fa7a8c","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":163,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"c6aa4a5d-6908-4a05-a937-c538099a5088","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":163,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"6ebd43e7-5d06-48b3-b441-be3a51e68483","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":163,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"1df381cd-b6c6-4cfc-b1cb-0db200db2e6b","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":163,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"8c514c09-7a15-487b-9cb5-e2a135912faf","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":163,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"9bccf7c1-4daf-4f94-9ec4-a86f5965d368","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":163,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"8f39e80f-f375-4d6f-8344-232a5614cd1b","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":163,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"9ec30aec-ddda-473c-b411-8a5dcf193add","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":163,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"c3d3fbee-fd49-445d-9cf4-72ac0b257243","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":163,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"2de08f8f-de46-4c8c-91e1-581d85c68b3f","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":163,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"a3802359-dc66-46dd-9cca-6321fbadb11b","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":163,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"2094a5b4-02d2-4dd2-bc9e-b68c6854f0f5","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":163,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"51fe8766-5c87-490f-8e0d-b0822d74dd05","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":163,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"971a04a8-c8d1-4442-8a5a-685f7501342d","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":163,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"427323e0-ace4-4a6c-b3a8-dfaea4bbac6d","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":163,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"de4a2064-edc3-4dec-98b7-d0f1bcb934a8","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":163,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"bb556be4-e188-46b5-bdab-1ba0b6e6beec","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":163,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"5ad43724-4992-4ab2-8e07-4675281562ee","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":163,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"accbc165-81c9-4a91-947d-dc2061b2b1c4","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":163,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"1fb727b1-a8db-4fde-9fa2-d22532a97a0b","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":163,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"24e1f4e2-9c29-4870-8d23-c89a84634899","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":163,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"e67b0c21-38e1-4c45-9bf0-4e573b9a1449","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":163,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"d5ffa0d8-ca82-49c8-8339-b81264deed15","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":163,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"12382f95-37bd-47f0-9e00-63fb76137a35","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":163,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"7c97ee52-2db9-4bbb-a4d1-6ddf6ec45e3a","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":163,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"1c99e652-f192-4f67-987e-7660506c2ab1","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":163,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"07d0653c-ac10-492a-ace4-cac68894c8d5","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":163,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"fd152ef8-2ca5-4ff7-87b7-2e40bd8a1051","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":163,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"a1e8c5a2-e2a1-4950-9f42-542802c20dc5","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":163,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"12331f58-3900-43bb-aa10-ec175dee65d0","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":163,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"dd1da299-92af-43de-8448-c021d3527818","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":163,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"3d1f3fa2-a061-4f77-b361-d16204198a22","block_type":"box","text":"II-125","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3e6f16f9-97ab-4998-883f-f5a2b2b3e5c9","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5524d1ef-f223-470d-8b43-2b861bde6b16","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":164,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"20224d5e-4547-432f-a6e4-53ba1d647048","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":164,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"8cb18f36-5fde-4ea6-8aba-0a3b27ad1e95","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":164,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"c8b8a7c1-b3bd-4871-bab3-85d610b92249","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":164,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"af878682-a364-4be5-86ff-8839eacfa749","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":164,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"9ceb1258-ac2d-4a16-925e-b52a2606bfe6","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":164,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"d7476c48-c82f-4da5-a7e7-8a10649b6d57","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":164,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"f4446601-6d3e-4039-81ae-e113149d8f33","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":164,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"62e3c446-37f6-4efd-9d3c-fa8557492fab","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":164,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"133eae52-bf96-433b-833b-5a3f6a22c768","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":164,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"616c40ee-df66-4dfd-a04f-41f23a9c0127","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":164,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"b441af36-97a0-428c-b6d5-4d41cb0511d6","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":164,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"0e5305bc-e24e-4c67-a62e-5ce9c76f3c2b","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":164,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"1ef60402-fbc6-4462-8cbb-1d2066c74025","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":164,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"dbee74c1-3f3c-4021-8905-c36ad0cd47e1","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":164,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"4404a288-36f3-4e2b-9a9f-cd7cce9e7049","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":164,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"d7e70c0e-3f20-4588-b906-c395f76c5ec9","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":164,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"17bc884e-e9d4-4046-b532-591250584d98","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":164,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"fec288c2-70a5-4702-94a2-f5b100e28f7e","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":164,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"eb969a70-d680-4bde-af3d-6441bcdec87b","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":164,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"42e5b019-0053-4ed6-b27d-d9b2e6dc6f79","block_type":"box","text":"brokerage.","page_number":164,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"1b7aa3d0-b8be-494d-92cc-3227933c6520","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":164,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"d0477e30-c536-4a33-bb70-aa6995bdc8fb","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":164,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"48cb5b6a-4abf-4b9f-8fa0-20b54bdc7d59","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":164,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"d9c6dead-6160-4bf5-b0c4-2d520b47a543","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":164,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"15d62968-ee65-4cde-a4b6-4c068282f1cc","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":164,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"0d8e95a2-4fe4-4670-b6b0-b97696e2db78","block_type":"box","text":"Section 28(e).","page_number":164,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"e8748a54-cbbc-43d7-9207-24500c470747","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":164,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"7b0f7f50-16a9-40b8-87b0-d095de3a06dd","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":164,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"194fd7e4-c1a6-4d96-98ae-acffc40eb8d3","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":164,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"78ac9332-387b-4c95-ac34-6df9e1a93d69","block_type":"box","text":"execute transactions for those mutual funds.","page_number":164,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"025bf786-fd45-4aee-b3f3-8e92d24e5226","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":164,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"7c2448fb-d7ee-43ed-9196-1aef07f35bba","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":164,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"5074da61-e42d-4bcd-8632-d5103beaf927","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":164,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"72b366b1-e204-423a-87c1-1127726a6ede","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":164,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"14a56776-1bbd-4542-893c-bbf111628705","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":164,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"e08dc809-73ae-4ec8-85b0-554c964c477c","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":164,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"cb6e2b17-a56b-47e9-a21d-ef4db8f7bca9","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":164,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"7c661879-fb9e-42c4-8a77-4a82d12ddcb1","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":164,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"1a26dfe6-2dde-4b40-9858-3a1d26c0c159","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":164,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"b059cc11-81e6-473d-89e3-0b368c1bd70c","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":164,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"061cd10d-d18e-4239-960b-8afa1e94028e","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":164,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"fab225f5-6492-46e5-9283-614c7a7b9813","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":164,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"04832d78-2cae-4b30-98f4-87756cd8a93b","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":164,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"ee08070a-5d99-4a18-bee3-6affecfbd737","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":164,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"db5990f5-7ed2-4dfa-851c-62ef2e0aee39","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":164,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"ee9bbfda-53a3-4ae6-b840-67eed582a773","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":164,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"99daa147-1ac2-4a87-9532-c5f3df6bd60b","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":164,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"6d6e5cfe-0258-47a2-96c0-6004fc575457","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":164,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"56f63a31-6031-4913-b7ec-ff27c9bca786","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":164,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"94f91024-6106-42f3-9ed5-a49af7bc23e4","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":164,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"e06b379c-1aa0-4203-86cf-046785cad6ab","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":164,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"ae861926-3880-41e1-818c-5f8fb0e426c7","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":164,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"4b7c9a74-98c1-4dde-9864-b538491ccb79","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":164,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"207c12db-fdc3-41a8-bfde-f1ccb828a5a3","block_type":"box","text":"II-126","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b02524a4-ce35-4b51-8159-dd0577d9db72","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"216e06ad-4c7b-437e-a05e-dd70aaf74535","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":165,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"aff8b510-8b4b-427e-947d-1440fa1094e2","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":165,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"6de46f29-34e5-4f14-9cbd-51f8dfa5d9f8","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":165,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"9c18814d-cf6f-4f20-b66c-ddb93d6ff19b","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":165,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"635644ed-c40a-4316-9c11-3a729c4f589c","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":165,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"8918061b-617d-4c5e-941c-9ee999aa5e6b","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":165,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"edc31b67-826e-44e5-b0c2-49e729ca004d","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":165,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"80af1831-0e3a-4608-9ecd-78ca8cb16ceb","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":165,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"f8971397-8c35-4a08-bb05-4be3d30dc9c2","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":165,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"b54eafb3-4975-4127-b2c9-1ffed776c1ce","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":165,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"fd7c025c-be2f-4f0f-adfd-bc10df1bd8ba","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":165,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"74ea0d54-934c-4b0e-b548-a160801b7741","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":165,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"7f7403c0-62d9-4da6-b2f6-3663ab99dd0d","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":165,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"9bacf8d1-6e13-442e-a7df-91ac61ff0349","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":165,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"ad1bfe0b-965c-4ae3-990b-9162032ed19c","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":165,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"c23bad4a-003d-4f06-8fe4-469316e78782","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":165,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"fa1519e6-26d8-4fd8-aa01-fa25c08ad1f6","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":165,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"172beccf-9b0e-4297-86a3-15679af04df5","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":165,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"ab6fc640-1974-4945-a9c4-69f8eb3f5a1a","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":165,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"2d2cd4cf-9987-4d52-aa91-887c9c117744","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":165,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"df23bca8-85fe-4f42-8015-8e90b2804b6e","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":165,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"5b673be4-bc91-4cc0-8833-6080cba2ad42","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":165,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"246d6596-1302-44a1-b46c-78a0ce76f248","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":165,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"3ded58d8-ac17-40e0-a399-7438495419be","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":165,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"1b568d8e-98ce-4b2b-b603-d3dc6f6c3c36","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":165,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"ea446661-5c32-40e6-a9b7-4ce2276784e0","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":165,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"cacc8b1e-10fa-47c7-b653-8e4a75e3362c","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":165,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"ae84e8e2-d112-4578-a364-e112cdec6faa","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":165,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"b8c085ee-e8e0-4be7-aabf-08272db60707","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":165,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"ad2464b0-ecbe-4e0b-acd8-a2c3b9a42517","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":165,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"acbaa0fa-4f89-42f3-8f7b-d73ef0abe2fc","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":165,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"0f8be5a1-c13b-4180-92ed-d5a40e5a7fcf","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":165,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"a75a2f80-078e-4061-ad68-5af1b3c47162","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":165,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"fa428780-ce08-44a0-80d9-a07551b1c05f","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":165,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"f64c0708-6ebf-4c21-b40d-181da99bc36d","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":165,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"be6b660e-3509-4e13-9b61-6ce3ce284569","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":165,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"7e12ca14-9da6-4987-a416-f6b3b0efad0a","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":165,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"b2b3974a-53c9-44d2-9e83-9ae28586083f","block_type":"box","text":"accounts and compliance constraints.","page_number":165,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"583d4c76-5356-4a9e-8836-e61551aa420c","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":165,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"4ab54b9f-7a35-4494-92b3-cbff006ba713","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":165,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"519c7988-fd83-4ec7-a23f-fc9d2d8d0fe7","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":165,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"fe72a1c6-a432-44f2-a265-03e0a216bd52","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":165,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"50363d50-f7ad-4894-af06-074540ea480c","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":165,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"dd96a5ff-4f5c-4aeb-89d0-4b09907a02f4","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":165,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"6f06abb5-8fc6-4229-92f2-caccaa95d1c6","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":165,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"7cf29a00-0fd2-4cfd-858f-653b4281ed2d","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":165,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"bc3b19d5-cf97-452b-b832-77a5523d0cba","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":165,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"94d8bc3c-8652-4768-88d6-fbf52ee30480","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":165,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"341e65a6-4222-4380-a19d-19e8966f8c46","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":165,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"74129c2b-c169-419d-84f4-66495ae9895d","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":165,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"b9580877-6abc-449b-bb5c-71b0d9f4cafd","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":165,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"8d98af55-fc7b-4e07-a9ac-63639fd22606","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":165,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"b4ab2bbe-4237-40c5-97ef-27d47042f5b5","block_type":"box","text":"clients may be used as well.","page_number":165,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"4c0b9117-310d-4e66-8bb1-cddd4ad1a2e7","block_type":"box","text":"II-127","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"996c69fa-0f01-4fb3-90af-ed4dcc37457c","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a02eda34-5b7c-404e-8121-8071c366341e","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":166,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"baeb51b3-f579-4e42-badb-b2a8b666fedf","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":166,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"04639c39-4457-430e-9800-8bb2bf74d01c","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":166,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"aabc8fc3-2b95-473b-985f-e7ffa51d596c","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":166,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"fe8f433c-2474-488d-b39d-395973ce67b1","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":166,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"889f4d5b-32fd-4d07-a379-15ee3088a3e1","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":166,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"7661ec40-a979-43b7-aaed-49ab247f2a81","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":166,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"6fecc992-f730-4e90-a06e-5f5b2348ce2f","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":166,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"e8452da2-2939-41ea-a1ba-71287b1bb08c","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":166,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"f905c8c8-76c7-4539-a633-5263950366a4","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":166,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"a08e4891-d6fb-4e9a-ab8b-68664330527d","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":166,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"a59d0aa1-bf45-463a-9cd6-684212f6756a","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":166,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"2fac31fb-c111-43da-a6b6-be53b08b0c46","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":166,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"fad4b3f3-5d48-4237-9b54-0bf9ea22af37","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":166,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"49eba22f-7562-44f7-8dfa-4a40507080b2","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":166,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"1b56ccbc-ffc2-4295-9dc7-0d3f8b0ddee0","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":166,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"363a1cb2-1dfc-4886-ace3-ee8a25a2e371","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":166,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"7b462f12-076e-4548-9178-0df18402df01","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":166,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"2767159d-37c9-4680-8cd9-43fbd508020e","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":166,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"4866b346-247e-4b88-9b72-6c979c783ae0","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":166,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"a1ea5c5c-50e6-467f-a58a-7a4229927e23","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":166,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"8dad47af-91ab-476d-b57f-6b4728266e9a","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":166,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"540df77b-5a2f-44ff-bc05-ba256fa813dd","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":166,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"2eacbbd1-fbf0-4ce2-b680-377e787020a0","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":166,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"accacfd2-62a5-4926-9455-d2bedc609adb","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":166,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"1e8b897f-4f42-4f7b-bd4f-cc78cc538f0f","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":166,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"40279af5-f3e3-4ccb-a9f2-68550e712e19","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":166,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"f3ee5680-93a7-4387-9bad-84b726153ad0","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":166,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"9998504d-b14b-4e4a-a86a-acca40cfcbf0","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":166,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"97dd4129-84f4-4c8e-8fd2-eb36ff765ae6","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":166,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"b80f72c1-21ba-4cdc-af71-81dd5b634d96","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":166,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"a8c655bc-2fb8-4434-9982-6c776acb553e","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":166,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"5d300b2b-9dd5-4f0f-ac64-f276e3214e6a","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":166,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"8a55a9d8-ca22-46b4-b970-53c551191b54","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":166,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"dd95c758-fa09-453c-a2e1-392b1e3c9efa","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":166,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"930f5428-9223-4886-903b-e17dab00788e","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":166,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"a430ad24-d16b-481d-b7ff-a8696cd3a754","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":166,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"4cf3e1d7-3526-4cca-bf67-c451c1e34493","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":166,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"54c2cfcb-8fe6-4e02-8f98-b4509075c432","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":166,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"47f796d3-c996-4b3c-95cc-e79b9e00e198","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":166,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"9083d401-125e-4b97-a241-814a973a4061","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":166,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"e28fa455-3650-4515-8f98-ed4f507338e5","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":166,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"14cd78ab-0237-4bae-8d10-a2d97030dadb","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":166,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"4f185110-cfd1-4c21-a292-3e37b70ce17c","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":166,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"d155a2a8-a374-43b8-846e-16153c9ee58d","block_type":"box","text":"Portfolio Turnover","page_number":166,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"f0f33040-4c69-402b-80c5-84e7e87a779b","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":166,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"6d64524a-cd85-4365-87cf-018122c0aa6a","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":166,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"61e30160-840b-437f-ab81-a867716c031c","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":166,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"6553d9cc-e23b-483c-baba-9a5271af6463","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":166,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"700ecca1-a3e2-4c83-ac8a-c43ef173bbac","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":166,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"64d8b2cc-7aa6-4d0c-86fd-fb803dbfb9db","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":166,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"66907a20-9cf1-4275-9f85-0e2601b83c38","block_type":"box","text":"II-128","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f09c9ace-c39b-46f2-a920-a159f2a9260b","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"46d9fbba-3faf-43c5-aa33-687ac496d4a6","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":167,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"f8ea2c17-7a0d-4013-81cf-317b278fd098","block_type":"box","text":"Dividends","page_number":167,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"fd9e17db-2e33-446b-a229-3bb5efa1d432","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":167,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"0324bf6a-5646-4940-b00d-aab5ebad22c4","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":167,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"27baa081-5922-4862-b824-dfe701b4658b","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":167,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"79162796-465d-497e-b4da-7660b6273169","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":167,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"9bae5414-c4f1-4189-9fce-5c87e72983d2","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":167,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"11a0d07a-801a-499d-a82a-0461670adda6","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":167,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"4273f54d-f0ee-4dc4-ad11-c92b695428b5","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":167,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"a9f07d67-17a1-4ef8-ac7f-e7c1d11de3f1","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":167,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"abf16d1b-221f-4bbd-a835-83d6b298603f","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":167,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"15de92b3-6d0b-4748-b3cc-c3e0a1faec90","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":167,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"bca4d08d-a690-4907-94fb-fc34f9e9c38f","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":167,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"2bd8498a-1728-4020-a991-ee85d7979383","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":167,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"567a6b77-0fe9-4ac7-a914-8481f455ac9c","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":167,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"62ac3c35-664f-4032-bb1a-cca6bd4e8d81","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":167,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"a40cb121-5cf8-4686-813e-5351d0bedb44","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":167,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"db89720a-5af6-465d-bb50-1b91ebc1059f","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":167,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"7575c923-7a56-4d2d-a97a-978d0f55b9d3","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":167,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"6e86e5e0-98c3-4cbc-8043-a52ed83cd8d2","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":167,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"b8204fd5-e708-4d3e-ac9b-66d3bd673d99","block_type":"box","text":"Taxes","page_number":167,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"1e213efe-ffef-43e6-9d69-d677edd57397","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":167,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"4534dbf4-59a4-45bd-b889-4208b24f11d8","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":167,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"5a895397-71b5-49af-80c4-4a7b28460036","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":167,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"4a8a23f0-4019-4177-a405-ac61b26fcb9d","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":167,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"2e4309f5-92fe-48b0-9f6c-ef56ad50b660","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":167,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"fd68363c-1a98-4a5c-9e32-d1947da8ce98","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":167,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"e004a967-5057-4915-9325-e93004c4ed11","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":167,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"30506e79-6cdb-4391-ba11-75ca3c677b6f","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":167,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"55af262a-d813-4c31-9a07-165249c3eabf","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":167,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"78f596da-dc1e-494e-8688-6c4409c6b158","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":167,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"f8da0739-8d2f-47b4-b22f-7cb7e1eaa7ee","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":167,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"d54affed-0266-46ed-96e1-7c6d878f256e","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":167,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"94f73aa5-07fa-46a2-a1a7-126e09d19b18","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":167,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"7b0d5d18-9096-4702-b448-b745ed5bf773","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":167,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"b01c5af9-009b-449d-9a78-4df950f9b6f5","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":167,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"26e4546d-adc0-4572-8ed4-b4d53d683f50","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":167,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"9f3a2b18-ab07-4104-b9ed-feb258c68ce2","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":167,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"6abee5e1-4d53-44ae-9463-89b134630908","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":167,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"46fdd3d0-038c-4774-ad69-7fd9c40a5a6e","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":167,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"93566dc1-77ab-4e25-b25e-e6ffa3680258","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":167,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"b4a67e89-f9d3-4303-a2b4-d8cc53346ad7","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":167,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"f8f41868-f13e-4436-bd52-a73a26286ecd","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":167,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"80e52020-2f30-4fdd-b329-968143275c91","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":167,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"9e2f5ba1-5b69-4b8c-9a9b-de5ffe3e2c50","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":167,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"70cfcb44-f2ff-4f32-b26b-820f338aac55","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":167,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"55624436-3638-4d4d-bb57-3eed0d575e68","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":167,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"8ffb552d-f48f-49b0-9650-3f7323130cce","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":167,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"d8a5b29d-4af4-4bc4-907a-196da3ce10ca","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":167,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"3e056239-a662-4768-9c9d-40c84f4b0fe1","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":167,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"f33009d9-bf1f-4894-a492-1415e2882f4a","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":167,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"073d90c6-9cb2-4e83-8059-a3a1d254521b","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":167,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"0ee53a3e-324d-48e6-8472-8d76362df2cf","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":167,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"918edc8d-fc7a-4e8a-bb36-be088a627727","block_type":"box","text":"II-129","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"41256bf8-3659-4db6-aca3-8d9fae02ee49","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8b5879ce-4d76-40e4-aaa9-6b408b36d5c7","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":168,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"f55dc5b1-ede3-4275-b1ff-f44807548680","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":168,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"c9d0bc7c-e7c4-4ab4-8df8-24a47e666d1f","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":168,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"9d271dc8-a9bf-45b6-8f3c-351bfe15ec65","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":168,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"5be7c8e0-6f56-4604-82d4-1785309a1964","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":168,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"8785b52b-69d0-4c00-bdee-1939a133fbd6","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":168,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"fbb63333-5008-46b0-a59d-899f270ac156","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":168,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"46a640bf-6230-46d1-8a54-6b9d5b5018be","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":168,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"38139844-c900-4d6d-a895-87df0b7f1d22","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":168,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"1249fb2c-6cad-44f0-a9ee-45c2bb222ed1","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":168,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"348713c8-9c24-4028-b6d2-a475036e77bc","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":168,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"976d74c3-dafd-4456-9c87-dc95987536d0","block_type":"box","text":"limitation.","page_number":168,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"208070de-ec34-42df-baab-009aecc8e2c4","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":168,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"94fabb89-9629-42cc-80ce-cf595bbe8aed","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":168,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"1fc70b0e-0ebe-4e4e-ab9e-b4971fdbcf9e","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":168,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"8a491058-d4f3-4fa6-8b55-5d6c556326c0","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":168,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"df42baa4-93e0-4cfc-ab29-e1d636482ed5","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":168,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"01ed90a0-7cd5-4870-9d90-5ef844f1caf3","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":168,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"d1dbf661-3d5c-4889-a3a1-ea14d1ed8a1d","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":168,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"c641dd9b-0b97-457a-90a7-e743084f8898","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":168,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"fa462e85-ab81-47f1-8762-eaa6f06c3cfb","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":168,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"8b8e3f29-926a-41f1-abac-8403e7df4981","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":168,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"ab6793ce-bf24-4b6e-a85a-7fa46a43c663","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":168,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"e20eaa65-19ef-4d3c-9c53-2bacebdbe321","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":168,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"ef5492f1-fe62-49ba-8770-8ed2a5a3872d","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":168,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"078ca76f-2098-44ed-8fe4-916d9f1d0a04","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":168,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"6bf21398-d9be-408c-8f21-eda54921ba1d","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":168,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"c3f057dc-a870-4e35-a880-9abfa49f4824","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":168,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"496a7d45-bdb5-4103-9b2b-db0420a46de7","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":168,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"ae1c9c07-5cc6-45a7-bdaa-7259efca62f5","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":168,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"26f0dfaf-467d-4400-9b8a-cc20c4c79cb0","block_type":"box","text":"constitute “qualified dividend income.”","page_number":168,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"726c2c7c-9e63-4c63-8063-428440a1414c","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":168,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"b2800836-bf53-4634-a40d-e58162121032","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":168,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"133cd03f-3517-42f3-abd4-57e3f2eb7cf0","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":168,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"c0c2e5e4-fc67-45fa-8b55-7da78fff8323","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":168,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"68f216d3-b462-4a9d-8622-4dcb78c573b1","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":168,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"836c8406-a83f-42f7-8879-9b8b432f063d","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":168,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"c6872aea-b11f-4dbd-8abf-157cc4195dc4","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":168,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"4e3c4f7c-9dcb-462d-a7b4-5d3135d1faee","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":168,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"2a6cba4b-0f02-4ee2-919c-69bcb2f7e17e","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":168,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"cbef72e1-0123-4f3b-8d66-cd0f2f18bf78","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":168,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"fba2d569-8961-4fa1-8516-c7b159726f2b","block_type":"box","text":"against their taxes.","page_number":168,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"d7e70e2b-64e9-4e89-a4ac-70f22dbbc868","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":168,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"b0ee2d5a-44f9-4e0b-9521-f8dcc31327ae","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":168,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"df07db1c-0dc8-45cb-b878-1a8052761554","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":168,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"40d1abb9-496f-4202-9179-028ce6856865","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":168,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"0cadb587-d0b1-4107-b6c2-8e4a4d73766f","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":168,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"c9df934b-deac-4bb1-a5c0-5d212cb6b2cd","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":168,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"954b03e2-bc1e-4993-bdcd-1ab31c4f7af7","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":168,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"f4e0783b-6bf6-4cb7-ae63-412b15094a43","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":168,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"ab2cb722-fa46-4890-9379-0be74c5b890d","block_type":"box","text":"dividends received by the shareholder.","page_number":168,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"4e2d7bfa-da1e-4969-9b66-0838c7ea5c2a","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":168,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"8c7ef265-cca4-4be9-b8cd-2c5034929ad5","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":168,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"14749b06-fb8c-4fa9-ac27-4edf9b505e19","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":168,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"2f0193c7-5828-43be-b01f-d76e0632eebd","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":168,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"8ee54086-0bd8-4384-a2b4-d1ab3ce846f6","block_type":"box","text":"II-130","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"44421650-7450-4844-b4dc-e79a7485abb7","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4f01c18e-fd12-425e-802f-16b6b52adfdd","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":169,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"63c55fe7-36a7-44f0-8072-ec82579f8b0f","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":169,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"3f68d94e-8f23-481e-8d05-9e01c5d2c5d9","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":169,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"ca87c00c-c1c3-4ead-a5af-ca8ccda589cb","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":169,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"73c0c041-3304-4716-b95d-c3572a7f5e4c","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":169,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"d9efe65e-9b55-4c37-8044-6c55dab03769","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":169,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"70a17020-ec06-40cc-ad8c-989419c8743a","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":169,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"0641754b-df9f-4344-b470-bc792b46d102","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":169,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"3ec05711-13bc-4fa3-83ca-79d1f540296e","block_type":"box","text":"taxable year.","page_number":169,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"7d9f6236-5912-4461-9938-a95af808fd8a","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":169,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"c314556e-3656-4c41-a8b5-47ca9f446618","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":169,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"87c8cee2-a289-4b95-b678-7c879e0df4b6","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":169,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"bb499e7d-085b-4453-ac2e-c88d1894926b","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":169,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"64701b2b-b161-4c1a-835e-8927efc4ff65","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":169,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"697c485b-a13f-4d2d-a1a9-3c8959417b4c","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":169,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"5f125aa9-0495-43d2-870c-45fadb219dcc","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":169,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"f8ddb3bb-35e7-4660-98c3-b4c8397bfde2","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":169,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"7c812e5f-0c42-4506-aefe-2b07b089a4e1","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":169,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"62ada6d8-b4a1-4254-8db4-a25e85df7da9","block_type":"box","text":"A sale, redemption, or exchange of Fund shares may give rise to a gain or loss. In general, any gain or loss","page_number":169,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"745572ea-d365-45a0-beb6-c0e13f574608","block_type":"box","text":"realized upon a taxable disposition of shares of a Fund will be treated as long-term capital gain or loss if such shares","page_number":169,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"955ad98e-d770-4f2d-9cab-d66c53d39ff0","block_type":"box","text":"have been held for more than 12 months. Otherwise, the gain or loss on the taxable disposition of Fund shares will","page_number":169,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"63aea951-4783-423a-a478-8d7bed63c689","block_type":"box","text":"generally be treated as shor t-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":169,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"2efa041c-b959-4437-b07c-c45ddb4e764f","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than shor t-term capital loss, to the extent of any","page_number":169,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"94f455cf-f984-4dbd-a6ee-09a184b05ba6","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":169,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"9c31cd3b-30d5-49fd-96c8-17f3d2dbdc8c","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":169,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"3d64941e-88ca-4fa3-9969-371f96e23142","block_type":"box","text":"plan described in section 401(a) of the Internal Revenue Code should see the Fund’s Prospectus for a discussion of","page_number":169,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"e4043bf7-0bf2-46dd-977a-f5793e68b967","block_type":"box","text":"special tax rules that apply to their investments.","page_number":169,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"79013f56-5dc9-45cf-8085-ca4b6795d7d1","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":169,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"0a6c41c3-911e-43c2-9692-6b4905e62e57","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":169,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"5d82bfe1-2ee6-460a-b483-35d63a2e09e9","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":169,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"4d522455-039c-42d1-aff8-9436a46d41b4","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":169,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"5ab8c5ef-3986-4d45-9a36-6bd693cde332","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":169,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"4966a361-63db-4dc7-ba9d-e4cb24e0d7d4","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":169,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"4bdcfbc6-3087-4b8f-96ee-d5ef12d1c61a","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":169,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"c1f2e197-c87c-4bef-948c-ca939e5752e5","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":169,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"395ae660-5835-49d6-86e4-803adca037d9","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":169,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"88cbdbe7-1840-4db2-a2e3-52bebdd476d9","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":169,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"35a02004-5fec-46f9-9e1d-fd106d817665","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":169,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"8fe99006-a49e-41f6-920a-ba87d96b6427","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":169,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"90585988-5e9c-47b8-a9d7-1daa20849c9c","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":169,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"4f3aec03-e47b-411f-874f-491766217035","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":169,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"f7333dd3-1407-40ba-8c4b-11e3eafa5895","block_type":"box","text":"redemption of such shares.","page_number":169,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"d420e360-cd67-46d0-a1df-a1d0ca680aad","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute por tfolio securities in kind for the","page_number":169,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"d06d22c4-fb1b-492c-8e2a-1e981423f45e","block_type":"box","text":"purposes of por tfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":169,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"bcb524b7-00b2-47c9-ada3-ee54dff3f8b4","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the por tfolio securities it distributes to the redeeming","page_number":169,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"4193ef1d-4ee4-435f-8e25-0a3dcfd7acc3","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":169,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"e863e180-72eb-41c4-a4b3-f928667d1350","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":169,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"433edac5-f153-4209-816f-26f4e619acb7","block_type":"box","text":"capital gains as described above, the Funds do not employ a systematic approach to tax management. There is no","page_number":169,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"8fd0ccb2-bc4b-4a2b-aa29-dceb91f46a8e","block_type":"box","text":"assurance that a Fund can or will be successful in effecting any redemptions in kind and shareholders should expect","page_number":169,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"d9d656a8-ce6e-42c1-bdd5-9d2a03826af1","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":169,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"3a2bad49-00c9-4a3a-b56a-49dca402102a","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":169,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"55279d64-0250-4e1b-a646-9db6752d794d","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":169,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"368f72fe-b17c-42f8-967d-d969213752c5","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":169,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"f27c2381-0cda-448e-bd5a-ec130406943a","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":169,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"cfa8af83-c3f5-44b1-9880-91c39aa0c047","block_type":"box","text":"II-131","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"44b067cd-70d0-4cd1-bb70-2cd556db9e2a","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a7efa53-bfc7-4ee1-90f3-27fa9038627d","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":170,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"409d6e04-c33d-468f-aa5d-2da8c134243d","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":170,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"814380d4-f115-4655-997b-fb72fac22700","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":170,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"c91632f2-a546-4506-96cb-1f748950f900","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":170,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"0443a5cb-b25d-4d05-925a-844292b1af03","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":170,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"69fb0210-eb54-43c7-929f-2d21c7037274","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":170,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"61f03635-b506-49b6-ad2c-6999a782e66f","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":170,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"c701d038-54e0-472c-b767-a11b9d1d2ebe","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":170,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"77869d06-ce43-48cb-9d9e-49cfa68ea1f8","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":170,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"23668dbc-db49-474d-924e-8f236459f37c","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":170,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"c8024155-e196-4195-bd45-ed43095cfa7e","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":170,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"7c28b395-f357-4b59-8d7e-25c5d423c87d","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":170,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"fe5d75bf-ede0-4118-b84b-909dcef787b8","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":170,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"9adab20d-700e-4368-8ba5-496ac3a55f0e","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":170,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"8bd075d8-73db-4fd8-9cd9-4f0f622f7ba7","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":170,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"c8d255ed-3bcd-46b6-b504-408a191bebe0","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":170,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"ad1745c9-a74b-4742-991d-017db9372fd4","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":170,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"4a3d168c-ec6c-4236-916c-5752d33ec300","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":170,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"bd54d827-c4f0-4f7f-9bd3-bcde07101ffb","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":170,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"048de8a1-a46c-430d-b997-9ceb5ed4c0e8","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":170,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"69156b13-c81b-4100-acfd-144c511556a8","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":170,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"99fadc1d-a65f-4b9b-8901-264988cb4d04","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":170,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"48a6e8b4-8e84-4e7b-8540-b7bf6f9ff673","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":170,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"ce2b77ca-b135-41aa-8d29-13e7df611988","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":170,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"6c370279-0d3b-44af-a78c-296955716b97","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":170,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"c526d7b2-83ba-4ce3-a288-b73542d17bbb","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":170,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"85198707-55ba-4205-9b05-eeb5c96f04f9","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":170,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"d69e37ca-fbd8-4fca-adb3-732bff9f12d9","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":170,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"d34e48b5-a509-41ca-a27b-336d5714312f","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":170,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"05a1fe16-41ba-48bf-af89-85b1aeb52ecb","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":170,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"63107fe6-23a8-4d02-a39d-7d7435d1decd","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":170,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"b12b798d-d2ce-4580-b629-d86da66b7e1c","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":170,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"36415699-bc20-4192-b628-83cc2e9b6d90","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":170,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"9e6b5bad-844f-435f-b064-24355bbb5f6b","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":170,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"2e92345f-b97b-494b-abd7-318f1a72040a","block_type":"box","text":"in subsequent taxable years.","page_number":170,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"5d2d0195-66e2-408b-a0b0-f59d16ed13ef","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":170,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"427aab94-daa8-4845-98a1-048bec9123b5","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":170,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"bef26a82-f1ee-41c9-807e-42af60dec8a8","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":170,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"382e5447-d026-43f3-87f5-efea169527bb","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":170,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"d70a8de8-8506-45a7-ba2e-1bb0b41e7890","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":170,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"9437fd35-453f-4311-8ba1-842a700e4816","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":170,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"df29d07b-c8a0-4aae-a125-690153144497","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":170,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"d60a5019-31d6-43dc-a6ed-c25da81f9923","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":170,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"37ad0079-a0d6-4544-b4a9-3b34966d041e","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":170,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"da8a5c83-6062-4b00-aa74-cbc68e40e076","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":170,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"2e7dc1fb-93d8-4594-a070-0fd5e8b1458b","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":170,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"8ebff97d-66e1-486b-9a50-5bab19c7c653","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":170,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"96ddc633-cf9c-4844-b8a1-20a8d7639727","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":170,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"292b9f39-8b84-4843-a0d2-3aff2612abaa","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":170,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"cbb4038e-116e-49bf-84d1-caec738e45e7","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":170,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"0237e1d8-5442-4751-a353-9d9daadbce47","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":170,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"cee9aafe-19a5-4675-928e-4a7931ef2c2c","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":170,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"4f5d1982-9ed8-455a-bb42-58b9696eae7a","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":170,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"7d7809e7-a281-409e-bac8-298f551a7a55","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":170,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"50821582-1863-4b8f-b0c1-2bd26013c245","block_type":"box","text":"dividends under these rules.","page_number":170,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"7ddd80c5-a48c-4159-aa70-645cc18a737b","block_type":"box","text":"II-132","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"074a8249-d170-4119-985c-3099ccd1b455","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"74561e53-039d-4538-87e3-5dd28ace4bb3","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":171,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"719f71f5-3ef0-4b9b-83ca-b51de92f6da4","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":171,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"33cf8e6d-c592-445c-8206-14a1ae87f1e0","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":171,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"209e55a8-5957-461a-a5ec-eab2eb90df69","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":171,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"78efc508-ad9a-476a-9e83-2f75a347b82d","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":171,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"655c3aeb-ed7c-401e-ba64-c0777b35ec68","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":171,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"c28d13ec-946f-4c20-8e50-16708120386a","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":171,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"307ca324-9e5c-48b1-b5bd-75e825686ed1","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":171,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"7a943830-6ee2-477c-b579-49a3b3de95f3","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":171,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"a8c1aea5-1d96-448e-a26a-17f0b5f68c3b","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":171,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"f4f0b5c7-e616-4346-9d04-2d7716de6752","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":171,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"c4c19f14-4116-4c00-8dac-010e0631eb45","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":171,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"293398d9-f085-47ea-9529-2adf4d580665","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":171,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"195f690c-7cf6-4a00-9dd7-ec377d06a2e4","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":171,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"40ea772c-b14a-47cb-953d-679a9869a781","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":171,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"622cae6e-8fcf-40aa-bb0b-68cc81f3be54","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":171,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"414ee44b-1252-40f3-90ef-6c467bc67c6c","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":171,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"5b8085eb-a017-47b7-8e75-d426873dcf6b","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":171,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"51aa6e75-5e12-4436-a42e-de1d95bf6638","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":171,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"b89a6aec-d77e-4d4a-8996-0a71c2f0c344","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":171,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"ee45876a-5b26-4c52-85ee-069c83f27e77","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":171,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"44b1bee9-3025-418a-be14-0cf87076ec47","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":171,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"97c270cf-17c1-4329-8f67-066ef5fcdf4b","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":171,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"4320bcae-b5f3-413e-913c-21a9efdf9cdc","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":171,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"1169eb82-a184-4536-8ae8-7ee2c5ba20a3","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":171,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"e7aa3db7-7f19-49cc-8336-ed93f10a2e9a","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":171,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"1360149c-56d5-4002-9886-0b19dd8f30a4","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":171,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"79856e8d-79e4-4b05-b2a5-cef12d5defa3","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":171,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"ed767eca-10ac-456d-b301-5cbd1770438a","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":171,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"c1845ffa-ca74-44b1-b042-a1dc4310e14e","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":171,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"0ddc14d6-f1de-41d3-a0c3-50a960e2f169","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":171,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"226f02cc-ad73-49f3-b732-1cb40765c6c3","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":171,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"9f58303d-bbef-43f8-a2eb-a89f424d10c3","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":171,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"d021809a-361c-4b00-b75a-58afd1d8d48e","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":171,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"2febbffc-0be0-49c7-979d-d543a0a0d5ca","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":171,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"52cd5635-b522-4f52-99d0-8cda06587aa1","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":171,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"596c2ef4-fdf3-47ef-85a3-85e07b9075b8","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":171,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"6dfb78dd-bc4c-41e4-be4e-ec4e8d7f2f86","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":171,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"c78e029e-3af9-43e5-b780-c52b66a6a7e1","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":171,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"3558b433-273e-4c94-8bbe-cc28301f7664","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":171,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"4fce57ee-f771-417f-b9d2-79fa5eeda48e","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":171,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"93032c28-0a2d-4cf2-8049-a292f513f6b6","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":171,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"02c037e4-fae1-48c3-a15c-08125145df6d","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":171,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"0387db52-d530-4bd9-9557-c041268c51bb","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":171,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"742f2736-9bca-441c-adfd-d605eba25326","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":171,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"66d03457-2853-438e-882f-d2e596cf67e8","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":171,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"6c58d3a9-2341-4281-bdce-fefcc59cd610","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":171,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"616111af-12cc-4717-aa1b-e188652d8134","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":171,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"8461e955-565b-4fa9-8982-195a6c4713b0","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":171,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"39c99fd5-eb0a-4557-9e40-ccfc1eb202ca","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":171,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"3ce5fbb2-e86d-44d8-a777-ce57af5fe68e","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":171,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"7c0b275e-c544-4836-9d5b-3b4c80502fcf","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":171,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"41095d1f-750b-4bde-acce-aa9a8b233b7e","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":171,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"6bf0d932-df27-46c6-9ab7-91e95fb96797","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":171,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"1d6e7085-79dc-43dc-bd94-e025a0e5477a","block_type":"box","text":"II-133","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"12c8d309-6405-4b12-bbd1-c5427079af00","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"81056664-a8e7-47a5-b1bb-ece5fefdc2e7","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":172,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"83391bd3-5670-4e1e-9e5e-dcf5d874d9e2","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":172,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"dd87d45b-574b-4607-808d-3d5d19c80b3e","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":172,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"6dc4a76c-08ff-43c3-80ba-005edbf52c54","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":172,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"41141fab-2c83-4963-b4f3-c4352ff56f2e","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":172,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"7bb08d57-cb73-44f4-b7cb-1cb3e02b116c","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":172,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"ea005b64-dc3c-416d-80ae-cdb29299c4cd","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":172,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"12996315-9bbe-4377-a891-73eb9c22422f","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":172,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"85644e38-edb4-49dd-b011-987a0cd4355c","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":172,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"1743b1ae-b7b8-4a29-a875-964e3939ad93","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":172,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"ce614adf-1bd6-49e9-90a0-07c5131e04ef","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":172,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"d85f7436-9d7a-4286-8671-15720ee1427c","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":172,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"3ed84017-b174-441d-b905-cbef47a2a59d","block_type":"box","text":"investment oppor tunities.","page_number":172,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"113faa36-5557-4633-b117-5159dd03b9c6","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":172,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"61ea0fb8-38af-4367-bedd-2d56ee634aee","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":172,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"0f3a33c8-1b0c-40b5-9efc-a42ddb62d0ec","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":172,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"9fd3637a-31d5-42a3-a9c6-bba1d084f729","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":172,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"dc07c956-df43-42c0-a5bb-b37ebaddceb2","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":172,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"336ba4e6-4920-4ea1-8f1a-39f027abc730","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":172,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"21696f42-730b-4f68-ad5e-a6256e7c330d","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":172,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"f0a4fed8-5be6-40a9-a5d8-98e599444ae5","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":172,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"4c0f9052-ce37-4452-840f-3e0d947111d4","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":172,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"8379aa0b-cf8c-415a-8c2b-94d59836286c","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":172,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"1f2b11e6-f525-4b29-8eaa-e47b22f073d5","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":172,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"f2239d75-c3ec-4321-86b3-e8775f66f09a","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":172,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"a8f6ed58-b92d-42e6-8a68-66c81e67dff0","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":172,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"8e26ed08-193a-4533-bb2d-976a6fb43e29","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":172,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"c54429ce-e577-4d38-8abf-28db07321279","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":172,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"c9ce04d9-a9aa-4747-9a34-8fc826e010a4","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":172,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"c821111a-4784-499f-a186-b1c7505790d5","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":172,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"fa7b3268-9ed8-4c35-92d1-6ae05a30e686","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":172,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"f65fe7a9-e659-4016-8e97-ed4dd76895c2","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":172,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"bb4001c6-1e9b-44d6-a683-1855b2e1725c","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":172,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"3c9e09d2-b672-4874-9e65-c4c0b640368e","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":172,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"d346bdc3-300b-4fef-9f26-58a8b990874b","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":172,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"68db971c-dc03-46b5-9814-d26a86f6d8b3","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":172,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"707389a2-48e0-4ed9-a331-b530ad5f44eb","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":172,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"e40ce11e-e6ca-44eb-b2ab-90ee3d213241","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":172,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"3362bb89-8d9c-4407-b422-cb298e4371cc","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":172,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"f44ffd27-8f4a-4d24-9395-5617a6dd228c","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":172,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"271f730d-c634-45c9-913e-44c900b47b69","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":172,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"cec6c24b-5897-45e3-95eb-e601d754430c","block_type":"box","text":"positions in its por tfolio (","page_number":172,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"c59599ce-d49d-4c48-b7c4-0b8585b75eee","block_type":"box","text":"i.e.","page_number":172,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"2268dcde-82b1-4035-a81c-248f9d8e29f5","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":172,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"866ff4c2-3b3e-40dc-9373-cd46bb835c10","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":172,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"db6a2fc5-a62d-4dec-92ea-bfa304484c3f","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":172,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"553757ea-2e85-4efa-9d49-438ca832da72","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":172,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"2644f7ce-fb73-46f3-9520-9ca772385d79","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":172,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"55e4534b-e37b-4970-90fc-68f1ab1ce1ab","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":172,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"ea4e24c6-e6dd-4d5d-81ce-eb9d9af08508","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":172,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"d627b45f-c53f-40c2-a8ff-02a43059c8b8","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":172,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"38792368-34ab-4ae0-ac4e-d6a3d69ae3ac","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":172,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"2e8c3a2b-b8c1-496b-b162-62a49d6833fa","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":172,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"c90b7c88-f160-45fa-aa01-0955636af9e6","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":172,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"58095527-1245-40d4-aa50-3f6a6c25e617","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":172,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"bc2b0bdc-514d-4c11-84ca-922e11567264","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":172,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"dffc0a70-e0be-4caa-8711-14277927531e","block_type":"box","text":"II-134","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6ba50ff3-9b8d-4cf5-b13d-8b3c2738cea8","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"20bfcaeb-004a-4298-a1e3-7468c10c882b","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":173,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"98b61d31-f6f9-499d-b705-6fafa249f889","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":173,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"8dfce028-e0e3-4f55-8343-216de26cc410","block_type":"box","text":"capital asset.","page_number":173,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"2b098a31-3684-453f-bacc-7b594b6030df","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":173,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"85d94c09-945b-4d82-b4fa-5c32026b53e1","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":173,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"20fe82c4-185d-46af-bad6-014c9302748c","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":173,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"b8b4aa1f-57e3-4c20-84e6-371fc1d165ea","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":173,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"cb3d5884-db0b-4784-bd3b-c443d638b200","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":173,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"23358ad3-9208-4fe8-9888-648d621b9222","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":173,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"c4e2698f-159c-47b2-bd34-aca2086cd8db","block_type":"box","text":"Fund were to invest otherwise.","page_number":173,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"43e4316c-527e-485f-bc9d-3ad721f34cf9","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":173,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"0500f9db-780e-4eaf-84d0-9a7813a047f9","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":173,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"7e48fbd2-359e-4e63-9393-62a99b7b4d5f","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":173,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"0ac58ab5-88eb-4c30-a0ed-cbc77b1d5ca4","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":173,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"acbf84c2-6528-4874-a726-43e5e3091f46","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":173,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"5050579a-5c0c-4768-b130-358ba0b85732","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":173,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"57dd66f6-3420-4c5a-989a-e36876353e39","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":173,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"6612d605-fbb5-4747-bd2a-60292dfaddf7","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":173,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"af942901-5ba9-4e00-8a15-fdeb47c09192","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":173,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"c93d0d8b-b40c-4816-9d01-197605de9db2","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":173,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"38847a12-51d6-43b0-b6a7-43297916e5ca","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":173,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"6e5a7997-a32d-4758-a1c0-bf7d63201959","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":173,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"514079b5-8575-4777-a00a-48c769f71c04","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":173,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"ebef8bc6-08e1-4d33-af10-d652536c069b","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":173,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"ba7b0e4f-f1ae-440c-96ec-a4cc7acd8b5d","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":173,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"cc1db16f-8829-48b0-b641-fae47a1866db","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":173,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"67640b36-5884-4c89-a568-0e37d8ddc2bb","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":173,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"837c26c5-cce8-45b3-a0b7-8f499b68a8bd","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":173,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"273e7169-068e-41e0-a4cf-c1eae1ecf81c","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":173,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"a8bdd6d1-dba2-4e01-8b91-ada85abc676d","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":173,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"4e78a7af-c57b-4f82-ae58-b10bfac63587","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":173,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"d9f4470e-83da-4197-b935-3459c43e2284","block_type":"box","text":"PFICs.","page_number":173,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"b2565cb5-b801-4a97-841b-e393db43ca44","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":173,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"22d8dc89-da4c-49e5-b960-d185b947a249","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":173,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"b122d1ca-f7da-45cc-ac91-4d265ccb871c","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":173,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"6fe8c8cc-0f74-40c9-b802-b59685cf5390","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":173,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"e47f4796-8b70-477e-9d65-ab819133a686","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":173,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"f8be4c34-dea7-4e95-b281-d8e682a82290","block_type":"box","text":"difficult or impossible to obtain.","page_number":173,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"7651db2e-14a7-466f-b11e-2185dd9c3c65","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":173,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"80bebf92-5b8f-466e-aee6-6b9f814f3be9","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":173,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"5cc59640-a135-4a8d-8986-e9b23dd7d52e","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":173,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"b6400d79-4f74-443c-b1e5-68ed4bd87eee","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":173,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"e8b595b6-d2ca-4fb7-a109-d6d72ce92c1b","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":173,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"0163e72a-4de4-4f62-877a-3a037a916192","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":173,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"ba911c86-1484-4688-b6e0-ab181426ba89","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":173,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"bbb83c35-dc1c-4399-ab63-bb2c9f08f905","block_type":"box","text":"Municipal Funds","page_number":173,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"295805ea-1eec-47af-bfd6-72ffcba85c5d","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":173,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"2ba849ce-fa82-44f5-a6b7-1af7233bb788","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":173,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"a79c3003-b3c4-4180-a860-5437271776de","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":173,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"6b34adbf-8520-4755-b0ab-75062980f990","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":173,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"dea84c42-e1ec-4089-8ad7-484a534fd859","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":173,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"91062ace-84ec-4512-aafd-efdaef3d3ff4","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":173,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"0dd8d423-65d8-4656-a8cd-1a99fdc649e6","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":173,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"b03861cd-9b57-4c0b-ba38-15e334ff7dcc","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":173,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"e7ee20ac-ee8e-487b-901d-b6b9fe7c05e2","block_type":"box","text":"II-135","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"de25360e-0fcc-4472-859c-022bd029e43a","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"756954d4-aeb2-4120-bc94-f052a8270f24","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":174,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"6e3832d7-a761-4502-90f4-7db22938537f","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":174,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"95d454ad-f16e-4a8c-8efe-fa41f8f908f6","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":174,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"2ad69d9c-ca34-4fbc-9dbe-c41afff027bb","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":174,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"cb1d0b2f-87a7-46f7-804f-b88045ab694b","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":174,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"e16d3497-12d3-4281-9d6c-e1058ddee1d2","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":174,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"971708f6-4580-44b7-a647-30eee51da590","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":174,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"808241ae-e631-4981-b4e3-ae0a5c8b11b3","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":174,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"d96aceec-c699-414b-b6b4-925f00594558","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":174,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"b9c716ae-6307-42ae-a1af-60a83b5f2270","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":174,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"5d7187eb-43e0-4714-aaa3-3019459e7803","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":174,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"57d1469b-3a6d-48a5-b8ed-7de42e99328b","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":174,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"a8a782f2-1f71-48ff-9884-0b826ac39733","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":174,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"84ef7d5d-1b70-4ef6-8308-ed31643e991b","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":174,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"50267b12-f689-4cf6-aa8f-c5ced216c28b","block_type":"box","text":"constitute exempt-interest dividends.","page_number":174,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"0d122043-c063-4148-866d-f6e2a525565e","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":174,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"7f2c4118-588c-4290-8c1f-10a19a98c33e","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":174,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"2fdf3f2d-a296-4ec4-882f-6acbffdaa719","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":174,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"b7395a66-58c8-4587-8e56-35aa7a8763ba","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":174,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"5118c6cf-dee3-4f52-b065-d5a5983b0366","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":174,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"1eb58410-dc3b-4b56-9fb4-fd98e0b8e790","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":174,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"4ed9853f-8f3c-4e28-aa13-ab04a2794f3e","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":174,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"ed3c8528-7339-4044-ae92-ada2d547f9f0","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":174,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"914e6273-3cff-4825-81ee-a2548ec1cf3d","block_type":"box","text":"income dividends received by shareholders.","page_number":174,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"cdf97705-69fc-4966-b1a1-573cd5a1f90c","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":174,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"c6a178b2-fbfe-4bcb-bfd1-8df3bfd2c0a9","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":174,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"35994b6c-d9f2-416e-9274-55a8536829e8","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":174,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"e03d241c-5496-46f4-9e72-72ccf4bc9476","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":174,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"c2036226-b1b0-400c-9da2-46e3d108fb00","block_type":"box","text":"the accrued market discount.","page_number":174,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"36fcdb10-093f-49ee-993b-9b7761cf9d00","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":174,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"b7e7bf33-966a-49c8-8b45-0e53571da49a","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":174,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"b4ba120b-e602-4902-a00c-b768977cc20d","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":174,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"52607ea0-26ae-4a24-8306-dc8476d7073b","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":174,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"67c4d278-ba3f-47e4-b383-223177e8538b","block_type":"box","text":"e.g.","page_number":174,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"1c4c1ff7-f8e9-41e9-b682-e8c5971fefd5","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":174,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"a57a9353-a745-4735-938a-6b726aaf88cf","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":174,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"bf16c4d9-4dc6-41b0-9f4a-6d78a3a694d4","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":174,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"5d82f91b-96be-4de0-9aeb-d401e99e6677","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":174,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"addb5fd3-bce9-4d4b-8a11-18c761b505cb","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":174,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"c2c89268-0873-492a-bfd0-bfe6e0dc0532","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":174,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"3f90cc5b-5c5b-4bbc-9853-748b278732cf","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":174,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"f5e2c17d-734f-4f27-8037-8841b6fa27e2","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":174,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"e48aed55-9623-4ec3-8fb1-5da36a8c93ec","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":174,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"31ef3892-a7b2-4c62-9311-b05495082f04","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":174,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"319da672-62ed-4597-9801-b6bbfca16760","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":174,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"18ef8b53-f0a3-418b-acac-232fb4b1390b","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":174,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"8cf995d4-8243-4e50-b369-adb39ee76cdb","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":174,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"8fa2be85-4921-4a5f-b51c-3775b4a435c3","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":174,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"d0dc844f-37a4-42e1-8df4-f69ec029e048","block_type":"box","text":"within each applicable state.","page_number":174,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"b36579b8-64f7-4d9b-a020-010b4b9a3f7b","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":174,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"fea1c716-8fd8-481f-8942-81ab01449f4c","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":174,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"a1cad977-440b-4cbb-b65b-edb040e5de85","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":174,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"2d2ee681-d742-4ffa-af82-c16d638b68b4","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":174,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"27c90cfb-d687-4365-a428-e64752d4d282","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":174,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"5a65f87a-af13-4f34-9407-2095bedcfb08","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":174,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"439aa2dd-09ae-4554-86fe-d8367dd30e70","block_type":"box","text":"II-136","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"714b2239-1b1b-4b6d-905a-52f46cffa0de","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8b7b6a68-82ed-44f6-8cf6-b9eb8a3c9d6c","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":175,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"885a391d-33b0-486b-b6e2-da7648154f3e","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":175,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"b7875621-6e92-4055-8088-2eb10c20fff5","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":175,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"91e6f790-2541-464d-a0bf-86ffb890fbc1","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":175,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"f76f94ec-c0a4-495d-9d2e-47926400080f","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":175,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"0561d9f1-53f1-4b1c-8598-af35632980e9","block_type":"box","text":"exempt from state income tax.","page_number":175,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"99937ce4-1a50-44f1-aa6a-98b4c3e467ba","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":175,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"95d17785-269c-46ea-bd1a-cd78f3d70057","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":175,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"47fd974b-ac24-4f38-a28c-9bdff89a303f","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":175,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"e986263a-4a83-4a04-9b43-dae76a86dff4","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":175,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"62b089c2-6a79-4d53-ba4d-dd0718d91d07","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":175,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"5ae4dbae-176f-4fb5-8617-20087c8b76bb","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":175,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"778626e7-f732-40a8-84d7-6944ba1946db","block_type":"box","text":"decisions may have a retroactive effect.","page_number":175,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"e821de1a-f81a-4525-bdd9-564601c3a6ab","block_type":"box","text":"PERFORMANCE DATA","page_number":175,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"cd55fa2d-c985-4399-b34d-57a8890a07d3","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":175,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"9582da0c-858f-4931-ad3a-e7568973fcd2","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":175,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"a90510c2-aa56-415a-a456-a0021e4cc6ba","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":175,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"b7a6b578-a424-47e0-ae99-64487f589326","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":175,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"03f7e831-14c7-4de8-a6f8-8ee40c9797eb","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":175,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"9b982df1-fbf4-4507-a0b1-a7e5a315725e","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":175,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"e03efb9d-dc27-455e-ba15-c9c4303389a0","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":175,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"eb8a22aa-27ad-4878-935c-3b0cdee3021f","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":175,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"0d6074a1-c832-437d-aa5d-080a4cc1205f","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":175,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"d2dd644f-04ec-41d1-a573-7dccb5705297","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":175,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"e5250788-b13c-460e-a62d-1f35030dc045","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":175,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"46d5cf08-42e0-4fe1-9178-3f63e6265a49","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":175,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"71b4d431-04ba-4a7d-93db-4be9b2e70772","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":175,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"ecd5881b-f9ff-427f-870f-d9ad8d9a13c2","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":175,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"0acaed71-2371-479f-940e-472a46b7c90a","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":175,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"d952c861-4321-4d2e-b7ff-cf1947391eb6","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":175,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"daceb445-1585-431c-877c-752a8cd56e79","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":175,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"94242ed1-af3d-4fc6-a5e3-613cde8e3078","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":175,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"335ef561-bbc2-417b-96bc-cf2f26d9c165","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":175,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"5eb5f152-b1a7-4578-9237-7b0748ee16aa","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":175,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"85640bab-3cb2-4847-b8ed-c8ed298c3b18","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":175,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"5e6679e7-d3f3-4c76-ba56-486812b53c1f","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":175,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"a64151d1-7489-430e-86d6-ece654834f28","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":175,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"daa4db42-1349-4efa-9e07-24f292f45810","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":175,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"e67927fe-5fb6-4e4e-858c-3b0a09154f3f","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":175,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"a24d069a-5aef-4786-9ae4-c9b79f75fd2d","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":175,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"a57fb6f7-456f-4527-bbb9-5e5c75339a8f","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":175,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"09a13b17-bb71-4c56-86e5-cb172a6eec6c","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":175,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"89c2d1d3-ec38-483a-9de1-e6d516044899","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":175,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"e59309e4-d729-4964-b00b-4392317453fd","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":175,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"eb6eab3a-bf2c-47f7-91ea-10da8990ce42","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":175,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"dbcb73a3-052f-44d6-8b30-ef4bfdfb0c91","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":175,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"3ecce8cc-5bfe-4f1c-b864-6cd65500cb3f","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":175,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"e5bb6ae6-a5c8-49c2-a95b-26f7c3c37721","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":175,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"60c16c46-091c-4f79-963d-587d2bed5862","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":175,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"58eadbab-563c-4995-bdb0-4599ac61e709","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":175,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"988cd9cd-7a8a-46f0-873e-eedc8d3802a6","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":175,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"be0e1783-6080-4b8e-82f2-2274884a2a04","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":175,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"281a8b06-2d7a-4e08-ac8f-70ad26c4e0db","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":175,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"6b2f598f-9349-408d-949d-96d8f88fa00e","block_type":"box","text":"II-137","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"604c4d3c-8db9-44fc-85ff-ddd8defba4bd","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d9183e82-394d-4df6-b7d8-95141ce5debe","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":176,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"9ef5b1ee-eb32-455c-9889-3eae0c86d651","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":176,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"7db52874-3545-4c9e-b759-8f17110fe55a","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":176,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"54978027-24a3-4cfd-adeb-99ce350113a9","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":176,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"73d9bfe8-2cc8-45d0-a3cf-78e8b08c22f3","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":176,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"e54a9b9c-91ae-4c76-8cf4-e5c75e533457","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":176,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"ba38010c-2fff-4c07-a11b-0abf67ed996c","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":176,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"25539a95-3c32-403a-838d-655667ffa3dd","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":176,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"c56d3fb1-4f7f-4c24-99fb-8840dbee3905","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":176,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"3e871fd1-bf3f-4cc0-88df-23717065e2c2","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":176,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"b9252ca1-5d02-42de-b0a6-3e4aaad4dd6e","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":176,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"565678fb-5784-4ccb-8f79-b95c6d541006","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":176,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"9ae466bc-e9c7-4a70-aab6-3b34fe33f70e","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":176,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"7f1cb0de-bed3-4194-923a-31831da197b5","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":176,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"e7c51901-7097-48e3-87bb-e56d08a70ee7","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":176,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"5459ce3f-5033-4442-b256-759e1d1dd73a","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":176,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"0daa996c-02e8-4ddf-aea1-693fdcb0d330","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":176,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"b9137465-89d2-4293-8902-62db59a323ad","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":176,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"232c36ff-9a06-4c86-86e2-dde25fc796f4","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":176,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"721bc52b-4f63-4425-8241-2eb39832e347","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":176,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"9cf6d63f-8a2c-4141-b77e-adb4ab9df469","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":176,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"578b1232-a0ae-41b9-977d-deba12078b67","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":176,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"b5af21ad-a727-400a-a76c-cbf8ec3988e4","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":176,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"273bca88-865a-45ac-9f3f-e9716ddc2c38","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":176,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"0f5d5da2-0dfe-419b-ad90-d3977e54281c","block_type":"box","text":"less than their original cost.","page_number":176,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"91efb5a3-95f4-4556-b493-6ba6d2e343c4","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":176,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"1261d31a-3638-4fce-b560-08b26d0e7ee1","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":176,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"97a9d178-2b6c-4d88-a51a-ddfcb099a32b","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":176,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"1dd95b9b-4694-4e42-9c4f-08e1d363603d","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":176,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"4ff15712-165c-4d91-8f73-013d6c2f2af9","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":176,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"470a37b5-abd0-4f74-ab46-d23eb6e13947","block_type":"box","text":"lower amount of expenses is deducted.","page_number":176,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"9b3df504-a8e2-41c7-8b72-e5ad87fa3848","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":176,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"9f213020-d6cf-4a14-aa9c-620b8ffc6f19","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":176,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"729034ab-9492-4e1b-a209-c38694e987ef","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":176,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"ac19cd69-4237-4aca-bef7-a78a30e62bab","block_type":"box","text":"Money Magazine, U.S.","page_number":176,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"c51f6a52-dee8-477a-8a1d-1b2169809540","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":176,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"ca4c1903-fc4d-4dca-924c-e819b22aec52","block_type":"box","text":"or other industry publications. When","page_number":176,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"63fd32d2-a3b9-4950-a76b-0501c9afb71d","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":176,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"61803979-b05a-4eef-a40a-d98af36ac93c","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":176,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"ca048e0c-f3b5-43e3-b550-3f49cd119e57","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":176,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"ed240708-6d9c-4760-87b6-eb67d1c94c37","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":176,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"bf49d650-bc00-44cf-b662-ffe6a92c68a8","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":176,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"2fd18cfe-1e51-43d4-95f9-62198ba579c3","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":176,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"c61f6665-7427-4b9b-95ab-6e94a7a575bf","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":176,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"07371177-1ed9-473a-bc29-feb814c482ab","block_type":"box","text":"developed by Fund management.","page_number":176,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"3e29e63e-9ed8-4301-ba73-944d166aca86","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":176,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"0a26f6a3-283b-4768-8e5e-372c63cc5606","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":176,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"1d35db07-24f4-4b54-b5b9-edcc1d8f191a","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":176,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"d6056b9e-9aaa-47b7-ae85-59ed9f0e3106","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":176,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"abf8b572-86dc-41b5-a818-7de5f1d4fb95","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":176,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"bec3e9de-8d76-4daa-8aa4-2aed63160233","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":176,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"30ddaf22-82e8-4420-ba22-db859faba7f7","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":176,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"f9000c63-6526-499f-a48f-a638745d3323","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":176,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"3c288d39-da5c-45fe-8288-67a2da98f360","block_type":"box","text":"II-138","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"49e587bc-b151-4408-a9fc-dc25c5d3cd06","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"08d78912-828b-4166-8b40-d86b51e21db9","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":177,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"2ad31a8e-165b-499f-bea7-9dcc81f3d99b","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":177,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"2e4ae76f-bdc3-4429-a509-d9fd92fa4f8b","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":177,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"72340d89-37e9-4bc9-9520-3550915cc60d","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":177,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"1602f33b-f593-4e7e-afae-6566bbd000fb","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":177,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"fb599948-5d61-4038-8926-64736ec0b21d","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":177,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"35a729d6-e3ef-44e1-a2a4-764b4f899deb","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":177,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"20cef304-d0cd-4aca-be92-565834ddae65","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":177,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"c3a09009-6f24-4265-bb3f-aabddb6cf198","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":177,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"307477c7-5f7b-4464-81ad-95ac90fd5059","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":177,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"c118bafa-4979-4f71-ad39-7ef0fa232499","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":177,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"cd90e77a-d431-4ae3-8368-84339f636436","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":177,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"5c06f338-6c98-421e-9b61-e46c49bd9e8a","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":177,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"cf2f4736-0e9c-4123-b095-867ae84bcfcd","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":177,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"ca5dd432-b05a-4679-8ea1-a963f6538d58","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":177,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"9e2db689-bb85-4411-80d4-67d984303a33","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":177,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"1d08acd2-3fbe-4811-9e99-5caf3313f1f8","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":177,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"eb5641ce-513d-46a7-bdd8-7c5fef066155","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":177,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"3eb54195-091e-43bc-8cae-bae35c837922","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":177,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"d3db9188-2886-4056-bfcb-a6e13adeace4","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":177,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"d1787cc2-e184-4d53-87b1-cb63d11be438","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":177,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"ea4f8283-ce53-482d-bef4-d3f192b6044a","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":177,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"4404bc9f-611d-420b-9758-a6d445c7a74b","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":177,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"c5f24f9e-cc50-44fc-824d-e2e695d7e7fb","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":177,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"f7cee476-ca24-4d0a-88ba-1dadc12b3912","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":177,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"1151e277-d26d-43bf-8403-a96ef58e9e5a","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":177,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"fc6f600d-edec-4e66-87b4-44791310d88b","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":177,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"765eccaf-9763-4a97-8dd5-69f03a2c2a9f","block_type":"box","text":"GENERAL INFORMATION","page_number":177,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"d421c34a-a238-4f94-8560-541785874823","block_type":"box","text":"Description of Shares","page_number":177,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"e8666b44-62ec-4f1c-b887-3fb00db46a82","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":177,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"51eb52c2-7bea-4144-abf2-5d5878e46a7f","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":177,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"69f734d0-9063-4457-b660-1e0789cf85e9","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":177,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"f653dc8c-c5a5-411b-bb25-e13f1a03c907","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":177,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"49aa7878-0158-4ab6-8ff0-26cda7c27dfe","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":177,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"6dc31321-90ca-4bbd-abcb-f27f3c98e5e9","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":177,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"3e07b8a3-72b1-4ce0-a4d8-9f6b2a52c231","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":177,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"57ddfd0d-3aae-41e5-bbe4-a84060e91968","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":177,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"6d947729-f458-4616-be73-3a4a9df1cf22","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":177,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"ff84e9e2-e644-4fee-8bcb-543f19d4ef31","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":177,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"886ef0e4-7dc6-47d7-9684-c03a64910ee4","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":177,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"120f2efc-7076-421e-9ede-94067d9e1bf3","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":177,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"c5afe267-728a-4ee6-8554-bdd2427ceb14","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":177,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"2d257503-5038-422c-9c35-7fc746f405c8","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":177,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"bf44de7b-6602-4531-9842-fdef37952a6b","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":177,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"31f5a7d9-4c15-441b-a874-425e65e731d5","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":177,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"122ddb96-e63f-49ac-ad77-cdeb310a108b","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":177,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"5b44c7ed-d2d5-4d09-af07-77cbd1607f96","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":177,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"084b2098-63ec-4308-a32f-dc6e26dbaaab","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":177,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"7e92c1bf-219d-4a07-b076-2517df3d2353","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":177,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"b63b1d39-88a7-4df3-9b7a-8a7d6f4f16bf","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":177,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"1f474fc3-4201-45b1-aa84-3d70d110c417","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":177,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"d3aab57d-a907-441a-9b60-ca6581a50721","block_type":"box","text":"II-139","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8f5de2cc-d1d0-4a28-9cc1-a2652e655f09","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"63cce021-da3f-487c-831a-eaaa557ab11b","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":178,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"e4d5ab06-40b3-4e8f-9173-a7b911798191","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":178,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"eb319384-6729-4903-934d-5ced79d90eda","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":178,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"1ec8f012-9847-4549-9a94-fde3bdb2c6d2","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":178,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"61456029-8bd2-4f8d-9d53-2385c1c04be2","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":178,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"400afcf6-3244-4b0c-aec0-d8fdd1d37c7e","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":178,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"ebd08ff2-da60-45aa-a1be-fefb582fb866","block_type":"box","text":"Additional Information","page_number":178,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"95c7217a-db26-4131-9726-5330d07268d1","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":178,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"0e0285d3-2fab-4783-ad5e-35a433bf83cf","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":178,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"c7a5cd12-cfc0-4dee-9ec7-c5b1c5857921","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":178,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"bb1591ac-8a59-4554-901c-b5b6e0ef6738","block_type":"box","text":"such name to any other company.","page_number":178,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"e7f170bf-95e8-4b04-9d17-3f8dc67d9fed","block_type":"box","text":"II-140","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"95162215-b992-42a7-b69e-f0c98815dc24","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1b9dc3c8-9875-476b-9a8d-2279ae51b0f8","block_type":"box","text":"APPENDIX A","page_number":179,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"f7a34b79-f12b-4e2d-a8e3-f89852b347ad","block_type":"box","text":"Description of Bond Ratings","page_number":179,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"a6a47cf4-cd95-4e4f-bed4-99ac731eb226","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":179,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"aded116c-b339-4eb1-b946-7f30b2881d33","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":179,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"c4dc2bce-6ac2-4106-a5a6-6e8529b36238","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they under take no obligation to do","page_number":179,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"ced06c87-ab80-498a-9bd7-b4c0b72cbe83","block_type":"box","text":"so, and the ratings given to securities at issuance do not necessarily represent ratings which would be given to these","page_number":179,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"c0805a17-9a83-46d9-8da3-a79d62538037","block_type":"box","text":"securities on a par ticular subsequent date.","page_number":179,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"f232b847-7030-4397-b3dd-2064ce27fa76","block_type":"box","text":"NRSROs may rate specific investments (","page_number":179,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"e6c9aa91-949a-4094-832c-a7276ab4c97d","block_type":"box","text":"e.g.","page_number":179,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"7ebe3d04-5c39-432c-870d-c47aba19a43a","block_type":"box","text":", bonds), issuers (","page_number":179,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"83ce176a-e530-4be1-b5ff-25448cd4bb50","block_type":"box","text":"e.g.","page_number":179,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"48d59306-777e-411d-8cc8-cc3653ae136d","block_type":"box","text":", corporations, governments and financial","page_number":179,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"c58c89ae-088c-45d2-bfc3-6afcd38321a7","block_type":"box","text":"institutions) and/or programs (","page_number":179,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"875919fb-5e87-4061-a8f1-5b16d8d2b904","block_type":"box","text":"e.g.","page_number":179,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"49119b65-888e-4740-9cd8-591f2334de5f","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":179,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"88d88637-72e3-4569-81c0-6a2f02cf7742","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":179,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"077578bf-7fb6-453d-a5f2-bb48e56a3e8e","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":179,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"b972f4a3-8e99-4e4b-80cb-93fcce612a31","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where an NRSRO has not rated the","page_number":179,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"3e698376-05bc-4fa1-bbc2-7c2666df5695","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":179,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"2b020232-052b-4582-94c4-428a41d723be","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":179,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"cc0cd720-9253-4f1a-8421-3097da3f17c7","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":179,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"fe3e3366-03f6-48b0-b9a1-b6d9619eea46","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":179,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"09ccb463-387a-4884-8fd5-d6b9b0a76b1b","block_type":"box","text":"security (","page_number":179,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"d2951cb5-7b95-4f4a-af95-f4c610922c12","block_type":"box","text":"e.g.","page_number":179,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"97acdfea-468c-4027-a47a-591496140909","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":179,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"0fafd721-5049-43c6-8745-af4539e73c7e","block_type":"box","text":"highest of the multiple ratings.","page_number":179,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"ff2d207d-34ac-42ac-87de-d55432ea8fee","block_type":"box","text":"New issue securities (regardless of type) may not be rated by an NRSRO at the time of their initial offering.","page_number":179,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"8c5378ab-562c-47ed-b7c1-4d8e9cfbb746","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":179,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"19067962-da85-415d-904a-62c98bce49a9","block_type":"box","text":"determined by the underwriter and/or issuer) or an NRSRO rating for the issuer of the security. If applicable, when","page_number":179,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"d19f24d9-871f-46d0-ad92-4ca3763be83f","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by an NRSRO, BlackRock may","page_number":179,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"0b25b28c-6e23-49eb-a806-837dc1f0968e","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set for th in the","page_number":179,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"0dad0a02-13c3-4ced-b950-e4b5e8aecd74","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in","page_number":179,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"af562f43-71e4-484e-acd0-51a27e81c756","block_type":"box","text":"the preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of","page_number":179,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"aeeb1b5c-f7d3-4f7b-9a8d-7d0485316f70","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":179,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"06fa2a1b-8d99-4c09-bef8-5d828cb13bda","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":179,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"bc11144f-e117-4cdd-ba69-fd432730d439","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":179,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"5861230c-35b9-46cd-a9d9-d08e8d7b8e45","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":179,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"ad4cfc13-d9c8-48b6-932d-cc455ca7fb37","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":179,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"a67cbfc6-52e1-4d49-b782-3f8f546a6915","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":179,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"399559c5-c559-41eb-be6a-c82f06cc9568","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":179,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"9ce6074c-a1c2-4186-a322-41ecb56bd1da","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":179,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"43ec70c5-873e-403b-9e80-dc1d2acb93cf","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":179,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"641956f1-e511-439e-a428-90c896b24475","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":179,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"afaf2403-c943-4999-a3cc-285877e108c8","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":179,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"0ba094d7-22a2-4a73-aa1a-8c5d873f7267","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":179,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"e5d60871-f39f-44cd-9886-4caa223ddf89","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":179,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"2d3f4fcf-459a-4c24-8e2d-9de7f00cf93e","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":179,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"4433ea7b-d98a-4528-b690-c0a967bcd45c","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":179,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"9e60906c-fa8d-4a5f-a4b4-3c3740caa090","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":179,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"83a77a5f-0fd8-408f-8fd5-f4dff2c1b447","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":179,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"0006ba14-8cfd-4059-86e8-11de72225bb1","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":179,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"4416f815-b863-40e1-8927-cae436cf24d3","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":179,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"b7568ecf-8fe7-42f6-9f32-b202a9e38b1c","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":179,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"1a73642f-f49d-408d-9f5b-5211b8db6d62","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and shor t-term rating scales and are forward-looking","page_number":179,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"5e6fc898-53ed-4827-aa87-310f7d21ee02","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":179,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"ab862695-6954-4134-afdc-13a6f7eb19e2","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":179,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"2de441ec-01b3-4ab7-a796-b96ccbb3da73","block_type":"box","text":"risk that an entity may not meet its contractual financial obligations as they come due and any estimated financial","page_number":179,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"b3f98241-163c-4f47-864c-74b8d289e8b7","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":179,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"7881383a-49d0-4c09-a10e-5a4e77f1cc4d","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based","page_number":179,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"d57d7bfd-f2ed-4ebf-89bc-71ea107a7f23","block_type":"box","text":"upon standard sources of variation (","page_number":179,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"a0432dca-0d3a-4cdb-919e-4c4011bbf5df","block_type":"box","text":"e.g.","page_number":179,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"a2a62f8d-d813-4537-a824-32fb9af45db8","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses","page_number":179,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"2b9e2dd7-ab9b-4553-b654-e79de9c4626c","block_type":"box","text":"A-1","page_number":179,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"dfd26363-34c2-42b5-bf13-0949dbc8c46d","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c45375c2-2f3e-42b4-81f5-b16d9db920ad","block_type":"box","text":"the issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do","page_number":180,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"62d5eaf9-672f-4fa0-ae08-25e926d02e23","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":180,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"7af95b24-87f5-4712-97ff-0ac5e6adce2d","block_type":"box","text":"e.g.","page_number":180,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"3e87a357-b047-4df9-b5a7-21d0efa333d8","block_type":"box","text":", equity indexed), absent","page_number":180,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"c1f3df80-1a5f-473c-9af9-83d05e5ba3f1","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":180,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"82608501-fd98-41d6-be3c-d48736e70b9b","block_type":"box","text":"assigned to issuers or obligations with an original maturity of eleven months or more and reflect both on the","page_number":180,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"fe699b49-5f80-480e-8fbb-269a5f805e75","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":180,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"cd21c6ba-6718-46cf-b250-523dbb2b7c4f","block_type":"box","text":"the event of default or impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen","page_number":180,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"775ae7b3-a9e2-4929-bbf8-0abb6acaff96","block_type":"box","text":"months or less and reflect both on the likelihood of a default or impairment on contractual financial obligations and","page_number":180,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"8f9dd66e-1148-4e70-b2ce-a8f10e9dc087","block_type":"box","text":"the expected financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":180,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"bc8333bb-d3e3-4c4c-9047-1f157830ec68","block_type":"box","text":"and instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly","page_number":180,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"71836cba-d833-4dca-b80a-1bf990f9d404","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":180,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"633d7705-95c9-4675-9eb5-05acfe09fdeb","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":180,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"c310497c-656f-4f3f-a73d-db52c5981788","block_type":"box","text":"i.e.","page_number":180,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"f7e1ac3f-39f6-448d-b0ae-17fabcf64db7","block_type":"box","text":", ratings on nonfinancial","page_number":180,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"51080ecc-0408-4c75-b666-bcab10c6b7ef","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":180,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"87f83bd2-4c4e-4687-9248-6d77b7c81904","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":180,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"3b57d1bc-fc4f-4037-bd4d-f751f10f4aad","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":180,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"e8eeff7c-123a-4302-ae15-027dfdb0b934","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":180,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"2648a6cd-8178-4f7d-ba6a-593e802fa8e7","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":180,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"86f7126c-0768-46dc-a7c8-800d7c59501e","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":180,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"1ebe7c53-87f1-4b2a-8d1e-34f078f6cfb0","block_type":"box","text":"of time.","page_number":180,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"ee409f3b-bb6b-4236-99fa-cae9c4fd7b8c","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":180,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"3c37307f-b471-4ed8-b7b1-e949bf7926dc","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":180,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"64ccbce1-e33e-42f4-80cc-53643489383f","block_type":"box","text":"risk.","page_number":180,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"5fe81b3b-afca-46ed-a6e1-6c41e148312c","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":180,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"d9838b97-fff3-460a-8636-7de73cab43db","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":180,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"1437851d-c009-4c69-9117-f49bb1a58e9e","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":180,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"2df76c9a-f18a-40ef-94af-c549c3814e3c","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":180,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"ec54b88e-c97b-443f-94ea-ccf38a9a87b5","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":180,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"26d9b9b2-c112-46c8-a129-6006015c1eed","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":180,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"8e902916-126d-40c7-a62f-e7e8549c5c66","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":180,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"c74f6e5c-0d66-4952-bda9-4c9cf0a49cd4","block_type":"box","text":"credit risk.","page_number":180,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"899604ff-bb99-44a6-afec-cd6a022dcdc0","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":180,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"13d8a538-06b0-4252-b3d6-1825cb119974","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":180,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"4c1b728a-8b9f-40ae-9a88-a5df8e86e2a3","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":180,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"95276ee4-f16c-4f73-a810-401b5f146384","block_type":"box","text":"of principal or interest.","page_number":180,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"de3e9689-df95-46da-ab39-8144e7b310dd","block_type":"box","text":"Note:","page_number":180,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"a2ba5eb3-aba4-497d-88ab-5e3352830e2c","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":180,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"2c42352e-aea9-41b6-a738-1107377d2f2a","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":180,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"7a5a6ab9-c21c-4955-b910-e0aa1f5ecd19","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":180,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"eb934e14-4b42-4384-ad2c-87978e5e2237","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":180,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"f681a754-31b3-4730-a3b5-e35edc729302","block_type":"box","text":"companies, and securities firms.","page_number":180,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"09f33fe8-7b85-4f27-a678-d43ef2a072fb","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":180,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"e806b2d8-82e8-4ae3-b40a-86e043e5dc0d","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":180,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"aa4c7067-eb6c-49cf-a562-b9bc1e8b2d88","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":180,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"985cdc1d-fff8-443b-9444-75eb4fb63d82","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":180,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"184df16d-252e-47d9-a56d-dd86f3277e91","block_type":"box","text":"that security.","page_number":180,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"b95f9646-23ba-4ebc-bfa0-8c0e8bc53b1b","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":180,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"6e0a7679-f933-425f-a39b-dc2a176d7f3f","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":180,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"6ad03f05-3c23-42a7-8011-858e322ea7b8","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":180,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"60147c11-a21f-4831-8e47-f6c5d722fc98","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":180,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"35e77fc8-c8da-4fa6-bf10-0745e15b742a","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":180,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"e1f4fec1-409a-45d8-b605-a7eb49b02815","block_type":"box","text":"categories.","page_number":180,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"7418e608-bb9a-4622-8a79-bf88fc2a8930","block_type":"box","text":"A-2","page_number":180,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"b9440bb8-4e58-43a0-a654-c2aa66100b8b","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a5e08b90-6c0f-4c3c-b194-8af75550ded4","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":181,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"b53313cb-84c9-4808-81ca-9e18617fb979","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":181,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"dcfdb9b6-0724-4dd2-871b-b613a2fb511b","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":181,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"cff840ee-0675-488f-9c35-35cf451de827","block_type":"box","text":"an issuer’s self-liquidity.","page_number":181,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"79a574e0-bf5e-49c0-af3f-0bc4966e353d","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":181,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"25fe79f8-9f72-445f-86f2-9901da03b6df","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":181,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"686d06c7-2283-4ec2-bcf6-2704eb15be74","block_type":"box","text":"MIG Ratings","page_number":181,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"2bc218ad-53ca-45c0-9d00-5b1966553c08","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":181,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"4dbb1a06-c983-4606-813f-c23889d14ed4","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":181,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"d9371ad7-ffba-4a43-9205-d00876ab8250","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":181,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"4f112277-c614-4d71-b84a-8d41a6390551","block_type":"box","text":"MIG Scale","page_number":181,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"20b9fdde-a293-4b30-94e1-643bccbc2c44","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":181,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"d1546ea2-95c0-4fcb-9566-b7cb4a8411ca","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":181,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"304b5db1-0b90-4f17-8715-dbfcc864cdb8","block_type":"box","text":"refinancing.","page_number":181,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"946ae674-e717-49e6-b14f-50704f6a44f8","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":181,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"0f24e16b-d659-466a-b339-9670c419cdb3","block_type":"box","text":"large as in the preceding group.","page_number":181,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"694611d3-9748-4c9a-af8a-a283939f4c4d","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":181,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"038bb2f0-0d4e-4394-b12f-a44af7ceb752","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":181,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"dccb70fc-d5d4-4c9c-9504-faee9a65dfec","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":181,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"ffec26cc-7919-4b0c-8586-112c292b95f6","block_type":"box","text":"lack sufficient margins of protection.","page_number":181,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"7895600d-c11f-41bd-a7cd-3731ad1d1cca","block_type":"box","text":"VMIG Ratings","page_number":181,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"73fed2f0-2a02-4e01-b0e8-a82104163022","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":181,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"17b55f26-1d0f-49b6-b81f-b3c56a866fa0","block_type":"box","text":"are a long-term rating and a shor t-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":181,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"2d25deaa-4b5e-4fd5-ad00-85ae83130db8","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term payment obligation rating addresses the ability of","page_number":181,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"4bd58c45-1587-4f7c-b8a3-c8bc8bd2b64d","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":181,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"286441ce-24dc-4542-8e14-de9e4892639c","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The shor t-term demand obligation rating uses the VMIG scale.","page_number":181,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"b1a39523-1864-4904-9b16-fdfe4ec9d039","block_type":"box","text":"VMIG ratings with liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t","page_number":181,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"aa15076f-4c11-4454-8447-c6ca12fe911c","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of","page_number":181,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"b7761900-77e2-4163-8828-df46c6237b91","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to","page_number":181,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"8faf8cb0-fec7-454b-b0e5-628448d72328","block_type":"box","text":"reflect the risk that external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment","page_number":181,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"9ef90c66-702c-4680-9eec-537ced2e76f1","block_type":"box","text":"grade.","page_number":181,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"44b22bf6-923a-4b24-8917-139b5b944604","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":181,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"40f77e05-f9a4-4546-899b-9f2a2a4d7f5a","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":181,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"62f30a99-4090-404a-a9c7-09b0b0b1bf71","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":181,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"be420ee9-4b15-4569-9e14-49c26af0622a","block_type":"box","text":"Industrial development bonds in the US where the obligor is a corporate may carry a VMIG rating that reflects","page_number":181,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"3350487b-7236-4ec0-adb0-f15bcdcf5355","block_type":"box","text":"Moody’s view of the relative likelihood of default and loss. In these cases, liquidity assessment is based on the","page_number":181,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"7a1520ec-5c11-48d6-afe8-2fc5ea221269","block_type":"box","text":"liquidity of the corporate obligor.","page_number":181,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"ed5da478-2347-4b21-b816-b198934e8da4","block_type":"box","text":"VMIG Scale","page_number":181,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"71be619e-9f74-4f60-af82-84a2b1583bc3","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":181,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"3c2c03e4-6a08-4dcc-bbf1-b74bbfb3a6a4","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"87a8d2db-518b-4228-8cfe-a911a2a9075b","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":181,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"3262de26-d035-4d51-9a8f-1cf408613ecd","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"542ba31e-5199-4d54-a8e8-56c13d28e234","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":181,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"add5adbb-ba2c-4e10-92f1-726b1727e2c3","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"63eacd19-b68d-4e58-be1a-d9fb42b2c7d7","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":181,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"fff62a8e-7a6a-468d-8266-ecb040984b30","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":181,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"7a180a66-a25e-463c-8b11-daea0fe87f36","block_type":"box","text":"may lack the structural or legal protections.","page_number":181,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"8f21dfe5-ed2e-4fd1-a1ef-e072f53b772b","block_type":"box","text":"A-3","page_number":181,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"86d4e557-de8b-4b70-8cc2-07106942f061","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aabe3ef7-0243-4641-9477-c273d30e3084","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":182,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"53a6a4a8-4fbd-412a-a842-2c79d7db3e1c","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":182,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"8ed52757-eb70-47ea-9e11-762664e51296","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":182,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"7bd4f343-8b0e-4f78-8ac2-1b1b4f74ebaa","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":182,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"bf4932de-5b12-4aaa-86ca-17c4290596a4","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":182,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"69844719-a54f-465a-bcb3-56b623568575","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":182,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"8060ac41-8bd1-469c-abb6-38558e5221dd","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":182,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"731a98b1-9dcb-4c7b-9edb-e485119fe5f1","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":182,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"6cf8f2fb-ce7e-4357-af37-6499dc514e9e","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":182,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"bcff3a32-59dd-4fa8-8073-d4e02c33d00e","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":182,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"6990d1b8-0004-4b0a-9485-1c3d4d16b1bd","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":182,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"5c1bb3e3-8a50-43d7-afd2-a61b9e334869","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":182,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"9465c194-ba63-45ae-86bd-867832cbff0a","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":182,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"77882a77-ebbc-483f-b68a-55dcc06d789b","block_type":"box","text":"from these guidelines based on market practices.","page_number":182,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"c52ca5f7-182c-4e2a-82ce-f46d574d9e30","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":182,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"ad9e22e1-d857-4de1-9b0a-599cda5f4319","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"14943c6b-e6af-4936-9fc8-371191220dc5","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":182,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"090a4100-1d70-460f-aab4-cbf3e21f506c","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":182,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"389e2ef7-28ba-4c15-a426-a43346bc0716","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"0995630f-9e9d-4354-a732-278d04a08630","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":182,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"af2a54e8-ef13-4727-9431-8f3d5b31e209","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"305b2c2f-cc1b-4498-bd1e-c95f3c60dadb","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":182,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"42a9ffac-145b-4202-b332-47fa910c9c26","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":182,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"78fc915e-80b4-46ce-8901-32b3020cbac1","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":182,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"91035b58-9498-4733-a490-8310863980b7","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":182,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"438f6a79-ea02-4e88-9217-89490a73bdc0","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":182,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"bab01d6b-8372-4ca0-a7e2-706dbbd563f5","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":182,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"d10e5b40-5da1-4411-b60e-484419db9eb0","block_type":"box","text":"obligations.)","page_number":182,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"1a1fb95c-f686-49b4-b480-14daf4caac33","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":182,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"6eb15d17-baba-44c9-9633-9f0d67247fbf","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":182,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"fac992d2-ec06-4ffd-aa7f-478933cddc75","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":182,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"bf16706e-44a0-4a8e-9005-b47000e443ce","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":182,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"ec740f07-a23c-4678-bbcc-91c5c35ef682","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":182,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"7d3579b1-f45c-4dbf-b987-41eb299141f1","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":182,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"68b1d961-9cd6-4743-8a7e-f82e3cfc8ec9","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":182,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"fd14ca7a-8868-4ac9-acfc-ee98977a19ff","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":182,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"e77fbc9f-07b0-4915-88d4-dec8e521540e","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":182,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"749540e0-cee6-432d-bff2-676f9bbe9853","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":182,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"4415b10d-04e6-46af-bade-ec09475990dc","block_type":"box","text":"financial commitments on the obligation.","page_number":182,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"430684d9-6d92-47ba-8166-1ad40d155bff","block_type":"box","text":"BB,","page_number":182,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"a6979a05-05f4-4b2e-84a0-87b1594c6730","block_type":"box","text":"B,","page_number":182,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"d0364075-d7ce-4985-b701-b5f21ca77915","block_type":"box","text":"CCC,","page_number":182,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"79963759-5372-4304-ad39-62823bc14f53","block_type":"box","text":"CC,","page_number":182,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"1397dab8-87c5-4e44-b193-727a88014566","block_type":"box","text":"and C","page_number":182,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"114ba4db-ccf2-457c-a35c-845487a927c7","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":182,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"275aac74-fadf-4a15-bfcb-8d426e2d4079","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":182,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"39b8902c-5213-4a01-bdfd-6f8fc2bb8f49","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":182,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"8ffd4307-4d0c-49aa-ad77-17b30f19f86f","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":182,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"c77c62f6-3f46-49ee-b141-fbe8ba268501","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":182,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"f65e61f6-6a3a-48ef-a929-50c8c348688e","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":182,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"a3162ce8-5793-4aa4-9ba4-62747cf28e0a","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":182,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"2a4eb9ab-3f9f-432c-8d18-6bb5d50cac9e","block_type":"box","text":"on the obligation.","page_number":182,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"82139bae-a8cc-43f1-a531-91658b3ebce1","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":182,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"cf0903a0-4039-4596-8cc8-5e7c7c794a60","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":182,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"b347a1e9-b0e9-4ffd-b2ca-7926cc5917da","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":182,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"d76728ee-7511-4128-b622-148027d7658b","block_type":"box","text":"financial commitments on the obligation.","page_number":182,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"de93f7e9-87b1-477c-8e47-60fb1befed73","block_type":"box","text":"A-4","page_number":182,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"028212f6-b605-4960-8249-d916dedd7253","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae2e8d8a-de97-478f-89c4-24b231d5e87c","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":183,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"2ad2c56b-5d43-4e1b-91ff-4e12d42a06ae","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":183,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"9a99927d-bcfd-4228-9333-537391b2fc3b","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":183,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"e0122957-5c4d-491b-8f7d-ee617beb1797","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":183,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"78f21761-565e-4379-b80e-b6d3f16044a5","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":183,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"9afcef00-f39d-4839-b5ad-65f94fce83c6","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":183,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"08785385-731f-4099-846a-334e1f590b7c","block_type":"box","text":"anticipated time to default.","page_number":183,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"ef7af809-2598-45cc-961f-eecf623c57a1","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":183,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"509713b3-bf80-4969-a714-246bf2d4c7fe","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":183,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"8765465d-a48e-4e18-9f57-1ebb3577606a","block_type":"box","text":"higher.","page_number":183,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"2a47f434-aad6-46a6-949c-5cbf55167d84","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":183,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"73c0a16d-6066-4568-bdba-95c6b2b7cf55","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":183,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"ac55faeb-b608-45ec-a696-34319305a508","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":183,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"23011584-9597-4288-90af-37246f70a12a","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":183,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"fb094ebd-ec42-4324-a0d5-5d03bf528506","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":183,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"3e3705c5-2a3f-49ce-bd11-6760e10f0bff","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":183,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"536e9e65-ac7e-4076-a8f2-77ba15eaa69f","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":183,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"c4a9eeb8-db1d-4c96-85eb-5de3c33fa4fd","block_type":"box","text":"restructuring.","page_number":183,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"f0804c20-3892-48d1-8471-ac9a0244420c","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":183,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"c9c9b239-a422-4117-92a8-7fac38f86032","block_type":"box","text":"standing within the rating categories.","page_number":183,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"8a412822-a642-4bd0-b2ca-b544bb3d2597","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":183,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"6f87c5b9-39fb-49e0-8be6-f665f8e901b4","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":183,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"66915fca-ad44-4b67-89c3-38db806ae14f","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":183,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"3064641b-5802-40bc-85af-ac7f5749d26c","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":183,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"bd365307-a79b-46e9-a350-0da581b2dab0","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":183,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"dae9512c-f0c1-4240-bbd8-e14a193c4b86","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":183,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"b63ffbd6-d400-4c11-967d-8b5fab57bb99","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":183,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"031310d5-3ede-41e9-a0e0-d0b1a17bd931","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":183,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"9c2e04ee-0b8a-4955-b2be-a15811cf6e51","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":183,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"e2e03a65-324a-49f2-89a9-1314e5744077","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":183,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"ed6bb113-45cc-492d-ba3d-045826c964c1","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":183,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"caa262d7-c249-4c53-8bea-3cb1dfcb1750","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":183,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"aeb30314-2d24-4db7-a8e5-29c7a3eadf6e","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":183,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"56a47bc6-f63a-47d0-92e7-29b15396c7a2","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":183,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"37cff06f-93b2-4db0-ab15-5a569ad66705","block_type":"box","text":"financial commitments.","page_number":183,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"75540d5e-2bc0-42e5-a1f7-2f3329713785","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":183,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"8199a1d3-a552-4f93-8797-b037d0cb1b7b","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":183,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"40d93403-ca54-4ffa-8e5a-6a5fc36e37ae","block_type":"box","text":"commitments on the obligation.","page_number":183,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"5001bc60-4397-4857-ac85-9eadc7be243b","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":183,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"cae6b237-48ac-44f3-a37e-e909667a6e5b","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":183,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"9925c60f-1340-457b-8062-b0eaf915363a","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":183,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"795e7226-25d5-4d9c-8804-70b1b19aac05","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":183,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"2ec5f6b1-0894-4ad0-9ccd-40beb542eaab","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":183,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"f7d7951a-2112-4c6f-accf-44cbf7b9a354","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":183,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"c25e402e-e76f-4632-aa9b-dcf90d51242f","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":183,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"8ae5baae-e0b1-4273-8af5-e5a278b0a3af","block_type":"box","text":"debt restructuring.","page_number":183,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"1dbea1a3-b621-4e1c-af0a-1ac15d58956f","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":183,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"3749fd55-2665-4d70-a712-d3c776381345","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":183,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"2817c8eb-fbf2-493b-90ce-5b1c1bc34135","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":183,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"24e71c91-c286-4456-ae8c-ce635d8591f3","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":183,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"3e84722d-ded1-4741-a68f-c422630c21b8","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":183,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"e2518ae9-0722-40c4-8f0e-3c371063e3a9","block_type":"box","text":"A-5","page_number":183,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"f9112e05-12ad-4fe2-a7ba-d129090285b7","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"caffc2bc-4a19-48a2-8816-6c1e900ef7b8","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"8f08d833-89a9-45b9-b849-a540bd8cf968","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":184,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"19b0f2dd-70a5-4519-98f5-ccd4e82c62f2","block_type":"box","text":"as a note; and","page_number":184,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"b7fea364-1759-4a9f-aeed-0d3a66028c4c","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"e3f44e64-2b1a-4a85-b20d-f6529fb66f7f","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":184,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"6a19ed8d-0578-4569-9ca5-72a57af9c699","block_type":"box","text":"treated as a note.","page_number":184,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"35ba6cb7-1f83-494d-8c53-a5dd3f331516","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":184,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"48269b80-22ef-4978-af63-3c723ceeb078","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":184,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"c22f1648-ef9e-4bd3-9214-a371733b3a3f","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":184,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"b9e8dfe7-d1e3-4a22-b735-d1c1423ff092","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":184,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"ea9cddfd-af03-4816-907f-2b80b684e7d3","block_type":"box","text":"economic changes over the term of the notes.","page_number":184,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"9b508302-24c1-4663-bcf0-657b30d02095","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":184,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"cc5b7a94-4ab8-4187-a2e6-4db5b756fb7e","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":184,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"c2bc2d34-8185-40a6-a649-0470b40af19f","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":184,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"b06a411b-13a7-4a27-ae32-fc78eb8db22b","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":184,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"8a6fe7f5-eaa3-4e9e-a53f-3c1cb8b095ba","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":184,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"3708518b-459b-4424-94ea-1a03b053625b","block_type":"box","text":"Fitch publishes credit ratings that are forward-looking opinions on the relative ability of an entity or obligation to","page_number":184,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"3cd48494-0a57-45e0-a40c-00c4af55acef","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":184,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"b80e3dd7-8f46-4ab4-b017-56b49137b1a5","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":184,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"4e30ef59-028f-476e-bbc5-58add4c61a66","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":184,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"21e16374-1dc4-4e78-90d1-b036cbab1b02","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":184,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"785d5ab6-d41d-46d3-9511-41e57192cc10","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":184,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"2c40a9fd-31e0-4ab4-a806-3b84b9b28dab","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":184,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"938cb3a2-9757-414b-8de5-1f869ca41e6d","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":184,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"53917fec-35e5-4772-81f5-6b8b570348e6","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":184,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"943daa0f-1db4-448a-bd9c-d486e004d007","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":184,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"de4e0f13-228b-43c0-9785-c6d37a99b182","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":184,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"5255242a-211f-4d69-a1b2-7c671ad9848d","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":184,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"f3d5685a-8db0-4d46-b369-9cacce8816da","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":184,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"a16050e9-81af-4bd5-841b-6d16eacc8b32","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":184,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"255f4d5e-6cfd-4d48-8aa1-7c648a401a43","block_type":"box","text":"receivables or other financial assets.","page_number":184,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"1140f752-83ea-4527-b473-b54ad9dc01e1","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":184,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"f30be1dd-9dcf-4bd9-8631-0987c44a2cec","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":184,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"252f1481-85af-4e7d-bcf9-99892c46d094","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":184,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"52a9f9cf-9319-402b-9573-6d0859d6051f","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":184,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"7ef6c275-d5b2-4186-90ab-04ad033e0c33","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":184,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"98f9de6c-e4e7-43e1-af55-f8cfa96acf67","block_type":"box","text":"occurred.","page_number":184,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"9005f4ed-41ad-4569-aa8a-1dbcd3475683","block_type":"box","text":"Fitch may also include issues relating to a rated issuer that are not and have not been rated on its web page.","page_number":184,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"fe367b68-e83b-452e-86c5-a6a86c43c284","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":184,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"092f9093-2e6b-4184-b144-5082b4b9ffc5","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":184,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"41de5896-dbd4-4996-9583-1a084736a2da","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":184,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"81fa8b73-3649-463c-9048-6ed5f51a312c","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":184,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"61c3106c-9e57-4e50-a899-3183d584f622","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":184,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"471207a5-283b-4b35-844f-97184316faa6","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":184,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"e6900b37-95e5-4b72-b7f1-31162550c4fd","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":184,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"270d97ea-eab3-4a00-8470-f4cf84bc8749","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":184,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"e96990a7-5964-4ed9-8a76-65196cb2568a","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":184,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"a751c714-f8f6-4ee6-bbc0-524eaf1c19ee","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":184,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"76e31b92-1360-4cda-b570-07cfef19c073","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":184,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"49c36858-28cb-49df-8d3f-dd3596f304b6","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":184,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"8ae507d8-bd39-4e82-a827-bcf4e2d792a0","block_type":"box","text":"i.e.","page_number":184,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"ea66ea7f-dd9b-407c-a84e-84d63f694b2d","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":184,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"a0686d70-beec-406e-b6d9-069eb1287776","block_type":"box","text":"the obligation’s documentation).","page_number":184,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"da7fe8c3-24cc-46e0-9f02-f6c62c0a4db9","block_type":"box","text":"A-6","page_number":184,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"fefc68a3-7956-40e5-a02b-65480a802039","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e48edb2f-c060-4fe2-96e9-bdc624c4a400","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":185,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"e2dcbec6-a47e-4fd7-bbb2-8d1fe2f11ccc","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":185,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"80dae98a-651b-4fb2-be72-75fa2ad30cff","block_type":"box","text":"agents in the form of a rating letter.","page_number":185,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"bba92e6c-9316-4860-8dd8-ffaaf86d0e39","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":185,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"bffeae5f-3c18-4014-93a3-787f62b4f506","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":185,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"9f765c0b-0328-4f9c-bc5c-2a67b12d9d55","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":185,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"684c2ab7-972f-41e3-9048-5b1e339fa490","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":185,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"a2084719-14f0-4430-87a9-7b1a98581beb","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":185,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"a1fca692-fa6e-4268-ae40-1515af0001b0","block_type":"box","text":"e.g.","page_number":185,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"3c9ad9db-2067-4b45-8a47-36a0595f8511","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":185,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"0cce8c28-84e3-436c-b0f9-59ae95763c26","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":185,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"705e2c6b-e4e7-4b19-a6b4-ba7475c972fe","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":185,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"5d087365-2489-4abe-9045-e2ee03e0db05","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":185,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"51ea32ea-b3eb-485d-9f66-000a7077ee0e","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":185,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"59e26bf0-1944-463b-8aaa-4e4c3be70b45","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":185,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"b4ac6683-8081-47b8-b91b-8eaf35f23483","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":185,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"29f0528c-ec44-487e-90a0-2e8d75d5147a","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":185,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"2cbe1571-4186-477a-8706-4f773a12d5f0","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":185,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"09b924a2-455b-49e6-8e2b-500c2ee01100","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":185,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"bb438d18-9f82-495e-9e99-979bc5df41ad","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":185,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"ba9c44a4-4b93-4e74-9896-2bc4edda86e1","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":185,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"eac64c3d-837e-4c4b-9169-47c134de3daf","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":185,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"bde8806d-b3de-4ecf-9ef6-b30d56d076b5","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":185,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"175ff26c-e6c9-42f3-8289-481379dfc74a","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":185,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"06c673be-025a-426d-b459-8c9357f7d755","block_type":"box","text":"Ratings.","page_number":185,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"f503739b-040f-4bbc-a841-6afb170a98c1","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":185,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"c32b9399-0b35-48f1-99ff-c41fb5ae3e8e","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":185,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"52dae7b1-2e8d-4d62-a8da-88f2df5ed97b","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":185,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"17d54863-6637-441b-962e-3ebd06d19772","block_type":"box","text":"obligation ratings.","page_number":185,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"7f973a7d-28b3-468c-94c6-51bfd60e3575","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":185,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"6346baa8-eff6-420b-b757-4441a5061e6a","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":185,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"b1972bc0-a52f-4a4d-961d-449e2b266eb7","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":185,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"4faf13d1-d2a8-4537-af9a-46caacf809c2","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":185,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"da8995e5-1dcf-44a5-9a36-8e4ca188a4cb","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":185,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"74a3a3e9-7f0d-4d99-8004-63fb492bcb5c","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":185,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"5df32f1e-fe1f-4826-9a60-d166b5922cd9","block_type":"box","text":"to foreseeable events.","page_number":185,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"2ebcd51c-97e2-4691-be8a-9f29c866c9a6","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":185,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"79a408dc-cdf4-4c85-b937-7fc542ab1a10","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":185,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"9d476093-981d-43e5-b003-66d300df20a4","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":185,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"1a3c9858-f3fd-4d92-b049-18d5c323978f","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. 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The modifiers “+” or “-” may be appended to a rating to denote","page_number":186,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"080f7f82-e06b-4a1d-886d-0defb7885ae0","block_type":"box","text":"relative status within major rating categories.","page_number":186,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"8cd0cb93-9a09-494c-a41f-fc739e86888f","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":186,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"8445f831-c201-4d90-8989-c009262c11d7","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":186,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"eabe1f4f-ea0d-4943-9310-8be18cea0753","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":186,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"a8703b07-d81e-435b-a188-6e44566a3dc3","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":186,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"eafadec6-7f45-4543-b161-87eadc62ac6d","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":186,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"1cb3580e-bdb2-40c5-8150-4a2a42e429a8","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":186,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"fcccf410-5681-4d57-a996-1b77b854ad4d","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":186,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"33af30b1-f42c-4313-8f78-111d9beeb7cc","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":186,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"4fa01105-3e8e-4723-b5d8-75ab0e628812","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":186,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"7512a344-b0d5-454b-a963-217496e7e748","block_type":"box","text":"finance markets.","page_number":186,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"2349bfbf-7a42-4989-9fd9-6e5ab7eb65f0","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":186,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"e18f2bbe-8b12-46d6-b6bc-fe19c67caf90","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":186,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"be2174b8-2cb7-48cd-9be4-3280552c9330","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":186,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"3001b342-5374-4eef-8049-7f6bbbb64918","block_type":"box","text":"F2 Good Shor t-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":186,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"e11503a0-a52f-46a7-8e26-06df9ac3c8a2","block_type":"box","text":"commitments.","page_number":186,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"2a0b0046-6ba0-4187-995c-1ecb67773122","block_type":"box","text":"F3 Fair Shor t-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":186,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"ae8379ff-388b-426d-8707-4873b5ccc0b8","block_type":"box","text":"adequate.","page_number":186,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"7ed48034-10cd-48c6-aca5-5624703c17a7","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":186,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"34b3e430-c87f-4e4c-a7ef-da01b301d8e2","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":186,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"ceced6df-2b89-4e94-9f1b-a396cebb23d6","block_type":"box","text":"economic conditions.","page_number":186,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"80703199-21c2-4ec7-8c67-df2d25d0831e","block_type":"box","text":"C High Shor t-Term Default Risk. Default is a real possibility.","page_number":186,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"c9e8b620-542e-41b9-80c1-24da8b85b463","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":186,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"10326407-cebd-4e05-8bbe-ec5acaea09e7","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":186,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"c12e7d94-1664-4b4e-8846-12b4d1cc13b9","block_type":"box","text":"ratings only.","page_number":186,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"25392a88-0361-4f71-8b5a-324e67be4518","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a shor t-term","page_number":186,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"0b08ef24-2592-47bc-9f69-57874f2e328f","block_type":"box","text":"obligation.","page_number":186,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"41bfb526-663e-4485-969f-acb0e48f5133","block_type":"box","text":"A-8","page_number":186,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"c4d9f43c-b113-4ae6-ab16-f6f7facc9fe6","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77297b52-4b51-45a0-b151-8c7322f90aea","block_type":"box","text":"[This page intentionally left blank]","page_number":187,"box":{"x":370,"y":489,"width":238,"height":12}},{"id":"7f7afc98-44dd-421a-a8e0-fb71ca34567a","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":187,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e6a5bc8-c1d9-456f-9f36-ad68915fbafb","block_type":"box","text":"APPENDIX B","page_number":188,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"42d3c512-b355-43e7-87b2-62ea9aa5d505","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":188,"box":{"x":247,"y":106,"width":484,"height":11}},{"id":"eae585be-8969-48c2-b6b2-38463425294e","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":188,"box":{"x":247,"y":121,"width":486,"height":11}},{"id":"ccc14095-13f5-457f-810f-a45948479e17","block_type":"box","text":"Effective Date: January 1, 2025","page_number":188,"box":{"x":376,"y":136,"width":227,"height":11}},{"id":"1cdbf52c-3359-4311-8b34-6b33f24d2879","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":188,"box":{"x":231,"y":159,"width":515,"height":11}},{"id":"690ab7d6-025f-4de5-ae91-952909475cf9","block_type":"box","text":"□","page_number":188,"box":{"x":284,"y":181,"width":15,"height":12}},{"id":"73401fcf-3042-4dda-84d7-5dc46d9e26a5","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":188,"box":{"x":306,"y":182,"width":388,"height":11}},{"id":"901b59b9-d22c-4502-9ef3-8a460dad4d52","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":188,"box":{"x":205,"y":204,"width":589,"height":11}},{"id":"738fc8b8-1e3b-4a39-91f4-a7100a4a6ade","block_type":"box","text":"□","page_number":188,"box":{"x":405,"y":227,"width":14,"height":11}},{"id":"987ac46f-f1c2-4823-8f32-3280e0fa4182","block_type":"box","text":"Money Market Funds","page_number":188,"box":{"x":426,"y":227,"width":147,"height":11}},{"id":"0e695168-9014-462c-ab7a-cb3912c30ac0","block_type":"box","text":"□","page_number":188,"box":{"x":416,"y":249,"width":14,"height":12}},{"id":"ccf0fa1b-96b1-454f-8a75-cc8b866d3da5","block_type":"box","text":"Closed-End Funds","page_number":188,"box":{"x":437,"y":249,"width":125,"height":9}},{"id":"32c5ebf2-84ae-41b6-9bdc-04f52db038cc","block_type":"box","text":"□","page_number":188,"box":{"x":460,"y":272,"width":14,"height":11}},{"id":"3edbfb92-510a-444d-95cd-0044053c9ae5","block_type":"box","text":"Other","page_number":188,"box":{"x":481,"y":272,"width":38,"height":9}},{"id":"061713b5-6833-4be9-a797-a41106469bba","block_type":"box","text":"Objective and Scope","page_number":188,"box":{"x":101,"y":295,"width":149,"height":11}},{"id":"4abaf987-306f-4546-9ebc-f0844c45c267","block_type":"box","text":"Set for th below is the Open-End Active and Fixed Income Index Fund Proxy Voting Policy.","page_number":188,"box":{"x":134,"y":317,"width":622,"height":12}},{"id":"37f9d464-6f86-4bd0-ae6b-e8dca9fd4993","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":188,"box":{"x":102,"y":340,"width":354,"height":11}},{"id":"2d3eb88a-5aa7-422e-8b87-77354dc602bf","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":188,"box":{"x":134,"y":363,"width":702,"height":11}},{"id":"384a4373-33d3-4535-b462-ae3c1081ff54","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":188,"box":{"x":102,"y":378,"width":789,"height":11}},{"id":"33fd1f7a-4d06-4866-8bfb-1989418bb800","block_type":"box","text":"voting proxies relating to por tfolio securities of the Funds, and have determined that it is in the best interests of","page_number":188,"box":{"x":101,"y":393,"width":801,"height":11}},{"id":"984caa2b-0ef9-43ae-94f6-a44685ca35c1","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":188,"box":{"x":101,"y":408,"width":763,"height":11}},{"id":"53496774-59e2-4e9f-8e1d-a42eded20902","block_type":"box","text":"principles outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":188,"box":{"x":102,"y":423,"width":775,"height":12}},{"id":"92a76404-fb63-4dd0-83f0-3ed5140ebe38","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":188,"box":{"x":102,"y":439,"width":651,"height":11}},{"id":"5f184c7b-b63e-44ee-a2b6-0ddbf08697dc","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":188,"box":{"x":135,"y":461,"width":718,"height":11}},{"id":"8a983653-8c3a-40c4-aef4-2290c42e9f5f","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed income","page_number":188,"box":{"x":102,"y":476,"width":788,"height":11}},{"id":"5329d4a8-5b7b-4409-95a6-193ea7966ad2","block_type":"box","text":"index Funds managed by BlackRock. The Guidelines include “climate and decarbonization” guidelines which","page_number":188,"box":{"x":102,"y":491,"width":766,"height":12}},{"id":"f34369b4-46fa-4fb1-825d-4c5a4e665a36","block_type":"box","text":"apply to the Funds listed in Appendix A, if any.","page_number":188,"box":{"x":102,"y":506,"width":325,"height":12}},{"id":"c156b159-9198-4264-824e-3550ed912a47","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":188,"box":{"x":135,"y":529,"width":751,"height":11}},{"id":"8864356b-31c2-4bdf-afc9-3cd163d4336d","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines.","page_number":188,"box":{"x":102,"y":544,"width":765,"height":11}},{"id":"27924d3b-b4cd-4ea4-8be5-e0612fd5399e","block_type":"box","text":"Conflicts Management","page_number":188,"box":{"x":101,"y":567,"width":165,"height":11}},{"id":"69dfeea3-42ca-4886-bd9a-419c77d1a72d","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to prevent","page_number":188,"box":{"x":135,"y":590,"width":758,"height":11}},{"id":"afcccfde-9ed8-4b31-a71a-e3f68d1057aa","block_type":"box","text":"undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise","page_number":188,"box":{"x":102,"y":605,"width":797,"height":11}},{"id":"1ec5dd34-ce61-4120-9711-5c8a034b19c5","block_type":"box","text":"of proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":188,"box":{"x":102,"y":620,"width":805,"height":11}},{"id":"17207200-b8e9-46bd-8f32-076e9749146e","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":188,"box":{"x":102,"y":635,"width":797,"height":11}},{"id":"e06f7edb-5c0d-4513-a3df-07bda85413b0","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":188,"box":{"x":102,"y":650,"width":756,"height":11}},{"id":"bd185f96-99d0-4d8d-9b22-b044cd244498","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. 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The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":188,"box":{"x":102,"y":786,"width":778,"height":11}},{"id":"4b31ccc4-e771-4c24-ba05-844e6b7cca03","block_type":"box","text":"connection with proxy voting.","page_number":188,"box":{"x":101,"y":801,"width":203,"height":11}},{"id":"f0dff618-099e-4944-8eb0-93747dc95df9","block_type":"box","text":"Reports to the Board","page_number":188,"box":{"x":102,"y":824,"width":153,"height":11}},{"id":"8f55dc0a-e013-4363-a898-4280832b29a7","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":188,"box":{"x":135,"y":846,"width":755,"height":12}},{"id":"89ca4503-4565-4b41-885e-2e4763c4033a","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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The money BlackRock manages is not its own — it","page_number":193,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"5217e016-698d-4ae1-8bca-163c73318162","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":193,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"baaad1b7-bce7-4bbf-8335-a9889ef6a2b4","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":193,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"adbe4981-f31f-4adf-833f-f8c4ab99d869","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":193,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"2f2e9d41-76a2-4ddc-a9b4-ed2eee18a6c3","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":193,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"13847fd6-28dd-46dd-97b3-793cacd08678","block_type":"box","text":"this work with research, data and analytics.","page_number":193,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"31c5876b-0ad7-46cf-9894-26a73c81c6ce","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":193,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"0b8df99b-512c-4686-9bea-ff2dda75f9a0","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":193,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"d33a6239-61aa-4ccf-a185-a1dcef13e265","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":193,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"2de7f6c6-57fb-4929-a7d7-b265e859e977","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":193,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"24836bbf-2190-4f9d-9a07-b5f9f34d073b","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":193,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"d9c6899c-9d48-4d00-b184-c349d67b311e","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":193,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"92f29b95-513d-443e-b882-4a85a8eac2d9","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":193,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"e8d2d2a1-235e-4d34-aebd-8202ff1811d6","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":193,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"d890e32d-fc3b-453a-8332-ad454e4983b0","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":193,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"543b7d2e-f734-453e-8ff6-1f97dc864041","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":193,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"05cdcdaf-7c39-43dd-81d8-5cbaae29159f","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":193,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"9e4c5993-29fe-4c10-a674-30e469c61c00","block_type":"box","text":"shareholder meetings.","page_number":193,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"9c2fc516-49d7-449a-81e1-19c783fb98ed","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":193,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"20686eaa-8911-4172-b282-3e8bfb32b393","block_type":"box","text":"investing.","page_number":193,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"5d962688-5edd-42dc-a550-84b3ee75086b","block_type":"box","text":"3","page_number":193,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"7025435c-62e9-4eaa-942d-5d8cb5a70e82","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":193,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"3a9c9ecf-1971-4538-8d81-231cb7dd0d4b","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":193,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"b0f77ea3-0bc7-483e-81f1-0433bd68d2f7","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":193,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"4146dd2a-5290-4240-870a-02e92bcc0ecd","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":193,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"596c5c11-ccd2-4587-92bd-750a321e7027","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":193,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"60c823c1-0677-4055-9cfb-c5c960f8f832","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":193,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"4a493e5b-6375-4164-9fbb-deb3d2c7a297","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":193,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"007c7311-add4-477c-b9f8-591acfea8045","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":193,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"73b57b9d-9a92-462a-90a8-f1dd1589f708","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":193,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"131098b9-7a29-4aa7-9deb-949120327a78","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":193,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"f8857c56-98b2-4659-8abc-483f97315979","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":193,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"5440a691-8c7a-49f2-a5b6-4ceef8a4e7c8","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":193,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"da42c84c-e5d8-4fa3-a015-f0495fc29dac","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":193,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"0c70f90d-15e8-4b15-86dc-e53815629b6c","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":193,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"beabb74f-8edb-404c-b718-8e4313c2601f","block_type":"box","text":"management teams and board directors","page_number":193,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"9f6e6d8d-4bdd-46a6-b768-f9f9b17ede85","block_type":"box","text":"4","page_number":193,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"64a5a236-7858-4fe0-bea9-b3899fc03cb9","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":193,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"d451c0bc-066e-435d-90a9-0a4c61a0443f","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":193,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"bd676c48-b325-43dc-9803-35f2dd955c07","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":193,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"c4388f8e-1f66-499d-87c7-8b87c0c10e61","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":193,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"3993abda-8dc9-4acb-8260-062b86ca8fbb","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":193,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"a9c5c076-ee2d-4f1f-bd28-63b9a1bf66c4","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":193,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"5faf0e92-6c93-4cb1-ae71-dea6bf0fb1bd","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":193,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"ec22e51e-f4fc-4bf2-b455-47be64f77b72","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":193,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"963f10ba-fc1c-4a37-b4fb-1434be5230b5","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":193,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"3a13b96e-f8a9-4519-af90-ae19a147a7f3","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":193,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"0c58ab6a-c0fe-4346-a5ed-6f5290e937e7","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":193,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"4d9f5f78-40aa-46bd-91a7-ab8270e41ba4","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":193,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"da987ebb-08ba-4f29-83d1-e1c360b320df","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":193,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"f2fdaa34-2847-4252-8660-55276728efde","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":193,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"235217aa-0367-47cc-890d-b27eb90f5140","block_type":"box","text":"3","page_number":193,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"352b4e1e-6361-42c9-9757-23300890fc74","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":193,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"e93ea9a0-b5b0-4295-870b-6aeec44e3d9c","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":193,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"22cbcabf-b3c8-49ab-9e67-51d217b29876","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":193,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"667a3025-927d-4116-b246-2e1b6bb4800a","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":193,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"8efcb34c-95b6-450b-93c5-39551bfd9560","block_type":"box","text":"4","page_number":193,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"c16fa3b6-7f05-4f9a-b05c-a12b11dff058","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":193,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"50c7657d-b9e8-4c20-b6ba-d3d20aca6ad6","block_type":"box","text":"boards and their members, where relevant.","page_number":193,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"eeb0c753-1f69-435c-b7c3-8377374d681a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ace57b9d-0642-48c6-b7f6-3414f28faf04","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"c2584645-2d02-4d1e-8501-436be6e28a61","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":193,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"de95125f-5301-4a63-9082-34783ea68113","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":194,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"ceed13af-2ae5-4534-a725-0af4efd5fb19","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":194,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"be5c84fe-1ff7-44ad-b7ca-7571d0cfc0e9","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":194,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"05e740bc-fb3f-4bcb-992a-7210ec63dd73","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":194,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"38961faa-a182-458a-a08d-3b7d148d6f73","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":194,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"7d62867f-54ca-4abb-98dc-05a268c78a89","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":194,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"80484131-21bb-4ec4-be08-44c6985f1fce","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":194,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"6f6fd84c-96c7-488c-909a-ef4d25dfe5a5","block_type":"box","text":"5","page_number":194,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"5f73ce7b-20c2-470c-b296-467bdd63f475","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":194,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"985714b1-3d03-425d-aa43-7ca3d376518c","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":194,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"935cabeb-5be5-4c63-8699-60a82b924de9","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":194,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"acb66dd8-ff57-4501-9757-ecde666344d2","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":194,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"6c8eff3c-1a66-4fba-af02-73c3a648e6c1","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":194,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"8a34eea9-8d0e-4b0d-889b-905bcf1c878d","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":194,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"193a6105-3b4d-40e6-a79e-ae0c5200dbdb","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":194,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"1666f2f7-f98a-4777-912c-087b74d50566","block_type":"box","text":"5","page_number":194,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"bcab30a2-2be2-4617-8255-c732657b07fa","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":194,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"1a19d1d7-ee41-4f53-b68b-6f6cd234175f","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":194,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"216c734e-346c-4f94-ab4e-5cfce472f832","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":194,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"4da96fab-86c8-41d5-80c4-d761e8fe9525","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"58eac4cc-41da-48e8-9fa2-b6db4c64f90d","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":194,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"a763a554-0489-41b0-bb6d-d75b783ea405","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":194,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b3276868-18a3-41c8-ab3e-11a832f4c44a","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":195,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"5dbe30df-3270-4912-b95f-3e5ade293eb2","block_type":"box","text":"Roles and responsibilities","page_number":195,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"a08fa0d5-21c5-4cac-b4f2-ccf8ee45bd09","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":195,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"5e8c780a-e3f1-4fc0-b293-2fe6d5ce6378","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":195,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"e38e5625-39f6-4f72-afdf-b56e1af3c618","block_type":"box","text":"6","page_number":195,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"feaef446-4dc1-4c03-a1ad-c443b6b6495a","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":195,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"83d121fa-624e-4558-a48e-f660cbb4351a","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":195,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"21d1d428-ef3f-46d2-b234-5b481dc42ae6","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":195,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"6e90373d-43c9-4169-929a-020771f0f992","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":195,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"32f9aae1-aa7b-49e5-97b8-8f8ef7379c4b","block_type":"box","text":"per formance over time.","page_number":195,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"9af4344c-f1d2-4a13-ab2c-ad87a43be8d6","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":195,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"74b64203-8542-490a-988e-537f14d64e2e","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":195,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"107f3ad5-351a-43a5-9a87-3bf75c377b92","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":195,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"7b4d7083-4d81-49ef-87ed-f262e742ec7e","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":195,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"dc635c2c-f5a9-40da-8c9c-d5d99cf36618","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":195,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"fa77d66a-6670-4e5b-963b-2a5cd01715a3","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":195,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"635a674a-4e69-4b09-bf6c-6579155cf335","block_type":"box","text":"Composition and effectiveness","page_number":195,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"7fb33d51-3805-42e5-85d3-bb24e4780425","block_type":"box","text":"Appointment process","page_number":195,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"65d355d7-fc08-498f-b535-e18e3605f832","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":195,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"e1214c65-63fc-49c4-8172-1ed4a01c488c","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":195,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"e6c0511f-2e3e-4b15-a98c-e5aba60a7aa3","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":195,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"92cb2712-3e13-42e5-9e1c-73645381eb2a","block_type":"box","text":"e.g.","page_number":195,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"936b683f-dfad-48ea-954c-076d80176c1a","block_type":"box","text":", sector, maturity, geographic","page_number":195,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"1cd9c3e9-f862-4cfe-95a3-511951b63f12","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":195,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"0fa2f139-debd-4973-b219-545f158e0b16","block_type":"box","text":"e.g.","page_number":195,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"42250f75-a2e1-4cce-99d1-4b321576f7cd","block_type":"box","text":", financial exper tise, industry track record). To","page_number":195,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"8c70d82c-eb2f-4348-a89b-35f725c4f497","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":195,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"9028a9e9-0c56-4ff1-a101-02a6f9641081","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":195,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"3a94e658-e09e-4e02-9558-d69dcbc0b15e","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":195,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"774a7c87-0314-4892-88fd-048a725f9a10","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":195,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"1af9d71c-09c7-47ad-8ca7-028d77593fd3","block_type":"box","text":"and local market requirements.","page_number":195,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"27425c3d-90a3-4a68-b386-c3b0a13618b0","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":195,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"e7a2d3c7-f116-4bbb-9d48-7d7f44afec2a","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":195,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"4f108ed5-1c88-4b8c-9d01-7b26669dba31","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":195,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"fd14ff75-81b9-46ed-b9a4-ef9f29e4e2c8","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":195,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"d6eede12-cbb5-4ed2-acca-9955fcb47e92","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":195,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"e79e8bf8-4c1a-4522-8feb-0ebf6fe87c36","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":195,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"318d1084-d0dd-4fc6-a9fe-3b3aca010a5e","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":195,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"003702b7-0c4b-4981-9c62-abaa3107dfc2","block_type":"box","text":"Independence","page_number":195,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"7ab69e62-a467-4a46-81b4-4626f941971b","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":195,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"153a1dfa-8573-4b8e-8770-db94ee960b08","block_type":"box","text":"e.g.","page_number":195,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"da92358c-5244-4c5a-80d2-b3464c7a1ae2","block_type":"box","text":", government or","page_number":195,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"85ddce7b-e903-4bca-81bc-58c7f4042efb","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":195,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"17a8d8b4-6a8a-4e20-8eb5-5b1327c718d7","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":195,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"2bbe886a-66a8-4a12-bcd4-f240a7ccffe5","block_type":"box","text":"conflicts of interest or undue influence.","page_number":195,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"95469452-e9ae-4e74-a643-480f8f0871de","block_type":"box","text":"7","page_number":195,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"a35bc4ac-cb2a-439b-9c7a-f0c2939cb044","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":195,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"b619f02c-d748-426f-8e4b-d4894c8530f6","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":195,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"9da1d5ca-a4ca-426a-9b9a-7319832aedb2","block_type":"box","text":"independence should meet those local requirements.","page_number":195,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"a7534930-f386-4618-8d70-420890236319","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":195,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"70d4be93-3c76-4f2d-9e72-571a9c7295fb","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":195,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"4d01471c-d00a-407c-b811-d8f4bac4d372","block_type":"box","text":"composition if this is a perennial issue.","page_number":195,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"96d4f4bd-76b6-4cfb-9b4d-3dc421498420","block_type":"box","text":"6","page_number":195,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"83b4e6c3-76c6-4b65-ae2c-1f45e7eb8c0d","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":195,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"b50965a7-c678-4a24-8e15-755af40fe635","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":195,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"3fd5a67a-5e46-4775-a4ba-c312334790ca","block_type":"box","text":"7","page_number":195,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"c6b8d65e-20b5-4b07-9838-b9cddced59c7","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":195,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"d5fc214b-1f06-4311-b742-389000a58d97","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":195,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"161f179c-90b0-45e6-b134-e389d3057897","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":195,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"08a91e37-22d7-4c3b-a3ac-cfb3852a4075","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":195,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"ffea7ed5-fa7d-4709-aef2-ccdbfdfed39a","block_type":"box","text":"of the company and shareholders.","page_number":195,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"0cb2c292-5bcc-4c34-ab50-65ad3c7c32e9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"74c27912-93b5-4af1-ab93-ae97e89565df","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"5c3a5724-351a-4ecf-a47c-8ec237ce65a6","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9ca26644-3f54-4700-aef7-62286bb4d3d4","block_type":"box","text":"Independent board leadership","page_number":196,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"b75188cb-b500-4257-a995-28652dc5658b","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":196,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"e2260b59-e398-4866-a2b9-cbbc24aa742a","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":196,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"f9f72918-fc9f-472b-ab6f-a1490012c6bd","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":196,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"25ae062e-5d41-45a7-84b5-00ab29f9ff4b","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":196,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"cb68cd12-c424-4ef4-8939-abd114b62727","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":196,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"03dc26a6-4630-4570-9738-264f8539a795","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":196,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"27ceaab3-2647-4d6a-98bf-c7b3b82f3efc","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":196,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"e0541f23-4593-4344-bb7d-f535454ca058","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":196,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"80db044d-db72-4010-8aa6-5a2b85aaef31","block_type":"box","text":"how it serves the interests of shareholders.","page_number":196,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"e5bc15da-cedc-4468-9e82-a11e8503b5d2","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":196,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"501c5f19-5750-4063-9f5c-398a79213688","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":196,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"2d7c3f71-07ca-486b-ab17-ef82e4c666a2","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":196,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"9b0a162e-12c1-4317-9c7c-bb58ee72eafa","block_type":"box","text":"Tenure and succession","page_number":196,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"fa58f423-d18b-4d43-aced-df7d1eaf8096","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":196,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"643d3a93-b192-435f-a269-663b415eea1b","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":196,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"d8c5e96c-c814-4505-9fa1-c87b7254e430","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":196,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"77d0b313-3ec9-45a7-8987-1d4a140cba2d","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":196,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"c4faed69-0edd-446d-97d4-fdad044495b4","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":196,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"ac097bf4-b5c6-468f-934e-871e8daa3dac","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":196,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"c2497160-dc6e-44a4-96b8-07339d4020f8","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":196,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"3980addc-2767-4988-b87d-5eb45db8dea5","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":196,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"59b39326-f578-4f85-8781-c0935134549d","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":196,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"218d5711-d0c1-4ea8-9767-e2622cb5e4a6","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":196,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"9d16b934-e916-4fe0-8f27-12f3c5d10c13","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":196,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"e2fb67cf-b3d6-475f-a7bf-4f9ae37314fa","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":196,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"9595b887-dacc-44b8-a355-565437d58b88","block_type":"box","text":"for their continued service is not evident.","page_number":196,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"93c7c35e-7eaa-4073-9576-f5b20dd6ffbb","block_type":"box","text":"Capacity","page_number":196,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"e5d66e22-c1db-46c1-8cde-43fa09b41e62","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":196,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"f5cde8fb-7b09-499f-bfd5-cd8265664032","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":196,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"43a88e14-b2a6-434d-a82c-ca2556c9b981","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":196,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"cc4fc43c-6a61-461d-8dbc-d372d79c30c2","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":196,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"d7804a20-4967-457b-ac43-5cfaddbcc7b0","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":196,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"9f62218c-491b-48e9-ab60-302faf7fbaca","block_type":"box","text":"determinations across markets.","page_number":196,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"f84ec8af-11fe-4032-b54d-7c2374dfe230","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":196,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"3c015d4c-4209-4658-acf9-fd08c1293361","block_type":"box","text":"their duties to the board and company.","page_number":196,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"f11001b3-c4cb-41b8-94a5-05b0ea9c39df","block_type":"box","text":"Director elections","page_number":196,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"53ab4dc7-d8b4-4281-9ae3-4a705c23604d","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":196,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"285a22d2-deae-47af-ba9d-d5964a9c271a","block_type":"box","text":"structure","page_number":196,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"867cfcc3-8765-4756-ae24-1a0a71963890","block_type":"box","text":"8","page_number":196,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"dc8bc397-d241-4ac5-a581-c40d0e0581a0","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":196,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"6d0988bb-5519-4746-bf7d-feaa6c41a921","block_type":"box","text":"basis of its business model (","page_number":196,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"7ff686f8-de95-4e91-abef-463f65281f9a","block_type":"box","text":"e.g.","page_number":196,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"2b6eb7a3-2bea-4ce2-b34c-7d66b5b939cc","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":196,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"b8554a20-2cb5-41fd-996a-92711fb610fe","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":196,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"6f7ab9a6-7c5b-4bc4-b570-4c440090f8cc","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":196,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"7fa1627f-8f1a-4f7c-9af5-058791f858a6","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":196,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"c1f60805-a912-4a93-99bc-61a0c378301e","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":196,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"c235f14f-fe38-43fd-9433-2d7ed1bf743f","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":196,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"24e9c125-5e22-4db4-83ee-0f502ad2bc71","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":196,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"6cd81c24-9b6a-4e67-9e2e-b487cdc3b74c","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":196,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"61db605d-be8f-46ca-b21f-1bbda68ef7d5","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":196,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"ee4bf0a6-84b5-4053-b6ec-f17f45e8913f","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":196,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"f497288c-cb48-4caf-9e48-814e0b2385ba","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":196,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"80318e1c-034e-44d1-85ff-cc7c77ef0774","block_type":"box","text":"8","page_number":196,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"56c55dfc-7fec-40b5-a07f-fc6c728ec744","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":196,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"67e4284a-a925-4a7f-b7f9-febae5f335aa","block_type":"box","text":"directors stands for election in any one year.","page_number":196,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"fe922466-8b36-44cc-bd58-5dc245414fb9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"4c0f7221-f30a-4fa4-937d-1444e025fb1d","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"fb8800c9-8495-4750-b2eb-0492e52963a9","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"34137289-70b4-441c-bda1-e5bd486e14cf","block_type":"box","text":"Committees","page_number":197,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"b57ec314-b1a2-4e98-8347-fe8da8880740","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":197,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"7bec7f8d-305a-45e1-8bd6-85bcc44e7ccb","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":197,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"ae8d4024-c57d-48a5-85f1-17b3b97e082e","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":197,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"84f26b9f-f68b-402c-9a4e-b04fe07bd707","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":197,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"72c42999-2a96-44b4-a0a7-6b601513ca22","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":197,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"da8d1889-bd92-4d0e-a205-af4f18c1e95a","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":197,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"6a0a3bd8-f761-4d3f-99b6-c19b9437a94c","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":197,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"b98570f3-9654-4f7b-878c-744f15370dcd","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":197,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"0a2d7376-a79c-4d63-bbcb-347f883346e5","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"69718b82-e0d7-497a-bf18-5401908f3cb3","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":197,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"1521b307-b453-4373-bd21-f383857287f4","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":197,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"1bb2e3ef-eab6-4ce1-b301-b9aa4bae4489","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":197,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"a813812c-dec4-4873-99a6-20660b848906","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"455db322-0e52-4425-979b-f4ac6e230b2c","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":197,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"c1c409b8-f316-41c4-b9b5-172d76d50346","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":197,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"7572ab05-4a8b-4f40-bf12-b093579a5311","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":197,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"a1c4324e-d446-474b-a4c3-19b854569eec","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":197,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"d9cb2c99-6b1e-45b9-b30b-5acbdf1c8ce2","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"efcabd70-1745-4702-936a-ec65206ac0d0","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":197,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"e59f8fd6-5d1d-44ad-a464-d84e3ef95c9f","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":197,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"8c5eeaf2-b295-4085-a559-04f7c44cc32e","block_type":"box","text":"firm-wide compensation policies.","page_number":197,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"43f1ec46-fed0-4503-a7f5-d2c7974d36ef","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":197,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"869fccdc-87f7-4aad-bb83-e0f65bf2e26e","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":197,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"383acfb1-63f0-4ef0-8071-23f7ce34b2ee","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":197,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"4604059c-7427-4ba9-831f-28381480f1f5","block_type":"box","text":"Board and director evaluation","page_number":197,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"b1558a5a-b36c-4666-ac1e-51c6dc31bb74","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":197,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"d4f97d2e-aa25-45a4-9417-4344557e72e1","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":197,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"a18f9930-41ec-40ae-a490-3bf85eb8c1b1","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":197,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"65155e30-54fe-43ff-ae8c-0b931e12c322","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":197,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"718c72fd-819c-42cc-aab7-9c4faad4afa7","block_type":"box","text":"a result.","page_number":197,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"ccc1d89a-43ef-4236-b383-3eb12fef1f00","block_type":"box","text":"Access to independent advice","page_number":197,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"df4310ac-8314-4172-9a71-13c576ead8c8","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":197,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"13acbb2d-d8ce-4209-a136-19454ef4d11f","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":197,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"b98b3a9b-a172-4729-81cf-209294f77eea","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":197,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"1267c768-5c1b-4d96-b576-72f381044f0c","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":197,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"d1f40da2-d045-4326-a338-9459acef5daa","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":197,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"62fe9157-cc7a-4e81-9284-13bf17eabbe4","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":197,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"0fbd28f6-9597-4de2-937f-c5ca236dec85","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":197,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"72e70684-30ff-4069-8a4b-d06b550c7aeb","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":197,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"a87366b5-977d-49c1-bc6b-4292e8d8f6b6","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":197,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"57561722-b0b2-43e1-99a2-0654226421e7","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":197,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"3fbaf51f-df10-4f51-ada5-2c0fe3a607b1","block_type":"box","text":"per formance.","page_number":197,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"5f6c900c-64d6-4eae-9382-89a3858d2f06","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":197,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"cf4a2569-3395-4693-9c39-83bf71730005","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":197,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"f005e8f7-b20c-4f75-8a2d-c6d370048219","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":197,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"837e0d3f-512b-4b85-9b54-4884df98dffb","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":197,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"707d7c75-6836-4e41-8986-c1213cc6a566","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":197,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"8443301a-45cf-4da8-b655-d76e06cc7f9a","block_type":"box","text":"recruit and motivate.","page_number":197,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"98935b7b-1a71-4c78-8475-8c2e5f886714","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":197,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"ff1bd029-d876-4313-b25b-87801dc10ca2","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":197,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"2470938c-80bb-4d0c-9191-be9f6440de0a","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":197,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"07172b0b-9c1b-4458-8761-4785c672c11c","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":197,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"75128f3a-de5f-4564-b2a6-86f5b4ad8cbd","block_type":"box","text":"arrangements include:","page_number":197,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"a6ca6b2f-6ed1-4c1a-8449-24b5e82356c4","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"30c35d6e-be2a-49f6-b4d1-398a0d46ede7","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":197,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"8ab68715-66c7-4412-ba29-4071598c512d","block_type":"box","text":"the company’s size, sector and market.","page_number":197,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"27b8b84e-00da-4303-a615-7c56ddf6f463","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"dd3c0ec2-a79e-4647-8baa-921c1e18a836","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":197,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"53eee71d-40ca-4304-a678-851be3a9358f","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"56ea30e8-da8a-4b08-b529-beab8fd955c5","block_type":"box","text":"•","page_number":198,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"21ecef26-1aa0-4b33-9a45-5bf4fb21cf6d","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":198,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"77747a5a-dbae-4422-bdf2-2ab35723d035","block_type":"box","text":"strategic objectives.","page_number":198,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"e338c14c-0ff8-4ce9-a56d-bdf0cf7d2613","block_type":"box","text":"•","page_number":198,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"550e3444-cab9-4a46-ac88-43dbdb804eba","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":198,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"1d249b90-e538-450c-9292-f2355ae3626f","block_type":"box","text":"•","page_number":198,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"44f683da-464a-4ab3-83b8-2cb9fca5eccf","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":198,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"66dfee86-42d0-4576-a1a2-fe380a0a03a6","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":198,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"4bbf903a-8767-4799-8bfc-9be62248cf02","block_type":"box","text":"•","page_number":198,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"98abb40b-8bfc-48db-a29a-5b35e44009a7","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":198,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"f2fcde79-45dc-43d8-87ba-c732fb5f151a","block_type":"box","text":"•","page_number":198,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"89e514d8-96ca-4331-b63d-733aa091f346","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":198,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"6dcc41f9-a900-4793-acba-ce8757a03f10","block_type":"box","text":"transparently.","page_number":198,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"604c539d-d0b1-4a77-9ee3-915e5616ac9e","block_type":"box","text":"•","page_number":198,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"a9069057-b3b3-4d3d-9ebd-4f96e340c2a8","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":198,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"f9774ecf-7d05-47c3-b8de-3aaf1e8ec72d","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":198,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"9735f482-41fd-4507-b6c0-2dfdfbd6a04c","block_type":"box","text":"•","page_number":198,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"e41fafb8-5137-43c2-b8ce-009d66a2d128","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":198,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"5694b573-b3bc-4b26-840f-fd19535d7d45","block_type":"box","text":"•","page_number":198,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"fe50f0ac-1a43-4060-8f9f-7d5c59f5986a","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":198,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"f933c7ea-a5db-4074-a3a2-d6c5643dc913","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":198,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"ba51e9e4-d726-48e0-845e-78755c46115d","block_type":"box","text":"misconduct.","page_number":198,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"dcfc44fd-bbbd-4924-af70-bcb43a387577","block_type":"box","text":"•","page_number":198,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"14ae9e01-954b-49f0-ad82-dfd38ec364a3","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":198,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"ace00008-dfc7-41c5-a2d0-31cf48c7388c","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":198,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"5bfbb0e7-f5e7-471d-8d4c-b6c5b6d38ca8","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":198,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"8adbb0b9-59c9-41d1-91b5-f8788d3f36ec","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":198,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"3d4b6dd5-8d68-4041-a8ac-09da0862e506","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":198,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"391849f1-4a48-46be-b8a1-5066b5b800f4","block_type":"box","text":"committee, or the most senior independent director.","page_number":198,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"95ca13f5-be00-45c2-8c6c-e97e1dba83a5","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":198,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"cf369afc-ffc4-45ea-8cd4-e86a6ef80c04","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":198,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"0ae853b3-9aba-4cac-9cc3-f5c1ae32f91b","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":198,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"d4dd1905-bb9f-45c6-9513-2f1a70e4e69d","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":198,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"d3ece41c-4e3a-4c7e-a8cb-cb0ca926e6d8","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":198,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"adcc42c4-e84b-4b41-95dd-c0587320ed74","block_type":"box","text":"CAPITAL STRUCTURE","page_number":198,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"c3ebc7c0-51a5-4533-be00-334acb381466","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":198,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"5d786d32-6920-47df-a94e-726f36618c27","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":198,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"4df62fc0-f9f5-4275-a7fe-80d04acedd30","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":198,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"53985a12-724f-4a6b-89f5-a7e673498c5d","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":198,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"fb449699-6bd0-4fd6-a7d8-6d93b5c681f3","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":198,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"ed0c567a-f821-46a6-bc55-1790459bf76e","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":198,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"3603e958-4a10-414d-9897-de2c90902df5","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":198,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"dd2b0ee7-b7bd-4034-8bef-7c7426ad3852","block_type":"box","text":"Share issuance","page_number":198,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"a728c631-1b50-4131-9018-9ad8e0dc06a2","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":198,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"1f1a11b5-d237-42ed-8ce5-29cab69551a7","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":198,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"20dc1205-a70e-45a5-b049-d9ab3ee975ed","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":198,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"02a3d9ab-c291-4395-ac0f-3655253a2f5e","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":198,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"80253de8-3137-42c7-8aca-a3e8e39f4c5b","block_type":"box","text":"market environment.","page_number":198,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"c573e1bb-17d0-4e4c-8f4b-54b4c8abfdb7","block_type":"box","text":"Share buybacks","page_number":198,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"5780db9b-f9f5-4a5b-be31-7d5445d2ec74","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":198,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"6ae4129e-a65b-4d39-b04f-ec8764bdc1a0","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":198,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"9b87b960-7af5-4340-b558-92c972637519","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":198,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"3b22742e-4bc8-44be-9add-687c7c7f9f3a","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":198,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"be189e33-a207-4406-a06c-1fa3daa8d42f","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":198,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"f482c2a6-6c6e-46ff-b26e-f107a0f143fc","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":198,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"130c3336-8ae7-4205-9084-04905d8e832d","block_type":"box","text":"of the company and the market environment.","page_number":198,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"5f270e03-4fae-46c0-a4de-8a9c22a3b5b8","block_type":"box","text":"Dividends","page_number":198,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"5a7d457f-5975-46ce-b353-3cd11d2ba9ed","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":198,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"5d1ac0a4-d2b4-4d28-9d43-0705628e8886","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":198,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"6647010a-beea-4e89-91d7-a55dd40cf465","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"5b8be6d9-50ab-48b3-8cb8-e43333620bbb","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":198,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"e9609eb5-da03-476d-ab5b-ca94d6509c30","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"244c26b1-c6d2-4041-89ea-47bbfb06f29a","block_type":"box","text":"Differentiated voting rights","page_number":199,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"6deb30c3-e51a-4805-b51c-59113195ebaf","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":199,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"041f8ee3-3b41-42df-8ab4-8be6a6e9d57f","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":199,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"08139360-fe1c-4bca-bdd3-108bd9e2c4fe","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":199,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"ae8c66cf-4f60-4e9e-bfa8-ee212c6ff819","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":199,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"df545f2c-a104-4f61-a46a-83cfaebaf94b","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":199,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"005463ad-faa5-41b3-83d2-fd831cde997d","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":199,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"9021dfad-f5f1-4601-b45b-bcd1fff0ba8b","block_type":"box","text":"analyses of proposals.","page_number":199,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"72e9db77-346f-4909-97ff-15e5373bca0d","block_type":"box","text":"Mergers and acquisitions","page_number":199,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"15db64d5-ce40-44ec-bdf3-f85e41eaf8ed","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":199,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"b1ab67e2-e72d-4f9f-ab01-42340ed3e577","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":199,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"43a7dcb8-6ad6-4550-be14-4fbf47108f4a","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":199,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"b6b1b43a-3240-42f6-99ee-64aaeb38b79e","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":199,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"84ae5959-9dee-4d32-a582-9bbffa910147","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":199,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"8c788b4a-9ecc-4b4a-937c-05f0cd1c7f30","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":199,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"5129f8c1-9785-4200-8a4f-29410709987a","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":199,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"26d7de3f-7ae8-4040-821d-49f4de6b1849","block_type":"box","text":"Anti-takeover defenses","page_number":199,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"6a6b417b-88b4-4e55-9db5-78f96f0cb6ba","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":199,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"ded3a8c6-8c65-42e2-ab66-52251484796b","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":199,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"d0522d0c-4ae8-43f3-a0df-8755d792da90","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":199,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"84441f8f-5067-4b4f-8e01-111542f61886","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":199,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"494ebcab-6382-41b1-a1a3-fceacdd64009","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":199,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"3acc61b5-6f8b-4943-b1a0-f91d1d491721","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":199,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"8d67fe5e-9e98-4a7d-af9a-6b7832305837","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":199,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"5f195142-0e88-4c3c-851b-79bec0693805","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":199,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"0bc25ed2-919c-4332-a10e-9a16bacbd708","block_type":"box","text":"Shareholder activism","page_number":199,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"881eec9c-1119-43dc-826c-d7b79a978e44","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":199,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"2a75fb13-7096-4574-a941-bd960c55976c","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":199,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"b1295b3d-e5ce-45a2-b821-b0ed4b1b0528","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":199,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"0bd27b91-48ba-4856-9290-1da84f877bf7","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":199,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"b8494e11-484a-49af-8176-e30f2beb1f2c","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":199,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"24c84220-9690-4735-9d91-40a970696861","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":199,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"5972ec43-0307-4f65-aa85-932d31bc25a9","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":199,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"cbad9f8b-f137-4b4f-9e9e-4afbd33a8ca7","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":199,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"4a4f0b77-2985-47e3-8e66-f5ca55db9601","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":199,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"130c7887-2872-4596-826d-9c8dd3dfd4de","block_type":"box","text":"protecting shareholders’ interests.","page_number":199,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"15fbea38-22c2-4b1b-b3af-023441c04347","block_type":"box","text":"Significant shareholders and related party transactions","page_number":199,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"1e222839-f485-4df7-a186-cadc9a942bf7","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":199,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"930d6df2-b213-4389-aa48-f16f836802d9","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":199,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"e34e8a34-eeff-4b07-aaed-d7b6261dc24e","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":199,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"94e097b6-6c06-48df-a78a-8b8d6b6799d6","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":199,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"2b062ff2-c7c3-412b-94e8-5c5e118eb211","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":199,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"6c73746c-3bb7-43c5-bec0-b567f858a9d7","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":199,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"ebcbae0e-89d6-4617-b857-17b8bcba333e","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":199,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"ea2eb517-a0dd-4532-8f3b-4c737ca776de","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":199,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"362b706f-8df2-4429-b01a-cfe5ad4aaebf","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":199,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"992d3c1a-27a7-4652-9a51-cad095008b17","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":199,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"c2d26d4e-dd94-4e1d-b1c4-ef0878cacfda","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":199,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"8a36ccbc-b342-47c6-964c-e80e7de7e53d","block_type":"box","text":"audit.","page_number":199,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"da1e0bdc-970b-44d7-a52c-af176814ac44","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":199,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"760b8dae-b179-45b9-8158-b65f476c245a","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":199,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"a2309b16-e646-467f-b1b9-c9bfd5db118e","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":199,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"00ed9a32-8f98-41a1-9dff-bb8314228e33","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a0a074f3-b419-4683-aecd-c5774fe78871","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"0a184d8e-1031-401c-97c1-ee95eb857191","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d0a3f32d-8bad-4d2f-82a6-069b046b617e","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":200,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"8f959334-b3c3-43fb-96c7-1eef09c87e52","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":200,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"bbb67b13-e2cc-417e-af58-c7f6b51f2ac0","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":200,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"a7d1a516-e81a-4d1e-ae88-0c6cbaa91537","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":200,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"307635d3-4dd2-490c-90e4-08369a50008f","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":200,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"19bf4b04-8697-44bb-92c3-41bed7831554","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":200,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"e6593f91-7331-432c-a060-86ca6e2ef59d","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":200,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"40c615ce-99c0-4c28-9f2d-f1fb516220bb","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":200,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"205a37a6-00b6-4c59-b7e2-b383b5bfc442","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":200,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"9a340866-0bd3-48e4-b084-870469da3e78","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":200,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"b95f2666-667e-442d-b601-37571cfd7c9d","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":200,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"e8edf202-6cd0-4826-9381-4c710b28742b","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":200,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"e7534d39-698b-4adc-a577-eee939e864fa","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":200,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"a11ec7ab-33a6-4233-8eea-ef44cb7c64d2","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":200,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"06d5b66c-c6e5-4fb4-8c0e-aa70ad5c64b9","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":200,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"998e32ae-6767-4c61-b47f-b2719dc9da4d","block_type":"box","text":"9","page_number":200,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"82f8780a-34a1-474d-9fd1-f55fb1fd0de8","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":200,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"7be0c7fd-98ea-42ed-b0ef-88b6bfde1271","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":200,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"357bbd5a-afe3-4957-80ea-df58dc22806e","block_type":"box","text":"standards specified by policy makers.","page_number":200,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"e95302ea-a9ae-47e3-8381-61192fc81285","block_type":"box","text":"10","page_number":200,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"8f0733df-06c1-4d4e-b029-cee53505a929","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":200,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"6f54aeeb-ba25-4d53-8f1a-46ffcf4ec584","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":200,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"39d1d136-0f06-4cce-8c21-b85373c7b1bc","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":200,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"cb684755-cd71-459d-b1f3-41b7beef39e3","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":200,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"6147ffde-187b-47ff-b289-062bb88c5b09","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":200,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"0a90cf48-d916-44e7-b92b-de147bca302e","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":200,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"299c16c1-9f0e-4c2a-8f16-fe4b0bef6bdc","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":200,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"5f00ef25-bc5a-4ba5-b9ed-71ef0f0b7d21","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":200,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"d24a32a3-bad9-4697-8394-a6d6a3dc0d76","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":200,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"73e44dc9-380e-41a3-ac9b-d3ca56bce310","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":200,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"2453affc-26d3-450c-a895-34bc25992116","block_type":"box","text":"remained independent.","page_number":200,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"607fd95d-428f-4fce-a8a1-09576f47bc4d","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":200,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"25bb798d-1c28-444e-ab52-b11ec780da9c","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":200,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"76c07ec4-adae-4c17-bc33-9274d374f227","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":200,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"971d1dcf-05a5-44fc-a884-c196517016bc","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":200,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"46c426a3-385d-4681-b3e5-a8da65f27cfd","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":200,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"9feefb6f-e5e0-4d47-aaaa-3dc24bc09ca0","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":200,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"108f581d-9979-4d75-a436-f9047796abf3","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":200,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"226ad19c-4f68-4f7f-be54-da1b266b70af","block_type":"box","text":"General shareholder meetings","page_number":200,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"accc6c97-161c-4fc0-915d-89f763aacded","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":200,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"e7a0b1f0-2431-4f72-ab7d-a99575c0220c","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":200,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"d6bbbdc4-190d-404a-9ce1-b0519dec643c","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":200,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"02674430-3d05-4852-b3a3-3d848cfc1a5c","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":200,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"949851ca-39a9-4fe2-ba1b-f20e12d1c897","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":200,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"7e97def1-94e8-4470-b745-575a3134b5e4","block_type":"box","text":"an in-person meeting.","page_number":200,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"ca4e7128-b9e5-4622-ad83-7c5484218338","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":200,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"23ab000f-ce8a-49a3-8dfb-d7b9ca0c9f8d","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":200,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"c5dc395d-1a48-44fd-a6e4-b27eda05338e","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":200,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"b1ae37ec-0d9b-4991-ab1d-f52e3a62c7f0","block_type":"box","text":"par ticipation.","page_number":200,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"876329a4-25a5-4d04-ad97-eb5d295cb531","block_type":"box","text":"9","page_number":200,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"aab2fd5a-effc-4bb6-9661-d86f1dabf8e3","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":200,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"5eb63f1f-e223-4262-8595-60f118761e13","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":200,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"012f2f78-71d2-48b1-a5d4-0c1eed2c622e","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":200,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"d2b7de77-5a8c-4534-a38d-ec4180aa9620","block_type":"box","text":"Disclosures.”","page_number":200,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"e597434d-e2cc-43bb-8feb-b377949ce943","block_type":"box","text":"10","page_number":200,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"70df9832-ce03-48d5-9d11-f96edd6d0b2a","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":200,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"9837dc03-f7a0-47a1-b1c4-ab1746b06afb","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":200,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"c54cf72f-0242-4efb-ac20-c546bac1c3ba","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":200,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"0909755b-dc51-4f52-ac95-0925b2e88d54","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"1ddc2cdb-55a9-4b91-aaa4-1338da11844f","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"885b8093-10f1-47fe-9197-a587135113fe","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"591534ae-9511-4b50-9fdd-0a81e4e56780","block_type":"box","text":"Bylaw amendments","page_number":201,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"cf15ab22-160e-44ad-9ef0-720f21827e5e","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":201,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"7bca2ac2-fe9f-4737-8b43-a30807368313","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":201,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"41613a08-0de7-4430-af12-2683af40d12d","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":201,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"8598b272-02da-4b3c-9d8f-fef976eea536","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":201,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"d0bf79bb-3540-44b3-8807-eea5f4c72116","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":201,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"22f5b153-3f15-4fcc-bcbc-68d5c9be964d","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":201,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"c6df301f-3a03-4d3f-b512-60d21a251fe2","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":201,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"3bd4aba3-aa61-4119-af00-5ab544c7bdfe","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":201,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"43fee7a9-ec65-4922-a693-bb6d93cccb45","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":201,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"945cf8f3-144b-42b1-8f2e-bce6d9945ed0","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":201,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"c904b586-ec40-4187-9436-882b77e7279f","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":201,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"f854d142-a869-4bda-bc67-b139551e0925","block_type":"box","text":"nomination process.","page_number":201,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"a2969c7f-9bf9-4893-bbef-e979600aff56","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":201,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"ebb3e2a0-9ebc-412a-981b-50cf88ff9551","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":201,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"ba828f3d-fba1-4253-96bf-7e2d2f2863e3","block_type":"box","text":"Change of domicile","page_number":201,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"c898f9ab-c394-4028-a94d-64bb7d75af00","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":201,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"48ce70ac-2850-48b4-b87c-6f12865e2d1f","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":201,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"8ba27084-a448-437c-9d3d-e2b28f4c96e3","block_type":"box","text":"immaterial.","page_number":201,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"f0f0e842-b2f6-4562-9672-0536edca36ee","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":201,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"c5a66b11-d80f-4949-a4b7-03cf4bba216f","block_type":"box","text":"with our clients’ financial interests.","page_number":201,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"5547320a-7d77-4d7f-949a-a75ad4659ee9","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":201,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"767fa8be-2441-4ed8-a826-a46bf311f920","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":201,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"5fa2192c-e5ee-4038-b746-e7defaa64a6b","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":201,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"f3b17bf1-f0ce-4e96-8bfa-9ab91b9c8322","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":201,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"0f3fcdee-111c-498d-94ce-05f92c9e44d0","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":201,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"be70ae01-b39f-441a-b442-5e3b7509e62a","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":201,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"4441b2a7-3510-4595-b541-e00c30b13870","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":201,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"c6ec9dcf-9817-4d35-95ae-cde232077eb5","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":201,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"acdf0352-d113-475e-99a5-537c278230fe","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":201,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"d92a3e6b-861d-490f-a64b-08e1b39aa536","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":201,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"08697d2d-8e65-401a-a83d-1518b083335d","block_type":"box","text":"relevant to a company’s business.","page_number":201,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"9270d2d2-1a59-44e0-bd49-b1d44087e59a","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":201,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"1e70b0a7-b92c-4894-ac15-9a9e96878925","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":201,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"1c43bcec-e89a-46bc-998b-4675f9ff30e4","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":201,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"56f327b2-48a6-4758-98bb-44e11f8e56b5","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":201,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"5401c374-181f-40f8-8c0c-4311f3df90a9","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":201,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"0137d5c9-4d6b-4d43-a594-b5537e2c0ced","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":201,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"89a8aaf6-2865-4b15-9bbb-3ce248b136d2","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":201,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"7e479dea-8109-44d7-8668-1978d4ca4d67","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":201,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"f17c625b-d1af-487c-bd02-2611ab1ddae3","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":201,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"b6aff98e-daba-4a5a-bfbd-ae28ac8d8a31","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":201,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"39e9bc9d-a098-4a28-b5c4-50232a0af723","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":201,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"6c545103-836c-4585-91f9-607671a0ec47","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":201,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"31686c1a-6e69-4849-8176-9cc3f58a3add","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":201,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"d1dfed57-1600-4bd5-8244-44ec8348e5ec","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":201,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"ba39ef38-41cd-439f-8ed0-5adb4bdcd1d6","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":201,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"c3aa47c6-c2ef-4ab1-877b-8820a9a9d8ec","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":201,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"71820bf8-50d2-4a10-a6ad-017a4bf4db5c","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":201,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"7f8309d9-5294-472e-82f7-4ff8dfcff763","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":201,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"6422e973-2b64-42d8-ba81-0799d4a6b802","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":201,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"288300e3-813f-42a9-973d-ebe0ddfef149","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":201,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"67b8a1df-664d-4480-a22b-618aa6b0348e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"6117b475-4b44-4f8a-9f22-333eabef7cb4","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"defdcec8-2c61-48b9-ae51-41c7f2ab6f16","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4e756be9-55bc-4910-9218-6a81eb78d29c","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":202,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"d09756c8-6aae-40d2-9421-490fb13a66a0","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":202,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"cbc3e7e3-e4e2-491d-85cb-a5678d5f49e5","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":202,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"46f839a5-d159-4ea7-bb40-1d803ce8761b","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":202,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"18c82043-6727-4cfe-9db8-36bd4355c19d","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":202,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"dab28581-ae07-4a9c-87d3-7fe0312ff07e","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":202,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"920b982a-9cbd-4e11-869d-a41ec4d7425c","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":202,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"50b39911-a818-4353-8641-1173e28ba797","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":202,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"cdc32c8b-b9c2-4537-a4bd-275f394f35ae","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0084d4d1-7924-41ee-89de-c180d42d080c","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"ed8509d0-e513-42a1-bfc4-80d55e28824c","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ecaabeb9-ee8b-4a1b-8236-3ebbc6d67442","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":203,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"e09d91a4-98c6-41c6-bc4a-1e0d55f55d21","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":203,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"ad6e6be5-0aef-4e1c-b71c-0f4a0a939462","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":203,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"074d8eae-22c1-4cae-b27d-ddaae70bb4e5","block_type":"box","text":"11","page_number":203,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"8ef32b91-6988-4e30-bd0d-d35e5b5d24e2","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":203,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"a09eaddd-4f70-4e00-b0be-cbc7a411cb63","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":203,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"5dd90a22-7b61-4164-bc93-01f64b0c4a0a","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":203,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"d907ea37-8ed6-4c7c-a6f8-a3848148a0e9","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":203,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"7c9811fb-1779-4888-8a53-9c632b5cf17b","block_type":"box","text":"regulatory requirements.","page_number":203,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"4360d7fe-ee78-42da-9b87-2a67017bd993","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":203,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"59d257c2-4303-4d5a-9f9b-b7ef6a78223f","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":203,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"fc456604-b745-4cd5-a96b-16c7730bdf4c","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":203,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"2a036ec1-b81e-4c8c-bb53-ebdbe16f4757","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":203,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"6b231d11-f200-43ec-b5ae-ba277a1a7eb5","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":203,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"08962116-bccf-46ac-960a-90c472a80a7b","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":203,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"12ad9909-9458-4395-a4d8-fa37c9704d70","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":203,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"6519c792-b48b-4ec3-b9ac-4b01b618f4ff","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":203,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"6e28d0fe-cf7d-4db0-92f9-5ec7f932d534","block_type":"box","text":"returns.","page_number":203,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"bf594681-bb53-43b9-b82e-8c380912f372","block_type":"box","text":"KEY STAKEHOLDERS","page_number":203,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"23ef122f-dc35-4eb6-80b2-182b8d05b092","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":203,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"980f75bb-b878-418d-9f4c-92a0f13767ba","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":203,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"f2027bbb-f839-445e-99f6-a198790263e6","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":203,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"ab9ed87b-9851-43af-9b43-c31c5cc427e6","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":203,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"c7bdb6cc-a867-40c1-8de1-a69b1f837e32","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":203,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"655d0b73-4f06-4432-9aaf-a211061ca729","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":203,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"e40d5849-15f8-4341-aeda-0f0258b53ddd","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":203,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"860d290d-762f-47e2-84ec-d09c9f55911b","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":203,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"b112239e-54be-48ff-9d42-b14134ea9c0c","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":203,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"0bae0f7d-feed-4e7e-80a2-a64333ca8c34","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":203,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"79ae6b27-c0fe-4bbe-92bd-d1ed42d3898c","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":203,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"f5c6bcfa-b7b7-4b88-a96c-880e849ea571","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":203,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"f7c84794-fe8e-4280-b3b6-415bc6eb381c","block_type":"box","text":"i.e.","page_number":203,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"43e9a9df-48a2-438f-8916-82ed9abe2ee3","block_type":"box","text":", one in which global","page_number":203,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"779b2755-acbf-4abb-bc2b-e72a49623b52","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":203,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"ef73f916-92e0-4aab-b944-897fe09003ce","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":203,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"7a605dd8-f38a-4957-971c-547e8de2a1d9","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":203,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"d8518abe-6ade-4b30-a099-642f40c359c5","block_type":"box","text":"client.","page_number":203,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"d55808ce-26a0-4528-b63f-c642c534e74d","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":203,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"8c2677f5-b2e8-4aa0-a9ea-0ae3182d6d80","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":203,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"84220e86-b8f6-40c8-aef5-86ba4b17e9a4","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":203,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"82aab79b-5fd0-44b2-98db-79d48a36f806","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":203,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"aaf0f8ee-1301-4f02-bc99-5c1834e7db4f","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":203,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"715d2da6-889f-489d-b522-1295d1bdaaf0","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":203,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"01422868-0b2f-4e42-b80f-0fd37332f83a","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":203,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"432d8ff6-c47c-4e27-b0fe-cb051a71e5a0","block_type":"box","text":"1 and 2 emissions.","page_number":203,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"306835d5-bcfb-4318-a1b0-e30b3fa32a8c","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":203,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"3c42ce65-7b6b-45eb-878c-59ffd0598414","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":203,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"803736b7-ef79-4087-a0df-e5243a88145a","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":203,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"909f7417-eedc-4c03-b788-afacc01b9dcd","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":203,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"414d688a-1a6a-4b92-8eea-8988751708e9","block_type":"box","text":"11","page_number":203,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"c0af93bc-c126-4c2e-8273-96f59e073ce0","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":203,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"1fc599e7-c6d9-4dc1-a7e0-24dbe48c9ef3","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":203,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"3c42e492-0390-4406-8e28-9a212de891d1","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":203,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"845fcae9-ec22-4eb7-996a-66dcdc53b60c","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":203,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"abdba89e-fdeb-4972-8b26-b53d64f2779e","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":203,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"9c74aa15-dc44-45f8-a21c-8e78bcf79672","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":203,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"85c7021e-91af-411c-bfd0-b5e76d62ecb1","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":203,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"93975620-b144-4a7b-8338-c01ff2946295","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":203,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"3cdb4b64-f558-4ffd-bcd0-f3428ad44612","block_type":"box","text":"sound governance framework.","page_number":203,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"29ed2f45-8eca-4c42-a6fc-9e90419e3330","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0c52abd9-0a74-4fee-97ca-90d0fc6673ad","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"c432efc7-a520-44d1-8900-dbea367d4efb","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e5f2d3c2-6b0e-4c24-a779-8bde098ae501","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":204,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"0ab2506d-b4f6-476d-a522-5ac83febad73","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":204,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"16db3060-c0d7-44ea-8bd3-62f5e06f575c","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":204,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"101c9c3c-8228-4b8e-8cd1-26b8a8d2d46d","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":204,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"bf089f26-4e2d-4e2a-b8f7-2b67d49a6b7d","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":204,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"63252884-344b-48e8-a341-328b307c92ab","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":204,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"0cf05378-6caa-4f92-9085-a9aa689b550f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"6f04c565-bb18-4840-acd8-6b632967794f","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"b0047742-b838-4042-8c15-a976ecff930b","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"46169bf9-d435-48d4-b699-bfc0825e0cae","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":205,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"f18baed3-8953-40d6-ba90-e2444be708fd","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":205,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"2c551bb5-6ce7-4455-976a-3b551069162c","block_type":"box","text":"Oversight","page_number":205,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"a7c2fede-3120-4424-87bd-7d11332e5252","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":205,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"7dc37065-f8c5-43a0-92f3-8dd0071f0c53","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":205,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"149dced9-3e4e-4a3c-9aeb-b4af8fcf852d","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":205,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"116dcee5-75d7-42cf-b7dc-64b2910d887f","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":205,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"4471b46e-56a7-47f3-81d0-0624ad018b4b","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":205,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"cb8a93f1-f3fa-4c1f-8c91-79abb079f45e","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":205,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"a1120899-c997-4cf6-b25d-727dc886e882","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":205,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"44ee99d7-efd8-4524-b4d9-73c9df1c40b6","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":205,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"65272508-5bff-4b52-9457-e78cc43cee35","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":205,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"5fdcd816-fbca-421c-8f28-620aa25719b3","block_type":"box","text":"relevant active equity investors.","page_number":205,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"835f541d-9741-4c70-81a5-5bf5bcad8dc5","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":205,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"009fe7af-2d61-4840-a494-5914e759eb79","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":205,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"3abe4b6b-51ff-49c6-9a8c-2743f188245f","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":205,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"0c050f96-29fd-4cfc-a26e-61197fc5f5b9","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":205,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"dde4d79b-1a5e-418c-94b6-37ed0948faff","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":205,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"3667e7a3-267b-4b49-b296-7b59baf180cc","block_type":"box","text":"third-par ty vote services providers” below).","page_number":205,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"c64c4c14-110f-4c01-9c47-3a29dc783b71","block_type":"box","text":"Voting guidelines and vote execution","page_number":205,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"ca90754c-ad28-4049-af1c-459086682b0d","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":205,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"6bf31fb7-1a47-4d24-a167-41c3e2d38a65","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":205,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"49820e28-a920-4ede-abca-a7ab784eecef","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":205,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"a9a2b347-68f0-4208-b630-ad68e896b789","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":205,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"78628e2a-e4d7-4108-af54-ea32bbfec2d8","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":205,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"6985e2f6-6fdb-4824-994e-46312ed6646a","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":205,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"df2d1310-664c-4464-a6d3-788550260649","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":205,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"3824bca1-3c84-4c88-9281-df79ef9b98f5","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":205,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"536ed3cd-ee3c-4c50-b348-bc1c01edcf25","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":205,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"32c13108-e033-434c-b1cb-863ae796c6af","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":205,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"74d75c2b-7406-47d8-ac3b-0a3bb730d322","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":205,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"43e924cc-0c46-43b6-8b25-f46f761f0cb1","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":205,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"fada4303-edd3-4550-b970-a5c19fd911bd","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":205,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"962e093d-3174-4427-994a-f8b465d92633","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":205,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"c36a4675-fc4b-4c63-9ed0-42821474e0b0","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":205,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"c683104a-4931-49a5-8e49-d5faec2f1ee7","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":205,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"6638b19e-47c4-48cd-a64d-27d89fbd439a","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":205,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"3f2c8b76-29b8-43db-9338-c98764b677a0","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":205,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"e483349e-649e-410c-88c2-b3f47e4af0b8","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":205,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"ba5b1534-4e32-449b-b8ec-52bfd8e5af2e","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":205,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"03ef5a02-ed40-4161-b22a-6ebf88fbd8c7","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":205,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"45f18750-66d6-470d-a1fc-fd1817bb0554","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":205,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"5a3b7e93-1111-4e5c-9062-fc23dc25048b","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":205,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"68bd77a2-c11e-4345-8a40-289518851062","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":205,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"e1545dc4-0802-4c2d-810e-cc92e7297f4d","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":205,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"0c09b960-72d6-4f42-aad6-9bb2f8ba8b39","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":205,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"21a93504-8e05-4ed3-802d-09e2eb129ae6","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":205,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"2e9c3773-ca2b-45e8-b7ec-a185110106eb","block_type":"box","text":"(including but not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising","page_number":205,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"a04b9ca6-46ba-46d2-9807-f2786ff8aac7","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":205,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"808504b1-85e8-4bc6-a25c-655490eb8775","block_type":"box","text":"Voting Choice","page_number":205,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"fea188c6-8b49-45a3-87ef-6f26aa8ea10a","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":205,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"7d62a1bb-3010-47b7-929e-d8bc11541830","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":205,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"ceafcc91-db45-441d-abe6-9dffb25d4f2c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b306e24e-00b4-4be8-8a1c-24c3ded4eda9","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":205,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"1c4efa11-ec88-4ad5-bd71-91e03aaf851d","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b29a3ad3-639e-43c5-b6b1-ed04de3a0d1a","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":206,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"0ae8e4fa-1a28-4cd0-8902-e1144386eeae","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":206,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"edfe67f7-4cd9-4284-96b8-db7521688cdc","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":206,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"20ffaf6c-6e41-494f-884c-b4ff1d36f4da","block_type":"box","text":"strategies.","page_number":206,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"a8bb04b3-7ccd-4b22-a917-152ac9c15eaa","block_type":"box","text":"12","page_number":206,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"4dc35f70-5986-4bdd-bdb5-e0732b9783e5","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":206,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"b0cbaecd-475b-426b-b017-ddcc2e698585","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":206,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"0e7de1b5-9657-490f-90c4-c2cac2c5c3c2","block_type":"box","text":"with a third-par ty policy, or have elected to vote shares in accordance with their own policy. 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Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":209,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"86a6dc42-a30c-48fb-93e2-e80f42710a3c","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":209,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"1ae83209-8d6f-43db-b9bc-4f28b7e7087e","block_type":"box","text":"voting proxies relating to por tfolio securities of the Funds, and have determined that it is in the best interests of","page_number":209,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"d3c56e64-8d32-4ccd-814d-3e7846d6f6fe","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":209,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"c641cfc4-1eca-4e15-9a8e-420b34b03ef1","block_type":"box","text":"principles outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":209,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"96ff2952-6c5a-4103-9571-8b52d0567e2f","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":209,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"1935a164-e2e0-4a26-94f7-726768af00b4","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":209,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"4e5113e1-63d7-43bf-9bf1-6f5ac9db76e5","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":209,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"f6060404-f39a-4f96-bf3f-63200d236a2b","block_type":"box","text":"the iShares Core S&P 500 ETF. 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Our vote decisions are often informed by several","page_number":214,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"1d0b61a6-91c2-48c7-b56f-79330a7ca3ac","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-par ty research,","page_number":214,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"35754b7c-a7ec-41dd-9fd7-2916b990f930","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":214,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"df61e332-959c-4f97-afb4-686fb1b5b111","block_type":"box","text":"Generally, BIS suppor ts the vote recommendations of the board of directors and management at companies","page_number":214,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"08ce8554-58fc-4449-a415-0251294a37e9","block_type":"box","text":"which have sound corporate governance and deliver strong financial returns over time. 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Our regional voting guidelines explain how the BIS Global","page_number":214,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"3288ff40-b73c-4919-9b5b-4ced62f3799e","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":214,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"b7d9365b-41e4-4b9d-b9c4-eabd043d2da0","block_type":"box","text":"4","page_number":214,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"081b381b-adc7-485e-8471-e5147199fc9d","block_type":"box","text":"3","page_number":214,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"1accb289-4e75-4ba6-9fd4-4d72c19f4488","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":214,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"f9ee61cd-55fb-4b00-b9e9-a26f0d668f22","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":214,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"3f75c3f7-10f3-4adb-923b-2506cba8c339","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":214,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"7015746e-7397-4fe6-972e-ece9b0fc86ab","block_type":"box","text":"4","page_number":214,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"b79c694c-3d06-4329-bb3d-6c301a14d833","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":214,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"9d9fe3c1-f23a-4b09-a839-49472ab4312a","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":214,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"caf71b1a-f6c9-4662-8dee-d82b54c95869","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":214,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"bdf42bdc-ca49-44b3-8acf-f1e17da1ada2","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":214,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"663cf5f4-e3ec-4ae1-a06d-608b229cffed","block_type":"box","text":"guidelines.","page_number":214,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"d5c3abd0-56fa-45df-b3d8-a86aa07a899a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"988763e6-bfd1-478b-93e9-876be3c61610","block_type":"box","text":"Global Principles | 4","page_number":214,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"61bd455d-b0fc-4998-975f-085be70feedb","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":214,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1ecd88cf-2124-4512-81c8-c995d4f2d78f","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":215,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"431b9f2a-fb33-4c1f-a328-434b6c699bb3","block_type":"box","text":"Oversight role of the board","page_number":215,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"46366442-272a-4aea-a066-68ee1e339dea","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":215,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"2ee5e308-df53-43a4-83e1-a8fd03ef319a","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":215,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"15f3c8f1-d5c8-456a-a6d5-882096f3b669","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":215,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"8caad262-f03e-437d-9688-02e4588a7cd4","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":215,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"e526d02a-29e9-45d8-84ff-abd83410dc2c","block_type":"box","text":"long-term financial per formance.","page_number":215,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"56ecf10f-4545-40c2-95d6-7835dbc39d3f","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":215,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"1704dc88-8770-440e-b6fa-a54bcd0830a1","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":215,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"60c6fa47-56ca-4d9d-b345-9eebc7de7dd1","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":215,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"4a227ed1-aeae-498e-852b-97fcb02f7145","block_type":"box","text":"the business environment in which a company is operating.","page_number":215,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"738ac356-8046-48d8-8d2e-ba5a0d4f2556","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":215,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"f80e5189-d67a-40d3-a72f-884d2e9b11a6","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":215,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"67e1fe13-bba5-46a5-ba2a-c06471a7399b","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":215,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"d000c32e-ed1a-490f-acd7-bbb0deb7a5d0","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":215,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"78328b31-1d62-4a7f-9e7e-66ff781c9d9a","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":215,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"e884073a-63e3-4b79-a8e3-56dd139d8f53","block_type":"box","text":"mitigating such risks.","page_number":215,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"0b6601bf-fe7c-4c3f-81e0-484eb8c904c4","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":215,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"5062ba0e-50ec-4efb-92e4-14f7ce9e7160","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":215,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"3ae3c1fd-fb0e-4622-ae6c-98a2ab6dd9fd","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":215,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"ab714b59-49dd-4ad8-8be5-de0c951e0069","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":215,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"408c1ff8-3c10-40c4-b67b-71f2f7e25105","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":215,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"ef5a89a1-a521-43c5-852f-e2d716c7b060","block_type":"box","text":"strategy.","page_number":215,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"c6db9c9e-c260-4fc2-83da-c4e8762f794c","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":215,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"1ef804cb-72a9-4480-9de2-8c6f387e4a67","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":215,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"7cd6d6f8-678b-4145-934f-3957a19ff38d","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":215,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"f2cab8d7-32d8-492d-bc23-a54a97c5f561","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":215,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"39177422-3a7b-4b1a-a365-b172c8f65d85","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":215,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"f50d55c1-a801-423b-ad43-b44ecba1479b","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":215,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"2c7ad08a-a708-49e5-b333-a46a5b5cb86b","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":215,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"ac0fffa6-c0fb-4692-8f39-7ec2f9d3d4c0","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":215,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"94d65054-cc2f-493f-a837-2d18f53f1250","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":215,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"e95da384-287e-46ce-a265-47ca2dbc128b","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":215,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"699d3661-bfbf-49f4-a4f6-e1dab6ff825b","block_type":"box","text":"Regular accountability through director elections","page_number":215,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"88e5352c-b70b-4ec2-b21c-b8e945a6bc58","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":215,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"097aae2b-9d08-4b13-9315-0d403487fc09","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":215,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"c2b255ec-b928-45e2-882d-3db59c08d4b1","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":215,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"83d2aa23-7724-4d42-afbe-6e5b8014d1eb","block_type":"box","text":"5","page_number":215,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"f3758413-c906-4d7b-a0bf-ac1485c19ee4","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":215,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"6cb9433f-683d-4045-85bf-adbe5d568064","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":215,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"ff4b3c0b-3f85-43a3-b61a-e4a02fd3aff9","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":215,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"96e03297-7a4a-4632-9b3c-04fc5a23dbd7","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":215,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"001ef67d-a54b-4757-93b0-426fd0f8000b","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":215,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"9fa47edb-456f-463f-ba5d-f34ede498e34","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":215,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"e3ef4689-3e8c-455e-a467-640f7cb0439d","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":215,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"26db12b8-4c61-47e2-a331-4bdbea17e916","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":215,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"4fc12f6e-5210-48ce-a8c2-4da14f09c056","block_type":"box","text":"5","page_number":215,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"0d133d50-2947-41b8-9713-8ac699776ff0","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":215,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"454fddff-c67c-4f50-bd2b-b0e325b8680a","block_type":"box","text":"market regulation or voluntary best practice.","page_number":215,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"d8704a14-b231-4793-a00f-dbff3e6f5970","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"eb82d434-63c1-44b7-972b-aeda41773aee","block_type":"box","text":"Global Principles | 5","page_number":215,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"a20ee1b4-ea97-41d5-8343-c229c2eac366","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":215,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e964c541-bbed-4bb0-99f0-012bb802201c","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":216,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"c60b312c-ef8e-4fde-ba44-0d5a8a96377b","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":216,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"257a16a0-79ac-477b-b32e-7ffe06dcb4f6","block_type":"box","text":"recently.","page_number":216,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"ce482bbf-832f-4bbd-ade1-e38f6cdea8f5","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":216,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"2c8728f0-55de-4152-9109-c9237aa56ba2","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":216,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"822c87d1-5eee-4a16-a32d-8c272ff7f475","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":216,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"d1888bc4-92f3-47b3-8d18-2a2e694611c6","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":216,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"b208bd23-0999-45c8-ab02-d9b21934546c","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":216,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"91cc86bb-1e65-492a-b0f4-19665e61008f","block_type":"box","text":"Director independence","page_number":216,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"adcb6c46-13a7-498b-96c2-ed2a04d254e9","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":216,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"296933f5-8988-4893-93d4-c83172c79a0b","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":216,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"6f7a1634-15b4-4aca-a479-381f2fdde058","block_type":"box","text":"6","page_number":216,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"1911a105-2024-4ff3-a6ae-e2ef2621de22","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":216,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"d61be47f-dc58-48aa-a6e3-daf9b294d0f9","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":216,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"4d2e651d-ccaf-4a0e-8616-93cbb4f540aa","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":216,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"915d65f3-145c-4501-9f58-6e1e93ba61e0","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":216,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"2774b4ec-db72-4500-bbb2-8694a32561a7","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":216,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"9a1f3b61-9aeb-42f1-bc3f-33be3dc462a0","block_type":"box","text":"•","page_number":216,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"7050bf7a-26a6-4621-a493-106edf64df13","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":216,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"8bbec265-e334-42db-8789-3ff60a53c616","block_type":"box","text":"•","page_number":216,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"bbe48736-88a3-4ebd-a69f-db06f957d112","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":216,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"b45c9e45-57a0-4c52-b749-16eb9c59f2c6","block_type":"box","text":"•","page_number":216,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"26dceafb-e95b-47f1-bfc6-8d674c2a2925","block_type":"box","text":"Interlocking directorates","page_number":216,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"a2551a03-b949-43de-a915-47c9c5f39228","block_type":"box","text":"•","page_number":216,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"c46d92ef-f73d-41f9-b1ea-be9e5614c823","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":216,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"ba7bf00c-218c-492b-a8fb-8a32b3012fe2","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":216,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"bca0d190-0c33-40e8-8ae7-b5e4ba3d9953","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":216,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"300141a7-62f0-4726-9612-52cfeabbe54c","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":216,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"1e939004-d253-4ba9-918d-63689be0e103","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":216,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"7c051f0a-ea53-4e2f-af00-8d2f4c47cec0","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":216,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"b2b9d519-2aa8-435a-80db-f0d0691a99ea","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":216,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"b9bcfce8-d5ea-43ef-86cf-3afe393cde08","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":216,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"35a69e84-5aab-41fe-945c-fee84abef242","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":216,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"6ada0ea7-9cb6-4125-a873-81fa412439db","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":216,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"f8e770da-b92d-493c-95c3-4d9a08d872c4","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":216,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"e96f42f8-2276-475f-8c7b-cf6f195f415a","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":216,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"57160569-b067-4954-9d55-f23ef1752955","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":216,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"1d28b76c-ab30-4767-ad91-cdecbc06378e","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":216,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"113c12f4-2de4-4993-9f85-55fb91ae3469","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":216,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"4deba265-a2be-470f-8aa4-e8a4fbeec7ae","block_type":"box","text":"Sufficient capacity","page_number":216,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"abde50e1-ed36-4e1c-8af2-30e973d37cb5","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":216,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"86cad15d-7816-47ac-aa81-51e0c450cbf7","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":216,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"82c99706-82c9-4569-ab30-b82f56c3ab21","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":216,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"88ea50ce-e418-41af-a409-0419212d264a","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":216,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"535f71dd-99f7-4eb6-a543-cbca7424a5a5","block_type":"box","text":"Board composition","page_number":216,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"74c4f3ea-5695-4937-bd9a-f55802a04441","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":216,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"8dc633a6-0f30-4a8f-88f9-a5fb619fa026","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":216,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"dfc96724-18a8-4fb3-8b50-83ccc35897ff","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":216,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"14cb0234-541e-436e-ab34-ea5865a2af13","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":216,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"4955bbcd-418c-4975-a2d1-8913ccd26bad","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":216,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"2d54cddf-b509-4138-ac39-3cac59508228","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":216,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"bd49c95a-f5a9-4221-a803-508234e54d0f","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":216,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"6bf9606a-682c-4956-9f0e-b4a72792c512","block_type":"box","text":"6","page_number":216,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"1aef0f6b-0907-4896-b048-1efd69c530c9","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":216,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"9b29d325-92da-439e-8a8f-f110e9a5800b","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":216,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"b43550bd-a1ee-4d8c-88d0-4c49f5f74dda","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"c0ccebe3-0a5d-4758-a217-961a76ad290d","block_type":"box","text":"Global Principles | 6","page_number":216,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"3664b4ee-c268-4daa-a50d-bf4a587c9e06","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6822d868-09f6-4d4d-b420-bbbc572f2ece","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":217,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"6d5dc65c-e989-4904-aa68-13a145584551","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":217,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"5f0647e7-7a18-4c85-8118-bfc5f2392d9a","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":217,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"cd078945-cb78-450d-832e-6ab50c0d4ac6","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":217,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"daa115a2-25d0-44d1-a9cb-7a21bd04fdea","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":217,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"97e0a965-c806-45e2-aa96-a3a33265c8ed","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":217,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"55679115-5cd6-49a6-914e-7c910dfc7268","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":217,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"a0b42e7b-3bcb-4628-8985-68aac7c96421","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":217,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"66e263d1-edd8-4bab-9e17-a5d07a24c5db","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":217,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"4236f232-0dd8-44e4-a46a-f7e7bba194cd","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":217,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"114c6233-44b6-4617-94ac-054f340d3fc5","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":217,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"bb8950d2-8a7b-4fb6-a472-9ff5cd99f97c","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":217,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"54a5ec2d-8e79-41f9-9ec1-0a12fbb7d913","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":217,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"b63ad18b-8ea2-457c-ba3c-2aed532b18a6","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":217,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"39e36a87-a9b3-411f-83b8-8fcdfb73dab9","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":217,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"d1e5d000-4d43-41b8-84c8-55d868825647","block_type":"box","text":"systems.","page_number":217,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"56a54ac6-1c33-4c81-a229-dbddc7293694","block_type":"box","text":"7","page_number":217,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"7e2df987-f976-4a01-b6a9-12e77b96302a","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":217,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"ca8891ad-d343-4d94-a123-6324396b3211","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":217,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"5659f8a9-af72-4c34-8abd-33da5303ed45","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":217,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"ea477973-a544-4db3-a470-d674eab07431","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":217,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"b011bbce-0fda-4e9f-9cc4-8a37becbfe4c","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":217,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"389f502c-604a-4c3c-95f4-269c3c38c552","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":217,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"bb8fc35d-dbc1-450d-ab0e-f76cc89bf1d9","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":217,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"4a133af1-0f95-4f66-9135-5d4e20130ce8","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":217,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"576108e9-8aa4-402b-b51a-3934ef293150","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":217,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"56c0f6c6-1ed0-4a97-9c1d-3f5c5f4242b1","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":217,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"a54a4d04-392c-45b5-aead-8df09f40325b","block_type":"box","text":"or internal audit function.","page_number":217,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"3f0ea634-12d2-483a-9873-7d19a21c9e12","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":217,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"0d751765-628f-463e-a42f-13bcfcd7b0c3","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":217,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"e78863ba-f364-47c6-bccd-4711e9d68803","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":217,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"82b32ad3-dbdf-463e-8fc7-6b8855ddb4c7","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":217,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"2343d610-6ea6-4abb-a966-abf0b8c30aa7","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":217,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"f9a6fb0e-76e3-42ac-8d99-22d54eddc27d","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":217,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"6171e6e6-b1e7-47d2-a473-854748ae2a19","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":217,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"f948e808-0436-426f-9be7-218a0b0839b6","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":217,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"e8155c6e-578d-4c12-95ea-67738be797d2","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":217,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"5c6deae4-adae-462e-baaf-68689afc5a30","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":217,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"f485e2a0-30b1-449a-aa10-82d1030bd9fa","block_type":"box","text":"risk.","page_number":217,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"156e6a65-2f1b-4cbd-897f-3d6159b3322e","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":217,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"888a1316-1369-442d-9e73-5c614c9c5514","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":217,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"3dc2f9e8-a57f-4169-b0fd-a8741d535ec6","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":217,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"9b31bbdf-5237-410e-ba63-a1e5d163c4fd","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":217,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"7610be8e-f44d-4445-a9c9-38069341bf6d","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":217,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"68a61962-c69a-45e1-9f14-4e050067ad24","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":217,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"4e278702-7e6b-41a4-8fd3-ef4880d076ae","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":217,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"11aa53c7-bd99-4432-b7a8-55d75a29cbf3","block_type":"box","text":"7","page_number":217,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"d70b2eab-2ead-4daf-b53f-0c640dfa8be6","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":217,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"92802a38-e72f-436e-b240-f0b863c84d8e","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":217,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"33934ff4-10d5-41dd-924e-cc0cadbcc273","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":217,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"a0e925c9-0f80-4823-b2cc-010dab4dec66","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":217,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"a563b8bb-7a0e-40cc-800b-f466d097adce","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":217,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"8c5dca5b-f6d2-4347-8b77-4807f8fb1b85","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f9599161-ccb3-44b7-b70b-54b0e5ec8f18","block_type":"box","text":"Global Principles | 7","page_number":217,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"89da9496-0bfa-4c7e-a9f8-eb0963cb6ab0","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c2add1d4-3e2a-406d-90a7-bf4a6b19482e","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":218,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"e9dd87b4-9eaa-4bff-8af0-b8c44ddd2a4f","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":218,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"c962b8ca-66ba-4faf-b1ef-fa2979930eaa","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":218,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"982e2a22-c440-43ba-b7e1-8c9d901d2f6b","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":218,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"322111bb-c7c0-486e-a88b-7ed5b17b3061","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":218,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"b77648e9-b1a2-4b3c-bca1-c5e2303acc8d","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":218,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"2e092dab-0132-424d-ac5d-3d64af9acdde","block_type":"box","text":"minimizing costs to shareholders.","page_number":218,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"23eb1bc9-0b41-44bf-94f3-bebea81666f2","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":218,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"b73fa3f2-80b3-43f7-a30a-032ecef8d3ae","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":218,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"30b7b6d7-77cb-46f1-a32a-0bdc2d00925c","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":218,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"c00dff71-aa6b-4335-a708-a35eb3386b16","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":218,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"d703b128-24c9-422e-8073-48c1e7dc9749","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":218,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"d85c2135-5d28-4f81-b4fc-100cde9d626b","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":218,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"9a48785b-b02b-4b10-ba29-3b845bbea5f7","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":218,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"80eb9c64-b2ed-447c-8a03-c5f28e856ffa","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":218,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"259446ea-3d51-4100-b235-c89b49302de8","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":218,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"4a6a3253-4ca7-4269-9e80-d5aa6c346f3a","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":218,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"47d4ec12-423f-4ca9-bedd-4a5928f8e47f","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":218,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"ede77413-f5fb-4d46-a77d-92fdc090d900","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":218,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"f5c3f4c1-8b58-46f3-b9cf-00770229c056","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":218,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"5fcd0f3f-f2f6-4880-b876-e1cd98cd4b4a","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":218,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"43021546-f2b2-4680-8fc2-500910b2c3d2","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":218,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"66a4f668-2cb4-4bce-b0a0-30f5a806bf6f","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":218,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"561f890b-3cbf-4a4a-b2ed-bf08e4d207fd","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":218,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"4ae34b76-b8e8-46ef-97b4-7ad31b172131","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":218,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"0fa2e7ef-7da9-4252-93ea-4761530e14c0","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":218,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"152a9b5c-4ed5-4772-a19d-8d9baccd2954","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":218,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"3d813fe5-cbcd-4ede-91f7-d3ce135643d7","block_type":"box","text":"ownership.","page_number":218,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"9c583223-81a2-4693-8a78-f18a7f807bbc","block_type":"box","text":"8","page_number":218,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"3d36463a-6e57-4a85-8a2e-b4911b97ce35","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":218,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"5ff76f8b-9f0d-4694-b07e-f7ab08949666","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":218,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"3a2f365a-72ff-483d-b7a1-6c596dce3749","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":218,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"38c8194c-d759-4c52-ae7a-71cf33be4578","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":218,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"ac09bad1-cee5-45d0-bb8e-4f5d3665d2b3","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":218,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"2c30fe81-a951-45e9-abe8-dc2348cb7b00","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":218,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"cbc86675-64d2-471d-b04f-ff98142c1468","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":218,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"1c21df52-afea-420f-a234-cf94b63691d3","block_type":"box","text":"results over a period of years.","page_number":218,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"76713f4c-607c-4c15-8880-03e378d56d41","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":218,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"f00ce174-ec9f-4d22-9a61-705e3ed44c1a","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":218,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"e2741cd9-0643-4259-b02d-a344b386566e","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":218,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"1c9be101-cb18-4c3c-812c-994561b4c17d","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":218,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"cf4dad9a-6f4a-4c15-bd88-e1db047599c7","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":218,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"6c85cc90-d6ac-49b5-b19d-fff1f8144fa7","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":218,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"c8b06c39-68c2-4f78-9793-0f9c4aa2550f","block_type":"box","text":"executive compensation strategies.","page_number":218,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"b4a97648-0462-4dad-a848-e6fcd10ce545","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":218,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"7e0c8cc3-96d3-4b9a-943a-7690254053f9","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":218,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"cfd486fa-2f49-43fc-813c-e1e630cda758","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":218,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"16a4af23-f393-4ead-ac23-0c6ab8cca074","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":218,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"8e658c53-d0f8-4778-8876-2540ba0d408a","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":218,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"d497c807-654e-44b5-bbbe-0191c827a25f","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":218,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"8ab2b879-3e92-4bd3-8b05-7c0908d595d0","block_type":"box","text":"8","page_number":218,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"6e5145cd-3603-4f64-8559-68f3b00a0c56","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":218,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"2ded5118-5403-4238-ac55-462cbf6a0f07","block_type":"box","text":"different markets.","page_number":218,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"48405556-460f-43ff-97b3-41e8cb407f4f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f4af1a71-d08f-4c5b-8add-8c80936f6d6e","block_type":"box","text":"Global Principles | 8","page_number":218,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"be2351b0-729d-44aa-bb79-028564b809da","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"909850e2-ec89-40a5-bb20-d918fe2b13d1","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":219,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"ac209613-6f8a-4132-8288-2d507d04de3c","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":219,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"205266df-0e8e-4e50-97fa-1667a182a5b3","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":219,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"e7f556a3-4ead-496c-ab70-d8324ec30413","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":219,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"4c2fcb71-d293-489b-84bf-5d9c2aec289e","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":219,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"ba39316a-7296-4433-8e30-47b09ae89f8b","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":219,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"a3666532-0ee0-4e18-af30-b866ecb1ed11","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":219,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"76452448-446c-4b2f-b456-a1ef86f0a16c","block_type":"box","text":"whom they are charged with overseeing.","page_number":219,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"e8df206d-73b2-4c48-b8b9-e08b6c536842","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":219,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"982c9124-910f-4885-bbb3-0353a4921be9","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":219,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"e0c7be37-1e25-4dbb-afd8-0dcd0c10ec33","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":219,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"dd2bc80b-d16c-426b-9bd0-6af452d97144","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":219,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"e4489222-c53b-4a2a-8264-ec5029036784","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":219,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"9d83d935-9fa5-4274-9090-7765f0b83b62","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":219,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"c9e55699-deee-4266-b95e-cff4234c15be","block_type":"box","text":"structures.","page_number":219,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"d0ffc4f9-0a82-4674-9a49-3a86c34422fb","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":219,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"6f2b9cd4-ee8f-479e-8d95-f0c744230d51","block_type":"box","text":"Corporate form","page_number":219,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"b1f57de3-7608-4152-bb03-863d37d88694","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":219,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"f16fa732-517c-47f1-aabe-eb8b79d43ca4","block_type":"box","text":"the company’s purpose and business model.","page_number":219,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"45f68f83-dc67-49ef-b7f5-ca4c1cacafa7","block_type":"box","text":"9","page_number":219,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"f806b266-74dc-4196-9387-088a920b19df","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":219,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"2a7b7542-c6bc-4b55-a9f4-08bdecddd7f6","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":219,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"e4d1d7b7-b42c-4279-bbc4-d51d7d46cf4d","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":219,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"365ab012-ae82-4eee-a52f-dabb2ee4bf6d","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":219,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"ad5fdb31-82a0-4ac7-a1b3-52fcb5ce88af","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":219,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"a706e554-840f-4050-978c-4b5c32224598","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":219,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"6f34bcc6-6c04-47f5-83c2-ac00fcd2dbbd","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":219,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"aaab4231-91d3-45d4-9a76-c4493347fa1b","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":219,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"d3c0634d-214b-4056-8d38-1f7a47f61371","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":219,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"2c4a7f1f-6e9b-418f-b85b-2879f884503f","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":219,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"67536cc7-d8d3-4d8a-a649-9cf6ce83d575","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":219,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"96542d38-a069-4610-84d3-1d0997785def","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":219,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"7ea53192-8293-432d-b54d-34f13a2b64fd","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":219,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"90ec5264-2123-461c-97c1-fa7555b0bf67","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":219,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"2d884aed-8acb-4ef3-8cbf-a0f6337763ad","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":219,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"0d32289e-8df3-421b-8963-a40a66ff762d","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":219,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"6209e54e-782f-4248-b733-7a8f8b794712","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":219,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"c6272e9e-038a-43cb-9013-6e6a0481c1a5","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":219,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"030640a1-56b2-4023-a303-34c61d026944","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":219,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"67f65aca-5bbd-4e7f-ba52-173b20d02a18","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":219,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"ee852b5b-410f-43d0-83cc-93bc156a23e7","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":219,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"4b9f6780-c1d2-4e3d-bb7b-060b14575a97","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":219,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"761db0ff-edd7-4f97-b59f-2ec07ba39611","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":219,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"0dcb7bdb-018a-4f3d-864e-ea4ad0b649fa","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":219,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"367bcf89-94cc-4849-8e4e-0244a2502e91","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":219,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"ec519cf5-6de3-40d5-bc0b-e8e47ed885a6","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":219,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"d017ebdf-c314-49dc-998e-a16e626cda9d","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":219,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"fc573159-c7b6-4efb-957a-197a48a61564","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":219,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"d010a0cc-9380-406b-9079-d4093e228679","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":219,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"d1e87d0c-288a-4052-9fe6-6e16f53c330c","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":219,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"750b3f7d-c73a-4cb6-abaf-ef73ab0a15c8","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":219,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"a78c84da-9851-440e-9a31-426f281b690a","block_type":"box","text":"9","page_number":219,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"d73ab4bd-fb87-4f5d-8bb5-3075fe5ffac4","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":219,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"47b84c2b-68fe-4813-81d6-ce06dcddb4ce","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8e9ded7c-5ae6-4f5c-9e44-133fc641b307","block_type":"box","text":"Global Principles | 9","page_number":219,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"645b16ba-08cc-40fa-9988-bdb6413dfb32","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"70016264-dc04-446d-80df-c580df870534","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":220,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"3cc8eb2a-a4ae-4178-bd9b-6f28a937ff13","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":220,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"0194b35d-27af-4767-a9d3-c7d344d1dc51","block_type":"box","text":"long-term financial interests.","page_number":220,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"630b8418-2b92-4341-9895-a0284a8547f2","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":220,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"fdead08b-d620-4562-9e73-e11e84e24a09","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":220,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"35dab09c-46e9-4ba3-ab33-448d6c932608","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":220,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"61d03ac1-704a-40d3-bffb-d5c77b0af230","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":220,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"7b639380-ac8c-4566-8955-7a92ed3660ad","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":220,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"4bf4a47b-0e9a-41f2-8e21-618d2100662b","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":220,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"b117ba40-585f-48b6-ae5f-b4ab334164d0","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":220,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"a32cbda8-9e2c-4040-b340-ecadac0faf59","block_type":"box","text":"term financial value creation.","page_number":220,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"10cf1c59-659e-411d-b00c-e1cd336caa60","block_type":"box","text":"10","page_number":220,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"9e727e0b-4b42-4171-9496-acafe693181b","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":220,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"3a6d8761-d274-4ceb-b014-5abd6ffd672a","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":220,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"9d7961d9-7d6b-4238-9157-337cf34682f0","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":220,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"c86158fc-e42d-4436-b5b3-009564092a8a","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":220,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"91075f40-f42e-48fd-a5d7-766b0b02586f","block_type":"box","text":"industry-specific metrics.","page_number":220,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"c0147797-c287-4498-870f-bb0894e46fa2","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":220,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"2c38917d-8a48-43de-ab52-9bbd702dded5","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":220,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"be330ef8-69d3-4bd3-b4cf-9f14cfed0f70","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":220,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"1d841b78-3bbc-43f2-bac7-646ec606e921","block_type":"box","text":"11","page_number":220,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"1b4cdf1a-d906-4a38-9939-e7616b9e5cfe","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":220,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"2303d643-e713-4ed8-888c-d8459d2ff3ee","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":220,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"1500c23f-aad0-4a45-816e-8b338ab54a47","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":220,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"00e6bbb6-51d2-4401-954f-56bfa8f0540a","block_type":"box","text":"specific.","page_number":220,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"38b9eef5-159c-4ce3-87fc-236705126bab","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":220,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"65cdf43b-27cb-4a0b-963d-1c3231be65f3","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":220,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"3dcd820f-8bd0-40b7-97fd-02c08f52fe57","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":220,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"5b8c3d02-1eda-4621-97f8-510e701e1b9c","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":220,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"92691947-cc71-4728-9c1f-0afab8acf12e","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":220,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"8415211f-1dc9-4c39-82b7-f4bde1ae7e45","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":220,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"d9253fdf-cb7b-4997-9ceb-8fc52610ea4a","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":220,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"5c546b88-598a-42da-a5dc-85999bdc91e4","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":220,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"6b0acb95-4f5b-466b-9998-b494563dc0f4","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":220,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"c1cc2ffc-5af6-42e8-ba82-37c0213a0a80","block_type":"box","text":"10","page_number":220,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"0caf0630-1b08-444b-9f4a-8991298ad41b","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":220,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"3fd00d1c-a79b-49e1-926b-1ef53b739162","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":220,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"8ae63b88-9c9c-44e9-b7f8-1ace78c0af62","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":220,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"d7f9b064-df32-45f2-a045-f648bf082d33","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":220,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"3d9af42e-babf-4099-999b-55c5a9f16316","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":220,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"82d7d262-ca04-4a15-9934-7f099142031a","block_type":"box","text":"11","page_number":220,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"b6a2f068-04b2-479d-8238-c0b384d060fc","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":220,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"a6c2f175-9a52-4889-9cc2-12ec9ae735d4","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":220,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"c01174c6-3bff-44d5-9191-16eee1357f47","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":220,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"4d61de49-36b6-45a1-a9be-27ce49a6aab3","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":220,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"240564a0-f99c-4339-9dbc-826403a9ae8b","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":220,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"37102291-d685-4dfe-ac90-1c4ead7089cd","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":220,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"d154d081-a325-45fe-922b-22a184291a2d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"fa3da5c2-2682-472e-a3be-221ebfa6db18","block_type":"box","text":"Global Principles | 10","page_number":220,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"654db088-3ce9-4574-b991-06e60977f524","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0c7a1d86-499e-4304-a95d-b51edc1f9ad9","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":221,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"aad9d730-e756-4fad-be25-bb3f698a65d1","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":221,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"748ad7a5-db66-43e3-a06b-0fcc7a65f105","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":221,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"7f009ede-960d-46f7-813f-3e7825b1be39","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":221,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"be0e25fb-c405-4c3f-941d-5c128d084a09","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":221,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"10ede59d-46bd-445b-bcd2-dc5d480af0b4","block_type":"box","text":"12, 13","page_number":221,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"47923da4-cf3d-4f91-ada7-5afaf2a34afa","block_type":"box","text":"From company disclosures and","page_number":221,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"be68e21f-0b9f-4128-a616-28f464d1ff42","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":221,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"fca8a825-415d-4730-b284-6f7fce16ca11","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":221,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"d22068bc-be00-46b8-82d8-2e071f4bb20c","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":221,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"1f16e200-1080-4381-95f1-6e6ad874820b","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":221,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"153a24c5-5ee5-441d-ae05-9ce35db91681","block_type":"box","text":"viewed as best practice in the market.","page_number":221,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"a506e1a9-c747-4d51-953c-8b09fd84cf92","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":221,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"1085dc97-6c45-4ac6-ac00-d62be981ccbe","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":221,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"8084c2de-21f8-402d-b169-17d238269f75","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":221,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"09924827-0a62-42e6-ab79-283334c09cf0","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":221,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"962a9157-bc4e-42f1-9356-70246270382e","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":221,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"a6c214f6-a9a8-4c52-a410-c18eb1dde4b4","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":221,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"993a0c45-1129-401e-a247-f4ca22a13667","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":221,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"8671ecd2-9a3a-4812-9008-f4dbed79614f","block_type":"box","text":"interests of their investors.","page_number":221,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"cd7de533-dd79-4ccb-af91-1a8ccd855f65","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":221,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"4ff47a72-6c95-40f5-80e7-213034bd7e14","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":221,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"7a508965-8e39-48ed-ae8e-90dcf42a51bd","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":221,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"8afbb5c2-453a-4850-bd15-9af54b58f675","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":221,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"20cc8c1e-b1df-4404-9fc6-ade04b0980c7","block_type":"box","text":"good-faith basis as methodology develops.","page_number":221,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"0fdb88d9-8b3d-4385-881e-fdcbb644e421","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":221,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"debbb492-d519-4cbe-8120-30cfc0c329c5","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":221,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"0de4333b-9a11-49a3-8cad-7c89b54551d9","block_type":"box","text":"generate long-term financial returns.","page_number":221,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"aa79ee18-7421-4c36-b01b-4ae78ea62694","block_type":"box","text":"14","page_number":221,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"099f0cba-da8c-4999-822a-1b141dc00a55","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":221,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"a5fee4e9-d6f6-404a-ae1b-3f61e5894bcd","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":221,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"27edda03-7885-4836-9ccb-805f378a2af9","block_type":"box","text":"15","page_number":221,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"dbcd3a51-d3c3-43d1-8ce7-45d6cb5e99ef","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":221,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"4b0bcb2d-2023-45c1-bd7d-488f2b961c36","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":221,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"78f11af2-c978-4adf-85a2-e3ee2dbe74e1","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":221,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"0cc447f6-c6a3-434f-a820-ad40b63a3adc","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":221,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"307e3283-9e2f-42e5-a236-39a99a8d787a","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":221,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"8d09ef24-20b2-4a8f-88fd-f280715e2658","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":221,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"e60abd12-743a-42c7-a0ec-570c91c92ebe","block_type":"box","text":"12","page_number":221,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"7ca0a568-bf35-4b7a-906b-ea00bd785bca","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":221,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"6c231c70-60e2-49f8-906f-3a4ae6cc84ad","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":221,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"06136ff8-37cb-4a18-a746-30d7b6152cff","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":221,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"067a61c5-6852-43b9-b43b-33866900ff81","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":221,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"ae71a5f3-2897-4118-ab18-228749565f9e","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":221,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"9047b3f8-ec63-4a63-a98a-0f8f1ca76399","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":221,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"fa3d5b95-78d6-445d-a4ea-58a751e4385a","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":221,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"d6fb4d49-2226-4168-9a3f-89eb173852d7","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":221,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"d713088b-b156-42d8-9553-cfd876b60b9c","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":221,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"1e7d5676-d303-4db1-8ba4-dd8fef90701f","block_type":"box","text":"13","page_number":221,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"06cc0313-e226-45df-80eb-1ef3cf833d6b","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":221,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"398a269d-60a8-4f14-8f4b-6e00ced7c334","block_type":"box","text":"2025.","page_number":221,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"f486a79d-4af0-4857-bfea-3f77740c7c18","block_type":"box","text":"14","page_number":221,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"e2d84b30-f99f-450d-9b85-917e5eaa83c7","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":221,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"631ce454-5856-4665-a459-8640ecef535d","block_type":"box","text":"2025.","page_number":221,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"2ea5fc0b-c816-4ff4-a41b-f3fa787e41db","block_type":"box","text":"15","page_number":221,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"2857d836-35a3-4085-bddb-e4f6fee0550e","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":221,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"e7c160be-c292-424d-a29b-e605a7b178c7","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":221,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"0d651840-833f-4f29-b34e-043a63a1807c","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":221,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"8a1d7c2a-5966-4619-be0d-5e25d9df2c9e","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":221,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"0c16c801-3ed3-4d3e-90af-a98fc2a1118f","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":221,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"811203b3-7d0c-4202-b049-11e720fa8304","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3cc7f17a-d7de-4019-bd84-829a38e5d1af","block_type":"box","text":"Global Principles | 11","page_number":221,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"41275480-6661-41b5-bc40-daaec7a886d8","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cbb00f1d-69cd-4afc-b9ca-d1e1323bfedf","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":222,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"eefef1e5-d955-46e2-863a-171917df3327","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":222,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"d467d444-eaaa-4b0f-af70-1cfb8e3df419","block_type":"box","text":"16","page_number":222,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"490fa766-e0d9-42e2-9fe6-0dfad5c3fffc","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":222,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"96bae6c4-20aa-4e83-95c6-c0ebbaf76858","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":222,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"8d067587-9cbf-45d0-b718-b2230ff11bc4","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":222,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"5b1a635f-1935-4bda-a486-b86f3cd2ebf8","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":222,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"4bbb3b5c-2dc2-405d-800b-8d886ef62e69","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":222,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"9b119601-6e30-4c87-ad7b-e225444ea94b","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":222,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"845ef9f5-423b-4461-8ba5-727045a0c6b4","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":222,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"86eb0b40-81fb-4fbb-b07d-3531b67e0428","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":222,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"afad8e4a-7d2e-4c7f-a6ef-f8f59491cc5c","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":222,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"a09a481f-5152-402b-898a-999fd2ee9734","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":222,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"0e2cf57c-ee0c-4b1b-af75-613cc6dcf011","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":222,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"eedcb623-ba4d-4dde-9e97-d4944a9fa110","block_type":"box","text":"impacts.","page_number":222,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"694fd770-420c-4ce4-b672-c7cc5ae6207a","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":222,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"6156a3c7-5b59-43dd-959e-4b66e8698cfe","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":222,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"85bcdf19-1410-4e07-84d2-7fa2e3bd4846","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":222,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"12c1de08-3310-4d62-9093-f91aec19c627","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":222,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"be1e3924-2bcd-4ddf-94ba-16c8d5b41250","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":222,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"d1e17dde-456f-400e-a293-b0331a3ac982","block_type":"box","text":"clients at the global and regional level.","page_number":222,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"130569ae-c589-466f-b18c-fe398cc9cb9d","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":222,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"db5f39ee-a308-4b54-b9a3-abf75eedc575","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":222,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"63682d56-dbef-4784-ad2f-7c49f05408a5","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":222,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"da13f44a-202b-45f2-b0f1-f6886c2bc39f","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":222,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"3ce6783c-a2b2-46da-8ccf-4398819364c3","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":222,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"9802294b-0ca9-4d7c-854f-1202ae8499ea","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":222,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"cf0ea9ff-fc19-472c-8906-0298abc77ae4","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":222,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"2eb0293d-f891-42a9-bf6c-897f353748d1","block_type":"box","text":"are independent from the investment stewardship function.","page_number":222,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"4ce39ccf-1c1b-42fe-93d6-973835fc2ed5","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":222,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"d346a0c6-eb89-4baa-89b4-e1f9a02750ed","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":222,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"f5fb9a26-e2f0-46d9-9d9c-b13567f029f4","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":222,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"e8c6e074-0a4d-48fc-b239-40235129ca5d","block_type":"box","text":"VOTE EXECUTION","page_number":222,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"62f60e73-83ad-4f75-8d67-5af67781c78a","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":222,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"30dfd2e9-8dee-4588-bccf-53ccaa41dd6c","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":222,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"7f829daf-9acf-4769-9cd0-535365d3e874","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":222,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"a85d8f6a-9ca0-46c8-bf87-6aff23e990a2","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":222,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"9146f3bd-3ec7-4ff0-852f-ed0d68bbc6d0","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":222,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"00b7ec0e-dbd0-4cd3-82ec-abfdad2e703e","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":222,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"9169eaba-b96c-4fa2-9c76-95240cfe1b11","block_type":"box","text":"management policies and procedures,” below).","page_number":222,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"76536e8f-b5b3-4d56-b1f1-8189739b21ab","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":222,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"343bf8d8-e1b7-4aa2-802a-7ed4dcc04890","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":222,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"8e824f92-191c-47af-9eb5-e35fdda4abaa","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":222,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"848f7e98-8620-4d8e-bebf-69187b04a6aa","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":222,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"2dcb73a0-e730-4a0f-8ee8-ec0d3c28326b","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":222,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"a1d98222-987d-415e-9077-bc57851fef26","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":222,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"355db05d-e918-48e9-8d4f-94bdcb8629fc","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":222,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"04d13705-11f0-4e7e-a1ae-6cf8e4138a0f","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":222,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"fac87569-fb48-4ba6-a2e6-a233a513abb7","block_type":"box","text":"16","page_number":222,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"33fc478c-cda1-4379-bab5-2d3235e03812","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":222,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"bae2020a-5a99-4420-9977-3674debf8809","block_type":"box","text":"December 2025.","page_number":222,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"096714a3-8c83-465c-b824-d4e0e4bb4073","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7c13b68e-4908-4594-a9dc-00b6e13cdace","block_type":"box","text":"Global Principles | 12","page_number":222,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"03bd5824-fe6a-4dad-b893-91661ede3e3b","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a29bc82-6b66-433d-a6c6-e08e121b62da","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":223,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"cefa42d4-9c9c-4083-a4c9-4aa816afbff3","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":223,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"2d7c7904-f7b2-4688-9688-a1539a948227","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":223,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"e0c078da-314d-4d70-89fa-eb7ed2bc19ba","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":223,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"9857607d-2859-405c-a413-29912f4e7b90","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":223,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"dcc331c3-863f-4b3c-8ec0-ed2b97dac634","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":223,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"ccb253ba-7d7b-4186-839c-1142d4e8e716","block_type":"box","text":"enterprise-level vendor management activities.","page_number":223,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"505a75b2-73c6-4850-9e9a-e3d75dff4e82","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":223,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"7321e72b-4cfd-4176-ad2d-d3a57c484ddd","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":223,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"65162fbe-7474-4e2f-b8bc-a0ba4cea8bcb","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":223,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"6332d5f8-3ec9-4b48-bab7-c8e1ff1835a7","block_type":"box","text":"BlackRock employees.","page_number":223,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"8dbc4e94-dfd3-43e5-8def-437ab85197da","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":223,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"4de44704-9f45-4d70-a52f-e5de070b3afd","block_type":"box","text":"SECURITIES LENDING","page_number":223,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"3bccb573-d131-4d16-8608-900220709b2c","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":223,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"b30c991f-dfe8-4032-8aa9-b08b538d1b83","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":223,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"718379d9-e559-445f-b7c5-0a358d738854","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":223,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"7792d784-6548-4fa0-92e6-606cdce3ad11","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":223,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"813e9db8-32d5-4564-b35d-d4e938c13b64","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":223,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"04b32061-1920-4572-9b07-9fe973da561c","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":223,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"094e7be0-ef04-40ad-93dc-362f21ff7f89","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":223,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"259cfaa0-a93b-475d-b5a8-b05f425d44c2","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":223,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"ebd7d720-02d0-450e-9125-7c24033e7753","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":223,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"10143e01-ef74-40e5-b00c-01f8a58a321c","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":223,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"e1d0747d-a0b8-4e5e-b124-f5c302b5a8fe","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":223,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"d4dd28fe-dc85-458c-8acc-f6388c5cf009","block_type":"box","text":"of recall consideration).","page_number":223,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"aa5375af-7cc7-4bb6-b59b-6071dcf06ac4","block_type":"box","text":"17","page_number":223,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"3b0bda6b-db43-4a3a-ad3e-2aef9bf4b067","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":223,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"ae295963-f2b3-4000-b3e4-3cfffa74cd0b","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":223,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"d8864271-f774-4bbd-ae45-96a851abee77","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":223,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"6fbe83f6-547c-4474-bfc3-1c2c9282ab4b","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":223,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"16ce6c7f-1886-4454-a495-59b6c3c16926","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":223,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"55c2e843-e1e9-4440-a192-16ef7dcac7b0","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":223,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"8df46f5b-b3e3-419c-a417-7abd8aa29165","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":223,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"6cf7a0bb-ec8b-4896-865a-99bddab838d7","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":223,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"75387f08-c04a-4dcb-a4bd-4ddc2ae98f8e","block_type":"box","text":"and may modify it as necessary.","page_number":223,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"a26a440c-e1f8-4c7e-8510-d55ff4cecddb","block_type":"box","text":"VOTING CHOICE","page_number":223,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"0848186a-ecb8-44fe-a3f0-dc046d506783","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":223,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"7ab2b825-2a17-4a2a-a678-a16ec0b16dc6","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":223,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"b812b80f-0b9a-4043-8fcb-638f310ceb0f","block_type":"box","text":"18","page_number":223,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"29cd1feb-fa36-4fc1-8f28-49cd1ba00600","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":223,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"00c7817b-b1ba-4cdb-8623-26468c85a397","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":223,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"bff8b658-9103-4227-b9ab-89cd0e40d6d3","block_type":"box","text":"17","page_number":223,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"edbafec1-cc65-4e1c-9b04-4c8c5d48e025","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":223,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"ea117235-fccc-4f34-b6d4-af45765b6f48","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":223,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"314e0b8d-c157-487d-94b2-e89cc107c8d0","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":223,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"6f906b00-482b-452c-bc6c-17b2ae9b737c","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":223,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"c91cf6f5-ebf6-478c-9577-008667487128","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":223,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"c9c4fa65-fa07-4003-9a46-0779602e47a0","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":223,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"a1165a55-3a8b-4fb6-b265-85a2418184bb","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":223,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"0da498b3-2e83-4f73-b025-4e4acaefefc1","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":223,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"d2d6a4a4-48e2-4358-9892-7056247a68ec","block_type":"box","text":"18","page_number":223,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"2c7e4bd3-e98d-4492-b1b3-d6c70bb52911","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":223,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"c2d137d6-9583-4037-9a4d-dc3e0039fda5","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":223,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"28577b2d-efe4-442a-a9aa-a342ccd5adee","block_type":"box","text":"including the decision to lend securities.","page_number":223,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"3d5199cd-0d04-429a-8f99-56a2a410c9c0","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b93fbe27-07f6-4066-adef-7bb4310c7d04","block_type":"box","text":"Global Principles | 13","page_number":223,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"4cce5240-1c0f-45ba-b0e6-0766781e7e2e","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5f570e5c-538f-45c0-91c4-7bdca9a29f3e","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":224,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"c431aac8-c433-49d7-9b0a-edc01ba65fd2","block_type":"box","text":"(SAE) strategies. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for","page_number":224,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"d1a9b355-7600-4ce9-b51d-aad7768d1c90","block_type":"box","text":"BlackRock Voting Choice regardless of their investment strategies.","page_number":224,"box":{"x":70,"y":75,"width":471,"height":11}},{"id":"5693dab6-8a1b-4e03-97be-45e9429c4e1b","block_type":"box","text":"19","page_number":224,"box":{"x":543,"y":75,"width":9,"height":5}},{"id":"8f10c1b4-2d4f-4161-b3f1-3a79045dc3e4","block_type":"box","text":"Voting Choice is also available for eligible U.S.","page_number":224,"box":{"x":558,"y":75,"width":328,"height":11}},{"id":"75c3bee6-490b-45ad-906d-49108e95c84b","block_type":"box","text":"retail shareholder accounts invested in BlackRock’s largest U.S. exchange-traded fund.","page_number":224,"box":{"x":69,"y":90,"width":619,"height":11}},{"id":"efb360e7-f4ee-4c61-a9c6-1ac0035d28af","block_type":"box","text":"20","page_number":224,"box":{"x":690,"y":90,"width":9,"height":5}},{"id":"234dad1b-1818-4fa5-b00f-1644180e3372","block_type":"box","text":"As a result, the shares attributed to BlackRock por tfolios in company share registers may be voted differently","page_number":224,"box":{"x":101,"y":113,"width":782,"height":11}},{"id":"1333be2d-a032-4c15-b0ec-61c963930ed6","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":224,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"969aae5e-483d-485c-89f4-8038861f6671","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":224,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"52674e1f-c69e-4661-988e-90b19f1951cc","block_type":"box","text":"have greater control over proxy voting because of Voting Choice.","page_number":224,"box":{"x":69,"y":158,"width":454,"height":11}},{"id":"e11a3796-a231-48fd-a4df-7507f2bc8149","block_type":"box","text":"21","page_number":224,"box":{"x":525,"y":158,"width":9,"height":5}},{"id":"e175170b-d7bd-4f43-a5a1-6e8775ee2b33","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":224,"box":{"x":343,"y":188,"width":293,"height":9}},{"id":"703b538b-3b5c-4c88-9b8e-e538bfe16588","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":224,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"8407a183-4eeb-4279-b1ef-fda0d2457a33","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":224,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"aaf9c1b6-d03c-4e83-bd84-0d5ba858babc","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":224,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"f95fb5fc-a7ef-40b4-97dd-d4a2dc845ec3","block_type":"box","text":"invest on their behalf. We also publish commentaries to share our approach to engagement on our five engagement","page_number":224,"box":{"x":70,"y":256,"width":825,"height":12}},{"id":"b7ce25f4-de9c-42b1-9c64-8e80ad7d6ee0","block_type":"box","text":"priorities, as well as quar terly repor ts detailing our proxy voting and engagement activities.","page_number":224,"box":{"x":70,"y":272,"width":644,"height":11}},{"id":"74098b59-158e-4525-9c4e-c68b9eb98634","block_type":"box","text":"19","page_number":224,"box":{"x":69,"y":324,"width":9,"height":4}},{"id":"32a614e3-8bc1-4652-b328-38a29e8dcae6","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":224,"box":{"x":83,"y":323,"width":739,"height":12}},{"id":"419f0089-008a-4a3b-a1b2-049e8fdd62b2","block_type":"box","text":"preferences from a set of voting policies from third-par ty proxy advisers. BlackRock can then use its proxy voting","page_number":224,"box":{"x":70,"y":338,"width":800,"height":12}},{"id":"96cae747-934e-451a-b1a3-848e991ed6cc","block_type":"box","text":"infrastructure to cast votes for the SMA based on the client’s selected voting policy.","page_number":224,"box":{"x":70,"y":354,"width":596,"height":11}},{"id":"5d234f9c-5208-47c6-b354-efbb88c2946d","block_type":"box","text":"20","page_number":224,"box":{"x":69,"y":372,"width":9,"height":4}},{"id":"1f098956-dd43-4cd0-9b50-b8ad3c736dda","block_type":"box","text":"Read more about BlackRock Voting Choice on our website.","page_number":224,"box":{"x":84,"y":371,"width":415,"height":11}},{"id":"9b333b2c-9268-4474-a34c-932c1c272653","block_type":"box","text":"21","page_number":224,"box":{"x":69,"y":389,"width":9,"height":5}},{"id":"d93659bc-bdce-474b-a4ae-c8caf548809b","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":224,"box":{"x":84,"y":389,"width":820,"height":11}},{"id":"4e4dafcd-356a-4d8f-8ecb-8693b62873ae","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6d99eadb-ce8d-4963-ba93-fec3307cc68d","block_type":"box","text":"Global Principles | 14","page_number":224,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"673eb987-a8d9-41a5-8837-8532d0645f14","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cc2aefd3-fd2d-473c-936f-d8209d55d403","block_type":"box","text":"Want to know more?","page_number":225,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"d7b15301-9605-4477-a709-33134f21ea9a","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":225,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"106ccef4-e24c-4d39-bd5a-754e0b803325","block_type":"box","text":"This document is provided for information and educational purposes only. 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They also incorporate the more ambitious","page_number":228,"box":{"x":69,"y":594,"width":834,"height":11}},{"id":"ed22f755-4b5f-465a-bfc3-52cb72e18fb3","block_type":"box","text":"goal of the Paris Agreement - namely to limit average global temperature rise to 1.5°C above pre-industrial levels.","page_number":228,"box":{"x":68,"y":609,"width":806,"height":11}},{"id":"b40b4e16-d2b1-4f14-bfa0-d5229fb617bb","block_type":"box","text":"6","page_number":228,"box":{"x":876,"y":609,"width":4,"height":5}},{"id":"628873c5-c0e0-46a6-864a-cd51f207c96b","block_type":"box","text":"The Guidelines apply primarily to companies in sectors that play an impor tant role in the transition to a low","page_number":228,"box":{"x":101,"y":632,"width":766,"height":11}},{"id":"71ba7b3e-1e1c-4690-baad-89c8eb03394f","block_type":"box","text":"carbon economy. 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Net zero commitments are sourced from respective","page_number":228,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"4374a940-c0fe-4e3a-a6e9-4e005cef42c7","block_type":"box","text":"company websites, as of January 2025.","page_number":228,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"f63e6e88-dd77-44c0-a4fa-9c348c046eb1","block_type":"box","text":"5","page_number":228,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"b82f14b8-8be8-41b0-b1b8-153dc43e37ff","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":228,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"d798f02e-ed1b-4c85-9fb8-a0a318213c59","block_type":"box","text":"6","page_number":228,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"40ce4094-60c6-40e4-bb78-fc35c55e7625","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":228,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"0fa6901b-392b-4b97-a553-500b4e2ad914","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0f4f9da3-effc-4685-a32c-7e5d017076e4","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":228,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"e5239f27-5dcc-416a-89a9-f10fbe9cb061","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":228,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"43568f25-2193-485f-add5-6f5a5cd89592","block_type":"box","text":"par ticularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":229,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"f1ece8b1-2b09-485d-b6d6-b959553ae1fd","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":229,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"cc51c911-569a-4056-9b0c-a60da961592c","block_type":"box","text":"7","page_number":229,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"869b1971-5f10-4619-83c6-5e46007d7cba","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":229,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"32f6637d-b9e9-48e8-8541-81c4448eb2d3","block_type":"box","text":"Benchmark Policies.","page_number":229,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"0f0e66c0-a2cd-44df-940c-0f0ba812d21f","block_type":"box","text":"8","page_number":229,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"f6924376-ac8f-488e-93b6-e5bd72331538","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":229,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"6df8d1b7-0058-4928-90fa-807943da2b8f","block_type":"box","text":"decarbonization as an investment objective, BIS under takes our stewardship responsibilities in line with our","page_number":229,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"0167cf3d-c8e5-42b0-b80c-627850b3084e","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. 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Fur ther, the Guidelines consider the","page_number":230,"box":{"x":102,"y":45,"width":751,"height":11}},{"id":"fd3347e2-a95e-4b2c-ac71-96e25c8a078a","block_type":"box","text":"differences between the actions and outcomes over which company management has influence, and those it","page_number":230,"box":{"x":101,"y":60,"width":778,"height":11}},{"id":"d667c0ce-3996-4fa4-83e1-7881db6db0ce","block_type":"box","text":"does not.","page_number":230,"box":{"x":101,"y":75,"width":66,"height":9}},{"id":"78909171-bdd9-408e-b586-c27903a2c917","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":98,"width":6,"height":4}},{"id":"dbb68fcb-e15b-4dda-bf74-bea2516f5fd0","block_type":"box","text":"Focus on useful, contextualized disclosures that help inform investors views, while recognizing data","page_number":230,"box":{"x":102,"y":95,"width":729,"height":11}},{"id":"2534d52d-df3c-41e7-b1a2-6e731e17a308","block_type":"box","text":"limitations:","page_number":230,"box":{"x":102,"y":110,"width":80,"height":9}},{"id":"3dc05f75-2c65-4454-b8a6-85d4cf3818ae","block_type":"box","text":"Under the Guidelines, the dedicated team looks for disclosures that outline key milestones and","page_number":230,"box":{"x":189,"y":110,"width":679,"height":11}},{"id":"772557c9-921a-431f-a995-4fd7f6e89c6f","block_type":"box","text":"dependencies underpinning the company’s low-carbon transition strategy, explain the trade-offs required to adapt","page_number":230,"box":{"x":101,"y":125,"width":807,"height":12}},{"id":"c2b13989-93fb-42f8-8535-478efe590fa2","block_type":"box","text":"the business model, and include relevant data and narrative.","page_number":230,"box":{"x":101,"y":141,"width":433,"height":10}},{"id":"dcd0745a-fcaf-4c7f-aff3-85334f781b02","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"a6e2124b-9e59-4319-af3a-d9e60b1d8959","block_type":"box","text":"Consistency with the participating clients’ position as a minority investor:","page_number":230,"box":{"x":101,"y":161,"width":541,"height":11}},{"id":"8b91c90e-2d22-4efe-8eac-b30f666ef9e1","block_type":"box","text":"The boards and executive leadership","page_number":230,"box":{"x":648,"y":161,"width":261,"height":11}},{"id":"584473b0-8dfa-4a34-a031-23ea8b5850ee","block_type":"box","text":"of companies determine a company’s strategy and its implementation. Under the Guidelines, the dedicated team","page_number":230,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"506a20e0-cdd3-46c9-9685-a1f616eb60b9","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":230,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"9732a2be-3428-470e-a2c1-bf659ce627ae","block_type":"box","text":"judgment of the priorities and outcomes most aligned with par ticipating clients’ investment objectives.","page_number":230,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"832f1925-06bf-4258-be26-9a4d519820c9","block_type":"box","text":"Voting approach under the Guidelines","page_number":230,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"907d31a4-1daf-48c5-af97-fa683968b1bc","block_type":"box","text":"12","page_number":230,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"456c2068-511d-4cec-a080-88dbf5a8decf","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":230,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"5e0f00be-0818-4ab2-94be-d06c60773392","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":230,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"3c7572d2-e564-4952-89c2-0c92f4cd02ea","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":230,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"c863d986-49a8-4ff8-8e54-dfe49970796c","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":230,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"06ed9a19-bcdf-4ceb-a520-eae2b6f282d1","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":230,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"0a1591da-82e5-46af-886c-7626de659c74","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":230,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"72672c5e-7ef3-4d1b-9523-e7621cbc4372","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":230,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"5f871809-176d-4460-8dc8-a81aea94bc3f","block_type":"box","text":"Corporate Disclosures","page_number":230,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"f7060613-5f10-4895-9f53-93124dd24159","block_type":"box","text":"13","page_number":230,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"860540ae-2750-4d8f-8233-efa1ef3024c5","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":230,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"27359a10-696d-4914-bcd9-ec225732968b","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":230,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"c70ef0d3-0a47-464f-8845-9493c8e0362c","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":230,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"a36abd0c-957f-499f-812c-ae720d2ab04d","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":230,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"1da51002-09af-487d-8c96-124e0e613dfd","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":230,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"de31dc43-2156-488e-8bcc-e1512ae50ea0","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":230,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"1de0807b-2cd4-45b5-a018-adbe29c8b635","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":230,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"1233554c-81fa-49b7-9f68-e2094efb738a","block_type":"box","text":"(2) low-carbon transition-related repor ting. Standardized disclosure of sustainability-related data suppor ts investors","page_number":230,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"3794eb62-416b-4a0d-8d39-118a119f7591","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":230,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"df3d7d49-043a-447e-92c7-60bd839166c4","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":230,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"a99983e3-1ce3-48a4-9eab-1b1e326dcb29","block_type":"box","text":"14, 15","page_number":230,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"c07661ab-a01d-46c4-b368-a3e9366b8749","block_type":"box","text":"IFRS","page_number":230,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"77bd1693-3021-4a61-9f91-2bf9228a65f3","block_type":"box","text":"S1 addresses the general requirements of sustainability repor ting and IFRS S2 sets out the disclosures that","page_number":230,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"15bc6e58-72ae-4179-abc1-a2d6f7f850fa","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":230,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"81eaf85e-8d9e-4f7f-bb5f-30c94a56c3fe","block_type":"box","text":"transition-related risks and oppor tunities. This includes receiving independent, third-par ty assurances, as audit","page_number":230,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"272e9267-7ea5-4728-ba1a-d6999e066177","block_type":"box","text":"and assurance standards are developed.","page_number":230,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"dc745507-2952-4042-97dd-4690a1cee46a","block_type":"box","text":"12","page_number":230,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"8b3293aa-5574-4fc3-acdc-1ffdbf4b7cdd","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":230,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"e29ea4c8-2c59-4c78-a2c7-fefb16dbeff6","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":230,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"22dc4488-e358-4f11-aa02-a3dcc78f80a3","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":230,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"763f8a1a-5c6f-4ccf-ab4a-bcbc1fc9b6dc","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":230,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"f51c437f-2c4d-453a-a5d8-52a01bc9b163","block_type":"box","text":"13","page_number":230,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"a33a4d46-a7bd-4622-8369-9f9704c4111a","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":230,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"6cffcb31-ff41-4c19-b5d1-7387d637039d","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":230,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"fbd86d4d-17cf-407b-b8a9-d34037b16260","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":230,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"4d43bd9c-deb3-4d19-b290-a4a4beffb601","block_type":"box","text":"14","page_number":230,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"42e9c0e5-d453-4a05-ae6c-0689b5508db0","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":230,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"32d46378-2f38-4728-b304-af2ab6bd5991","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":230,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"2b3edd71-8d54-47d7-8015-9abd6a75c433","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":230,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"a230fbd3-d9ec-4b08-bb32-57755368e987","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":230,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"53b22eb8-88f7-48d3-9fc6-fa73011a317e","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":230,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"98a1dd78-bba3-494c-9445-d997fb22e6ef","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":230,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"b4520b72-1644-4e1f-928a-8b0d4abccc6f","block_type":"box","text":"15","page_number":230,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"c294ed8c-305a-47ad-82b2-4067a518eace","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":230,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"d36248ce-7847-49c6-892d-a232f52063ac","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":230,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"ed70a638-2fd7-4b47-9016-9729c20777b0","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":230,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"c664b81e-5acd-4fcb-8783-585bfa7ac7a0","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":230,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"e41a0700-59cb-48a2-b289-f4adaefb9cc2","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":230,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"38e5dda7-0247-44d6-a220-22907fe47b60","block_type":"box","text":"BlackRock Investment Stewardship","page_number":230,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"27ed0fc9-ef93-4545-8a3f-32d30a3faa6c","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":230,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"24431b1e-c202-4155-8e47-a700d3ac4a12","block_type":"box","text":"BNM1026U-6032633-19203502","page_number":230,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f3754caf-7341-4f8e-bfe3-41c68a3ff835","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":231,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"43109f2b-5705-4963-b55d-bb3a4a6aa240","block_type":"box","text":"16, 17","page_number":231,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"4210f55a-a5c7-4cbc-903b-624fdde66dce","block_type":"box","text":"In addition, the dedicated team looks to","page_number":231,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"0cedff6c-7d86-4d87-bb46-1929bfe966f5","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":231,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"a77ba5d7-e911-4178-8841-93389e90d65c","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":231,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"7c85ac48-bf1f-4759-b308-c87bf9a3fd5f","block_type":"box","text":"scope 3 emissions reductions. 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For some companies that play an impor tant role in the low-carbon transition, scope","page_number":231,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"367d6469-73e7-4e6c-ba34-e7a3d50fb6a7","block_type":"box","text":"3 may represent their only significant source of GHG emissions in the value chain. While we do not believe","page_number":231,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"e82f53a4-691f-4639-95ca-bbbee969695d","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":231,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"b6e0c167-62c0-434b-af7b-b44bd06c397d","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. 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As defined by the ISSB, a transition plan “lays out the entity’s targets, actions or resources for","page_number":231,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"0fb69453-8c73-4449-ac73-d39c43dbaf15","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":231,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"7b60b120-d8a2-4fb7-ad3c-1e84cd624909","block_type":"box","text":"(see Appendix 1).","page_number":231,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"175da145-ba38-4796-9b31-cf2f0dddcbd6","block_type":"box","text":"19","page_number":231,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"2a3412c1-2fe1-45c6-a9eb-e4a0dc8fbb2e","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a market to corporate","page_number":231,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"6d373053-e958-49e1-ae26-e546c9b8929d","block_type":"box","text":"transition plans.","page_number":231,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"5d60c9fc-16c4-4857-a694-22ed1fe9ef39","block_type":"box","text":"20","page_number":231,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"7492816b-ef2f-4a9c-8d6c-611f8ca5c283","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":231,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"01cc98b1-3831-43ff-bf4a-7cbe005bdba5","block_type":"box","text":"repor ting approaches.","page_number":231,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"943e69e3-571c-4a59-98ca-caf4b68f71bc","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these disclosures","page_number":231,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"030f011c-0d8e-45fe-9489-435a4745a867","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":231,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"a60780ac-3f51-4465-95f2-e3ed9f149964","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":231,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"74ba3d0a-cabf-4c52-a617-3eedbb9e4851","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":231,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"959c9610-e8a8-420b-a97c-b19f4b1cfefe","block_type":"box","text":"their shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make","page_number":231,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"111aa4b0-cc7e-47a2-8eb8-691a0d53869d","block_type":"box","text":"informed voting decisions.","page_number":231,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"ace87727-e00f-454d-91aa-c562d2a81390","block_type":"box","text":"16","page_number":231,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"e39e9446-fcb2-487f-81c6-846e0775c602","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":231,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"0a36381a-14a6-4112-93c6-76275d4b9ba3","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":231,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"9e239a1a-c659-4284-9bf3-971b04f9cfaf","block_type":"box","text":"December 2025.","page_number":231,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"8410c076-d8b8-4acf-aea9-2c15d8420649","block_type":"box","text":"17","page_number":231,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"07e3c73c-0899-408a-8386-5ff53620d763","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":231,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"0b53db75-46b4-41b5-bb40-f542a270b096","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":231,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"58c5eafd-8363-4f0f-88be-72fb9524dd2c","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":231,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"6212d656-a6b7-488a-a4d6-c88dec50d76e","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":231,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"558ed6f2-155c-4c1f-b9c5-22bb7af7fb35","block_type":"box","text":"18","page_number":231,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"4b9fa83f-d57e-4a78-a01b-2c8d24400df3","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":231,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"00bf3225-c19c-4907-a0fa-604d616531cd","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":231,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"402c5e26-5d32-4c94-b2ee-c088a3e3f102","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":231,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"27eb246f-eccf-48de-8c61-04f12f291bfa","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":231,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"9200ad7a-c9f2-4d0d-81a1-e7d7f7fa4aa2","block_type":"box","text":"material to their business models.","page_number":231,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"05090757-78dc-4aa7-b9ac-ae0a0ab62d95","block_type":"box","text":"19","page_number":231,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"dea99af3-9d9c-4474-b4bf-c50ed643831d","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":231,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"ec9a6425-0602-4d22-989a-1bbfdb7ad250","block_type":"box","text":"December 2025.","page_number":231,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"4df16c64-33ae-4442-8047-acb302c7bba7","block_type":"box","text":"20","page_number":231,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"c804a773-dfd5-4a6b-a029-7479629c0d41","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":231,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"d94387f0-f030-41c6-a2b6-d83d1a56e915","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":231,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"7c721529-5213-4b2b-b954-aa24eecd63da","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":231,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"9e8c0b7c-426b-48a1-b0d1-e830342c22d8","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":231,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"8767c35d-dcc4-4f41-9eba-b69fa249bdf0","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":231,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"f65c29a1-feb2-432a-b69b-fc45a930ae59","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Where the dedicated team","page_number":232,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"d7aaeb0d-4574-41cb-9e52-d53f9319021e","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":232,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"e19ffa39-30cb-46c9-b030-ad8f30964987","block_type":"box","text":"having the most responsibility for the issue. 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The Guidelines consider these","page_number":233,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"360e9170-74c1-4123-b084-1e54fcb2ef49","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":233,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"51e5f5d9-aa35-45e6-9361-67be8c9434d2","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally suppor ts management’s climate","page_number":233,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"47188bcc-e4fe-43be-bcf5-aa2953fd5ba8","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":233,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"1f8ad69d-4cc5-4fe6-8bfa-ab6babb9a24e","block_type":"box","text":"transition. Similarly, the dedicated team generally suppor ts management’s proposal on a progress repor t if the","page_number":233,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"65312f8d-2698-4035-a823-a54bb46f9f8d","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":233,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"f7d888bc-1962-4576-93d4-2d1fc877d42f","block_type":"box","text":"transition plan and targets.","page_number":233,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"2dc54a96-fcaf-476d-96ce-c6b43da0bac8","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":233,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"fcbfec8f-ed94-4d25-a65e-e46160b9bd6d","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":233,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"24cef6ee-9853-4b0a-82aa-732cd2d54992","block_type":"box","text":"long as cer tain requirements are met. 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The dedicated team assesses the implications for, and the relevance to, the","page_number":233,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"9c38f9b5-0a79-4051-b3bc-349853dd7346","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may suppor t","page_number":233,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"fca21276-962f-4696-bafd-7d9c398cf83f","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":233,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"b07f16ae-e876-40b3-810b-e048274a4a33","block_type":"box","text":"•","page_number":233,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"67244f5b-d0dd-4508-a2b7-c22f31a57580","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":233,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"d7dd6f9c-9da5-4d5b-9de4-3589f5df5113","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":233,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"3d267d4a-d098-4b03-aa4d-db41dad5ff17","block_type":"box","text":"•","page_number":233,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"12f95ac1-9634-4e6f-8867-c208b1f4a5ca","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":233,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"2b719ef4-0d45-4a36-9792-57d9b5ba05de","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":233,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"90e43f00-5d19-4efa-b823-3328d4e9462a","block_type":"box","text":"•","page_number":233,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"015d141a-9ecd-4117-b100-642c5dd134dd","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":233,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"6a7a0ffd-2245-4d6d-839c-626a2ac5c475","block_type":"box","text":"•","page_number":233,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"f8b10876-3626-4a75-a671-199baf3d12fe","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":233,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"d4a014d2-4393-4aa6-b06b-5299f4b4c2ca","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":233,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"bb468078-743b-43f5-8d89-5023a4ba1fd8","block_type":"box","text":"25","page_number":233,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"cd082ff1-592f-4aea-adf2-c31bc06286f2","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":233,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"73b1bfaf-45ba-4745-8d09-b6cf0ede84b9","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":233,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"a8d37aa6-6628-44a4-957e-9aac5a93632e","block_type":"box","text":"RELATED MATTERS","page_number":233,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"1f2e5e47-ee90-4472-924d-85cebf603b8a","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":233,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"d24c2c4f-37dc-4594-a749-c96677085c05","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. 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Some companies, in light of their long-term strategy, may decide to include relevant","page_number":233,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"6a185b7e-569d-43d3-bd13-959b9eb012c9","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. 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These include a company’s impacts or dependencies on natural capital and key","page_number":234,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"d29d6a90-773b-4dfd-be7c-a512598b357e","block_type":"box","text":"stakeholders.","page_number":234,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"e9a46c69-8285-4578-b5a4-d30b54681e48","block_type":"box","text":"26","page_number":234,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"e0dcb14a-2027-4522-b0a7-b3025da6b5ff","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":234,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"d0227b33-944d-4266-85c5-4d78cd01582f","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":234,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"cea6667f-7c4c-48b0-8cbe-880a24320050","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. 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The economic transformation is being driven by changes in","page_number":235,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"8fa61b9f-111e-45c2-b479-b2d634936de1","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":235,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"2d3c26f5-2c37-434e-8fee-947a522eaa04","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":235,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"a4d4f442-b4f7-4bb1-b857-a4dc6dbaee28","block_type":"box","text":"Decarbonization:","page_number":235,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"ed253515-46c8-4ea5-9bc6-d1cd300be2bd","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":235,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"127e7450-433d-42fa-9336-d804e47443d5","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":235,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"ed17b976-c253-4a2e-853f-18af67865a9a","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":235,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"f445ea08-ffb9-4155-8b8e-cfaad32bd166","block_type":"box","text":"e.g., methane.","page_number":235,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"238bff45-3f99-474c-bbea-f572221259f4","block_type":"box","text":"Climate-related risks and opportunities:","page_number":235,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"f3e270e9-2219-4ab8-b4f3-1981c71c6d58","block_type":"box","text":"The investment oppor tunities and risks associated with the transition","page_number":235,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"c6956203-42ec-4d8d-9861-7ec1bd48b814","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":235,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"2febcbe8-5c0b-40ac-823e-01669ddc637c","block_type":"box","text":"to physical climate change.","page_number":235,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"e2263962-4ab4-4412-bdaa-b06b8abfaffe","block_type":"box","text":"Climate-related transition plan:","page_number":235,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"cf489b23-6edc-4d5c-a336-ebe634d2c426","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":235,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"9c2c7d6a-8386-4ab6-8f06-edc2b9c8785d","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":235,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"6f537ec0-fb8d-4118-b281-9ef6bea533e0","block_type":"box","text":"greenhouse gas emissions.”","page_number":235,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"97075024-7df0-4053-bbea-19bb953c1caa","block_type":"box","text":"27","page_number":235,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"8f93f7b0-2cc2-4c5f-af12-a92d861cdb81","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":235,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"3769f7f6-e8ae-4344-b1c3-efd3ae91c998","block_type":"box","text":"Targets that “","page_number":235,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"2798eed3-043a-4c95-877d-699f55914cdf","block_type":"box","text":"are in line with what the latest climate science","page_number":235,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"9ead8af4-e7ab-4066-8d35-17c0b6086ddd","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":235,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"a9b493e8-eab6-4dc1-8b24-5cb3581a083b","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":235,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"7713fc95-0dc8-4fda-87a6-0d11e932885b","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":235,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"76dfdb01-09a9-419d-a2c3-1f9e384b0895","block_type":"box","text":"with the Paris Agreement goals.”","page_number":235,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"152d27ff-85b1-4505-b788-4dac14eb3b9a","block_type":"box","text":"28","page_number":235,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"856c7051-cec0-412f-bbef-7543abe0f156","block_type":"box","text":"Scope 1:","page_number":235,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"1f532546-82b2-459e-91c5-d31f08811a5c","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":235,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"2e8c37a4-7544-4514-be1c-71067b9451e7","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":235,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"51ff4116-7e7f-48e5-a70f-ff17e7392fb0","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":235,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"860e1586-9559-4f85-98cf-f81cde6f9f6f","block_type":"box","text":"29","page_number":235,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"8d6f27d8-3619-4ffd-8285-e20d69d1b830","block_type":"box","text":"Scope 2","page_number":235,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"a7b833fb-3648-4b1a-9518-64565a2a8994","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":235,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"fc96e5f7-573f-4985-bcf6-d2807bb86f65","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":235,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"cbb695a2-3c1e-411f-9bb2-96e56d144e07","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":235,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"c84b0d79-245a-48b0-820a-602e9864e93d","block_type":"box","text":"30","page_number":235,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"542525c0-b20c-4f87-af47-65ce5a072304","block_type":"box","text":"Scope 3:","page_number":235,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"0d2f37e5-5384-4717-8ab8-ac75eab957c3","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional repor ting category that allows for the treatment","page_number":235,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"95e247bd-990c-4de6-9bf3-70e9cdd2b873","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":235,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"bab6a65a-4b92-4ee6-aac8-6ace5f14de3c","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":235,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"e354fd74-4294-4afb-8082-756ef3d6cd36","block_type":"box","text":"31","page_number":235,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"ba883c24-f186-490f-9ab4-2ed08977c0ff","block_type":"box","text":"27","page_number":235,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"0956a7cf-6a1b-4503-b608-c35abee36057","block_type":"box","text":"As defined by the International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":235,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"661dc3c3-b70b-4f6b-b8f8-870f25ca82ec","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We","page_number":235,"box":{"x":69,"y":694,"width":779,"height":11}},{"id":"7533f509-7234-4ced-9fc6-70fdb437948a","block_type":"box","text":"anticipate transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":235,"box":{"x":69,"y":709,"width":836,"height":11}},{"id":"a4e61d73-cc0a-4bae-b350-301bffb519c6","block_type":"box","text":"28","page_number":235,"box":{"x":69,"y":727,"width":9,"height":4}},{"id":"6d66e094-0e46-4c34-aa94-7fcad3d0fe47","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that","page_number":235,"box":{"x":83,"y":726,"width":785,"height":12}},{"id":"fc3e956b-1330-4370-9c56-0acea15b8a08","block_type":"box","text":"enables companies and financial institutions worldwide to play their par t in combating the climate crisis. We develop","page_number":235,"box":{"x":69,"y":742,"width":831,"height":11}},{"id":"6157db96-3354-4b7b-bf97-b1a293dda7dc","block_type":"box","text":"standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in","page_number":235,"box":{"x":69,"y":757,"width":826,"height":11}},{"id":"a488bee0-b0f2-47c9-b408-d2ad75bee1f1","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":235,"box":{"x":70,"y":772,"width":795,"height":11}},{"id":"4431869e-dd2c-4f05-901c-a38fecf5a77e","block_type":"box","text":"Source: Science Based Targets initiative, “About Us.” Websites accessed in December 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